House Probes FHA, FMBN over Non-refund of National Housing Fund Contributions

The House of Representatives at plenary yesterday mandated its Committee on Housing and Habitat to investigate the unnecessary delays and non-refund of retirees’ contributions to the National Housing Fund (NHF) by both the Federal Mortgage Bank and the Federal Housing Authority (FHA).

The House also mandated the Committee to investigate the activities of the FMBN and FHA with respect to contributions, remittances from Ministries, Departments and Agencies (MDAs) and report back within four weeks for further legislative action.

The resolutions were sequel to the adoption of a motion sponsored by Hon. Eta Mboram.

Mboram, in moving the motion, observed that the NHF was established to mobilise funds to facilitate the provision of affordable housing for employed Nigerians and that every Nigerian earning N3,000 or more per annum is required to contribute 2.5 percent of his or her monthly salary to the NHF.

He expressed worry that some MDAs do not remit deductions from contributors’ salaries to managers of the fund as stipulated by the Act, hence contributors who are mostly civil servants, are often oblivious of remittances made on their behalf while in service until the time of their retirement.

He also expressed concern that retirees who applied to the FMBN and the FHA to be refunded have not been attended to in the last three years, resulting in endless delays of refund and non-payment of their refund.

He said, “The House further notes that the core mandate of the NHF is to facilitate the mobilisation of funds for the provision of houses for Nigerians at affordable prices, ensure easy access to loan facilities to Nigerians for building, purchasing of improvement of residential houses, provide incentives for capital markets to invest in property development and provide long-term loans to mortgage institutions for lending to contributors to the fund.

“The House is aware that the NHF Act provides that refund shall be made to contributors who did not obtain a housing loan while in service and should be processed and paid within three months of receipt of the application for a refund.

“The House is further aware that retirees who have invested productive years in the course of their service to the nation deserve a rewarding treatment in getting their contribution to the fund during active years in service as the country does not provide social security welfare for retiree.”