Overview

The National Housing Fund (NHF) Act, established in 1992, creates a fund to mobilize resources for affordable housing in Nigeria. It mandates contributions from Nigerian workers earning N3,000+ annually (2.5% of basic salary), banks (10% of loans/advances), insurance companies (minimum 20% of non-life and 40% of life funds), and the Federal Government. The Fund is managed to provide long-term loans to mortgage institutions for on-lending to contributors. Interest rates are set at 4% for worker contributions and 1% above current account rates for bank investments. Employers must deduct and remit contributions; penalties exist for non-compliance. Self-employed persons may participate voluntarily. Loans are secured, and interest rates are regulated. The Act includes provisions for refunds after retirement, inspections, accounts, and tax exemptions. Offenses include false statements and failure to produce documents. The Central Bank of Nigeria collects bank contributions.

Download