Overview of The National Housing Fund (NHF) Scheme in Nigeria

The Nigerian government launched the National Housing Fund (NHF) Scheme as a housing finance initiative to give Nigerians access to affordable housing. The Federal Ministry of Works and Housing oversees the program, which was founded in 1992 and is run by the Federal Mortgage Bank of Nigeria (FMBN). This article offers a thorough and in-depth summary of the NHF Scheme, emphasizing its goals, advantages, prerequisites, and application procedure: “Overview of The National Housing Fund (NHF) Scheme in Nigeria.”

Meaning And Objective of NHF Scheme In Nigeria

Nigeria’s government launched the National Housing Fund (NHF) Scheme with the intention of addressing the nation’s housing deficit and promoting affordable housing. It was founded by the National Housing Authority and is managed by the Federal Mortgage Bank of Nigeria (FMBN). The 1992 Fund Act.

By examining its fundamental characteristics and goals, one can comprehend the NHF Scheme:

1. Provision Of Affordable Housing: The main objective of the NHF Scheme is to give Nigerians access to affordable housing options. It seeks to guarantee that housing is available and reasonably priced for people in different income brackets, such as low-, middle-, and high-income earners, as well as independent contractors. This is accomplished through the program’s facilitation of low-interest, long-term mortgage loans.
2. Funds Mobilization: To finance housing development projects, the NHF Scheme raises money from a variety of sources. Employees in the public and private sectors contribute to these funds on a monthly basis. Each month, a portion of the contributors’ income is subtracted and credited to their NHF accounts. The plan also includes provisions for contributions. from other organizations, including cooperatives, estates, and independent contractors. Contributors receive mortgage loans from the accumulated funds.
3. Disbursement Of Mortgage Loans: To eligible contributors, the NHF Scheme enables the disbursement of mortgage loans. Generally speaking, the interest rates on the long-term loans are lower than those on traditional commercial loans. The funds can be used for home building, renovation, or purchase by those who satisfy specific eligibility requirements, such as making consistent contributions and having the capacity to repay the loan.
4. Regulations And Governance: The NHF scheme, in keeping with its broad definition, also functions as a regulatory and governance framework for Nigeria’s housing industry. It creates rules and specifications for residential building construction, guaranteeing adherence to building codes and other legal prerequisites. The program stimulates the use of economical and ecologically friendly methods in the housing sector and supports the adoption of sustainable building technologies.
5. Facilitation Of Housing Development: In Nigeria, housing development projects are facilitated by the NHF Scheme. To promote the creation of new housing and the renovation of existing ones, it works with stakeholders such as developers, builders, and financial institutions. The program’s objective is to expand the availability of affordable housing by promoting collaborations and opening doors for capital to enter the housing market.
6. Social Impact And Wealth Creation: The NHF Scheme seeks to have a major social impact by meeting Nigerians’ housing needs. The availability of reasonably priced housing promotes better living conditions, lowers homelessness, and improves the general life quality. The plan also encourages the development of wealth via property ownership. People who pay back their mortgage loans accumulate equity and create an asset that can support their financial security and allow for the accumulation of wealth.
7. Creation Of Jobs And Economic Expansion: The NHF Scheme is essential for creating jobs and promoting economic expansion. Jobs in the construction sector are created by the need for a variety of skilled professionals, including architects, engineers, builders, and contractors, for housing development projects. Furthermore, the housing sector contributes to the expansion and development of the economy as a whole because of its close ties to other sectors like manufacturing, real estate, and finance.

Membership And Contribution

All Nigerian employees working in the public and private sectors are required to be members of the NHF Scheme, and there is a monthly contribution equal to 2.5 percent of their base pay. Additionally, employers are required to make contributions, which total 2.5% of the workers’ monthly wages. Contributions from volunteers and self-employed people are also welcome to join the program by making regular contributions. Members’ aggregate contributions form the basis for obtaining funds for housing needs.

Benefits

The NHF Scheme provides its members with a wide range of advantages and features, such as but not restricted to:

1. Affordable Housing: One of the primary benefits of the NHF Scheme is the provision of affordable housing options. By offering low-interest mortgage loans, the scheme enables individuals from various income brackets to access and afford suitable housing that meets their needs.
2. Long-term Financing Accessibility: Individuals can obtain long-term financing for housing through the NHF Scheme. This makes the cost of buying, building, or remodeling a home more manageable and affordable by allowing borrowers to spread it out over a longer time frame.
3. Lower Interest Rates: When compared to commercial loans, the mortgage loans made available under the NHF Scheme usually have lower interest rates. This lowers the total cost of borrowing and increases the affordability of homeownership for people who might not otherwise be eligible for conventional mortgages.
4. Equity Accumulation: People gain equity in their homes as they pay back their NHF mortgage loans. Gaining equity and owning real estate gives one a sense of security and makes them assets that can leveraged to meet upcoming monetary demands.
5. Economic Expansion And Job Creation: The NHF Scheme encourages the growth of the housing industry, which is closely related to other sectors of the economy. Building infrastructure and housing units increases demand for a range of goods and services, which boosts economic growth and creates job opportunities.
6. Social Impact: By enhancing Nigerians’ quality of life, affordable housing has a positive social impact. Sufficient housing improves people’s quality of life overall and gives families a safe and secure environment, which fosters social cohesiveness and stability.
7. Reduction Of The Housing Deficit: The NHF Scheme is essential in helping Nigeria address its severe housing deficit. By raising money and enabling the building of new homes units, the program helps close the housing gap and increase the number of acceptable housing options available.
8. Regulation And Governance: To ensure adherence to building codes and legal requirements, the NHF Scheme sets standards and guidelines for the construction of housing. The program encourages the use of sustainable building techniques and helps to create a well-organized and regulated housing sector through regulation and governance.
9. Wealth Creation: Having a home gives you the opportunity to accumulate and create wealth. By allowing people to become homeowners through the NHF Scheme, they can gradually accumulate equity that they can use to take advantage of other financial opportunities or pass down as a priceless asset to future generations.

