An Empirical Assessment of Nigeria’s National Housing Fund:

Shari’ah Compliance, Effectiveness, and Implications for Inclusive Housing Finance

Mohd Jamiu Ayinla-Edun

Abdulrazzaq Abdulmajeed Alaro

Habeebulah Olawale Alawiye

 

Abstract: Housing remains a critical socio-economic challenge in Nigeria, prompting the government to intervene through the National Housing Fund (NHF). However, the NHF is structured mainly on conventional, interest-based financing, raising concerns about its compatibility with Shari’ah-compliant finance and its inclusiveness for ethically conscious contributors. This study empirically assesses the effectiveness of the NHF, the extent to which Shari’ah-compliant finance principles are incorporated into its operations, and the implications for housing provision and finance in Nigeria. Using a structured questionnaire survey administered to NHF contributors across different employment categories, the study analysed perceptions of NHF performance and Shari’ah compliance. The findings reveal widespread dissatisfaction with the NHF’s effectiveness and low compliance with core Shari’ah finance principles, particularly in the areas of interest avoidance and risk-sharing. The study identifies negative implications for financial inclusion and housing access, and highlights a strong preference for integrating Shari’ah-compliant housing finance models. The paper contributes empirical evidence and practical recommendations for reforming Nigeria’s housing finance framework.