THE NATIONAL HOUSING FUND SCHEME

About Us

We are Octoville Development Company Limited; an infrastructure, strategy and development advisory firm. Our core competences are in the following areas:

• Infrastructural development and investment advisory
• Business Strategy and development
• Policy Research and Advisory
• Management Development
• Innovation and Research Management

Overview

The National Housing Fund is a Federal Government initiated scheme that mobilizes long-term funds from the Nigerian workforce – public and private sector, banks, insurance companies and the Federal Government to advance mortgage loans at soft interest rates to its contributors. Thereby, reducing the housing deficit in the country.

The 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 to own houses by contributing 2.5% of their monthly salary to Federal Mortgage Bank of Nigeria; who are the managers of the fund.

WHY NHF LOAN?

According to the Central Bank of Nigeria, the national prime lending rate by commercial banks to corporate customers, as of end of 2019, was at 14.99% and the average national inflation rate ranged between 11% and 12% per annum, very unlike the inflation rate of the UK and the US which are almost negligible at 1.5% and 2.3% respectively. Meanwhile, Treasury bill interest rate has been seen crashing ever since late last year to a rate of 5.2% offered by CBN.

The Federal Government has done a great job by loaning with an interest rate far less than the national inflation rate and bank lending rates. What this means is that; the value of your contribution, which only increases by just 4% per annum in the NHF purse, actually depreciates with time if not accessed and channeled to a housing investment which could offer as high as 7.5% on rental income and an average annual appreciation rate of 10%.

INTEREST RATE

The interest rate on Mortgage Loans offered by the Federal Government of Nigeria is compounded at 6% of Principal amount annually over a period until when repayment is done.

ELIGIBILITY

To be eligible for the NHF loan, a contributor must be above the age of 18 and must have contributed to the Fund for a period not less than six (6) months.

Also, Household income must be above a certain threshold depending on the loan amount as the Federal Mortgage Bank has determined only one-third of household income is the max sum repayable per annum. The aim is to ease the burden of mortgage repayment per annum.

OUR APPROACH TO HOUSING DEVELOPMENT

Our approach to housing development for our clients is hinged on an investment driven approach to housing. We see housing not just as a major cost for households but also as a significant investment which could be either profitable or not. We work with clients to ensure their housing solutions always constitute a significant profitable investment.

CONCLUSION

Our goal at Octoville Development Company is to help our clients achieve their development objectives. We recognize that access to affordable housing is critical in achieving this objective and it is our goal to serve as your partner as you seek to achieve this.