Frequently Asked


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

To facilitate the mobilisation of funds for the provision of houses for Nigerians at affordable prices.
To ensure 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.

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 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 computerised and statement of accounts are issued to individual contributors periodically.
Employers are also required to maintain contributors records.

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.

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.

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 qualify 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.

How does a contributor obtain NHF Loan?

A contributor interested in obtaining the NHF loans through Brains & Hammmers, who packages and forwards the application to FMBN.

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.

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 pay slips for the previous three months
Equity contribution or personal stake of 30% , 20% or 10% depending on the loan amount applied for.

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.

How many times can I get NHF loan?

A contributor can only obtain NHF loan facility once in a life time.

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 contribution.

  • Refund is also made to a contributor that has obtained 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 long does it take to process refund of contribution?

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

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.

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.

I have housing loan from another institution and I wish to re-finance through the NHF loan to purchase a bigger residential property. Is this allowed?

Loans advanced under the NHF scheme cannot be used to re-finance another loan.