NLC Threatens Pulling Out Civil Servants From Nat’l Housing Fund

The Nigeria Labour Congress (NLC) has threatened the Fed­eral Mortgage Bank of Nige­ria (FMBN) that it will pull out civil servants from the Na­tional Housing Fund’s (NHF) contributory funds over non-re­mittance of deduction made.

President of NLC, Joe Ajaero, 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.

According to Ajaero, FMBN had refused to send alerts of how much civil servants have contributed 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.

He said that 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.

“He said he was able to mo­bilise 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 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.

According to him, in spite of making the statutory con­tributions of 2.5 percent 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 disbursement, the experiences 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.

Also speaking at the meet­ing, the Managing Director, Federal Mortgage Bank, Madu Hamman, said that the total amount of contribution from MDAs from 2011 till date is N238 billion, adding that indi­vidual contribution from 2011 till date was N225 million.

He said that the ministeri­al housing scheme was N34.5 billion.

Reacting to the develop­ment, the chairman of the committee, Rep. Musa Bagos, while cross examining the agency, said the difference 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 today following a request by the MD to enable them put all the necessary doc­uments together.

Earlier, the Speaker of the House of Representatives, Hon. Tajudeen Abbas, in his speech said that the House would review the obsolete National Housing Fund Scheme Act of 1992 in line with the current economic reality in the country.

The speaker dropped the hint in Abuja while declaring open the investigate hearing organised by the House Ad Hoc Committee on non-remit­tance of contributions to the National Housing Fund and the utilisation of the fund from 2011 to date.

Speaking through the Dep­uty Speaker, Hon. Benjamin Kalu, “The National Housing Fund (NHF) represents a com­mitment to addressing one of the most fundamental needs of our citizens– affordable hous­ing. Established by the NHF Act of 1992, this scheme which was 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 this Fund.

“As you are aware, offending Sections 20 & 21 of this Act has convicts liable to both fine and imprisonment.

“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, 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.

Abbas pointed out that it was within this context that the House resolved to investi­gate the alleged non-remittance to the National Housing Fund and critically review the utili­sation of the Fund from 2011 to date.

According to him, “Thus, the mandate of this committee is a crucial one that resonates deeply with the well-being and aspirations of the Nigerian worker.

“Your task, as members of this Ad-Hoc Committee, is to shed light on the utilisation of these contributions, to ensure that the NHF fulfils its mandate to provide affordable housing solutions.

“The allegations of non-re­mittance are grievous, and we must uncover the truth, in or­der to hold those responsible accountable, and safeguard the interests of those who have diligently contributed to this Fund”.

He implored the commit­tee to embark on the 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”.

He advised the members of the committee that as the inves­tigative hearing commenced, they be guided by principles of fairness, equity, and diligence, saying, “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”.

While expressing total confi­dence in the collective wisdom and dedication, also the ex­pertise of the members of the committee, the speaker said “together, we have the power to protect the rights of Nigerians to affordable housing through the National Housing Fund, and we shall fight vigorously to so protect these rights”.

In his opening remarks, the chairman of the committee, Hon Datchung Bagos, urged stakeholders to be forthcom­ing in their presentations and submissions.