Reps probe utilisation of N591.523bn national housing fund

The House of Representatives on Thursday resumed its investigation into the utilisation of N591.523 billion accrued from the National Housing Fund coffers, managed by the Federal Mortgage Bank of Nigeria (FMBN).

To this end, the Ad-hoc Committee investigating the non-remittances of funds to the National Housing Fund and non-utilisation of the funds, chaired by Hon. Dachung Bago, resolved to summon the Accountant General of the Federation (AGF) to appear before it to explain why financial contributions deducted from workers salaries were not remitted into the fund.

The Accountant General is also expected to explain why there are disparities in the deductions from workers from various agencies of government and why only N20 billion has been remitted to the Federal Mortgage Bank since 2011.

Representatives of the Director of the Integrated Personnel Payroll and Information System (IPPIS), Ekwem Dem, informed the Ad-hoc Committee that while deductions from the salaries of workers were automatic, remittances were not.

He, however, could not tell the Committee how much has been deducted from the Housing Fund from workers since 2011, saying that even though they have the information, he needs to “query the system” before responding to the question.

Some of the concerned lawmakers, during the scrutiny of the documents submitted by the IPPIS, observed that N23,000 was deducted from the University of Calabar for NHF for one month, while Federal Polytechnic, Birnin Kebbi, contributed N9,000.

Worried by the development, the lawmakers asked the Accountant General to furnish the Ad-hoc Committee with information on what has been deducted from workers so far, when such money was deducted, and why the money has not been remitted.

On his part, Hon. Timehin Adelegbe said, “If the deduction is automated, the remittances should also be automated.”

He also asked the Accountant General to remit all deductions from the Housing Fund remitted to FMBN with immediate effect and present a receipt to the Ad-hoc Committee.

While speaking, FMBN Managing Director, Mr Madu Hamman, underscored the need to amend the FMBN Establishment Act and the National Housing Fund Act with a view to giving more effect to the operation of the Fund.

Hamman disclosed that the Bank has received about N591.523 billion in remittances from both the formal and informal sectors of the Nigerian economy since 2011 to date, out of which N238.557 billion was collected from government Ministries, departments, and Agencies (MDAs).

He said the Bank also has outstanding payments of about N26.573 billion with the office of the Accountant General of the Federation.

Giving a breakdown of the outstanding payment, he said the Accountant General erroneously deducted about N11.6 billion from the remittances of workers to the Bank between October and December 2022 as part of government revenue, mistaking the remittances to be revenue coming into the bank.

He said, “We had to explain to them that the money was remittances of workers contributions to the NHF before the deduction was stopped through the 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 per cent upon retirement after attaining the age of 60 or inability to continue contributions due to incapacitation or death.

He said so far, the Bank has refunded N66.678 billion to 444,637 Contributors, adding that out of the N591.523 billion collected for the National Housing Fund within the period, about N347.570 billion was invested in various projects financed by the Bank.

These projects include a cooperative housing development loan of N44.019 billion; an NHF Mortgage loan of N139.095 billion; a ministerial pilot housing scheme of N38.037 billion; a TUC/NLC/NECA housing scheme of N31.659 billion; an individual construction loan of N269.044 million; a home renovation loan of N92.468 billion; and a rent-to loan of N2.021 billion.

He listed some of the major challenges, including the overconcentration of Primary Mortgage Banks in Lagos and Abuja, while none exist in most states of the Federation, adding that only 34 primary mortgage Banks exist in the county.

He also said that the contradictions between the FMBN Act and the CBN prudent guideline on single obligation limits for PMBs are affecting loan disbursement by the Banks as well as the lack of loan affordability by the majority of contributors as a result of low income.

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