New memo reminds workers of mandatory Certificate of Non-Indebtedness
Federal civil servants approaching retirement have been warned to clear any outstanding housing loans or risk having their properties seized by the government.
This warning comes through an official memo issued by Patience Oyekunle, the Permanent Secretary of the Career Welfare Office under the Office of the Head of Civil Service of the Federation.
The memo, obtained on Sunday, emphasizes that retiring civil servants must comply with Public Service Rule 021002(p), which mandates that all public servants:
“Obtain a Certificate of Non-Indebtedness from the Federal Government Staff Housing Loan Board (FGSHLB) and any licensed MDA Staff Multipurpose Cooperative Society before retirement.”
This certificate serves as official proof that the civil servant has no outstanding debts to government-supported loan bodies—an essential requirement before accessing retirement benefits through PENCOM.
The memo further clarifies that failure to settle housing loan obligations before exiting service grants the FGSHLB legal authority to seize any mortgaged property tied to the unpaid loan.
“All Ministries, Departments, and Agencies (MDAs) are hereby instructed to ensure full compliance with PSR 021002(p) when civil servants are leaving the service,” it stated.
This rule is not just a guideline—it’s a retirement requirement. Without it, civil servants may face delays in processing entitlements and forfeiture of property used as collateral.
Civil servants are strongly advised to:
- Review their loan status with the FGSHLB and cooperative societies.
- Obtain a Certificate of Non-Indebtedness well before their exit date.
- Comply with PSR 021002 to ensure a smooth transition into retirement.
📢 If you or someone you know is nearing retirement in the public service, now is the time to double-check those records and avoid last-minute surprises.
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