Reps to probe Federal Mortgage Bank over non-remittance of N5.6bn

The House of Representatives on Tuesday resolved to investigate the alleged non-remittance of N5.6 billion to the Federal Government’s coffer by the Federal Mortgage Bank of Nigeria, FBN.

The House resolution followed a motion sponsored by Honourable Ossai Nicholas Ossai and Hon. Victor Onyemaechi Nwokolo at the plenary yesterday.

It then directed the Committees on Finance, Housing and Urban Development and Regional Planning to investigate the allegations and report back to the House within four weeks for further legislative action.

Honourable Ossai who moved the motion on behalf of the duo said that there was “need to recover the un-remitted sum of N5.6 Billion from the Bank for injection into the economy.”

According to him, “between 2011 and 2015, the Bank generated a total revenue of N44.073 billion, with N13.17 billion of it having been generated in 2015 but the Bank defaulted in the remittance of the Value Added Tax (VAT) collections of N2.2 billion to the Federal Inland Revenue Service (FIRS).”

He explained that between 2011 and 2015, the bank also defaulted in remittance of Withholding Tax deductions to the Federal Inland Revenue Service to the tune of N3.4 billion.

The lawmaker pointed that due to poor management by successive managements of the bank, there had been unimaginable high volume of non-performance of 70 percent of the bank’s risk assets and loans, thus resulting in sharp erosion of its Capital Structure and the National Housing Fund deposits.

According to him, “the mismanagement of the Bank has led to huge administrative expenditure to the extent that its annual average of staff maintenance is N4 billion, while Directors fees and expenses are on the average of N200 million annually

“The Federal Mortgage Bank of Nigeria was established to provide long-term credit facilities to Mortgage Institutions and to encourage development of Mortgage Institutions at the rural, local, state and federal levels.”

“The Bank is empowered through the National Housing Fund to, among other things, facilitate the mobilization of funds for provision of houses for Nigerians,” he stated.

When the motion was put to vote, by the Speaker, Hon. Yakubu Dogara, it was supported by majority of the members.