President Muhammadu Buhari has declined assent to the National Housing Fund (NHF) Bill, 2018 (the Bill) which was recently passed by the National Assembly. We understand that this is due to the multiple levies which the Bill seeks to impose on certain products and more importantly, Nigerian workers.
It would be recalled that the passage of the Bill by the National Assembly had generated widespread controversies and criticisms, particularly from the private sector. The criticisms were mostly due to the additional burden the Bill seeks to place on the disposable income of Nigerian workers.
In addition, the difficulty and complexity in gaining access to housing loans from the NHF scheme, which has been a disincentive to Nigerian workers was not addressed by the Bill. Please click here to access our detailed newsletter which examined the highlights of the Bill.
With the President’s decline to assent the Bill, it is expected that the Bill would be returned to the National Assembly for possible amendments. Such amendments should be around provisions that are considered controversial and which could have adverse effect on Nigerian workers and the economy at large.
We will continue to watch the space and revert on any update, if necessary. If you require further clarification or seek to understand how this would impact your business, please reach out to NGTaxPartners@deloitte.com.