Connect with us

Business

How to apply for FG loan to build, buy a house

Published

on

The Federal Mortgage Bank of Nigeria offers mortgage financing to eligible Nigerians through the National Housing Fund, providing a route to buy, build, improve or renovate a home.

The NHF Mortgage Loan is currently available to contributors at an interest rate of 6 per cent per annum, with repayment of up to 30 years.

According to FMBN on its website, the current information shows that eligible contributors can access up to ₦50 million, subject to affordability and the value of the property.

Here are the key things applicants should know about the scheme and how to apply.

What is the FMBN mortgage loan?

The NHF Mortgage Loan is a housing finance facility administered by FMBN through accredited and licensed Primary Mortgage Banks (PMBs).

The facility can be used to buy, build, improve or renovate an owner-occupied home. The property being financed serves as security for the loan.

Unlike a conventional commercial mortgage, the NHF facility is designed to provide contributors with longer repayment periods and a concessionary interest rate.

Who is eligible?

Applicants generally have to meet the following conditions:

* Be a Nigerian citizen aged 18 or above.
* Be a contributor to the National Housing Fund.
* Have made continuous NHF contributions for at least six months.
* Have a stable source of income or, for self-employed applicants, provide evidence of regular income.
* Apply through an FMBN-accredited and licensed mortgage loan originator/Primary Mortgage Bank.
* Have a property that meets the relevant legal and planning requirements.

FMBN also states that loan repayment affordability is assessed using a maximum of one-third of the applicant’s income.

See also  IMPI projects Nigeria’s GDP to hit 5.5%

How much can you borrow?

FMBN’s current NHF Mortgage Loan page says a contributor can access up to ₦50 million, subject to affordability and other lending conditions.

The property also matters. FMBN’s published conditions state that an individual should not receive more than 90 per cent of the cost or value of the property being mortgaged.

The older ₦15 million figure still appears in some FMBN documents and online guides, but FMBN’s current product page now states ₦50 million. Applicants should therefore rely on the latest terms provided by FMBN and their accredited mortgage institution.

What is the interest rate?

The interest rate for NHF contributors is not more than 6 per cent per annum. FMBN currently describes the facility as being provided to accredited PMBs at 4 per cent for onward lending to NHF contributors at 6 per cent.

How long do you have to repay?

The maximum repayment period is 30 years, subject to factors including the applicant’s age, income and years in service.

Repayments are made through the mortgage loan originator through which the applicant obtained the loan.

How to apply

1. Confirm your NHF contribution

You must first be registered as an NHF contributor and have made the required continuous contributions.

FMBN now provides an online personal/individual NHF registration portal for new contributors.

2. Choose an accredited mortgage institution

Applicants do not simply walk into FMBN and collect the mortgage loan directly. The application is made through a licensed and FMBN-accredited Primary Mortgage Bank/mortgage loan originator, which processes the application and submits it to FMBN.

See also  IMF raises Nigeria’s growth to 3.9%

3. Obtain the mortgage application form

The mortgage institution will provide the relevant application form and guide you on the documentation required for your particular application.

4. Prepare your documents

Depending on the nature of the application, applicants may be required to provide documents such as:

* Completed mortgage loan application form;
* Evidence of NHF contribution;
* Proof of income;
* Recent payslips or other income evidence;
* Property title documents;
* Valuation report for the property;
* Bill of quantities where the loan is for construction;
* Relevant tax and employment documents; and
* Other legal documents required by the mortgage institution.

The exact documentation can vary depending on whether the applicant is buying, building or renovating a property.

5. Submit the application

The application and supporting documents are submitted to the accredited mortgage institution.

The institution assesses the applicant’s income, repayment capacity, property and documentation before forwarding the application to FMBN where applicable.

6. Property and legal checks

The property is subjected to valuation and legal checks. FMBN’s conditions require the mortgaged property to provide adequate security and comply with relevant planning and legal requirements.

7. Approval and disbursement

Once the relevant conditions are satisfied and the loan is approved, the funds are disbursed through the mortgage loan originator for the approved housing purpose.

What can the loan be used for?

The NHF Mortgage Loan can be used to:

* Buy a residential property;
* Build a home;
* Improve an existing home; or
* Renovate an existing home.

