The executive director of Housing development Advocacy Network (HDAN), Festus Adebayo had said the advocacy group may result in legal action against Central Bank Of Nigeria (CBN)for its failure to implement the National Housing Fund (NHF) act because this is a total violation of the Constitution of the federal Republic of Nigeria.
This is contained in his reaction to the refusal of CEOs of insurance companies to respond to the invitation of the house of reps committee investigating NHF contributions,
Adebayo emphasised that they had raised concerns about this issue last year when the office of the Accountant General was illegally deducting 40 per cent of NHF fund in FMBN remittal account.
He said “we have raised alarm on this last year when the office of Accountant General was illegally deducting 40 per cent of NHF funds in FMBN remita account.
“We are happy to hear that has stopped but we will consult with Labour Unions on the next line of action.
The NHF is owed trillions of Naira in unremitted funds by deposit money banks and insurance firms operating in the nation for failing to invest in the NHF as required by law under NHF Act No. 3 of 1992.
The Federal Mortgage Bank of Nigeria (FMBN), the managers of the Fund, are intended to receive at source deductions from the banks and transfer them to the Central Bank of Nigeria (CBN), however the CBN has fallen short of this duty.
The NHF plan was created to make it easier for low-cost funds to flow continuously for long-term housing investments for the benefit of fund donors.
According to the NHF Act, the fund’s resources must come from both public and private contributions from Nigerians, investments by commercial and merchant banks, contributions from insurance companies that are licensed to do business under the insurance act, and financial contributions from the federal government for long-term loans.”
The Federal Mortgage Bank of Nigeria (FMBN) was empowered by the NHF Act to manage and administer the Fund to ensure that proceeds are utilised to finance the housing sector of the economy through wholesale mortgage lending to primary mortgage institutions (PMIs)
Given that banks are supposed to invest 10 per cent of their Loans and Advances into the National Housing Fund, about N10.494 trillion should have been invested in the Fund by the banks.
President of Real Estate Developers Association of Nigeria (REDAN), the umbrella body of property developers in the country, Dr. Aliyu Wamakko, said the general attitude of banks to housing finance in the country is lamentable.
“It is a serious matter, which is a violation of the constitution. What we intend to do is to liaise with HDAN, National Assembly and other stakeholders on necessary action.
We will take steps to sensitise the National Assembly on the development, and also write to the CBN because this shows clearly that the apex bank has not been playing its expected role as a regulator of the banks.
Wamakko added that a lot of advocacy is also required on the part of the mass media to bring out some of these facts into the public domain in order to ensure that everybody plays its role in financing housing development in the country.
