Developers have faulted the Federal Government’s approved N25m housing loan for its workers, describing it as unrealistic and disconnected from current economic realities, including high construction costs and limited access to affordable building materials.
Reacting to the development, the Chief Executive Officer of Riel Homes, Kolade Adepoju, said the recent housing loan scheme approved to be pegged at N25m for a three-bedroom flat was baffling.
He retorted, “I don’t know who would sign up for that, referencing my own experience building a quality one-bedroom unit, which costs N14–15m, excluding land and roofing. For a standalone three-bedroom, the costs are staggering: 600 bags of cement (N600,000 alone), 3,000–5,000 blocks (N4m), and fittings like windows, plumbing, and electricity.
“N25m doesn’t cover the carcass, let alone finishing.
The figures are similar to 20-year-old house prices, ignoring today’s inflation.”
Adepoju noted that the solution wasn’t unrealistic loans but reducing material costs.
He said, “Can we cut cement prices by 50 per cent? Iron by 50 per cent? Lowering expenses would make housing affordable, not the other way around. This proposal feels like a PR stunt. You cannot build it for that. Costs like aluminium windows (N1m+) or foundation work prove the numbers are flawed.
“It’s not realistic; policymakers should address root causes, not symptoms.”
Corroborating the above, a developer, Jeremiah Akinsele, said the allocation of housing loans, such as the approved N25m to civil servants, raises critical questions.
He continued, “If the intent is to support those in need, the system appears misaligned. Many recipients already own properties, while younger, entry-level officers struggle to access even modest funding. In cities like Abuja, where land costs N4m at minimum and construction expenses are steep, N8m is insufficient to build a two-bedroom home. This raises the question: who benefits from such loans, and at what cost?
“The government must rethink this approach. Instead of offering inadequate lump sums, a functional mortgage system similar to models in Western countries would allow civil servants to pay gradually over 20–30 years. This eases financial strain, promotes ownership, and reduces pressure to engage in corruption to meet basic needs. For instance, an officer needing N100,000 for school fees might receive N30,000, leaving a crippling N70,000 gap. Sustainable solutions address root causes, not symptoms.
“The government should prioritise rent-to-own schemes or construct affordable housing for civil servants. This reduces corruption incentives, improves job focus, and meets a fundamental need. A transparent, accessible system would also create jobs in construction and administration. Let bureaucracy work; don’t let inefficiencies punish the vulnerable. My hope is that policymakers listen and act.”
Meanwhile, the Executive Secretary of the Association of Housing Corporations of Nigeria, Toye Eniola, noted that the sum would work depending on the kind of house and location.
He said, “The sum can work depending on the kind of house you want and the location.”
The Federal Government recently approved an upward review of housing loan ceilings for civil servants, with permanent secretaries now eligible to access up to N25m.
According to a memo from the Office of the Head of Civil Service of the Federation obtained by The PUNCH, officers on Grade Level 8 can now access a maximum of N8m.
The memo, signed by the Head of Civil Service of the Federation, Didi Walson-Jack, said the move was part of efforts to improve the welfare and well-being of federal workers.
Addressed to the Chief of Staff to the President, Femi Gbajabiamila; the Secretary to the Government of the Federation, George Akume; ministers; permanent secretaries; service chiefs; and chairmen of federal commissions, the memo urged interested civil servants to comply with all procedural requirements.
“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.
He said, “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.
“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.”
