Averagely, Nigerians have this mindset that nothing is
working. This mirage position has taken our eyes away from so many working
projects, agencies, and opportunities for many years. It is disheartening to see that these opportunities are the
same we are crying for as if we are the most backward nation where there is no
infrastructure.
From the National Health Insurance Scheme (NHIS) that gives
affordable healthcare, to microfinancing, pension, FADAMA, Housing fund (endless list),
Nigerians, it seems prefer the circle of fund wastage in the name of ‘new
agency creation’ than maintaining established ones.
When Business Today on Radio 1, 103.5fm producer, Mr Adeyemi
contacted me to appear on his programme, I knew it was another opportunity to
open your eyes to another overlooked ‘working’ project. But why should this be,
how did we come about abandoning institutions setup by our founding fathers?
Wednesday morning, Mr Adeyemi called to inform me that the
topic was National Housing Fund. Knowing my prowess in the financial sector
especially in the area of project funding, I understood why he contacted me.
I am to appear on the programme’s Monday edition, giving me
a 72+ hours to put together enough information for would-be audience.
On Monday, few hours to the commencement of the programme, I
spoke with a colleague on the issue and his opening response almost smash my
composition, “This NHF of a thing is a scam, and they are just collecting
someone’s money. No house, no land, see I have their Savings Passbook”.
Obviously, I want to know why he said so and also tap from
his experience.
Francis (Not his real name), was introduced to NHF 6 years
ago by his former employer. Since then until he left the organization few
months ago, a certain percentage of his remuneration was deducted monthly.
“So, Francis” I asked, “What moves have you made? Any
enquiry or loan request to the institution?” He answered in the negative.
“Why did you say it is not working? Is “I don’t know what to
do next” not a better way to table your frustration?”
Majority of us are like Francis, not only on NHF but many of
these comfort enabling public corporations.
The National Housing Fund (NHF) scheme was established by Act 3 of 1992 to enable Nigerians in all
sectors of the economy, particularly those within the low and medium income
levels who cannot afford commercial housing loans to own houses.
The
Act stipulates that funding of the scheme will come from mandatory contribution
of 2.5 percent of monthly income of Nigerians earning N3000 and above per
annum, in both public and private sectors; commercial and merchant banks to
invest 10 percent of their loans and advances portfolio; insurance companies to
invest 20 percent of non-life and 40 percent life funds in the housing sector,
with 50 percent of these directly in NHF and; financial contributions of the
Federal Government.
The
pool of funds created by these becomes available to any contributor to borrow
from, after contributing for a minimum of six months BUT MY FRIEND, FRANCIS,
HAS BEEN CONTRIBUTING FOR THE PAST SIX
YEAR!!!
Unlike commercial banks or other
financial (mortgage) institutions’ fund, which usually have short repayment
period, NHF give you access up to 90 percent of the cost of the house with
FIXED INTEREST throughout the life of the mortgage at 6 percent per annum; life
(loan period) that can be as long as 30 years PLUS your contribution can serve
as additional old age security; Refunds with 2 percent interest on retirement
and; Maximum loan of N15 million can be borrowed.
At this stage, I know many will
be scanning through the of this article to pick the nearest address of NHF,
#lol, to begin with, NHF don’t give this facility to those who doesn’t have
land hence, get a land, do the necessary documentation first. For those who
want to buy house directly from government consort estate or private estate developer. A
contributor can only obtain NHF loan facility once in a life time. The only
collateral needed for NHF loan is the property in question. No other collateral
is required to secure the loan.
Again, no applicant go to NHF
directly, a
contributor interested in obtaining NHF loan must apply through a registered
and duly accredited mortgage loan originator, e.g. a Primary Mortgage Bank
(PMB), who packages and forwards the application to FMBN.
For list of Primary mortgage banks in Nigeria and their address, follow this link http://www.cenbank.org/Supervision/Inst-PMI.asp.
If you need to visit any of the National Housing Fund office, follow this link http://www.fmbn.gov.ng/home/doc.aspx?mCatID=104.To set matter straight, documents required to process NHF loan include:
- Completed application form;
- Photocopy of title documents;
- Current valuation report on the proposed house to buy or bills of quantities (BOQ) for the house to build
- Three years tax clearance certificate
- Evidence of NHF participation
- Copy of pay slips for the previous three months
- Equity contribution or personal stake of 30 percent, 20 percent or 10 percent depending on the loan amount applied for.
- Satisfactory evidence of regular income and you must be 21 years old or above.
Francis and two other colleagues plus so many other
listeners benefitted from the programme and I hope you benefitted from this
article too. My word is, don’t miss out in government’s betterment efforts for
you simply because you fail to get informed. Let’s #change our thinking, our
method of seeing our government and Nigeria, we, will be better for it.
Before the end of this week, I will also post another
article on Health Insurance Scheme setup to ensure that every Nigerian has
access to good health care services and still we cry foul on high cost
of healthcare.
Twitter: @donabiodun
~ Don Abiodun Odedeyi
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