Heavy Salary Deductions Block Federal Workers From Housing Loans – FG

The Federal Government has admitted that many civil servants are unable to access its housing loan schemes because their salaries are already weighed down by deductions from multiple commercial loans.

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

“Sharp loans” eroding eligibility

Ahmed explained that while the government has increased the loan ceiling to ?20 million for senior staff and introduced a special scheme for officers on Grade Levels 8 to 14, many workers have little or no room for repayment.

“Majority of them have already mortgaged their salary by taking series of loans from these agencies that operate ‘sharp loans’. So, at the end of the day, there is no way you can propel them to pay the housing loan. This is very sad,” she said.

She added that the board is working with mortgage institutions and private developers to make housing more affordable for federal workers.

Broader welfare reforms

Declaring the forum open, Mrs. Patience Onyekunle, Permanent Secretary of the Service Welfare Office, said the engagement was aimed at strengthening dialogue with unions on welfare, industrial harmony, and productivity.

She highlighted initiatives under the Federal Civil Service Strategy and Implementation Plan (FCSSIP 2021–2025), including:

• Group life assurance for federal workers.
• The President’s ?750 billion pension bond bill before the National Assembly.
• Revival of the Nigerian Social Insurance Trust Fund (NSITF).
• Free medical services at the HCSF complex.
• A review of recognition and reward policies.
• An open-door policy for union engagement.

Compensation and insurance

Mr. Usman Tumsah, Deputy General Manager at NSITF, said the Fund is digitising applications to simplify claims and ensure timely compensation for workplace accidents and deaths. He noted that while civil servants are automatically covered under the Employee Compensation Scheme, many MDAs had yet to complete required documentation.

Union leaders react

Union representatives welcomed the reforms but raised fresh concerns. Mrs. Chika Ukachukwu, Chairman of the Ministry of Information and National Orientation Union, commended the initiatives but called for urgent improvements to the National Health Insurance Authority (NHIA) scheme, citing delays and bottlenecks that discourage workers from seeking medical care.