Analysts at loggerhead over impact of proposed NHF law

Recently, there have been debates coming from different quarters in Nigeria regarding the proposed National Housing Fund (NHF) bill, which is currently awaiting Presidential assent.

Several top financial and tax analysts have rightly argued different sides to the NHF bill and its possible impacts on Nigeria. And while some are calling for the bill to be scrapped, others are throwing their weights behind it.

Reports have shown that for the nation to upturn the high deficit figure, an additional 2 million housing unit per annum will be required for the next 10 years.

Recall, that the revised National Housing Fund Law was recently passed by the National Assembly and submitted to the President.

Global tax and consulting conglomerate, Price Waterhouse Coopers (PWC) opined that the “proposed law is a bad idea”.

According to the Head of Tax and Regulatory Services at PwC Nigeria, Mr. Taiwo Oyedele, called for the total withdrawal of the bill.

“The main objective of NHF should not be just to make affordable funding available for housing but to create an environment that makes affordable housing possible. To achieve this, Nigeria must adopt a holistic approach to the challenges facing the sector of which affordable financing is only a component.”

He further stated the following: “The fact that there is no marked progress to show for the 27 years of establishing the NHF is proof that Nigeria’s housing problem cannot be solved by simply

On the contrary, some people are of the opinion that the NHF law is a good thing for the Nigerian economy.

A housing industry expert, Mr. John T. Ikyaave, described the recent passage of the revised NHF bill as a positive development. According to him:

“The new NHF bill, which is now awaiting the assent of president Muhammadu buhari, would support the provision of housing loans at best and lowest market interest rates of between six and nine percent that can be paid for a period of up to 35 years.”

Meanwhile, the CEO of AfriSwiss Capital Management Limited, Mr. Kalu Aja, faulted the NHF proposed law;

“The proposed NHF law takes private sector profits and transfers to a government program, without imposing a tax. If the federal government can unilaterally debit profit before taxes (PBT), then what stops another government debiting PBT to fund “water for all?

“The proposed law accumulates savings at a negative rate, thus a huge opportunity cost to “savers”. All these without a mention of the land use act, credit rating even cost of homes.”

He stated further, “Rather than a punitive fund, take the unclaimed dividend fund and “lend” to the NMRF at 2% per annum for a 30 year zero coupon bond.