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Here’s what Nigerians need to understand about the National Housing Fund
Numerous Nigerians employed in either the public or private sectors have a portion of their salaries deducted and sent to the federal government as part of the National Housing Fund (NHF). However, many individuals are unaware of the fund’s purpose and how they can access it.
Administered by the Federal Mortgage Bank of Nigeria (FMBN), the NHF offers a convenient and cost-effective opportunity for Nigerians, particularly those in the low- and medium-income brackets, to become homeowners. Established in 1992 through the NHF Act, the revised NHF allows all Nigerians aged 18 and above, working in various sectors of the economy, to register and participate by contributing 2.5% of their monthly incomes.
Upon six months of consecutive contributions to the National Housing Fund Scheme, participants become eligible to apply for and access affordable home loans offered by the Federal Mortgage Bank of Nigeria (FMBN).
Recently, the FMBN introduced innovative mortgage products such as the Diaspora Mortgage Loan, enabling Nigerians abroad to access up to N50 million to own a home in Nigeria. This scheme requires a 30% equity payment, a 9% interest rate, and a 10-year repayment period. Additionally, the FMBN introduced the Interest-free Rent-to-Own scheme to address the challenges faced by Nigerians seeking homeownership through the NHF Scheme’s existing interest-based housing products.
Under the revised NHF (Establishment) Act 2018, individuals earning from the minimum wage threshold (N30,000) are required to contribute 2.5% of their monthly income, while commercial or merchant banks contribute 10% of annual profit before tax to a pool for affordable housing construction. Moreover, a 2.5% tax on every bag of cement has been introduced, increasing the contribution toward affordable housing.
The NHF law mandates a 2.5% monthly contribution from individuals earning N3,000 or more per annum, with the funds made available at affordable interest rates for home construction. Non-compliance with NHF contributions may result in penalties of up to N100 million for corporations and N10 million for individuals, along with potential sanctions such as the cancellation of operating licenses for banks, insurance companies, and PFAs.
Withdrawal by contributors aged 60 years or with 35 years of service incurs a 2% per annum interest rate, and both the fund and any refund of contributions are exempt from taxes.
News
Lagos schedules meeting with owners of distressed buildings.
The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.
This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.
Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.
He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.
News
FG threatens contractors over Enugu-Onitsha road delay
The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.
This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.
According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.
“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”
He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”
He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.
“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.
The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.
He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.
“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”
He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.
News
Ekiti state government mediates land dispute between traditional ruler and family in Epe-Ekiti
The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.
In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.
Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.
Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.
The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.
Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.
Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.
Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.
Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.
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