FMBN specifically describes its NHF facility as covering these housing purposes.

How can Nigerians check their NHF contributions?

See also  Flutterwave expands open banking with Mono acquisition

FMBN provides digital channels through which contributors can access information about their NHF accounts. The Bank’s website also provides online registration and account services for contributors.

Important warning for applicants

Applicants should be careful of individuals who claim they can “secure” an FMBN loan in exchange for money.

FMBN’s official website carries warnings about fraudsters posing as NHF facilitation officers. Applicants should deal only with FMBN and its accredited mortgage institutions and verify any request for payment before proceeding.

FMBN’s official website provides information on its mortgage products, NHF services and application channels.

Apply Here: https://fmbn.gov.ng/products/nhf_mortgage_loan

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Dangote blames marketers, IOCs for Lamu refinery protests

Published

on

Nigerian billionaire and President of the Dangote Group, Aliko Dangote, has blamed local marketers and international oil companies for fuelling protests over land earmarked for his proposed $16bn oil refinery in Lamu, Kenya.

Dangote and the President of Kenya, William Ruto, performed the groundbreaking ceremony for the refinery in Lamu on Wednesday. This comes even as a court halted construction activities due to a land dispute.

Dangote made the allegation while speaking to the BBC’s Focus on Africa programme, amid protests by some residents over compensation for land acquired for the refinery project.

The refinery is expected to have a processing capacity of 700,000 barrels per day when completed in 2030. Dangote disputed claims that the company had taken more land than it required, saying it only used the portion allocated to it by the Kenyan Government.

“They said some people are demonstrating; demonstrating about what? Have you ever seen people demonstrating against themselves in terms of development?” he asked.

Africa’s richest man dismissed the protests as “games played by local marketers and international players”, insisting the refinery would go ahead and would be ready by 2030 as planned.

The groundbreaking was also attended by the leaders of Uganda, Ethiopia, Togo and Benin. Dangote has offered regional governments a combined 30 per cent stake in the refinery, according to Reuters.

The billionaire insisted that the protests would not stop the refinery project, which he described as his largest proposed investment outside Nigeria.

The project is expected to become the largest refinery in East Africa and Kenya’s biggest infrastructure project since independence, surpassing the $5.1bn Standard Gauge Railway.

See also  Tax: ‘Give reprieve to people with low income’

Dangote said the refinery would demonstrate that the success recorded with his 700,000bpd refinery in Nigeria could be replicated elsewhere on the continent.

“Lekki proved that it can be done, Lamu must prove that it can be repeated,” he said.

However, the Save Lamu campaign group has raised concerns about the environmental impact of the project on the local community. The co-founder of the group, Walid Ali, told the BBC that residents wanted to see the findings of the environmental impact assessment and the proposed mitigation measures.

A group of 133 Lamu residents had approached the Kenyan High Court in a bid to stop construction work. Following the legal action, activities including excavation and construction on the disputed land have been restricted pending the next court hearing, scheduled for October 14.

Dangote said the refinery would create about 60,000 jobs at the peak of construction, with local communities expected to benefit from the project.

The refinery will also include a 1,000-megawatt power plant designed to supply Dangote’s operations and other industries expected to establish businesses in the area.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Nigeria, Indonesia trade tops $3bn annually — envoy reveals

Published

on

Nigeria and Indonesia’s bilateral trade has consistently exceeded $3bn annually, the Indonesian Ambassador to Nigeria, Bambang Suharto, has said.

The ambassador said the trade relationship had positioned Nigeria as one of Indonesia’s foremost trading partners in Africa, while calling for greater economic cooperation between both countries.

“Our bilateral trade has consistently surpassed USD 3 billion annually, cementing Nigeria’s position as one of Indonesia’s foremost trading partners in Africa,” he said.

Suharto said Nigeria supplied an essential source of energy contributing to Indonesia’s energy security.

“Nigeria supplies the essential source of energy that contributes to Indonesia’s energy security, while Indonesian products have become household staples for Nigerian consumers and businesses,” Suharto said.

