The Federal Mortgage Bank of Nigeria (FMBN) will on Tuesday, October 27, 2026, officially launch its first Non-Interest Mortgage Product under the Ijarah Muntahia Bittamleek (IMBT) model, also known as Lease-to-Own, in Kano State.
The launch, scheduled to hold at Tahir Guest Palace, No. 4 Natsugune Road, Nasarawa GRA, Kano, at 10:00 a.m., marks a significant step in the Bank’s efforts to expand access to housing finance and provide Nigerians with more options for achieving homeownership.
The Non-Interest Mortgage offers an alternative to conventional interest-based mortgages through an asset-backed lease arrangement. Under the model, FMBN acquires a residential property and leases it to an eligible customer, who makes agreed periodic rental payments while occupying the property. Upon fulfilling the contractual obligations, ownership is transferred to the customer at the end of the agreed tenure.
Developed within Nigeria’s non-interest finance regulatory framework and approved by the Central Bank of Nigeria (CBN), the Ijarah product is designed to promote financial inclusion, transparency and greater choice in housing finance. Importantly, the product is open to all eligible National Housing Fund (NHF) contributors, irrespective of religion or background. It complements FMBN’s existing mortgage offerings and provides an additional pathway for Nigerians who prefer an alternative to interest-based financing.
As part of activities marking the launch, the Bank will also commission the FMBN-Ijarah-01 Estate in Bichi Local Government Area of Kano State and hand over keys to beneficiaries under the Non-Interest Mortgage lease-to-own arrangement. The exercise will mark a practical milestone in the implementation of the product, translating its promise of an alternative pathway to homeownership into tangible housing opportunities for beneficiaries.
The Bank notes that the product is for every eligible NHF contributor who have not previously benefitted from the NHF scheme, and who meet the stipulated requirements for applying for the loan.
