Wanna own a house?


Sometime ago, I spoke about investing in properties or the real estate as the sector is better known. I went in search of further information and came across the National Housing Fund. The National Housing Fund was signed into law by the Federal Government of Nigeria in 1992. Basically, the objective of this Act is to provide affordable homes to Nigerians irrespective of the income class. If you earn a minimum of N7,000 monthly, you can subscribe to this fund.

How does it work?

The National Housing Fund is administered by the Federal Mortgage Bank of Nigeria. If you are interested, locate the nearest FMBN branch within your state of residence and approach the officials. You’ll be required to remit 2.5% of your monthly income throughout your working life period into the NHF account. Interested applicant can pick up a form (free of charge), fill it and get your employer to sign their own respective parts. If you’re self-employed, you sign for yourself and also sign as the employer. Then you’ll be given a card which will record every payment you lodge into the NHF account.

The requirements of the NHF Act (1992) states that you can only use the fund for the following:

  • Purchase a property
  • Build a house
  • Renovate existing property

Note that if the property you want to purchase is within your present state of residence, then it is advisable to open a mortgage account within that state. Once the loan has been approved, you’ll be responsible for the inspection and evaluation fees. It is also important that you remit 10% of the total value of the property you wish to purchase into the mortgage account you opened with respective primary mortgage institution.

Repayment Terms:

Interest on the loan is fixed at 6% per annum and to determine repayment period, deduct your present age from 60 years to know how long you will pay back.

Upon attaining 60 years, you’ll present your NHF passbook, a letter from your employer attesting that you have retired and a birth cetificate is also required which will be presented at the nearest FMBN branch where you’ll be paid back your NHF contributions over the years you were in paid or self employment. If you still need further clarification, do let me know.

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