Nigeria Labour Congress (NLC) has threatened the Federal Mortgage Bank of Nigeria (FMBN) to pull out civil servants from the National Housing Fund’s (NHF) contributory funds over non-remittance of deduction made.
Comr Joe Ajaero, President, NLC made the threat while appearing before the House of Representatives Ad hoc Committee on Non-Remittance to the NHF and Utilisation of the Funds from 2011 till Date.
Ajaero said FBN had failed to send alerts to civil servants how much they have been contributing including their monthly deduction.
He urged the lawmakers to take drastic steps to remove the encumbrances to affordable and quality housing to millions of Nigerians especially workers who make the most contributions to the NHF.
This according to him is as identified in the memorandum and other memoranda submitted to the committee.
According to him, the immediate past Managing Director of FMBN Mr Ahmed Dangiwa who is now the Minister of Housing and Urban Development said he left behind N120 billion in the coffers of the bank.
“He said he was able to mobilise 249.1 billion to Nigeria’s housing fund, and
increased subscription to 197,000 between 2017 and 2022.
He said in spite of these milestones, millions of Nigerian workers who are in line with sections 4 and 10 of the Act are unable to access finance to acquire, build or renovate personal housing property.
He said the ease of reimbursement to retired workers of contributed funds even after failure to access housing loans is also cumbersome and unnerving.
He said in spite making the statutory contributions of 2.5 per cent of annual
salary to the NHF, many workers were unable to access the loan due mainly to administrative bottlenecks.
” While the Act provides for 90 days from the date of application for the loan to disbursement, the experience by many workers are horrific as the undue delay in approving the loans force many workers to abandon pursuit of the loan
He said many resort to third party agencies to fast track the loan application at unofficial fees thus creating perception of corruption in the process of housing loan approval and disbursement to workers who needed the funds.
Mr Madu Hamman, Managing Director, said the total amount of contribution from MDAs from 2011 till date is N238 billion, adding that individuals contribution from 2011 till date was N225 million
He said that the ministerial housing scheme was N34.5 billion.
He however time to reconcile the conflicting documents from the ministerial housing pilot scheme which was missing from the one the chairman had.
Reacting to the development, the Chairman of the committee Rep. Musa Bagos while cross examining the agency aid,with the deference in the documents submitted by the MD was inconsistent
He said should the committee continue with the hearing, many officials of FMBN would be on their way to Kuje prison.
Bagos therefore adjourned the hearing to Aug 24, following a request by the MD to enable them put all the necessary documents together.
.Allegations of non-remittance to Fund grievous, must be probed — Speaker Abbas
Meanwhile, the Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas has said that the allegations of non remittance to the national housing fund were grievous and must be investigated.
The speaker made the remarks on Wednesday in Abuja while inaugurating the adhoc committee of the House on the “Investigation of Non-Remittance of Contributions to the National Housing Fund (NHF) and Utilization of the Fund from 2011 to Date chaired by Hon. Dachung Bagos.
The fund represents a commitment to addressing the need of affordable housing for Nigerians.
Established by the NHF Act of 1992, the scheme designed to ensure that Nigerians have access to affordable housing mandates all employers in both the private and public sectors to contribute 2.5% of their workers’ monthly earnings into the Fund.
The speaker who was represented by the deputy speaker, Rt. Hon. Benjamin Okezie Kalu charged the members of the committee to be guided by the principle of fairness, equity and diligence as they discharge their mandate.
He said: “Your task, as members of this Ad-Hoc Committee, is to shed light on
the utilization of these contributions, to ensure that the NHF fulfils its mandate to provide affordable housing solutions. The allegations of non-remittance are grievous, and must uncover the truth, in order to hold those responsible accountable, and safeguard the interests of those who have diligently contributed to this Fund.
“I implore this Committee to embark on this investigation with a profound sense of responsibility, bearing in mind that the National Housing Fund holds the potential to transform the lives of countless hardworking Nigerians by providing them with the opportunity to
secure affordable housing.
“As the investigative hearing commences, let us be guided by principles of fairness, equity, and diligence. Our mission is not only to uncover any irregularities but also to propose solutions that will strengthen
the NHF and ensure it serves its intended purpose, while also preventing a reoccurrence of these issues.”
Abbas also noted that the NHF Act of 1992 had become obsolete and needed to be reviewed.
“The House will look into this law which is obsolete now. From 1992 till date calls for a review. There are other issues that the House will inject to make it fit for purpose.
“As a noble initiative rooted in the principles of collective responsibility,
the scheme identifies the critical need to ensure access to affordable housing by hard-working Nigerians, in order to bridge the housing deficit gap in the country.
“However, for this to become a reality, we all know it is crucial that the Fund is managed transparently, efficiently,
and in strict adherence to the law.
The House was therefore alarmed to receive allegations of non-remittance by employers and in other cases, mismanagement and misappropriation of the hard-earned salaries of Nigerian workers, by the administering institution.
“It is within this context that we convene to investigate the alleged non remittance to the National Fund and critically review the utilization of the Fund from 2011 to date”, the speaker said.
