The House of Representatives has called for an investigation into the non-compliance with the National Housing Fund Act by commercial banks and other stakeholders in the country.
The lawmakers accordingly mandated the House Committee on Housing to hold a public hearing to know the reason for the non compliance by the banks.
The House took the decision on Thursday through a motion by Kaita Hammed (APC, Jigawa).
Leading the debate on the motion Kaita said “Section 3 of the National Housing Fund (NHF) Act provides that funding of the scheme shall be derived primarily from mandatory contributions by Nigerians, both in public and private sector, investments by commercial and merchant banks, insurance companies and contributions by the federal government for long term housing loans.”
He expressed regret that since the inception of the scheme no bank has invested any money, which according to him is derailing the NHF from the lofty goals it was set up for.
He said: “Between 2011 to 2016, if banks had invested the required 10% of the total N51.46trillion the funds would have gotten N5.14trillion in pursuant to section 11 (1) of the National Housing funds Act.
“Also the insurance companies would have paid N89.49 into the insurance funds as investment.
He also added that “in 1999 Nigeria’s housing deficit was 9 million houses but that the figure has shot up to 17 million without any corresponding supply to meet up the demand, stressing “we should take the bull by the horn.
“Housing has a multiplier effect on the economy. We have seen countries like Kenya and South Africa taking giant strides in having proper housing market.
Supporting the motion, Tobi Okechukwu (PDP, Enugu) stated that “the arguments are sufficient, the opportunity cost in allowing the collapse of our housing sector is negative, majority of our labour force are in the private sector, and the only way of financing housing scheme for them is through mortgage system”.