Intrigues, as Reps launch probe into National Housing Fund
By Tom Okpe
The House of Representatives’ investigation into alleged non-remittance to the National Housing Fund, (NHF) and utilisation of the funds from 2011 till date has been full of intrigues with threats and revelations.
The NHF is a Federal Government scheme, which entitles all Nigerians above the age of 21years in paid employment to a low interest, government funded loan where members of the scheme contribute 2.5% of their monthly salary to the fund through Federal Mortgage Bank of Nigeria, (FMBN).
The House, had in July, before proceeding on its recesses, set up an Ad-hoc Committee with Bagos Musa Dachung, PDP from Plateau State, as Chairman, to conduct investigation when it adopted a motion sponsored by Rep Zakaria Dauda Nyampa from Adamawa State.
Nyampa had lamented the seeming gross default in the utilisation and remittance of the National Housing Fund which constitutes an offence under section 20 of the NHF Act.
When the probe commenced last week Wednesday, it was action packed with a threat from the Nigeria Labour Congress, (NLC) to pull out workers from NHF contributory scheme because of the non-remittance of deductions made by the FMBN.
READ ALSO: Medical and Dental Consultant s Association of Nigeria…
While inaugurating the committee at the National Assembly, Abuja recently, Speaker of the House, Rep Abbas Tajudeen charged the members to be committed as their presence and participation is very significant, adding that; “It is clear indications of your desire to assist the average Nigerian worker have a roof over his head.”
He said: “This hearing is to get needed inputs from relevant stakeholders on the issue at hand and ensure that, challenges faced by Nigerian workers in the housing sector is reduced to its barest minimum, if possible, completely solved.
“As you are aware, the NHF Scheme was set-up by the Federal Government in 1992 to ameliorate housing needs of Nigerian workers, both in the public and private sector as contained in Section, 4 (1) of the NHF Act, which entitles all Nigerian, above the age of 21 years and gainfully employed to access the loan with a very low interest rate.
“Part of the scheme intention was to create a conducive environment for Nigerians, especially workers within low and medium income range, designed in such a way that a certain percentage, 2.5% from the monthly salary of every worker is deducted and remitted into an account with the Federal Mortgage Bank.
“Despite efforts by successive governments, housing deficit in Nigeria is still high with contributors to the scheme, still don’t have a roof on their head, more so, that the process of applying for facility is stringent.
“You will recall that the inability of contributors to adequately benefit from the scheme both the Nigerian Labour Congress, (NLC) and Nigeria Employers Consultative Association, (NECA) directed its members to stop contributing to the scheme in the early year, 2000.
“As Legislators, we are resolved to do due diligence to unravel any set back and ensure that an average Nigerian worker and contributor benefits from the scheme.”
At the public hearing, the NLC, led by its National President, Joe Ajaero threatened the FMBN to pull out civil servants from the NHF contributory funds over non-remittance of deduction made.
Ajaero said FMBN failed to send alerts to civil servants, how much they have contributed, including monthly deductions.
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.
He said: “The immediate past Managing Director of FMBN, Ahmed Dangiwa who is now the Minister of Housing and Urban Development said he left behind N120 billion in the coffers of the bank, mobilising N249.1 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 houses.
“In spite of making 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, which forced many workers to abandon its pursuit.
“Many therefore, 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, ” Ajaero told the Committee.
Meanwhile, the Ad’hoc Committee at its sitting on Thursday, summoned the Accountant General of the Federation, (AGoF) Mrs Oluwatoyin Sakirat Maidein to its next sitting.
The Accountant General is to explain why monies deducted from workers salaries are not remitted to the fund and to explain why the disparities in deductions from workers from various agencies of government and why only N20 billion has been remitted to the Federal Mortgage Bank since 2011.
The Committee Chairman, Bagos observed that from documents presented to it by the Integrated Personnel Payroll and Information System, (IPPIS) N23, 000 was deducted from the University of Calabar for NHF for one month, while Federal Polytechnic, Birnin Kebbi contributed N9, 000.
The committee however, asked the Accountant General to furnish it with information on what has been deducted from workers so far, when such money was deducted and why the money wasn’t remitted.
The Committee also, asked the Accountant General to remit all deductions of the Housing fund remitted to the Federal Mortgage Bank with immediate effect and receipts, presented.
Managing Director, FMBN Madu Hamman appealed to the Committee to amend the act establishing the Bank and the National Housing Fund to give more effect to the operation of the NHF.
Hamman said the Bank collected about N591.523 billion as remittances from both the formal and informal sector of the Nigerian economy since 2011 till date out of which N238.557 billion was collected from government Ministries, Departments and Agencies, (MDAs).
He said the bank also have outstanding payment of about N26.573 billion with the office of the Accountant General.
He gave the break down of the outstanding payment, saying, the Accountant General eronously deducted about N11.6 billion from remittances of workers to the bank between October and December 2022.
“We explained that the money was remittances of workers contributions to the NHF before the deduction was stopped through Treasury Single Account.”
He also explained that between January 2022 and December 2022, the IPPIS failed to remit about N11.587 billion, deducted from workers salaries and another N3.356 billion between April and July 2021.
He disclosed that contributors to the National Housing Fund are eligible for a full refund of their contributions over the years with accrued interest of 2%, upon retirement after attaining the age of 60 or inability to continue contributions, due to incapacitation or death.
“So far, the Bank has refunded N66.678 billion to N444,637 billion, adding that out of the N591.523 billion collected for the Nation Housing Fund within the period, about N347. 570 billion was invested in various projects financed by the Bank.
“These projects include Cooperative Housing Development Loan, (N44.019 billion), NHF Mortgage loan (N139.095 billion), Ministerial Pilot Housing Scheme, (N38.037 billion), TUC/NLC/NECA housing scheme, (31.659 billion), Individual construction loan, (N269.044 million), Home Renovation Loan, (N92.468 billion) and Rent to Own, (N2.021 billion),” he added.
