FMBN is saddled with the responsibility of providing affordable housing for Nigerian workers. Photo: FMBN
The Federal Mortgage Bank of Nigeria (FMBN) has accused the Integrated Personal Payroll Information System (IPPIS) of not remitting N26.6 billion of workers contributory funds in 2 years.
The Managing Director, Mr Madu Hamman, stated this when he appeared before the House of Representatives ad hoc Committee probing the non-remittance of the National Housing Fund (NHF).
Mr Hamman alleged that from October to December 2022, there were 40% unremitted payments to FMBN.
“From January to December 2022, N11.587 billion was not remitted as backlog payments for MDAs from IPPIS, while N3. 356 billion was not remitted from April to July 2022 as outstanding failed payments for 2021 from IPPIS,” he said.
Payments made to wrong account
Mr Hamman explained that some NHF payments meant to be paid to FMBN as housing contributions had been wrongly made into the Federal Government Loan and Scholarships Board, adding that 14 MDAs were affected by the wrong payments.
According to him, all contributors are eligible for a full refund of their contributions over the years, including accrued interest of two percent upon retirement.
The Director added that others were by attainment of 60 years or inability to continue due to incapacitation or death, adding that FMBN had refunded N66.678 billion to 444,637 beneficiaries.
Projects by FMBN
On projects executed, Hamman said FMBN ensured it gave loans to registered members of the developers’ association.
He said that FMBN also had the regular primary mortgage bank from interested individuals, where it disbursed N139.6 billion to 24,332 beneficiaries.
On the ministerial pilot scheme, he said the Federal Ministry of Works and Housing provided land for those on the scheme, and it had spent N38 billion to build 5,443 units of housing.
A Deputy Director in the IPPIS office, Mr Ekwem Dem, said this was the first time they had heard of the allegations.
Mr Dem gave an example with the “‘no work, no pay policy” for members of ASUU remittances, which is still hanging, adding that there was a need for a reconciliation window to see the area of convergence.
The Chairman of the Committee, Mr Dachung Bagos, said they would go on oversight of some projects claimed to have been executed by FMBN.
Reporting by Ibrahim Shehe, Editing by Omolola Ameen and Annabel Nwachukwu