Homeownership 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 Act 3, 1992 to contribute 2.5% of their salary income to the fund. It can get a tad dreary for you to sort through all your funds and finances, which majorly might include your properties.
The Procedure for registration is as follows:
- The Federal Mortgage Bank of Nigeria (FMBN) will supply Employer Registration Form (NHF1) to employers or self-employed.
- Employer will complete Form (NHF1) and return it to the nearest branch of the Federal Mortgage Bank of Nigeria
- Federal Mortgage Bank of Nigeria will register the Employer and issue an Employer’s registration number.
- Federal Mortgage Bank of Nigeria will issue form NHF2 to the employer for completion by employees.
- The employee will complete the form NHF2 and return it to the employer
- The employer will return the completed form NHF2 to the Federal Mortgage Bank of Nigeria.
- Federal Mortgage Bank of Nigeria will register Employees on form NHF2 and allocate employee participation numbers to each employee.
- Federal Mortgage Bank of Nigeria will issue a passbook to each of the registered employees where the monthly deductions of his/her 2.5% basic salary will be posted by the employer.
- At this point, an employee is now a registered participant of the National Housing Fund.
- Employer will begin deduction of contributions at source. Such deductions/contributions are remitted to the Federal Mortgage Bank of Nigeria alongside a schedule of payment indicating the amount contributed by each employee.
- Federal Mortgage Bank of Nigeria will accept contributions and issue receipts.
BENEFITS
• 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 a personal recording of contributions; and
o An account statement
For further inquiries, please contact
Federal Mortgage Bank of Nigeria
Plot 266 Cadastral AO
Central Business District
PMB 2273 Abuja
Tel: 09-4602101
Email: info@fmbnigeria.org
Website: www.fmbnigeria.org
OR
Any FMB state offices near you
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