IPPIS Failure to Remit N26.6 Billion Workers’ Housing Fund Raises Concerns

The Federal Mortgage Bank of Nigeria (FMBN) has revealed that the Integrated Personal Payroll Information System (IPPIS) has not remitted a sum of N26.6 billion in workers’ contributory funds over a span of two years.

Mr. Madu Hamman, the Managing Director of FMBN, made this disclosure on Thursday in Abuja during his appearance before the House of Representatives Ad hoc committee responsible for investigating the non-remittance to the National Housing Fund (NHF) and its utilization.

He further explained that between October and December 2022, there was a notable deficiency of 40 percent in remittances to FMBN, attributable to the Federal Government’s revenue drive. This resulted in a total sum of N11.630 billion being involved in the unremitted payments.

Mr. Hamman also pointed out that throughout the entirety of 2022, a total of N11.587 billion in backlog payments for Ministries, Departments, and Agencies (MDAs) had not been remitted from IPPIS. Additionally, there were outstanding failed payments totaling N3.356 billion from April to July 2021, pertaining to the year 2021, that were not remitted from IPPIS.

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.

He said all contributors were eligible for a full refund of their contribution over the years including accrued interest of 2 per cent upon retirement.

Others, he said, 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.

Speaking on projects executed through various means, Hamman said, FMBN ensured it gave loans to register members of the association of developers.

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.

Reacting to the allegations, Mr Ekwem Dem, Deputy Director, IPPIS in the Office of the Accountant General said, ” On our own part, we are just hearing some of these allegations.”

He said, for instance, the ‘no work no pay’ for members of ASUU remittances was still hanging, adding that there was a need for a reconciliation window, “so we can see the area of convergence”

Rep. Dachung Bagos, the Chairman of the Committee, said it would go on oversight of some of the projects claimed to have been executed by FMBN and where they were located.

“We are going to do some random checks to see the utilisation of this work, we are going to oversight all these projects

”We need to know why the Nigerian civil servants are not given what is due to them, even if we have to go with a tricycle; we will go.

”Some of us are engineers. We are going to receive some of these things, we must get value for our naira and Nigerians must get value for their money,” the chairman said.

On Wednesday, the Nigeria Labour Congress (NLC) threatened to pull out civil servants from the NHF contributory funds over the non-remittance of deductions made.

President of NLC, Joe Ajaero made the threat while appearing before the House of Representatives Ad hoc Committee on Non-Remittance to the NHF and Utilisation of the Funds from 2011 till Date.

According to Ajaero FBN had refused to send alerts of how much civil servants have contributed including their monthly deductions.

He urged the lawmakers to take drastic steps to remove the encumbrances to affordable and quality housing to millions of Nigerians especially workers who make the most contributions to the NHF.

This according to him is as
identified in the memorandum and other memoranda submitted to the committee.

He said that the immediate past Managing Director of FMBN Mr Ahmed Dangiwa who is now the Minister of Housing and Urban Development said he left behind N120 billion in the coffers of
the bank.