The failure of the Integrated Personal Payroll Information System (IPPIS) to remit N26.6 billion of workers’ contributory funds over a period of two years to the National Housing Fund (NHF) has attracted the wrath of the Nigeria Labour Congress (NLC).
Mr. Madu Hamman, the managing director of the Federal Mortgage Bank of Nigeria (FMBN), had while making appearance before the House of Representatives Ad hoc committee that is currently investigating the non-remittance of contributions to the NHF and its utilization disclosed the non-remittance of the funds by IPPIS.
According to Hamman, there was a significant unremitted payment of 40 percent to FMBN from October to December 2022, amounting to a total of N11.630 billion due to revenue drives by the Federal Government. Additionally, he noted that there were outstanding backlog payments from IPPIS. In particular, N11.587 billion from January to December 2022 and N3.356 billion from April to July 2021 were not remitted.
Hamman also noted that certain NHF payments that were meant to be directed to FMBN as housing contributions had been mistakenly sent to the Federal Government Loan and Scholarships Board. This erroneous payment affected 14 MDAs, he said.
Meanwhile, the matter has attracted a strong reaction from labour with the NLC threatening to withdraw civil servants’ contributions from the NHF. Joe Ajaero, President of NLC, raised this concern before the House of Representatives Ad hoc Committee.
Ajaero urged lawmakers to take necessary actions to address the obstacles hindering affordable and quality housing for Nigerian workers who significantly contribute to the NHF.
Ajaero referred to previous statements by the former managing director of FMBN, Mr. Ahmed Dangiwa, who is now the minister of Housing and Urban Development. Dangiwa had reported leaving N120 billion in the bank’s coffers before his departure.
On projects that were carried out through various avenues, Hamman stated that FMBN ensured the provision of loans to registered members of the developers’ association. Moreover, FMBN extended loans to interested individuals through regular primary mortgage banks, disbursing a total of N139.6 billion to 24,332 beneficiaries.
On the subject of the ministerial pilot scheme, Hamman explained that the Federal Ministry of Works and Housing allocated land for participants in the scheme. He highlighted that N38 billion had been expended to construct 5,443 housing units. Responding to these allegations, Mr. Ekwem Dem, the deputy director of IPPIS in the Office of the Accountant General, admitted that they were only recently informed of these allegations. He mentioned that issues like the ‘no work no pay’ policy for ASUU members’ remittances were still pending and stressed the need for a reconciliation window to find common ground.
Dachung Bagos, chairman of the Reps committee, announced the committee’s intention to conduct oversight visits to the projects claimed to have been executed by FMBN in order to assess their location and utilization. He emphasized the committee’s determination to ensure that Nigerian civil servants receive their rightful dues and value for their contributions.
