Reps summon CBN, banks over 10% investment, other contributions in NHF

The House of Representatives Ad-hoc Committee investigating alleged non-remittance of National Housing Fund (NHF) and utilisation of funds from 2011 to date has directed the Central Bank of Nigeria (CBN), commercial and merchant banks to appear next week Thursday over 10% statutory investment in the NHF. Chairman of the Committee, Dachung Musa Bagos gave the […]

The House of Representatives Ad-hoc Committee investigating alleged non-remittance of National Housing Fund (NHF) and utilisation of funds from 2011 to date has directed the Central Bank of Nigeria (CBN), commercial and merchant banks to appear next week Thursday over 10% statutory investment in the NHF.

Chairman of the Committee, Dachung Musa Bagos gave the directive after the appearance of CBN officials and officials of UBA, Zenith, other commercial banks as well as the four payment gateways; E-Transact, Remita, Nigeria Inter-Bank Settlement System (NIBS) on Thursday.

Although the committee invited all the commercial banks, only representatives of FMBN, UBA, Sterling Bank, Heritage Bank and Zenith Bank were present.

The committee discovered that the banks as well as the payment gateways except E-Transact have failed to provide a detailed submission on their remittances of deductions to the NHF account in CBN.

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It also learnt that, in their submissions, they have also not provided the details of the statutory 10% statutory investment in NHF and others as required by law.

Chairman of the committee quoted Section 5(1) of the National Housing Fund (NHF) Act 1992, which states that “Every commercial of merchant bank shall invest in the Fund 10 percent of its loans and advances at an interest rate of 1 per cent above the interest rate payable on current accounts by banks”

While the committee accepted the presentation by the UBA official, Mr. Eke Ogba, regional head; it questioned that of Heritage Bank, presented by its Abuja regional head, Mr. Oniko Daniel; and that of Zenith Bank presented by Deputy General Manager (DGM), Carl Akwarandu.

They were therefore asked to further submit details of their investments in the NHF and that their CEOs should also appear on Thursday.

Similarly, the CBN’s director, banking supervision, Haruna Mustapha who represented the CBN governor was also asked to go back as the committee insisted that, the acting CBN governor, Folashidun Shonubi as well as the Accountant General of the Federation (AGF), Dr. Oluwatoyin Madein must appear in person on Thursday.

The committee rejected taking any evidence from the director of IPPIS, Mr. Emma Deko who represented the AGF.

Bagos said, “We will not tolerate a situation whereby CEOs shy away from coming up to give evidence. Each time all the CEOs claim they have travelled abroad”.

Meanwhile the federal lawmakers also stated that the alleged abuse of tax incentives, tax breaks and tax waivers by public institutions and companies benefitting from them is creating financial constraints for the federal government.

The Chairman, House Ad-Hoc Committee set up to investigate the allegations of the abuse, Abubakar Makki Yelleman (APC, Jigawa) stated this while speaking at the inaugural investigative hearing held by the committee.

He said there is the need to know the scope of tax incentives and the possible existence of abuses to enable proper administration of the tax breaks, waivers and incentives.

He noted that Nigeria is experiencing dwindling oil revenue public debt approaches, and prohibitive levels amidst allegations of abuse of tax incentives.

Yelleman said, “Abuses of tax incentives by the supposed beneficiaries and the statutory institutions meant to regulate the tax regime could push the government into fiscal constraints.”