The PRESIDENT of the Senate, Senator Ahmad Lawan, has ensured that the National Assembly (NASS) will amend the Federal Housing Authority (FHA) Act to boost the efficiency of the regulatory agency, as well as ensure compliance by developers private real estate government policies.
Speaking on Tuesday when the Managing Director of the Federal Housing Authority, Gbenga Ashafa, led a delegation on a courtesy visit to him, the Senate president emphasized that an amendment to the FHA Act was long overdue, particularly in the context of addressing the realities of the housing business in Nigeria.
In a statement from his special press assistant, Ezrel Tabiowo, Lawan said: “You spoke about a possible amendment to the Law establishing the Federal Housing Authority.
“Propose these modifications and notify us through the Commission. It will be much easier for the National Assembly to help you by changing the law.
“Identify the areas of the law that you think are holding you back because I can see there are many provisions that you cannot implement.
“If you believe that we need a paradigm shift, then we will change what is there to bring amendments that are consistent with the current realities of our country.
“From the early 1990s to now, I think the way the housing business is done has changed a lot. As such, it is necessary to keep up with the realities of our time. “
However, the president of the Senate, who advised the leadership of the Federal Housing Authority against proposing amendments to the Act that would allow the agency to assume the dual responsibility of being operator and regulator at the same time, warned that doing so would be counterproductive to the realization. of government policies and set goals.
The President of the Senate said: “Is the FHA going to be a regulator or an operator? Because when you talk about development policy for housing in Nigeria, will you also compete in real estate development with those of the private sector?
“If you’re going to do both, how can you ensure optimal performance in the face of the distractions that can arise as a result of doing both? If you choose to be a regulator, you must ensure compliance, efficiency, and effectiveness in operations, especially by private property developers.
“However, if you choose to be both, then you have to find an exact role for yourself as an operator.”
Earlier, the Managing Director of the Federal Housing Authority, Gbenga Ashafa, who explained that the agency in its attempt to provide affordable housing, devised friendly policies that make it easier for Nigerians to access housing funds, said: “The National Funds Housing do It is possible for every Nigerian earning N30,000 and more to contribute 2.5 percent of their monthly income to the plan.
“Once they can do that for six months, they become qualified and eligible to access up to 15 million naira based on their monthly income and age.
“We have the approval of up to 1,200 million naira and the interest rate is six percent.
“The FHA is entitled to two percent of that interest, the Federal Mortgage Bank is supposed to retain another two percent, and taxpayers who are Nigerian are expected to get two percent of the contributions.
“If at the end of the day they could not access the funds, they are entitled to reimbursements with two percent of what they have contributed.”
The former member of the Senate also stated that “mainly, we are originating mortgages on properties developed by the Federal Housing Authority and we are allowed to collaborate with private developers.
“For example, in Gwagwalada, the Federal Mortgage Bank of Nigeria built 250 houses.
“More than 179 of the beneficiaries are medical personnel from the Abuja Teaching Hospital.
“In Kuje, we have a large number from the Department of State Services (DSS), the police, civil defense, immigration and the Voice of Nigeria,” Ashafa said.