The National Assembly, on 18 February 2019, passed the National Housing Fund (Establishment) Bill, 2018 (the Bill) into law. The Bill, which will repeal the National Housing Fund (NHF or the Fund) Act, 2004 after the President's assent, aims to provide additional sources of funding for effective financing of housing development in Nigeria.
Key highlights of the Bill are presented below:
Sustainable Development Levy (SDL or the Levy) will be charged on cement
The Bill introduces a levy on locally produced and imported cement. The Levy is to be paid at the rate of 2.5% of ex-factory price before transportation cost for each bag of 50kg or its equivalent in bulk. SDL would be assessed and collected by Federal Inland Revenue Service (FIRS). The Levy is payable within sixty days of issuance of an assessment notice by FIRS on the manufacturer or importer.
The President also reserves the power to amend or substitute the goods and services on which the Levy can be applied as well as the rate applicable, through an Executive Order.
Self-employed persons are now obliged to contribute to the Fund
Employees earning the national minimum wage and above in the public and private sectors, and self-employed persons earning equivalent of the minimum wage and above, are required to contribute to the Fund.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.