National Housing Fund Nigeria: Complete Guide for Employers (2026)
The National Housing Fund Nigeria requires a 2.5% deduction from every employee’s basic salary if they earn above ₦70,000 monthly [SOURCE: NHF Act]. You remit this to the Federal Mortgage Bank of Nigeria (FMBN), and your employees get access to housing loans up to ₦15,000,000 at 6% interest rates.
Here’s how it works, what it costs your business, and why your employees should care.
What You’ll Need
Requirements:
- Employee basic salary breakdown
- FMBN registration portal access
- Monthly remittance system
Estimated Cost: ₦0 (employee contribution only)
Timeline: 30 minutes monthly for remittance
How National Housing Fund Nigeria Works
Your employee earns ₦300,000 gross monthly. If their basic salary is ₦180,000 (60% of gross), you deduct ₦4,500 monthly for NHF [SOURCE: NHF Act, 2.5% of basic salary].
This money goes to FMBN. In return, your employee can apply for NHF housing loans at 6% annual interest – significantly lower than commercial mortgage rates of 18-25% [SOURCE: FMBN loan conditions].
The math that matters: On a ₦5,000,000 NHF loan at 6%, monthly payments are about ₦48,000 over 15 years. The same loan from a commercial bank at 20% costs ₦80,000 monthly.
Who Must Contribute to National Housing Fund Nigeria
Every employee earning above the National Minimum Wage of ₦70,000 monthly must contribute to NHF [SOURCE: NHF Act]. This includes:
- Full-time employees
- Contract staff on payroll
- Expatriates working in Nigeria
- Directors receiving salaries
Exception: Companies with fewer than 3 employees may qualify for exemptions, but most businesses must comply [SOURCE: NHF Act exemption clauses].
Step-by-Step NHF Registration and Remittance
Step 1: Register Your Company with FMBN
Visit the FMBN portal and complete employer registration. You’ll need:
- CAC certificate
- Tax Identification Number (TIN)
- Employee list with basic salary details
Pro tip: FMBN assigns you an employer code starting with “NHF” – keep this safe for all remittances.
Step 2: Calculate Monthly NHF Deductions
For each employee earning above ₦70,000:
- Identify their basic salary amount
- Calculate 2.5% of basic salary
- Deduct from gross salary before PAYE computation
Common mistake: Don’t use gross salary. NHF applies only to basic salary component [SOURCE: NHF Act definition of contributory income].
Step 3: Remit to FMBN Monthly
Upload contribution schedule through FMBN portal by the 15th of each month. Include:
- Employee names and NHF numbers
- Basic salary amounts
- Contribution calculations
Step 4: Issue Contribution Certificates
FMBN provides certificates showing each employee’s total contributions. Employees need these for loan applications.
NHF Loan Benefits for Your Employees
Your employees get access to three loan types through their National Housing Fund Nigeria contributions:
| Loan Type | Maximum Amount | Interest Rate | Repayment Period |
|---|---|---|---|
| Individual | ₦15,000,000 | 6% annual | Up to 30 years |
| Cooperative | ₦15,000,000 per member | 6% annual | Up to 30 years |
| Estate Development | Variable | 6% annual | Project-specific |
Qualification requirements:
- Minimum 6 months of contributions
- Proof of income
- Land title or building plan
- 30% equity contribution
Cost Breakdown for Employers
| Item | Cost | Notes |
|---|---|---|
| FMBN registration | ₦0 | Free online registration |
| Monthly remittance | ₦0 | No processing fees |
| Portal access | ₦0 | Web-based system |
| Total monthly cost | ₦0 | Employee-funded contribution |
Or skip the manual calculations — Lint Payroll handles NHF computation and remittance for ₦500 per employee monthly.
Common NHF Mistakes Nigerian Employers Make
1. Calculating NHF on gross salary instead of basic salary
Use only the basic salary component. Transport, housing, and other allowances don’t count [SOURCE: NHF Act calculation guidelines].
2. Missing the monthly remittance deadline
FMBN expects contributions by the 15th of each month. Late remittances affect your employees’ loan eligibility.
3. Not registering employees immediately
Register new employees within their first month. Delayed registration means delayed loan access.
4. Forgetting to update salary changes
When you increase an employee’s basic salary, update their NHF contribution immediately.
5. Not providing contribution statements
Employees need regular statements showing their total NHF contributions for loan applications.
Frequently Asked Questions
Q: What happens if an employee leaves before taking an NHF loan?
A: Their contributions remain in the system. They can access loans from any future employer or as self-employed individuals after 6 months of consistent contributions [SOURCE: FMBN withdrawal policies].
Q: Can expatriate employees contribute to National Housing Fund Nigeria?
A: Yes, all employees on Nigerian payroll must contribute regardless of nationality [SOURCE: NHF Act coverage provisions].
Q: What if an employee’s salary drops below ₦70,000?
A: Stop NHF deductions immediately. Resume when their salary exceeds the minimum wage threshold again [SOURCE: NHF Act income thresholds].
Q: How long does NHF loan approval take?
A: FMBN processes complete applications within 60-90 days [SOURCE: FMBN loan processing timelines].
Q: Can employees access their NHF contributions before retirement?
A: Only through housing loans or if they become permanently disabled. No cash withdrawals for other purposes [SOURCE: FMBN withdrawal conditions].
Q: What documentation do employees need for NHF loans?
A: Valid ID, proof of employment, salary certificate, contribution statements, land documents, and building plans [SOURCE: FMBN loan requirements].
Related Tools
- NHF Contribution Calculator – Calculate monthly deductions
- FMBN Loan Estimator – Project loan amounts and payments
- Payroll Tax Calculator – Compute all statutory deductions together
Smart Employers Use Lint for NHF Management
Manual NHF calculations eat up 2-3 hours monthly. Lint Payroll computes NHF deductions automatically based on each employee’s basic salary, generates remittance files for FMBN, and tracks contribution histories.
Your employees get instant access to their NHF statements through the Lint app. No more printing certificates or manually tracking contributions.
Start automating your payroll compliance — including NHF, PAYE, and pension contributions — with Lint Payroll.
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Sources: National Housing Fund Act, Federal Mortgage Bank of Nigeria (FMBN) loan conditions and processing guidelines, FMBN withdrawal policies and exemption clauses
Last updated: April 6, 2026