Eligibility Criteria

There are specific requirements for eligibility to the National Housing Fund (NHF) Scheme in Nigeria. Individuals who wish to take part in the program must meet. The following are the qualifying requirements:

1. Nigerian Citizenship: The NHF Scheme is exclusively open to Nigerian citizens. Applications from non-Nigerian citizens are not accepted.
2. Contributions: People must be making contributions to the NHF in order to be eligible. Employees in the formal sector make contributions through their employers. A portion of the contributor’s monthly income is used to fund the contributions.
3. Duration of Contributions: Before being qualified to apply for mortgage loans under the scheme, individuals must have been making consistent contributions to the NHF for a minimum of six months.
4. NHF Registration: All individuals must possess a current NHF Registration Number and be registered with the NHF. Filling out this registration form requires filling out the NHF Registration Form, which is available from approved mortgage banks or the Federal Mortgage Bank of Nigeria (FMBN).
5. Income Level: The NHF Scheme is intended to give low- and middle-class earners access to affordable housing options. Consequently, there is an eligibility requirement based on income limit. It is advisable to inquire about the current income limit with the FMBN or designated mortgage banks, as the specific income threshold may change over time.
6. Compliance with Loan Repayment: In order to be eligible for a new loan under the NHF Scheme, a person who has previously accessed an NHF mortgage loan must have paid back the prior loan in full.

Application Procedure For The national Hosuing Fund (NHF) Scheme in Nigeria

The National Housing Fund (NHF) is a scheme initiated by the Federal Government of Nigeria with the aim of providing affordable housing for Nigerian citizens. The scheme is managed by the Federal Mortgage Bank of Nigeria (FMBN).

To apply for the National Housing Fund (NHF) scheme in Nigeria, follow these steps:

1. Eligibility Check: Ensure that you meet the eligibility criteria for the NHF scheme. The scheme is open to all Nigerian workers with a monthly income of ₦3,000 and above.
2. Registration With The Federal Mortgage Bank Of Nigeria (FMBN): Visit any branch of the FMBN to obtain an NHF registration form. Fill out the form with accurate and up-to-date information.
3. Provide Necessary Documents: Along with the completed registration form, submit the following documents:
4. Proof of employment: This can be a letter of employment, pay slips, or employment ID card.
5. Valid means of identification: This can include a National Identity Card, International Passport, Driver’s License, or Permanent Voter’s Card.
6. Evidence of income: Provide documents such as bank statements or pay slips to verify your income.
7. Passport-sized photographs: Submit recent passport-sized photographs
8. PAY NHF CONTRIBUTIONS: As an NHF scheme participant, you are required to contribute 2.5% of your monthly income to the fund through your employer. This deduction will be made directly from your salary.
9. Loan Application: After contributing to the NHF for a minimum of six months, you can apply for a loan from the Federal Mortgage Bank of Nigeria. The loan application form can be obtained from any FMBN branch. Fill out the form, providing accurate information about the property you intend to purchase.
10. Loan Approval: The FMBN will review your loan application and assess its suitability. If approved, you will be contacted by the bank.
11. Mortgage Disbursement: If your loan is approved, the FMBN will disburse the mortgage loan to the seller or developer of the property. You will then be required to make monthly repayments of the loan principal and interest over the agreed loan term.

Process For Accessing Funds

The procedure for obtaining financial assistance under the National Housing Fund (NHF) Program in Nigeria requires a few steps. This is a broad synopsis of the procedure:

