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Persons That Can Enjoy The National Housing Fund and Loans.

Persons That Can Enjoy The National Housing Fund and Loans.

Persons That Can Enjoy The National Housing Fund and Loans. Daily Law Tips (Tip 690) by Onyekachi Umah, Esq., LL.M, ACIArb(UK)


Adequate shelter (housing) is a constitutional right of Nigerians, contained in the Constitution of Nigeria. There is a special housing fund created to provide Nigerians with houses at affordable prices and to supply cheap loans to for building, purchasing and improvement of residential houses for Nigerians across Nigeria. 

With a housing deficit of about 17 million units, according to the United Nations Report and about 40.1% poverty rate, according to the National Bureau of Statistics, Nigerians are in need of housing and housing loans. This work focuses on the class of persons in Nigeria, that are eligible to apply for and obtain a housing loan under the National Housing Fund of the Federal Government of Nigeria. It will examine the National Housing Fund, its keeper and the persons that can enjoy it.

National Housing Fund: 

Through a federal law (the Federal Housing Act) made since 31st January 1992, the federal government of Nigeria created a housing fund for Nigerians. The Fund is being gathered from contributions by Nigerians in both the public and private sectors; investments from commercial and merchant banks; investments from insurance companies and financial contributions by the Federal Government for long-term housing loans. 

An attempt has been made to amend the law, the proposed new law was passed by the National Assembly but the President of Nigeria (President Muhammed Buhari) refused to sign it into law. The President refused assent to the proposed new law, on the grounds that the proposed law will cause hardship and has several levies. Hence, the 1992 federal law is still the valid law for now.

The Keeper and Regulator of the National Housing Fund:

The federal law (the Federal Housing Act) appoints the Federal Mortgage Bank of Nigeria (FMBN) to keep the National Housing Fund and administer same. The FMBN is the regulator of the national housing loan. The FMBN ensures that the proceeds from the National Housing Fund are utilized to finance the housing sector of the economy through wholesale mortgage lending to primary mortgage institutions. 

The headquarters of the Federal Mortgage Bank of Nigeria (FMBN) is located at No. 266 Cadastral AO, Central Business District, Abuja, Nigeria. The FMBN’s telephone numbers are; 09-2920689, 09-2920690, 09087973000 and 08170237904, email address is and website is 

Persons That Can Enjoy the National Housing Fund: 

Any Nigerian worker (whether working for government or private employer or self-employed) that earns at least Three Thousand Naira (N3,000.00) in a year is eligible to apply, obtain and enjoy the National Housing Fund. Each worker in Nigeria is to his/her contribute 2.5% of the basic monthly salary. 

So, where the annual salary is N3,000.00 (Three Thousand Naira), the monthly salary will be N250.00 (Two Hundred and Fifty Naira). The monthly contribution will be 2.5% of the basic monthly salary of N250.00 and that is Six Naira Twenty-Five Kobo (N6.25k). With this, any Nigerian that earns about N250.00 in a month (ie, N3,000.00 in a year) is eligible to enjoy the National Housing Loan (the worker can be employed by government or private person or be self-employed, it does not matter)

There are moves to amend the law, and increase the monthly salary to the present-day, National Minimum Wage (N30,000.00) but until such is done, the law still remains that the minimum monthly salary for a beneficiary is N250.00 and the annual is N3,000.00. 

Where a person retires without benefiting from the National Housing Fund or benefited but has repaid his loan, such a person having retired, is entitled to be paid back his contributions. This is another retirement benefits for any worker in Nigeria (government workers, private sector workers and self-employed workers).

The National Housing Fund applies to all workers in Nigeria, whether government worker, non-government worker, company worker or self-employed worker. Whether the worker is in federal, state or local government is not relevant and the state of residence or location of the worker is also not relevant. The National Housing Fund/Loan does not affect any earlier or subsequent housing loan taken by a worker from any other source.  

Conclusion and Recommendation:

The National Housing Fund/Loan is the right of any worker in Nigeria, irrespective the workers title, position, state, type of work or employer, so far as the worker can contribute at least N6.25k every month and earns at least N3,000.00 every year. 

There is need for young Nigerians (especially those in informal sectors and the self-employed ones) to be informed and led to benefit from the National Housing Fund and other national policies designed for Nigerians. 

Nigeria has sweet laws and will have more pragmatic laws when our law makers focus on their primary duties. Aside having laws, Nigeria and Nigerians must promote free legal awareness on laws to enable Nigerians understand their rights and demand for enforcement of laws. Weak institutions and the laissez-faire attitude of Nigerians and Nigerian institutions will be corrected when Nigerians understand their rights and demand for accountability. 

If laws are made without awareness on them, what laws have really been made? If laws made for the libraries of law schools and law firms, how will they shape society? Until people understand their rights, they will not know when their rights are violated and how to seek lawful and sustainable remedies. 

My authorities, are:

  1. Sections 1, 2, 3, 16 (2)(d), 17 (3) (c), 318 and 319 of the Constitution of the Federal Republic of Nigeria, 1999
  2. Sections 1, 2, 3, 4, 5, 6, 7, 9, 10, 26 and 27 of the National Housing Fund, 1992
  3. Chuka Uroko, “”Here Is Nigerian Govrnmnment’s Understanding of Housing Deficit In The Country” (Business Day, 9 June 2020) < > accessed 4 November 2020
  4. National Bureau of Statistics, “Poverty and Inequality in Nigeria 2019 : Executive Summary” (Nigerianstats, May 2020) <[search]=poverty > accessed 4 November 2020
  5. Onyekachi Umah, ““National Housing Fund Is For All Nigerians (Both Government and Non-Government Workers)” (, 11 September 2018) < > accessed 4 November 2020.
  6. Banwo and Ighodalo, “National Housing Fund (Establishment) Act, 2018: Analysis & Recommendations For Legislative Review” (Banwo-ighodalo, 18 April 2019) < > accessed 4 November 2020 










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