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How To Obtain A National Housing Fund (NHF) Loan


The National Housing Fund (NHF) was set up in 1992 to create a funding pool for Nigerians who want to build residential houses at an affordable cost.

If you’re a Nigerian and you need funding to build your own living space, you can obtain a loan for this from the NHF.

Read more about How To

How The National Housing Fund Works

This funding pool is the accumulation of contributions from employees, self-employed persons, commercial and merchant banks, insurance companies, and the government. It’s held by the Federal Government through the NHF.

Each of these parties gives a fixed percentage of their funds to the program. For example, employers deduct 2.5% of each employee’s monthly salary as contributions to the NHF. These monies are remitted to the Federal Mortgage Bank of Nigeria (FMBN).

Employers and employees alike can register for this program by filling and submitting the NHF 1 form (for employers) or NHF 2 form (employees).

The NHF loans are derived from this pool of contributions.

Things You Can Use The Loan For 

You can apply for an NHF loan if you want to construct, renovate, or purchase a residential building. This loan is not granted for purposes besides these.


You may apply for this loan if you:

  • Are a Nigerian and more than 18 years old
  • Earn income regularly, from a steady source (as an employee or self-employed person)
  • Have contributed to the NHF for at least six months

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Things You Will Need

You should have these things ready before you apply for an NHF loan:

  • Photocopies of title documents for your land
  • Approved survey plan
  • Approved building plan
  • A valuation report on the proposed house from approved valuers
  • Priced Bill of Quantities
  • Tax Clearance Certificate for three years
  • Evidence of participation in the NHF
  • Copy of pay-slip (given by your employer) for the three previous months
  • Completed mortgage loan application form
  • Copies of your business’ Memorandum of Associates and Certificate of Incorporation (if you are a self-employed person running a registered business)

Equity Contribution

You will be expected to contribute a percentage of the total sum (your personal stake).

For a loan of ₦5 million, your equity contribution will be 10%

For ₦10 million, it will be 20%

For ₦15 million (the maximum loan amount), your expected equity contribution is 30%

How To Apply for an NHF Loan

Take these steps to apply for an NHF loan:

  • Open a savings account with a Primary Mortgage Bank (PMB) accredited by the Federal Mortgage Bank of Nigeria
  • Obtain and fill an NHF loan application form from the bank
  • Submit the form along with any documents required of you
  • The PMB will forward your application to the Federal Mortgage Bank of Nigeria

If your application is deemed suitable, you will be granted the loan, subject to the bank’s terms and conditions.

Interest Rate and Tenure

The interest rate on the NHF loan does not exceed 6% per annum. The loan has a maximum repayment period of 30 years.

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Ikenna Nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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