All you need to know about NHF

In Nigeria, especially if you work in the public sector, you'll frequently see NHF on your payslip. Furthermore, some workers in the private sector, including those in real estate, have experienced the same. What is the NHF and how does it work?

What is the NHF?

NHF is an acronym for Nigerian Housing Fund. It is required by law that everyone in Nigeria who earns the minimum statutory wage or more deposit 2.5% of their base monthly salary to the fund. NHF is a program designed by the federal government to give Nigerian employees access to flexible financing so they can purchase their own homes. The NHF Act of 1992 established the program, and the Federal Mortgage Bank of Nigeria is in charge of its administration (FMBN). With the help of NHF, Nigerians can get low-interest housing loans to buy, build, renovate, or expand their homes.

Who can apply?

All Nigerian employees and income earners, whether in paid employment or self-employment, are eligible for the NHF system and can register as long as they are at least 21 years old and have annual incomes of more than N 3,000, according to the NHF Act of 2004. The Act further specifies that registered members should make monthly contributions to the Fund through the Federal Mortgage Bank of Nigeria of about 2.5% of their basic salaries (FMBN).

What are the benefits of the NHF?

The NHF program's primary objective is to allocate money to the construction of affordable homes for Nigerians. It primarily enables a donor to get a loan for the construction, acquisition, or refurbishment of residential real estate. Contributors also enjoy:

• decreased tax obligations,
• low-interest housing and mortgage loans to buy a new house from an existing Registered Estate Agent that has 'C of O' or houses built by FMB,
• finance for an already-purchased house or land with a title document, most preferably a Certificate of Occupancy (C of O),
• an affordable and more convenient way of repayment.

What is the penalty for not contributing?

• An employer who deducts this contribution but fails to remit it to the appropriate quarters would be found guilty and is liable to a fine of between N20,000 to N50,000, or five years imprisonment.
• A self-employed person who fails to make deductions or deducts and fails to pay to the bank any money owed to the Fund is subject to a N5,000 fine, a year in jail, or both, as well as other penalties.

How do I remit or deposit my NHF?

If you're a business owner who would like to register or remit NHF for your staff monthly, or you're a self-employed entrepreneur who would like to do the same, you can skip the processing queue by allowing Eazipay to sort it out for you.

You can also:

• pay salaries, pension, PAYE, HMO, NSITF, all at once.
• pay bonuses, allowances, compensations, and commissions.
• remit or keep aside your ITF or NSITF for annual remittance.
• access accurate payroll reports and payslips.

Visit www.myeazipay.com or send an email to [email protected] to get started.