1. Registration: Individuals must register with the Federal Mortgage Bank of Nigeria (FMBN) or other designated mortgage banks in order to take part in the NHF Scheme. To complete the registration process, submit the NHF Registration Form along with the necessary supporting documentation, including proof of identity, job description, and proof of income.
2. Contributions: Monthly contributions to the NHF are mandatory for registered participants. The employer withholds contributions from the employee’s pay and sends them to the FMBN or approved mortgage bank.
3. Savings Period: A minimum of six months must pass during which participants must make contributions to the NHF. They are expected to save the required amount as stipulated by the FMBN during this period.
4. Loan Application: Following the completion of the savings period, participants may utilize the NHF Scheme to submit an application for a mortgage loan. The NHF Loan Application Form must be completed, along with any required supporting documentation (proof of income, employment history, and property information, if applicable), in order to begin the loan application process.
5. Loan Assessment: Following submission of the loan application, the FMBN or assigned mortgage bank will evaluate it to ascertain the borrower’s eligibility and loan amount, taking into account their contributions, income, and the property they are financing.
6. Loan Approval: The applicant will receive an offer letter outlining the loan amount, interest rate, terms of repayment, and other pertinent information if their loan application is accepted. The offer letter will also specify the required down payment amount. 7. Loan Disbursement: The borrower will receive the loan funds after accepting the offer and making the required down payment. The money can be utilized to refinance an existing mortgage, build a new home, or renovate an existing one.

Conclusion

One of the most important tools for encouraging affordable housing and homeownership for Nigerians is the National Housing Fund (NHF) Scheme. The National Housing Fund (NHF) Scheme is a crucial initiative that contributes to reducing the nation’s housing deficit and enhancing the availability of decent housing by facilitating access to affordable mortgage loans, promoting a savings culture, and funding housing development projects. See

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ENVIRONMENT

Nigerian Company MMNL to invest $50 Million to scale up its Tubular Batteries Production to 100,000 with backward integration in Next 5 years

Metal Manufacturing Nigeria Limited (MMNL); also ventures into multiple business verticals in backward & forward integration and into the Mining segment to stay ahead of its competitors

To cater to the rapidly growing demand of Nigeria’s energy sector; Metal Manufacturing Nigeria Limited (MMNL), Nigeria’s largest tubular battery company is aiming to double its expansion capacity to 60,000 pcs per Month in the next financial year. The company is planning to invest around $50 million in capacity expansion, new greenfield projects in the energy backup segment, R&D, Mining & Beneficiation, Plastic container and carton manufacturing units along with brand building and channel partner engagement to accelerate its ambitious growth target.

These problems would often demoralize and demotivate any company in tubular battery manufacturing sector and make it unviable for any business to operate in such a situation. Despite their 14 years of manufacturing experience in Nigeria, it found itself in a despondent situation which has led the company to explore other verticals to optimize the supply chain cycle. MMNL has taken several initiatives to address the stated challenges. For example, to address the issue of lack of skilled manpower, the company has conducted hundreds of technical training sessions to locals to enhance & upgrade their skill set and it is continuing to invest in manpower training. Similarly to ensure a steady supply of raw materials, the company has ventured into the mining business, beneficiation plant and other business verticals like plastic container & carton manufacturing. The company has also launched its dedicated service centre to resolve customer issues.

“Despite several challenges; the company has achieved stable production of 30,000 units per Month by 2024. MMNL is proud of the fact that it is the first & only Made-in-Nigeria inverter battery company which dominates over 35% to 40% of market share. It means every 5 batteries sold in Nigeria; 2 batteries are from MMNL”, said Mr. Amit Kumar, CEO of Metal Manufacturing Nigeria Limited. “As an Industry leader; company is continuously striving to delight the customer with quality and innovation in the product and making significant contributions in local employment opportunity as well as saving foreign exchange”

MMNL is bound to focus on completing its end-to-end supply chain cycle with a backward and forward integration expansion to proliferate its growth plan and to survive in the highly volatile environment. MMNL has already invested $25 million in Battery production, lead & Oxide manufacturing plant in Shagamu, Ogun state. MMNL’s current production capacity is 30,000 units of inverter batteries. Company is all set to boost its battery production capacity to 60,000 at the start of the new financial year and over 100,000 production capacity by opening a new battery greenfield production plant by 2027-2028 along with backward integration including lead-zinc ore mining and beneficiation.

To make the brand available and accessible for the end customers across Nigeria, MMNL is also expanding geographically across the country, forging multi-channel partnerships, executing its retail strategy and to make use of eCommerce & digital channels.

Being an Industry leader with 14 years of manufacturing experience in Nigeria; MMNL has certainly created a high entry barrier for both existing and new players which are considering to start their tubular battery manufacturing operation. Metal Manufacturing Nigeria Limited is a shining example of how a true leader can sail through turbulence of political, economical, social & technological hurdles.

About Metal Manufacturing Nigeria Limited (MMNL)

Metal Manufacturing Nigeria Limited (MMNL) is the largest tubular battery manufacturing company. MMNL is the most trusted and ‘Proudly Made in Nigeria’ brand with over 14 years of industry experience. Recently; MMNL won 3 awards in a row 1) ECOWAS Inverter Battery Company of the Year 2) ECOWAS Inverter Battery Manufacturing Company of the year and 3) ECOWAS Renewable Company of the year. MMNL provides over 1000 direct and indirect local employment opportunities.

The Company also got pioneer status accreditation from Nigerian Investment Promotion Commission (NIPC). Currently MMNL is present across 6 major locations along with a strong network of channel partners consisting 3000+ Installers, 1000+ Dealers and 100+ Distributors and over a half million of satisfied & happy customers.