If my employer operates a staff-housing Scheme, why do I need NHF Scheme?

The law mandates all Nigerian workers to contribute to the scheme. The fund also offers an additional housing loan facility to such workers.

What happens to my previous contributions if I change jobs?

Contributions are not lost in the event of a change of job or transfer. The affected contributor is expected to submit a duly completed NHF Registration Number, which is permanent, is then transferred to the new employer to maintain the contributor’s records.

How long does it take to process refund of contribution?

The refund is processed and repayment effected within three months of receipt of the application.

What are the conditions for withdrawing from the NHF Scheme?

The NHF Act No. 3 of 1992 provides that refunds shall be made to the contributor who has not obtained a housing loan upon:

  • Attaining 60 years of age.
  • Retirement from employment and subsequent incapability to continue contributing.
  • A refund is also made to a contributor that has obtained a loan, liquidated the loan and has attained the age of 60 years.
  • Refunds are also made to the next-of-kin of deceased contributors.
How many times can I get NHF loan?

A contributor can only obtain an NHF loan facility once in a lifetime.

How can a low-income earner get collateral for a loan?

The only collateral required from the loan beneficiary is the property in question. No other collateral is required is needed to secure the NHF loan.

What are the documents required when applying for the loan?
  • Completed application form
  • Photocopy of title documents
  • Current valuation report on the purposed house to buy
  • 3 years tax clearance certificate
  • Evidence of NHF participation
  • Copy of payslips for the previous three months
  • Equity contribution or personal stake of 30%, 20% or 10% depending on the loan amount applied for.
Is it the monthly contribution that determines the loan amount?

No. The loan amount is determined by the applicant’s affordability. This entails his/her income level that will enable repayment of the loan.

How does a contributor obtain NHF Loan?

A contributor is interested in obtaining the NHF loans through primary Mortgage Institutions (PMO), who packages and forwards the application to FMBN.

How can only 2.5% of my monthly basic salary or income be sufficient to obtain loan to build a house?

The 2.5% monthly basic salary contribution qualifies you to access the loan. The pool of funds created by the contributors nationwide becomes available to any contributor to borrow from, after contributing for a minimum of six months.

Is there provision for self-employed individuals to participate in the scheme?

Yes. The NHF Act also stipulates that self-employed individuals contribute 2.5% of his/her monthly income to the fund.

Who can avail housing loan?

A Nigerian-worker earning the minimum national wage and above per annum in either the public or private sectors of the economy shall contribute 2.5% of his/her basic monthly salary to the fund.

What measures are in place to guarantee the safety of my contribution?

An individual participation number is issued to each contributor. This serves as an account number, which remains unchanged irrespective of transfer or change of work.
Contribution records are computerized and statements of accounts are issued to individual contributors periodically.
Employers are also required to maintain contributors’ records.

How does one make contributions?

The employer is required to deduct 2.5% from the monthly basic salaries of workers and remit it to the Federal Mortgage Bank of Nigeria (FMBN) within one month of the deduction.

What are the aims and objectives of the NHF Act No 3 of 1992?

To facilitate the mobilization of funds for the provision of houses for Nigerians at affordable prices.
To ensure a constant supply of loans to Nigerians for the purpose of purchasing residential houses.
To encourage the development of specific programs that will ensure effective financing of housing development, in particular, low-cost housing, for low-income workers.
To provide long-term loans to mortgage institutions for on-lending to contributors to the fund.