The Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Arc Ahmed Dangiwa, said banks and insurance companies have defaulted in remitting the mandatory investment in the National Housing Fund (NHF) scheme since the enactment of the Act in 1992.
Dangiwa, who stated this in Abuja when the Senate Committee on Lands, Housing and Urban Development were on an oversight function at the bank’s headquarters, described it as a flagrant disregard of the law and disservice to the nation.
He explained that their contributions were significant in financing the housing needs of Nigerians, adding that insurance companies were expected to invest 20 per cent of non-life funds and 40 per cent of life funds into the NHF scheme.
He said 10 per cent of annual loans and advances by banks were also not remitted to mortgage banks.
Dangiwa also said FMBN intends to expand its NHF contributor base from the current five million by seeking the integration of the informal sector.
He explained that according to the National Bureau of Statistics (NBS), the national workforce is estimated at 100 million, with more than 85 per cent in the informal sector and non-salaried group.
The MD renewed the call for the recapitalization of the bank to N500 billion, with potential investors/shareholders from the Ministry of Finance, Debt Management Office (DMO), Nigeria Sovereign Investment Authority (NSIA), Central Bank of Nigeria (CBN), World Bank, African Development Bank (AfDB) and Islamic Bank.
He, however, lamented that the COVID-19 pandemic’s effects on business and operations impacted the budget performance of the bank.
On his part, the chairman, Senate Committee on Lands, Housing and Urban Development, Sam Egwu, assured that the committee would join forces with the bank to enforce compliance over non-remittance to NHF scheme.
He requested that FMBN should submit the list of real estate assets and their locations to the National Assembly.
He further requested that the details of completed and ongoing housing units across the states, sources of Internally Generated Revenue (IGR) and list of mortgage assets be forwarded to the clerk.
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