FMBN Introduces Non-Interest Mortgage Product in Kano

The Federal Mortgage Bank of Nigeria (FMBN) launched its first Non-interest mortgage product, Ijarah Muntahia Bittamleek, in Kano. This product, also known as Lease-to-Own, is designed to cater to Nigerians who prefer financial services aligned with their values, particularly those avoiding conventional interest-based mortgages.

FMBN Managing Director/Chief Executive Officer Shehu Usman stated that the initiative aims to expand the mortgage market and provide pathways to homeownership for eligible National Housing Fund (NHF) contributors. The product allows customers to occupy properties through a lease arrangement, with ownership transferred upon fulfilling contractual obligations.

Minister of Housing and Urban Development Engineer Muntaqa Rabe Darma emphasized that this launch aligns with the National Mortgage Industry Policy, aiming to disburse at least 40% of NHF collections as mortgages. The bank aims to process 2,000 mortgages this year and 5,000 by 2028, addressing the significant housing deficit in Nigeria.