He said some Indonesian products had also become established in Nigeria through local production and Nigerian workers, describing the development as evidence of the value of economic partnerships beyond the exchange of goods.

He added, “Yet, there remains considerable room to grow. Together, Indonesia and Nigeria represent a vibrant market of more than 550 million people, defined by young populations, dynamic businesses, and substantial natural and human resources.”

According to him, the combined economic potential provided a foundation for expanding trade, investment, technological exchange and employment opportunities.

Suharto said Indonesian companies operating in Nigeria were contributing to the bilateral relationship through investment, job creation and corporate social responsibility initiatives.

“Our ultimate ambition is not simply to trade more, but to cultivate a resilient partnership in which businesses on both sides thrive, local industries develop, and our people directly reap the benefits of the opportunities we create together,” he said.

He said Indonesia also attached importance to educational and cultural exchanges with Nigeria, noting that its scholarship programmes had enabled Nigerian students to study in Indonesia and establish lasting relationships.

See also  Nigerians Will Soon Be Able To Buy Dangote Refinery Shares Soon – Dangote Announces

In his remarks, the Permanent Secretary, Ministry of Foreign Affairs, Ambassador Dunoma Umar Ahmed, said Nigeria and Indonesia had considerable scope to deepen their economic partnership.

Ahmed said Nigeria was particularly interested in Indonesia’s experience in industrialisation, manufacturing, digital transformation, infrastructure development, agriculture, maritime development and the expansion of small and medium-sized enterprises.

“Nigeria is particularly interested in expanding cooperation that can support the development of local productive capacity, strengthen value chains, promote technology transfer, and attract sustainable investment,” he said.

The permanent secretary urged greater interaction between the private sectors, chambers of commerce, financial institutions and business communities of both countries.

He identified agriculture and agro-processing, manufacturing, energy, infrastructure, pharmaceuticals, the digital economy and creative industries as areas with significant potential for increased trade and investment.

Ahmed also called for efforts to address practical constraints to bilateral commerce, including market access, business information connectivity and the facilitation of contracts between businesses in both countries.

“Nigeria is particularly interested in expanding cooperation that can support the development of local productive capacity, strengthen value chains, promote technology transfer, and attract sustainable investment.

“Our two countries should therefore continue to encourage greater interaction between our private sectors, chambers of commerce, financial institutions, and business communities. There is significant potential for increased trade and investment in areas including agriculture and agro-processing, manufacturing, energy, infrastructure, pharmaceuticals, the digital economy, and the creative industries,” Dunoma said.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Airlines face disruptions as fuel costs soar

Published

on

Recent disruptions that stranded passengers, particularly in Abuja, have been linked to debts airline operators owe fuel marketers, even as operators lament the rising cost of Jet A1 aviation fuel.

Passengers who bought Air Peace tickets last Friday spent the night at the Abuja airport following flight cancellations and delays.

The PUNCH learnt that on Friday alone, Lagos, Maiduguri and Asaba-bound passengers remained at the Nnamdi Azikiwe International Airport as the airline delayed boarding for several hours and cancelled a number of flights.

Passengers who spoke with our correspondent claimed that the airline had failed to provide reasons for the disruptions.

Our correspondent gathered that Lagos-bound passengers scheduled to take off from Abuja at about 4:00 pm, as well as another set scheduled to depart earlier, remained at the airport until late that night.

While Lagos-bound passengers left the same night, Asaba- and Maiduguri-bound passengers spent the night at the airport, leading to a series of protests within the aerodrome.

Meanwhile, an airport source who refused to give her name for fear of reprimand had told our correspondent at the time that the passengers might still be airlifted before midnight to avoid disruptions to Sunday’s operations.

The source said, “Truly, many passengers sat helplessly at the airport. I learnt from the workers that it was a fuel-related issue, but only the airline can really explain what happened.”

When contacted, the spokesperson for the Nigeria Civil Aviation Authority, Michael Achimugu, told our correspondent that he gathered that the airline had been speaking with the passengers as events unfolded. He confirmed that issues relating to a lack of fuel had grounded the airline’s aircraft.

Achimugu did not, however, provide further information on why the airline was experiencing a shortage of fuel.

