The Nigeria Labour Congress (NLC) has issued a stern warning, stating that it may pull out workers’ contributions from the National Housing Fund (NHF) due to non-remittance of deducted funds.
The President of the NLC, Joe Ajaero, made this threat on Wednesday during his appearance before the House of Representatives’ Ad hoc Committee on Non-Remittance to the NHF and Utilisation of the Funds from 2011 till Date in Abuja.
Ajaero highlighted the failure of the Federal Mortgage Bank of Nigeria (FMBN) to communicate the amount of contributions and monthly deductions to civil servants.
He urged lawmakers to take immediate and decisive actions in removing obstacles to affordable and high-quality housing for millions of Nigerians, particularly workers who contribute the most to the NHF.
These concerns were brought to the committee’s attention through memoranda and other submissions.
According to Ajaero, the previous Managing Director of FMBN, Ahmed Dangiwa, who currently serves as the Minister of Housing and Urban Development, claimed to have left N120 billion in the bank’s coffers.
“He stated that he was able to mobilise a total of 249.1 billion for Nigeria’s housing fund, and the number of subscribers increased to 197,000 between 2017 and 2022,” Ajaero said.
Despite these achievements, Ajaero noted that millions of Nigerian workers who meet the requirements outlined in sections 4 and 10 of the Act are unable to access financing for acquiring, building, or renovating personal housing properties.
He also highlighted the challenges faced by retired workers in accessing their contributed funds, even if they were unable to secure housing loans, describing the process as burdensome and tedious.
Ajaero pointed out that many workers are unable to access the loans due to administrative bottlenecks, despite making the mandated contributions of 2.5% of their annual salary to the NHF.
“While the Act stipulates a 90-day duration for loan applications to be processed and disbursed, the actual experience for many workers is horrific due to the undue delay,” Ajaero explained. “This situation forces many workers to abandon their pursuit of the loan.”
He further revealed that many workers resort to using third-party agencies to expedite their loan applications, albeit at unofficial fees. Such practices create a perception of corruption in the housing loan approval and disbursement process for those in need of funds.
The Managing Director of FMBN, Madu Hamman, reported that the total amount of contributions from Ministries, Departments, and Agencies (MDAs) from 2011 to date is N238 billion, with individual contributions amounting to N225 million during the same period.
He also mentioned that the ministerial housing scheme accounts for N34.5 billion.
However, Hamman requested more time to reconcile conflicting documents related to the ministerial housing pilot scheme, which he realized were missing from the chairman’s submission.
In response to this development, Musa Bagos, the Chairman of the committee, expressed his disappointment with the inconsistency between the documents submitted by the Managing Director and the agency’s aides.
Bagos warned that should the committee proceed with the hearing, several officials of the FMBN may find themselves facing charges and potentially serving time in Kuje prison.
As a result, the hearing was adjourned to August 24, following a request by the Managing Director to allow sufficient time to gather and present all the necessary documents.
NAN
