IN its determination to make ‘housing for all’ a reality, the Federal Government established the Federal Mortgage Bank of Nigeria (FMBN) in 1956. It was formerly known as the Nigerian Building Society (NBS). The Federal Government, by the Indigenisation Act , acquired the NBS and consequently renamed it the Federal Mortgage Bank of Nigeria (FMBN). In 1994, FMBN assumed the status of the apex mortgage institution in Nigeria, with the promulgation of the FMBN Act 82  and the Mortgage Institutions Act 53 . It also commenced the management and administration of the contributory savings scheme known as the National Housing Fund (NHF) established by Act 3 of .
The fund was established to facilitate the mobilisation of funds for the provision of houses for Nigerians at affordable prices, and guarantee constant supply of loans to Nigerians for the purpose of building, purchasing and development of residential houses. It is also aimed at providing incentives for the capital market to invest in property development; encouraging the development of specific programmes that would ensure effective financing of housing development, in particular, low cost housing for low income workers. In addition, it is meant to provide proper policy control over the allocation of resources and funds between the housing sector and other sectors of the Nigerian economy, as well as provision of long-term loans to mortgage institutions for on-lending to contributors to the fund.
The Informal Sector Cooperative Housing Loan Scheme also known as “The Coop Loan Scheme” is a product of the NHF Scheme, designed to accommodate non-salaried informal sector Nigerians through co-operative societies to join the National Housing Fund and avail themselves the opportunity of becoming proud home owners. The loan cacility under the Scheme could be accessed one of two ways, namely the Cooperative Housing Development Loan (CHDL), enables a cooperative society that has acquired a plot of land to develop houses for allocation to its members. The parcel of land will have title in the name of the society which will act as the facilitator on behalf of its members in the loan transaction and which would facilitate construction of the housing unit. The root of title of the estate land would be subleased to the beneficiaries.
Also, the Cooperative National Housing Fund Loan (CNL) offers individual cooperative member’s mortgage loan to buy a housing unit develops through the Cooperative housing Development Loan or renovates an existing one. NHF registration is open to all Nigerians whether self-employed or in paid employment, as they are required by the NHF Act No.3 of 1992 to contribute 2.5 per cent of their basic salary/income to the fund. Nigerians need to take advantage of the NHF and become home owners with ease.
SOURCE: Oke Peter, Ibadan
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