ABUJA, Nigeria — The House of Representatives ad hoc committee on non-remittance to the National Housing Fund, NHF, has summoned the CEOs of various insurance companies for hearings over an alleged N267 billion investment fund debt.
The investigations are centered around a violation of the National Housing Fund Act, and the committee resumed its hearings on Wednesday, August 30, 2023, in Abuja.
Dachung Bagos, the Chairman of the Committee, emphasized the importance of adherence to Section 5(2) of the NHF Act, which mandates that “Every registered insurance company shall invest a minimum of 20 percent of its non-life funds and 40 percent of its life funds in real property development.
Not less than 50 percent of this shall be paid into the Fund through the Federal Mortgage Bank of Nigeria, FMBN, at an interest rate not exceeding 4 percent.”
The committee disclosed that in 2019 alone, the insurance companies failed to remit around N267 billion to the FMBN, in violation of their statutory obligation under the NHF Act.
Representatives sent by some of the insurance companies to the hearing were turned away, as Chairman Bagos insisted that the CEOs must personally appear before the committee.
“We will not condone any disregard for parliamentary summons,” Bagos stated. He demanded that the insurance companies explain their non-compliance with the NHF Act and furnish evidence of all amounts paid to FMBN.
He also insisted that the National Insurance Commission, NICON, provide proof of which companies were in default.
According to Bagos, the unremitted funds are a significant issue, and he expressed concerns that 54 insurance companies have not remitted N267 billion as of 2019.
“This figure does not even include data from 2020 to 2023,” he added.
Bagos stated that the 10th House of Representatives would decisively address the issue and warned that CEOs of all concerned companies must appear before the committee no later than next Tuesday.
