National Housing Fund scandal: IPPIS didn’t remit workers’ N26.6bn in 2 years – FMBN

JONAS EZIEKE, Abuja 

 

The Federal Mortgage Bank of Nigeria (FMBN) says the Integrated Personal Payroll Information System (IPPIS) failed to remit N26.6 billion of workers’ contributory funds in two years.

Mr Madu Hamman, Managing Director of FMBN, said this on Thursday in Abuja while appearing before the House of Representatives Ad hoc committee probing the non-remittance to the National Housing Fund (NHF) and Utilisation.

According to him, from October to December 2022 there were 40 per cent unremitted payments to FMBN resulting from revenue drive by the Federal Government and a total of N11.630 billion was involved.

“From January to December 2022, N11.587 billion was not remitted as backlog payments for MDAs from IPPIS, while N3. 356 billion was not remitted from April to July 2021 as outstanding failed payments for 2021 from IPPIS,” he said.

Hamman explained that some NHF payments meant to be paid to FMBN as housing contributions had been wrongly made into the Federal Government Loan and Scholarships Board, adding that 14 MDAs were affected by the wrong payments.

He said all contributors were eligible for a full refund of their contribution over the years including accrued interest of 2 per cent upon retirement.

Others, he said, were by attainment of 60 years or inability to continue due to incapacitation or death, adding that FMBN had refunded N66.678 billion to 444,637 beneficiaries.

Speaking on projects executed through various means, Hamman said, FMBN ensured it gave loans to register members of the association of developers.

He said that FMBN also had the regular primary mortgage bank from interested individuals where it disbursed N139.6 billion to 24,332 beneficiaries.

On the ministerial pilot scheme, he said the Federal Ministry of Works and Housing provided land for those on the scheme and it had spent N38 billion to build 5,443 units of housing.

Reacting to the allegations, Mr Ekwem Dem, Deputy Director, IPPIS in the Office of the Accountant General said, ” On our part, we are just hearing some of these allegations.”

He said, for instance, the ‘no work no pay’ for members of ASUU remittances was still hanging, adding that there was a need for a reconciliation window, “so we can see the area of convergence”

Rep. Dachung Bagos, the Chairman of the Committee, said it would go on oversight of some of the projects claimed to have been executed by FMBN and where they were located.

“We are going to do some random checks to see the utilisation of this work, we are going to oversight all these projects

” We need to know why the Nigerian civil servants are not given what is due to them, even if we have to go with a tricycle; we will go.

” Some of us are engineers. We are going to receive some of these things, we must get value for our naira and Nigerians must get value for their money,” the chairman said.

The News Agency of Nigeria (NAN) reports that on Wednesday, the Nigeria Labour Congress (NLC) threatened to pull out civil servants from the NHF contributory funds over the non-remittance of deductions 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 FBN had refused to send alerts of how much civil servants have contributed including their monthly deductions.

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 Mr Ahmed Dangiwa who is now the Minister of Housing and Urban Development said he left behind N120 billion in the coffers of
the bank.

.As NLC threatens to pull out of NHF for non-remittance of contributory funds

 

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

 

Comr Joe Ajaero, President, NLC 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.

 

Ajaero said FBN had failed to send alerts to civil servants on how much they have been contributing including their monthly deductions.

 

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.

 

According to him, the immediate past Managing Director of FMBN Mr 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 249.1 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.

 

He said in spite of making the statutory contributions of 2.5 per cent of the 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 to disbursement, the experience by many  workers is horrific as the undue delay in approving the loans forces  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 the perception of corruption in the process of housing loan approval and disbursement to workers who needed the funds.

 

Mr. Madu Hamman, Managing Director, said 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.

 

He however time to reconcile the conflicting documents from the ministerial housing pilot scheme which was missing from the one the chairman had.

 

Reacting to the development, the Chairman of the committee Rep. Musa Bagos while cross-examining the agency aid, with 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 August 24, following a request by the MD to enable them to put all the necessary documents together.

