August 17, 2023


National Housing Fund

National Housing Fund (NHF) is a Federal Government introduced scheme, to which all public servants and employees in the organized private sector within the country are expected to contribute 2.5% of their monthly basic   to The Federal Mortgage Bank of Nigeria (FMBN), managers of the fund. Employees of various corporations who are active contributors to the scheme, can access the fund through Registered Primary Mortgage banks.

As a contributor, you are entitled to NHF loan for the purpose of building, purchasing, or renovating a residential accommodation and no loan shall be for refinancing. A contributor is entitled to a maximum loan amount of fifteen million naira (N15, 000,000.00) or as determine d by the accredited primary mortgage institution (PMI). No individual is given a loan in excess of 90% of the cost or value of the property to be mortgaged because an applicant must provide his/her equity contribution ranging from 10% to 30% of the loan amount. Your equity contribution is dependent on loan amount.

Equity contribution based on loan amount is as follows:

  • N15,000,000.00 – 30%
  • N10,000,000.00 – 20%
  • N5 ,000,000.00 – 0%

The maximum repayment period for NHF loan is 30years subject to your present age taking into consideration, the retirement age of 60years and the mode of repayment is monthly.

There is no additional collateral for NHF loan, as the property to be finance is the collateral i.e. the property for which the loan is sought shall serve as a security for the loan. The property shall conform to the existing planning laws and regulations (approved building   etc.). The property shall possess sufficient value to recover the loan. The mortgage property shall be insured against all hazards. The loan shall be secured by first legal mortgage on the property between the applicant and the mortgage loan originator and assigned to Federal Mortgage Bank of Nigerian.

To qualify for NHF, applicant must:

  1. Be a Nigerian above the age of 18.
  2. Be working as a private sector employee, public servant, self-employed, businessmen and tradesmen.
  3. Be a contributor to National Housing Fund for a minimum period of six months.
  4. Have a satisfactory evidence of regular flow of income to guarantee loan repayment.
  5. Have your equity contribution.

How to contribute to NHF;

You have to register with the Federal Mortgage Bank of Nigeria. According to NHF Act No.3 of 1992 All Nigerians in employment, whether self-employed or in paid employment, are required to contribute 2.5% of their basic salary/income to the National Housing Fund.

The registration procedure is as follows:

  1. The Federal Mortgage Bank of Nigeria (FMBN) will supply employer registration form (NHF1) to employers.
  2. Employers will complete form NHF1 and return to the nearest branch of the Federal Mortgage Bank of Nigeria.
  3. Federal Mortgage Bank of Nigeria will register the employer and issue an employer’s registration number.
  4. Federal Mortgage Bank of Nigeria will issue form NHF2 to employers for completion by employees or directly to self-employed or individual.
  5. Employee will complete the form NHF2 and return to the employer.
  6. The employer or self-employed individuals will return completed form NHF2 to Federal Mortgage Bank of Nigeria.
  7. Federal Mortgage Bank of Nigeria will register employees on form NHF2 and allocate employees participation number to each employee/self-employed individual.
  8. Federal Mortgage Bank will issue a passbook to each of the registered employees where the monthly deduction of his/her 2.5% basic salary will be posted by the employer.

At this point, an employee is now a registered participant of the National Housing Fund.

Employer will commence deduction of contributions at source. Such deductions/contributions are remitted to Federal Mortgage Bank of Nigeria with schedule of payment indicating the amount contributed by each employee and the period covered.

Self–employed contributors will also commence monthly remittances of contributions to FMBN.

Federal Mortgage Bank of Nigeria will accept contributions and issue receipts for payments.

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