The House of Representatives has summoned the accountant general of the federation, Dr Oluwatoyin Madein, to explain why deductions from workers salaries for housing scheme were not remitted to the National Housing Fund (NHF).
The accountant general is also to state why there were disparities in the deductions from workers from various agencies of government and why only N20 billion has been remitted to the Federal Mortgage Bank (FMBN) since 2011.
The House of Representatives Ad-hoc Committee on Non-Remittance to the NHF and Utilisation of the Funds from 2011 till date, issued the summon at its resumed investigative hearing yesterday.
Representative of the director of the integrated Personnel Payroll and Information System (IPPIS), Ekwem Dem had told the Committee that while deductions from salaries of workers was automatic, remittances were not automated.
He, however, failed to tell the Committee how much has been deducted as housing fund from workers since 2011.
Members of the Committee observed that from documents presented to it by the IPPIS office, N23,000 was deducted from the University of Calabar for NHF for one month, while Federal Polytechnic, Birnin Kebbi contributed only N9,000.
The lawmakers 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 directed the accountant general to immediately remit all deductions of the housing fund to the FMBN and present the receipt to lawmakers.
Managing director of 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 sector of the Nigerian economy since 2011 till date out of which N238. 557 billion was collected from government Ministries, Departments and Agencies.
Hamman said the bank also has an outstanding payment of about N26.573 billion with the office of the Accountant General of the Federation.
“We had to explain to them that the money was remittances of workers’ contributions to the NHF before the deduction was stopped through the Treasury Single Account, “ the managing director said.
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.
Hamman disclosed that contributors to the NHF 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 NHF within the period, about N347. 570 billion was invested in various projects financed by the Bank.
These projects, he said 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).”
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