The Federal Government has issued a warning to civil servants approaching retirement: failure to repay housing loans obtained from the Federal Government Staff Housing Loan Board (FGSHLB) or licensed cooperative societies may lead to the forfeiture of mortgaged properties.
This was disclosed in a memo from the Permanent Secretary of the Career Welfare Office, Patience Oyekunle, reminding public servants of the requirements outlined in the Public Service Rules.
The memo emphasizes the need for retirees to present a Certificate of Non-Indebtedness from both the FGSHLB and their respective staff cooperative societies before exiting service. The certificate, issued through the Office of the Head of Civil Service of the Federation, is mandatory under Public Service Rule 021002(p).
“It is imperative for all public servants to obtain this certificate as part of the retirement process,” the memo stated. “Failure to settle outstanding housing loans before retirement grants the FGSHLB the legal authority to repossess the property involved.”
In addition, all ministries, departments, and agencies have been directed to enforce strict compliance with the rule, ensuring that no retiring staff member bypasses the process.
The regulation is also linked to the disbursement of retirement benefits from PENCOM, as indebtedness may delay or affect entitlement payouts.
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