National Housing Fund (NHF) in Nigeria: Complete 2026 Guide for Homebuyers

Owning a home in Nigeria can feel overwhelming due to high property prices and expensive mortgage rates. Fortunately, the National Housing Fund (NHF) offers a government-backed solution designed to make homeownership affordable for Nigerians.

Managed by the Federal Mortgage Bank of Nigeria (FMBN), the NHF scheme provides low-interest mortgage loans to eligible contributors across the country.

In this 2026 guide, we’ll explain how the NHF works, who qualifies, the loan benefits, and how to apply successfully.

What Is the National Housing Fund (NHF)?

The National Housing Fund (NHF) is a mandatory savings and mortgage scheme established by the Nigerian government to help workers access affordable housing loans.

Under the NHF Act:

Nigerian workers earning ₦3,000 and above contribute 2.5% of their monthly basic salary

Contributions are pooled into a national housing fund

Eligible contributors can access low-interest mortgage loans

The scheme is primarily targeted at low- and middle-income earners.

How the NHF Scheme Works in Nigeria

1️⃣ Monthly Contributions

2.5% of your basic salary is deducted monthly

Employers remit the deductions to FMBN

Self-employed individuals can register and contribute voluntarily

You must contribute for at least six (6) months before becoming eligible to apply for a loan.

2️⃣ NHF Loan Features (2026 Update)

Here are the key benefits of NHF loans:

Interest Rate: 6% per annum (fixed)

Maximum Loan Amount: Up to ₦50 million (based on income)

Repayment Period: Up to 30 years

Age Limit: Loan must be repaid before age 60

Equity Contribution: 10%–30% depending on loan size

Compared to commercial bank mortgages in Nigeria (often 18–25% interest), NHF remains one of the cheapest mortgage options available.

NHF Equity Contribution Breakdown

Your equity contribution depends on the loan amount:

₦5 million and below → 10%

₦5 million to ₦15 million → 20%

Above ₦15 million → 30%

The higher the loan amount, the higher the equity requirement.

What Can NHF Loans Be Used For?

You can use an NHF loan to:

Buy a completed house

Build your own home

Renovate or improve your property

Purchase property from approved developers

The property must have valid title documents such as:

Certificate of Occupancy (C of O)

Governor’s Consent

Registered Deed of Assignment

NHF Loan Requirements in Nigeria

To apply successfully, you need:

Evidence of NHF contributions

Completed loan application form

Recent payslips

Tax clearance certificate

Valid property title documents

Approved building plan (for construction projects)

Incomplete documentation is one of the main causes of delays in NHF processing.

Who Is Eligible for NHF?

You qualify if you:

Are a Nigerian citizen

Are 18 years and above

Are a salary earner or self-employed contributor

Have contributed for at least six months

Have a steady income source

Refund of NHF Contributions

If you are unable to obtain a loan, you can request a refund:

Upon retirement (age 60)

After 35 years of contributions

In case of permanent disability

Refund includes your total contributions plus accrued interest.

Advantages of the National Housing Fund

✔ Very low 6% interest rate

✔ Long repayment tenure (up to 30 years)

✔ Government-backed and regulated

✔ Encourages structured housing savings

✔ Accessible to low and middle-income earners

Challenges of NHF in Nigeria

While beneficial, the scheme has some limitations:

Processing time may be slow

Employer remittance delays

Limited access to approved properties

Strict documentation requirements

Working with experienced property consultants can help reduce delays and avoid costly mistakes.

Is the NHF Worth It in 2026?

If you are a Nigerian salary earner planning long-term homeownership, the National Housing Fund remains one of the most affordable and structured mortgage financing options available today.

For many Nigerians, NHF offers a realistic pathway to owning a home without the burden of high commercial bank interest rates.

Final Thoughts

The National Housing Fund (NHF) continues to play a crucial role in Nigeria’s housing sector by making mortgages accessible to everyday workers.

Before applying:

Confirm your employer remits your NHF contributions

Ensure your property documents are valid

Calculate your affordability carefully

Prepare your equity contribution early

With proper planning, NHF can be your stepping stone to owning your dream home in Nigeria.

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