Pursuant to the National Housing Fund Establishment ACT 3 (4) of 1992 which stipulates that: “A
Nigerian worker earning an income of N3,000 and above per annum in both the Public and Private Sectors of
the economy shall contribute 2.5 percent of his Basic monthly Salary to the Fund”, it is hereby notified for
general information that the Lagos State Government has enrolled all State Employees into the National
Housing Fund (NHF) Scheme of the Federal Mortgage Bank of Nigeria (FMBN) with effect from January,
2. The National Housing Fund Scheme is aimed at mobilizing funds for provision of affordable houses
for Nigerians. Furthermore, the Scheme offers the following benefits to enrollees:
i. Housing loan of up to 90% of the cost of the house;
ii. Interest on loans remain fixed throughout the life of the mortgage at 6% per annum;
iii. Elongated repayment period of up to 30 years;
iv. Contributions could serve as additional source of income in retirement.
3. It is instructive to note that Public Servants in other States are already enrolled and benefitting from
the Scheme, hence, the need for Lagos State Public Servants to key into it; all the more so as it offers the
most affordable interest rate in the country at 6% per annum.
4. Consequently, the State shall commence deduction of 2.5% from employees’ monthly Basic Salaries
as Statutory Contribution to the National Housing Fund, with effect from June 2020.
5. Accounting Officers of Ministries, Departments and Agencies (MDAs) are hereby enjoined to note the
contents of this circular for compliance, while giving it the deserved Service-wide publicity.