The Federal Mortgage Bank of Nigeria has said that the 2.5 per cent contribution from the basic salaries of workers to the National Housing Fund is inadequate.
According to the bank, the 2.5 per cent contribution mandated by the NHF Act must be reviewed if the Fund must achieve the desired result of providing houses for the citizens.
The Chairman, Board of Directors, FMBN, Mr. Bisi Ogunjobi, explained during a chat with journalists in Abuja that the parameters used at the time the Act was enacted had changed as a result of the dynamics of the Nigerian economy.
Ogunjobi called for the review of the NHF Act in order for it to solve contemporary challenges of housing provision in the country.
He said, “It is important to state that the parameters that were used at the time of setting up the institution have changed because of the dynamic situation in the Nigerian economy. For example, we say you have to contribute 2.5 per cent of salary earned. How much was the minimum wage at that time compared with the N18,000 we have today?
“The 2.5 per cent of N18,000 today amounts to N450. How many years will you contribute N450 for you to buy a house of N5m? So, this is to say that yes, at that time, the amount was sufficient, but when you look at the situation today, it is not correct anymore.”