Category Archives: Real Estate

National Housing Loan – Frequently 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 such as Mortgage Bonds and Mortgage-Backed Securities for property investments.
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


1. Is Participation in the scheme compulsory?
The NHF Act no.3 of 1992 stipulates that Nigerian earning the minimum national wage and above per annum in either the public or private sector of the economy shall contribute 2.5% of his 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 them the opportunity to enjoy the numerous benefit of the scheme.

2. Is there a provision for self-employed individuals to participate?
Yes, the NHF Act also stipulates to deduct 2.5% from the monthly basic salaries of incomes into the fund

Mortgage Loans in Nigeria: How to Access NHF Loans

To access the National Housing Fund (NHF) mortgage loans in Nigeria, you need to be registered with the NHF and open a National Housing Fund Loan Account. This can be done directly via your employer or through a primary mortgage lender. Your loan application has to be through a registered and duly accredited Primary Mortgage Institution (PMI)

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, commercial drivers etc

The National Housing Fund (NHF) scheme was established by Decree 2 of 1992 for workers to contribute 2.5% of their basic salary into the fund to be used to grant mortgage loans to them at very concessionary terms for the purchase, building, expansion or renovation of their houses.

The maximum loan accessible by any contributor has now been raised to N15 million, but for the individual, the maximum you can access is based on your ability to pay back in 30 years. The lending rate is 6% per annum. Repayment period is 30 years maximum subject to the applicant’s present age. Maximum repayment period is determined by deducting the applicant’s present age from 60.

Home Ownership: Procedure For Registration in the National Housing Fund (NHF)


Home ownership procedure through the National Housing Fund (NHF):
The Federal Mortgage Bank of Nigeria (FMBN) is the manager of the National Housing Fund (NHF)

All Nigerians in employment whether self employed or in paid employment are required by Act3, 1992 to contribute 2.5% of their salary income to the fund

The Procedure for registration is as follows:

  1. The Federal Mortgage Bank of Nigeria (FMBN) will supply Employer Registration Form (NHF1) to employers or self employed.
  2. Employer will complete Form (NHF1) and return to the nearest branch of the Federal Mortgage Bank of Nigeria
  3. Federal Mortgage Bank of Nigeria will register the Employer and issue an Employer’s registration number.
  4. Federal Mortgage Bank of Nigeria will issue form NHF2 to employer for completion by employees.
  5. Employee will complete the form NHF2 and return to the employer
  6. The employer will return completed form NHF2 to the Federal Mortgage Bank of Nigeria.
  7. Federal Mortgage Bank of Nigeria will register Employees on form NHF2 and allocate employee participation nimber to each employee.
  8. Federal Mortgage Bank of Nigeria will issue passbook to each of the registered employees where the monthly deductions of his/her 2.5% basic salary will be posted by the employer.
  9. At this point, an employee is now a registered participant of the National Housing Fund.
  10. Employer will begin deduction of contributions at source. Such deductions/contributions are remitted to Federal Mortgage Bank of Nigeria alongside schedule of payment indicating the amount contributed by each employee.
  11. Federal Mortgage Bank of Nigeria will accept contribution and issue receipt.


• Housing loan of up to 90% of the cost of the house.
• Interest on loans remains fixed throughout the life of the mortgage at 6% p.a.
• Long period of repayment of up to 30 years.
• Contributions can serve as additional old age security.
• Up to N15 million can be borrowed.
• Refunds with 2% interest on retirement.
• Loan repayment is about the same as a typical monthly rent.
• Every contributor has:
    o A lifetime registration number;
   o A passbook for personal recording of contributions; and
   o An account statement

For further enquiries, please contact

Federal Mortgage Bank of Nigeria
Plot 266 Cadastral AO
Central Business District
PMB 2273 Abuja
Tel: 09-4602101
Email: [email protected]


Any FMB state offices near you

Requirements To Get A Home Mortgage Loan in Nigeria


If you want to buy a home for yourself in Nigeria, you can take advantage of mortgage loan. You can get this loan from different lenders, with different loan terms and conditions. Prior to going to a lender, you can find out how much mortgage you can afford, by using online home mortgage calculator.

Mortgage loans are offered to Nigerians through accredited mortgage lending organizations and banks all across the country. The Federal Mortgage Bank of Nigeria (FMBN) issues home mortgage loan in Nigeria through the lenders and banks and raises fund for the loans through the National Housing Trust Fund or NHTF.

Requirements to take a mortgage loan
You need to fulfill some requirements, before you can be eligible to get a home mortgage loan in Nigeria. Some of the requirements are mentioned below:

  • An introduction letter from your employer: You need an introduction letter from your current employer to ensure that you are a permanent employee of that company.
  • Copy of documents of the property: You need to have copies of documents related to the property you want to purchase.
  • Valuation report of the property: You need to produce a valuation report of the property where the purchase is from an original allottee. The valuation report should be accompanied by photographs, taken from all angles of the property.
  • Cash flow projection on repayment of loan: You need to give a cash flow projection on repayment of the loan, where the processing fee will be 0.25% annually, management fee will be 0.5% quarterly, annual interest rate will be 15.75% and at least 2.5% of the loan amount will include fee towards perfection and sundry charges.
  • Salary stubs: You have to produce salary stubs of last three months, to prove that you have a good steady income and you can afford to repay the loan amount.
  • Bank account statement: You have to produce your bank account statement of last six to twelve months.
  • Offer letter from agent: You need to produce an offer letter from the agent confirming your interest to purchase of the property.

You can also take advantage of NHTF mortgages, even if you are a non-resident Nigerian. In that case, you will need to have a National Housing Trust number, to be eligible to get the loan. However, the interest rate of the loan will be higher, so, you can use an online home mortgage calculator, to find out whether or not you can really afford to take the loan.

Samantha Taylor is the Community Mentor of MortgageFit and has been contributing her suggestions to the Community since 2005. Not just that, she has also made notable contributions through the various articles written on different subjects related to the mortgage industry. Few of her popular articles would include names like ‘Mortgage that you can afford’, ‘Mobile Home Loan with Bad Credit’, and How much mortgage can I borrow?’