The federal government has approved an increase in housing loan limits for civil servants, with permanent secretaries now entitled to borrow up to ₦25 million.
A circular issued by the office of the head of the civil service of the federation revealed that officers on grade level 8 can now access a maximum of ₦8 million under the revised scheme.
The memo, signed by the head of the civil service, Didi Walson-Jack, stated that the initiative aims to enhance the welfare and living standards of federal employees.
It was addressed to the chief of staff to the president, Femi Gbajabiamila; secretary to the government of the federation, George Akume; ministers; permanent secretaries; service chiefs; and heads of federal commissions. The circular also advised interested officers to ensure full compliance with all procedural guidelines when applying for the facility.
“In line with the federal government’s commitment to enhance the welfare and well-being of its workforce, the ceiling for housing loans provided under the federal government staff housing loans board has been reviewed upwards,” the memo stated.
“This review is intended to enable eligible and interested civil servants to better leverage the loan facility to acquire personal residential homes in alignment with the government’s housing policy.”
Under the new structure, permanent secretaries can access a maximum of N25m, level 17 officers can obtain N14m, while those on levels 15 and 16 can get up to N12m.
Officers on Levels 12 to 14 are entitled to N10m, those on levels 8 to 10 can access N8m, levels 5 to 7 can get N6m, and Levels 3 to 4 can receive N5m.
Before the review, the maximum loan accessible to the highest-ranking civil servant was N15m.
The memo further explained that loans are to be repaid over a period of up to 25 years, depending on the applicant’s age.
Retirees who exit service before full repayment must make alternative arrangements to settle outstanding balances from non-salary sources as directed by the government.
It added that if a borrower dies before completing repayment, the board may take possession of the mortgaged property unless the deceased’s representatives make satisfactory repayment arrangements.
Reacting to the development, a former national president of the association of senior civil servants of Nigeria and ex-officio member of the union, Tommy Etim, described the review as a long-overdue step.
“We met with former president Muhammadu Buhari a few years ago on the need to raise the loan ceiling so it could be more meaningful and accessible to all civil servants. Before now, the amount was so low that even some senior officers could only access about N5m,” Etim said
“What you can access now is based on your annual income. The ceiling for each level is calculated according to each cadre’s income, so it’s relatively fair.”
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