The House of Representatives on Tuesday reiterated its resolve to synergize with relevant stakeholders including private sector in the bid to achieve eight million houses target by year 2019 initiated by President Muhammadu Buhari’s administration.
Ahmed Kaita, Chairman House Committee on Housing, gave the assurance at the opening of a two-day public hearing on four bills which seek to repeal Federal Mortgage Bank Act to make comprehensive provisions for the re-establishment of the bank; bill seeking to establish Institute of Mortgage Brokers and Lenders to regulate activities and ensure professionalism in the system.
The lawmaker who harped on the need to reposition the housing sector, underscored the Committee’s resolve towards opening up more sources of income for the sector towards ensuring popular participation.
In his presentation, Ayuba Wabba, President, Nigeria Labour Congress (NLC) called for effective fiscal policy that will enable workers to afford houses in the country.
He said: “for us to address the issue of housing deficit we must have an agreeable interest rate that both citizens and workers are able to afford.
“If not the houses will be built and not affordable.
Wabba called on the Federal Government to intervene to provide the necessary funds required to drive the housing scheme in the country.
The NLC President, who decried the violation of the NHF by some stakeholders in the sector, insisted that failure of commercial banks to contribute to the fund mitigated the progress of the scheme.
“The major issue has been the interest rate that is now available with our commercial banks. This has been a serious burden and cannot be called a mortgage,” Wabba said.
He expressed worry that Nigerian workers could not afford the houses despite contributing 2.5 percent of their salary into NHF.
“We actually keyed into the scheme but along the line in 2003 and 2004, we had some challenges because the houses were built and workers could not afford them. The type of houses required not the type built in hundreds of millions lying fallow in Abuja and nobody can afford them.
“There should be sanctions where people fail to comply with the Nigerian law. While we support the idea of penalty for offenders of the NHF Act, we do not support the scrapping of federal housing scheme board.
“This is because we also used the issue of social dialogue to get funding from Federal Government. During former president Musa Yar’Adua’s administration, we got about N10 billion into the federal housing scheme where all the workers including the paramilitary benefited,’’ Wabba said.
While declaring the public hearing open, Speaker Yakubu Dogara, called for increased private sector participation in the provision of houses as part of efforts geared toward addressing the estimated 17 million housing deficit.
Dogara who pledged the commitment of the House towards enacting the required legislation, emphasised that citizens’ welfare and shelter should be of utmost importance to any government.
“The government of the Federal Republic of Nigeria has a duty and responsibility to carter for the welfare of its people. Housing or shelter is one of the most important and fundamental needs of man. The very concept of human dignity requires that a man should have a roof over his head.
“This is why the fundamental objectives and directive principles of state policy of the 1999 Constitution of Nigeria provides, inter alia, that the “state shall direct its policy towards ensuring that suitable and adequate shelter, suitable and adequate food, reasonable national minimum wage, old-age care and pensions, and unemployment and sickness benefits are provided for all citizens.”
He further revealed that the proposed amendments would make housing laws more encompassing and introduce the necessary changes, as existing schemes have not been very successful.
“The National Housing Funds (NHF) scheme was designed to assist public servants own homes while saving a percentage of their income. The private sector employees were also captured under the Act. Similarly, the government – through mortgage institutions – is expected to provide loans to real estate developers to build low cost houses for the people.
“Unfortunately, both programmes have not yielded the desired results as Houses are still not within the reach of the generality of Nigerians. Indeed, the provisions of the National Housing Fund Act and Federal Mortgage Bank of Nigeria Act are observed more in breach by most stakeholders mandated to perform one responsibility or the other under the laws. The proposed amendments capture virtually everybody including self-employed persons.”
He pledged the commitment of the House to working with stakeholders towards the provision of safe and affordable housing.
“Let me assure you of the determination of the House to collaborate with all stakeholders in ensuring supply of safe and affordable homes and provision of viable legislative frameworks that will lead to private sector participation and ownership in order to reduce these deficits. The bills being considered today will have far reaching effects on many institutions and stakeholders and these stakeholders should pay attention to the issues and offer workable solutions.”
KEHINDE AKINTOLA, Abuja
