The Federal Mortgage Bank of Nigeria (FMBN) has said it had initiated plans to develop about 150 housing units in each state of the federation and Federal Capital Territory for officers of the Nigeria Police.

The project would be initiated under the Police Social Housing Scheme.

A statement from the FMBN, quoted its Managing Director, Mr. Gimba Ya’u Kumo, to have made this remark in Abuja, while on a courtesy visit to the acting Inspector General of Police (IGP), Mr. Mohammed Dikko Abubakar.

The FMBN explained that the bank would execute the project in collaboration with a foreign partner who would provide 70 per cent of the funding. 

Kumo further said police officers would contribute the balance of 30 per cent as personal contributions while the FMBN would also assist in the process by providing National Housing Funds (NHF) loans at affordable interest rates to enable police officers acquire the houses to be delivered under the arrangement.

Kumo also pointed out that beyond the house project for the officers; the Police Social Housing Scheme was also expected to generate gainful employment for over 20,000 Nigerians nationwide.

According to him, the pilot scheme of the project would start in Lagos, Kano and Port Harcourt.
“This project is therefore key to actualising Mr. President’s Transformation Agenda for the country”, he added.

Kumo used the opportunity to urge the IGP to enforce compliance with the NHF Act by employers of labour and other relevant corporate organisations such as banks and insurance companies.

The NHF Act statutorily requires employers of labour to deduct 2.5 per cent of their employees’ basic salaries (those earning N3, 000 and above) and remit same to the NHF.

It also requires banks to invest 10 per cent of their loans and advances at an interest rate of 1 per cent above the interest rate payable on current accounts by banks. 

Insurance companies are supposed to invest a minimum of 20 per cent of their non-life funds and 40 per cent of their life funds in real estate development of which not less than 50 per cent shall be paid into the NHF through the FMBN at an interest rate of not more than 4 per cent.

But the statement said that banks and the insurance companies had not been complying with the requirement.
The FMBN boss further appealed to the Police chief to direct all police formations to adopt FMBN’s newly introduced e-collection platform for monthly remittance of NHF contributions. 

In his response, the statement said the Abubakar, assured the management of FMBN that the NPF would continue to abide with the Act establishing the NHF scheme.

Source: Thisday/Obinna Chima