Governments around the world have been plagued with how to meet
the housing deficits with the escalating population and migration
to urban areas. Nigeria has not been immune to this problem,
as the government continues to initiate different policies,
regulations, and legislation to address the Country's housing
needs.
Of particular importance is the National Housing Fund Act
("NHF" or "the Act") that was established
through Decree No. 3 of 1992 (now an Act of the National
Assembly). The Act mandates Nigerian workers, commercial
banks, insurance companies and the Federal Government to contribute
to the National Housing Fund Scheme (the Scheme).
Particularly, Nigerian workers are mandated to contribute 2.5% of
their basic salary to the Scheme. The Act also appoints the
Federal Mortgage Bank of Nigeria (FMBN) as the manager and the
administrator of the Scheme. The Scheme is to be used to
facilitate fund mobilisation to provide affordable houses for
Nigerians;
