ABUJA, Nigeria — The House of Representatives Committee investigating non-remittances to the National Housing Fund, NHF, and the fund’s non-utilization has summoned the Accountant General of the Federation, Oluwatoyin Sakirat.
She is expected to appear before the committee to explain why deductions from workers’ salaries have not been remitted to the NHF.
During a meeting in Abuja, the summons was issued on Thursday, August 25, 2023, by the committee’s chairman, Hon. Dachung Bagos.
The Accountant General is also expected to clarify why only N20 billion has been remitted to the Federal Mortgage Bank since 2011 and the reasons for disparities in the deductions from various government agencies.
Ekwem Dem, a representative from the Integrated Personnel Payroll and Information System, IPPIS, informed the committee that while salary deductions were automated, the remittance process was not.
Dem could not provide figures for how much had been deducted since 2011, stating that he would need to “query the system” for that information.
The committee members questioned the inconsistency in deductions, citing that N23,000 was deducted from the University of Calabar for NHF for one month, while Federal Polytechnic, Birnin Kebbi, contributed N9,000.
“If the deduction is automated, the remittances should also be automated,” noted Hon. Timehin Adelegbe, a committee member.
The committee has also instructed the Accountant General to remit all housing fund deductions to the Federal Mortgage Bank immediately and present a receipt for verification.
Madu Hamman, Managing Director of the Federal Mortgage Bank of Nigeria, FMBN, urged the committee to amend existing legislation to improve the operation of the NHF.
Hamman disclosed that since 2011, the bank has collected approximately N591.523 billion from both the formal and informal sectors. However, an outstanding payment of about N26.573 billion is still pending with the office of the Accountant General.
Hamman also highlighted challenges such as the over-concentration of Primary Mortgage Banks in Lagos and Abuja, contradictions between the FMBN Act and the CBN prudent guideline on single obligation limits, and the lack of loan affordability for most contributors due to low income.
This investigation exposes a critical issue affecting housing in Nigeria and could have broader implications for government accountability and workers’ welfare.
The non-remittance of the National Housing Fund not only undermines the fund’s purpose but also jeopardizes the housing security of millions of Nigerians.