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A total of N265billion has been disbursed by the Federal Mortgage Bank of Nigeria (FMBN) under the National Housing Fund (NHF).

This disclosure was made by the Managing Director/CEO of the bank, at the recently concluded 2020 Housing Summit in Abuja. He also announced that 570,000 new subscribers joined the scheme, thus increasing the subscribers’ base to 5.1million membership.

According to the Managing Director of FMBN, Ahmed Dangiwa, the total disbursement of N265bn, which represents an increase of 73.8% or N112.5bn on the initial N152.5bn, was achieved in 2017 by the current management team.

He also stated that within the last three years, new homes grew by 43% to 8,700 new homes with total housing units of 29,133 under the NHF scheme.

Dangiwa revealed, “NHF collections grew by N186bn, representing 80%, to reach a cumulative amount of N418bn as of September 2020. On the home renovation micro-loan, the bank had been able to grow this by over 2,000% from about 2,600 to 56,000 loans in the last three years.”

(READ MORE: FG approves N3.9 billion variation in housing contracts, Abuja’s dam rehabilitation)

What you should know

The NHF scheme, established by Act 3 of 1992, was created to serve as a pool of long-term funds for housing delivery, funded by 2.5% of workers’ monthly income and mandatory investments of percentages of the business portfolios of banks and insurance companies.

The National Housing Fund (NHF) is a thoughtful scheme introduced by the Federal Government of Nigeria to enable Nigerians in all sectors of the economy, particularly those within the lowest income brackets to own their homes by consistently contributing 2.5% of their monthly salaries to the Federal Mortgage Bank of Nigeria (FMBN), that manages the fund.

According to the directives released by FMBN, to be eligible for the scheme, the contributor must be above the age of 18 and must have contributed to the Fund for a period not less than six (6) months. The applicant must also show strong evidence of a good and regular cash-flow, to ensure regular repayment of the loan.

Individuals are to apply through a duly licensed and accredited Primary Mortgage Bank (PMB) of their choice, while the institutional borrowers can only apply for the loan directly through the Federal Mortgage Bank of Nigeria (FMBN).

Source: Nairametrics

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