The House of Representatives on Wednesday resolved to investigate the non–remittance to the National Housing Fund (NHF) and utilization of the fund from 2011 to date.
This followed the adoption of a motion titled ‘Need to Investigate the Non–Remittance to the National Housing Fund and Utilization of the Fund from 2011 to date’ sponsored at the plenary by Hon. Zakaria Dauda Nyampa.
While adopting the motion, the House resolved to set up an ad-hoc to carry out the investigation and report back for further legislative action
Presenting the motion, the Lawmaker said “The House notes that National Housing Fund (NHF) is a Federal Government scheme, which entitles all Nigerians above the age of 21 years in paid employment to a low-interest, government-funded loan to developers to provide purpose-built homes that fit the incomes of low-and medium-income
“Aware that the Federal Government set up the scheme in 1992, and all Nigerians above 21 years old and working in the economy’s public, private and informal sectors are eligible to register and participate by contributing 2.5 per cent of their monthly incomes;
“Also aware that the National Housing Fund scheme presents a convenient and cost-effective opportunity for Nigerians, especially those within the low-and medium-income segment.
“Successive governments in Nigeria had introduced various measures and policies in the last four decades to combat the housing problem in Nigeria as it is believed that a well-articulated housing policy could stimulate economic growth, generate employment, redistribute the population and reduce urban degeneration;
Informed that to facilitate the deductions and remittances of contributions, each employer is expected to be registered.
“The self-employed individuals can, however, collect forms from any branch of FMB nationwide.”
He further added, that “concerned that from an assessment of the performance of National Housing Fund (NHF) in Nigeria carried out by the Central Bank of Nigeria, the analysis of survey returns revealed that one in every five disbursed loans went into default despite the slight improvement of 20.9 percent witnessed in 2014 compared with 23.8 per cent in 2012,
“The rate of loan default witnessed a sharp increase to 45.8 per cent in 2015 and further to 59.6 per cent in 2016. Various reasons were provided for the high default rate experienced by the PMBs, demise of the mortgagor, unwillingness of the customers to repay, nonpayment by an employer and lack of constant follow
upon the mortgagor, amongst others.
“Concerned that there seems to be a gross default in the utilization and remittance of the National
Housing Fund which constitutes an offence under section 20 of the NHF Act.”
He then urged the House to set up an ad-hoc committee to investigate the scheme from 2011 to date which was unanimously supported by other members when it was put into voice vote by the Deputy Speaker, Hon Benjamin Kalu who presided over the plenary.
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