The Nigeria Labour Congress (NLC) has issued a stern warning of a potential withdrawal of workers from the National Housing Fund (NHF) contributory scheme due to alleged non-remittance of deductions by the Federal Mortgage Bank of Nigeria (FMBN). Comrade Joe Ajaero, President of the NLC, delivered this ultimatum during a recent presentation before the House of Representatives Ad-hoc Committee on Non-Remittance to the NHF and Utilisation of the Funds from 2011 till date.
Ajaero expressed concerns over the failure of the FMBN to provide adequate communication to civil servants regarding their contributions and monthly deductions within the scheme. The NLC president called on lawmakers to take decisive actions to eliminate obstacles that hinder affordable and high-quality housing for millions of Nigerians, particularly workers who contribute significantly to the NHF.
Highlighting the context, Ajaero revealed that the former Managing Director of FMBN, Ahmed Dangiwa, who currently holds the position of Minister of Housing and Urban Development, disclosed leaving N120 billion in the bank’s coffers. Dangiwa also claimed to have raised the subscription to the housing fund to 197,000 individuals between 2017 and 2022, with a total mobilization of N249.1 billion.
Ajaero pointed out that despite civil servants adhering to the statutory requirement of contributing 2.5 percent of their annual salary to the NHF, many workers encounter challenges in accessing housing loans primarily due to administrative obstacles. He criticized the undue delays in approving loans, which often lead workers to abandon their loan pursuits. To circumvent the delays, some workers resort to unofficial channels, raising concerns about corruption in the loan approval and disbursement process.
In response to the allegations, the Speaker of the House of Representatives, Hon. Tajudeen Abbas, emphasized the gravity of the issue and declared the necessity for an investigation into the non-remittance allegations. The Speaker urged the Ad-hoc Committee to approach the matter with fairness, equity, and diligence in their pursuit of the truth.
Madu Hamman, the Managing Director of FMBN, presented conflicting figures during the hearing. He revealed that contributions from Ministries, Departments, and Agencies (MDAs) amounted to N238 billion, while individual contributions totaled N225 million from 2011 to the present. However, Hamman requested additional time to reconcile the discrepancies surrounding the N34.5 billion ministerial housing pilot scheme, which was not consistent across submitted documents.
As a result, the panel adjourned the hearing until Thursday, allowing the FMBN’s managing director to furnish the required documents for further examination.
