Civil servants locked out of housing loans due to salary-burdening debt traps – FG

Federal Government has revealed that many civil servants are unable to access housing loan schemes because their salaries are heavily encumbered by multiple loans from commercial lending agencies.

Executive Secretary of the Federal Government Staff Housing Loans Board, Hajiya Salamatu Ahmed, highlighted the issue during the Permanent Secretaries’ Quarterly Forum with Union Leaders, hosted by the Service Welfare Office under the Office of the Head of the Civil Service of the Federation (HCSF).

She stated, “The majority of workers have mortgaged their salaries by taking multiple loans from agencies offering quick loans, making it impossible for them to qualify for housing loans. This is a troubling situation.”

Ahmed expressed concern over the issue, noting that the board had raised the loan ceiling to N20 million for senior workers and introduced a special scheme for officers on Grade Levels 8 to 14.

She added that partnerships with mortgage institutions and private developers are underway to enhance housing affordability for civil servants.

At the forum’s opening, Permanent Secretary of the Service Welfare Office, Mrs. Patience Onyekunle, emphasized the importance of such engagements in fostering dialogue on staff welfare, industrial harmony, and productivity.

She noted, “This forum provides a platform to address welfare concerns progressively through sustained dialogue with union leaders.”

Onyekunle also outlined government initiatives under the Federal Civil Service Strategy and Implementation Plan (FCSSIP 2021–2025), including group life assurance and a proposed N750 billion pension bond bill.

Additional welfare measures include the revival of the Nigerian Social Insurance Trust Fund (NSITF) and free medical services at the HCSF complex.

Deputy General Manager of NSITF, Mr. Usman Tumsah, explained that the fund is streamlining its claims process and digitizing applications to ensure prompt compensation for workplace incidents.

He noted, “We are intensifying efforts to sensitize Ministries, Departments, and Agencies about the benefits of enrolling employees in the employee compensation scheme.”

Chairman of the Ministry of Information and National Orientation Union, Mrs. Chika Ukachukwu, praised the government’s efforts but called for improvements in the National Health Insurance Authority (NHIA) scheme.

She remarked, “Accessing medical care under NHIA is often discouraging due to bureaucratic hurdles. Streamlining these processes would make a significant difference.”

The forum, attended by representatives from various unions, including the Joint Union Council, PENCOM, NSITF, NHIA, and Clean Nigeria, underscored the government’s commitment to addressing civil servants’ welfare challenges through ongoing collaboration.

(NAN)