Federal Mortgage Bank of Nigeria Acting Managing Director Rahimatu Aminu-Aliyu on Wednesday said Lagos, Kano, Oyo, Ondo and Kebbi states were not making the mandatory 2.5 per cent contribution to the National Housing Fund domiciled with the bank.
She spoke during an interactive session with the House of Representatives Committee on Housing and Habitat members.
Aminu-Aliyu, a lawyer, said 31 of the 36 states and the Federal Government were the contributors to the scheme.
Only the Federal Government has paid up its equity, she said.
The Central Bank of Nigeria (CBN) and the Nigeria Social Insurance Trust Fund, Aminu-Aliyi said, have partly paid 30 and 20 per cent of their equities.
As a result, she said the bank sought an amendment of the Act establishing it, but the President declined assent to the Bill.
She disclosed that, of the total loans disbursed by the bank, N85 billion was non-performing.
According to her, contributions to the National Housing Fund from civil servants were the only source of funding available to the bank.
She said the bank approached the eight National Assembly to amend its Establishment Act to allow for private sector contributions.
It also sought a recapitalisation of about N500 billion from the Federal Government.
She argued that, if the bank can get every Nigerian, especially the working population, to contribute to the housing fund, the bank would have no reason to seek recapitalisation.
Aminu-Aliyu stressed that every contributor is expected by law to start benefiting from their contribution after six months of commencement.
She said: “If you earn a salary of N100,000 monthly, your contribution will be N2,500 monthly. When you add that, it will give you about N15,000. That is not enough for you to be given N15 million, which is the ceiling.”
Urging the legislators to assist the bank to get more funding, she noted that in developed countries, the government always intervenes in matters of housing for low-income earners.
The Committee Chairman, Mustapha Dawaki, told the bank’s management that non-performing loans of N85 billion were not acceptable.
He urged them to do everything possible to reduce the figure and transform the loans into performing facilities.
The lawmaker said the bank’s management should do more to ensure that all outstanding and non-performing loans are recovered.
He asked the bank to reintroduce the bill that was declined, adding that the committee would look for ways to assist them to attain their mandate.
Credit: The Nation
