Federal Mortgage Bank of Nigeria (FMBN) is set to collaborate with the Nigerian Police to develop housing units for men and officers of the Force across the states of the federation and the Federal Capital Territory (FCT) under the Police Social Housing Scheme. The scheme is expected to lead to the development of a minimum of 150 housing units in each state and the FCT.

Managing Director, FMBN, Mr. Gimba Ya’u Kumo, disclosed this in Abuja while on a courtesy visit to the Acting Inspector General of Police (IGP), Mr. Mohammed Dikko Abubakar. He said that the project which is expected to lead to the development of a minimum of 150 housing units in each state and the FCT would be executed in collaboration with a foreign partner who will provide 70 per cent of the funding while police officers will contribute the balance of 30 per cent as personal contributions.

In a statement by the bank, Kumo noted that FMBN will also assist in the process by providing NHF loans at affordable interest rates to enable police officers acquire the houses to be delivered under the arrangement, adding that Lagos, Kano and Port Harcourt have been picked as pilot scheme for the project.

He remarked that beyond the affordable houses for the police, the scheme is expected to generate gainful employment for over 20,000 Nigerians nationwide. He lamented that banks and insurance companies have not been complying with the requirement of the National Housing Fund (NHF) Act.

He urged the IGP to assist in enforcing compliance by employers of labour and other relevant corporate organisations, which requires them to statutorily to deduct 2.5 per cent of basic salaries of their employees earning N3, 000.00 and above, and remit same to the NHF.

The Act stipulates that banks invest 10 per cent of their loans and advances in the Fund at an interest rate of 1 per cent above the interest rate payable on current accounts by banks, while insurance companies are required 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.