NATIONAL HOUSING FUND ACT
Act · Finance
An Act establishes the National Housing Fund where workers contribute part of their salary for subsidised mortgages through the Federal Mortgage Bank. It targets Nigerian employees in public and private sectors, employers, and financial institutions. This helps provide affordable housing and reduce the country's housing shortage.
NATIONAL HOUSING FUND ACT
What Is This Policy?
An Act establishing the National Housing Fund (NHF) through which workers contribute a portion of their monthly salary to a pool that is lent back to contributors as subsidised mortgages through the Federal Mortgage Bank of Nigeria.
Who Does It Target?
All Nigerian employees in public and private sectors earning N3,000 per month or more Employers responsible for deducting and remitting NHF contributions The Federal Mortgage Bank of Nigeria as fund manager Commercial banks and insurance companies as contributors to the fund
What Does It Aim to Achieve?
Mobilise long-term housing finance resources, provide affordable mortgage credit to Nigerian workers, and contribute to reducing Nigeria's massive housing deficit.
Key Features
Mandatory Contributions: Employees contribute 2.5% of their monthly salary to the NHF; commercial banks and insurance companies also contribute. Mortgage Access: NHF contributors are eligible for mortgages at below-market interest rates after a minimum contribution period. FMBN Administration: FMBN manages the NHF and channels funds through PMIs for mortgage lending. NHF Refund: Contributors who retire without using the NHF mortgage are entitled to a refund of their contributions plus interest.
Current Status
Rollout Stage: Active Coverage: Nationwide Beneficiaries: All NHF contributors seeking affordable home ownership Funding: Employee salary deductions; bank and insurance company contributions
How to Access
Employers must register their employees with FMBN and remit monthly NHF contributions Contributors must accumulate at least 6 months of contributions before applying for a mortgage Apply through an accredited Primary Mortgage Institution Application method: Apply for NHF mortgages through FMBN or accredited PMIs.
Important Terms
NHF contributions are non-negotiable statutory deductions Non-remitting employers face penalties under the NHF Act Maximum NHF mortgage is currently N15 million subject to periodic revision by FMBN
Official Resources
Website: https://www.fmbn.gov.ng Contact: Federal Mortgage Bank of Nigeria (FMBN)
Legal Framework
Enacted under Section 4 of the 1999 Constitution. Operates alongside the Federal Mortgage Bank of Nigeria Act, the Federal Housing Authority Act, the Urban Development Policy, the National Housing Policy, and the Pension Reform Act 2014 for NHF contribution rules.