 

.Allegations of non-remittance to Fund grievous, must be probed — Speaker Abbas

 

Meanwhile, the Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas has said that the allegations of non remittance to the national housing fund were grievous and must be investigated.

 

The speaker made the remarks on Wednesday in Abuja while inaugurating the adhoc committee of the House on the “Investigation of Non-Remittance of Contributions to the National Housing Fund (NHF) and Utilization of the Fund from 2011 to Date chaired by Hon. Dachung Bagos.

 

The fund represents a commitment to addressing the need for affordable housing for Nigerians.

 

Established by the NHF Act of 1992, the scheme 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 the Fund.

 

The speaker who was represented by the deputy speaker, Rt. Hon. Benjamin Okezie Kalu charged the members of the committee to be guided by the principle of fairness, equity and diligence as they discharge their mandate.

 

He said: “Your task, as members of this Ad-Hoc Committee, is to shed light on

the utilization of these contributions, to ensure that the NHF fulfills its mandate to provide affordable housing solutions. The allegations of non-remittance are grievous and must uncover the truth, in order to hold those responsible accountable and safeguard the interests of those who have diligently contributed to this Fund.

 

“I implore this Committee to embark on this 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.

 

“As the investigative hearing commences, let us be guided by principles of fairness, equity, and diligence. 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.”

 

Abbas also noted that the NHF Act of 1992 had become obsolete and needed to be reviewed.

 

“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, for this 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.

 

“It is within this context that we convene to investigate the alleged non remittance to the National Fund and critically review the utilization of the Fund from 2011 to date”, the speaker said.

 

 

.Reps C’ttee summons Accountant-General

 

Also, the House of Representatives Committee investigating the non remittances of funds to the National Housing Fund and non utilisation of the funds has summoned the Accountant-General of the Federation Oluwatoyin Maiden to appear before it to explain why monies deducted from workers’ salaries are not remitted to the fund.

 

The Accountant General is also 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,  Ekwem Dem have told the committee that while deductions from the salaries of workers were automatic, remittances were not automated.

 

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

 

Members of the committee had observed from documents presented to it by the Integrated Personnel Payroll and Information System that N23,000 was deducted from the University of Calabar for NHF for one month, while Federal Polytechnic, Birnin Kebbi contributed N9,000.

 

They asked the Accountant General to furnish the 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.

 

A member of the committee, Hon. Timehin Adelegbe said “If the deduction is automated, the remittances should also be automated.”

 

The Committee also asked the Accountant General to remit all deductions of the Housing fund remitted to the federal Mortgage Bank with immediate effect and receipt presented to the committee.

 

Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Madu Hamman appealed to the Committee to amend the act establishing the Bank and the National Housing Fund to give more effect to the operation of the NHF.

 

Hamman said the Bank collected about N591. 523 billion as remittances from both the formal and informal sectors of the Nigerian economy since 2011 till date out of which N238. 557 bison were collected from government Ministries, Departments, and Agencies.

 

He said the bank also has an outstanding payment 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 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 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 percent 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, adding that out of the N591.523 billion collected for the Nation Housing Fund within the period, about N347. 570 billion was invested in various projects financed by the Bank.

 

These projects include Cooperative Housing Development Loan (N44.019 billion), NHF Mortgage loan (N139.095 billion), Ministerial Pilot Housing Scheme (N38.037 billion), TUC/NLC/NECA housing scheme (31.659 billion), Individual construction loan (N269.044 million), Home Renovation Loan (N92.468 billion) and Rent to Own (N2.021 billion).

 

He listed some of the major challenges including over-concentration 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’s 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.

 

For a better society

—————————————————————–

Kindly follow us across all our social media platforms to stay up-to-date with the latest news and happenings in Nigeria and across the globe.

Facebook – https://facebook.com/championnewsonline

Instagram – https://instagram.com/championnewsonline

Twitter– @championnewsng