See also  Nigerians Will Soon Be Able To Buy Dangote Refinery Shares Soon – Dangote Announces

Achimugu said, “Yes, my CPOs have reported to me that the airline has been unable to fly the passengers because of fuel-related issues. I also learnt they have been updating the passengers, but you know when passengers get angry, they may not even listen to whatever information they are being provided with.”

When asked what exactly the issue was, he said, “What my CPOs told me is what I have told you. When we have more information, we will let you know.”

Efforts to speak with the airline’s spokesperson, Efe Osifo-Whiskey, were unsuccessful. He neither picked up his calls nor responded to text messages seeking clarification at the time.

Also, in a statement by the airline, Air Peace said the delay was caused by the unavailability of Jet A1 aviation fuel. Air Peace added that the fuel shortage also affected other airlines.

The Air Peace statement read partly, “The initial delays to our Abuja operations were occasioned by the unavailability of Jet A1 aviation fuel, which affected Air Peace and other airlines operating from the Abuja airport. Upon the availability of fuel, our affected flights commenced operations accordingly.

“However, our Abuja-Maiduguri service could not subsequently operate as planned because the tower in Maiduguri, which had given an extension for our flight to come in, later came back, as at the time of our calling for boarding, to state that the airport had become VFR and would no longer fly beyond sunset.”

While apologising to passengers, Air Peace added, “Throughout the disruption, passengers were duly informed of the delays and provided with refreshments. Following the cancellation, affected Maiduguri passengers were also provided with hotel accommodation, with arrangements made to operate the flight the following day.

See also  PHOTOS: Devastating Fire Still Raging At Kano Market As Traders Count Their Losses

“We sincerely regret the inconvenience caused to our esteemed passengers and appreciate their patience and understanding. At Air Peace, the safety and wellbeing of our passengers remain paramount, and we will continue to prioritise these considerations in all our operations.”

However, sources among marketers said the product was available, although at a higher price. One of the sources told our correspondent that, “Airlines may have faced disruptions because a number of them were not supplied the product because they have refused to clear outstanding. They are owing in the millions.

“The truth is some are owing, and they won’t expect continuous delivery while they are yet to pay what they are owing.”

An airline source who also refused to give his name told our correspondent that a litre of Jet A1 currently sells for about N2,130 in Lagos and Abuja, while the price ranges between N2,180 and N2,230 per litre at airports outside the two major aviation hubs, depending on the location.

The source said although aviation fuel was available, the major challenge confronting airlines was the high cost of procuring the product, which he said had continued to drive up their operating expenses.

He added that the situation was particularly difficult for indigenous carriers because most of their revenues were generated in naira, while a substantial portion of their operating costs was either dollar-denominated or linked to foreign exchange.

According to the source, the high cost of operations has left several indigenous airlines struggling to remain in business, with some having to source funds from other areas to meet their aviation fuel obligations.

He called on the government to intervene in the situation to prevent total collapse of the operating carriers.

See also  African airlines reject API, PNR charges

Also, the Managing Director of Aero Contractors, Ado Sanusi, confirmed that the product is available in the country, dismissing the allegation of its scarcity. He, however, agreed that the cost of the product remained a major concern for operators.

Sanusi, who spoke against the backdrop of concerns over Jet A1 availability, said the emergence of the Dangote refinery has helped in making the product available. According to him, Jet A1 currently sells for about N2,000 per litre in Lagos, while the price is slightly higher outside Lagos by approximately N100 per litre.

He said: “I am not aware of the scarcity of aviation fuel in Nigeria. With the Dangote refinery, how can we experience scarcity of the product locally? The only problem is that it is expensive to purchase. Presently, the product goes for N2,000 per litre in Lagos, while it is slightly more expensive outside Lagos with about N100 difference.”

Sanusi also clarified that Aero Contractors was not indebted to aviation fuel marketers, saying the airline had a policy of settling its fuel bills as soon as they were presented.

“I can’t comment on any other airline’s debts, but one thing is sure: at Aero Contractors, we are not indebted to fuel marketers. We pay all our bills as and when due. For clarity’s sake, what I am saying is that once the bill is submitted to us, we settle it immediately at Aero Contractors. That’s the way we work here,” he said.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending