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Freqently Asked Questions


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

a) To facilitate the mobilization of funds for the provision of houses for Nigerians at affordable prices.

b) To ensure constant supply of loans to Nigerians for the purpose of building, purchasing and improvement of residential houses.

c) To provide incentives for the capital market to invest in property development.

d) To encourage the development of specific programmes that would ensure effective financing of housing development, in particular, low cost housing, for low income workers.

e) To provide proper policy control over the allocation of resources and funds between the housing sector and other sectors of the Nigerian economy, and

f) To provide long-term loans to mortgage institutions for on-lending to contributors to the fund.


1. In participation in the NHF Scheme compulsory?

YES. The NHF Act No. 3 of 1992 stipulates that 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. Though this provision makes it compulsory for Nigerian workers to participate in the scheme, it should be seen as also offering the opportunity to enjoy the numerous benefits of the scheme.

2. 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.

3. How does one make contribution?

The employer is required to deduct 2.5% from the monthly basic salaries of workers and remit to the Federal Mortgage Bank of Nigeria (FMBN) within one month of the deduction. Self-employed individuals are to pay their contributions directly to any of the Bank’s offices located in all State Capitals. All payments must be duly receipted.

4. How do I know the status of my contributions to the Fund?

FMBN as the Fund Manager provides periodic statement of account to the contributors.

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


1. Who can benefit from the Scheme?

The NHF Scheme is for Nigerians in all sectors of the economy, particularly those within the low and medium income levels who cannot afford commercial housing loans e.g civil servants, traders, artisans, commercials drivers etc. Any intending beneficiary must be a registered contributor and up to date with his/ her contribution.

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

The 2.5% of monthly basic salary contributions 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 three (3) years.

3. How does a contributor obtain NHF loan?

A contributor interested in obtaining the NHF loan applies through a registered and duly accredited Mortgage Loan Originator (e.g PMB), who packages and forwards the application to FMBN.

4. 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.

5. What are the documents required when applying for the loan?

Documents required to process a loan include:

a) Completed application form

b) Photocopy of title documents

c) Current valuation report on the proposed house to buy or bills of quantities (BOQ) for the house to build.

d) Three (3) years tax clearance certificate.

E) Three (6) months bank statement

f) Evidence of NHF participation.

g) Copy of pay slips for the previous three (3) months.

h) Copy of bank statement for the previous six (6) months

i) Equity contribution or personal stake of 10%, 20%, or 30% depending on the loan amount applied for.

6. What is the mode of repayment?

NHF housing loans are repaid on monthly basis installments from the monthly income of the beneficiary. This mode of repayment has the advantage of being both affordable and convenient.

7. Can a contributor obtain NHF loan if a Mortgage Loan Originator is not in his/her State?

YES. A prospective applicant can liaise with a mortgage loan originator (PMB etc) in a neighbouring state or anywhere in Nigeria to process a loan application. Also some PMBs are subsidiaries of Banks; these Banks may operate a desk on behalf of its subsidiary (i.e. MLO).

8. Are there restrictions as to where a contributor can build his/her house?

The property can be located anywhere, as long as it is within Nigeria. The applicant must however provide acceptable title documents to the land.

9. 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 needed to secure the NHF loan.

10. How many times can I get NHF loan?

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

11. What is the minimum loan amount and repayment time for NHF loans?

A contributor is eligible to access a maximum of N15million repayable over a maximum period of 30 years at an affordable interest rate of 6% per annum.

12. Can I obtain NHF loan to purchase a piece of land to build a house?

No. A prospective applicant who wishes to obtain a loan to build a house is expected to have his/her land as well as acceptable title to the land prior to the application for NHF loan.

13. Can I get a loan as an individual to build a house or must I buy from a Government owned Estate or Private Estate Developer?

Yes. You can apply as an individual for NHF loan to develop a land or buy directly from Government sponsored estate or private estate developer.


1. What are the conditions for withdrawing from the NHF Scheme?

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

a) Attaining sixty (60) years of age.

b) Retirement from employment and subsequent incapability to continue contribution.

c) Refund is also made to a contributor that has obtained a loan, liquidated the loan and has attained the age of 60 years.

d) Refunds are also made to the next-of-kin of deceased contributors.

2. How long does it take to process refund of contributions?

Refund is processed and repayment effected within three (3) months of receipt of the application.

3. 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 Form (NHF2), indicating such change. The individual Registration Number, which is permanent, is then transferred to the new employer to maintain the contributor’s records.

4. Apart from building a house, what other use is NHF loan for?

Loans from NHF are available to also make outright purchase of residential house, renovate or expand an existing one. The loan is strictly for residential houses.

5. If my employer operates a 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.

6. 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 refinance another loan.

National Housing Fund