National Housing Fund (Establishment) Act, 2018: Analysis & Recommendations For Legislative Review

1. collect from PFAs at the end of every year[22] for onward remittance to the FMB in the prescribed manner, the required contribution to be made for the purposes of investment in the Fund[23]. Failure of any PFA to make available to PenCom for onward remittance to FMB the required contribution for investment in the Fund, as prescribed, is prohibited[24]. The new NHF Act empowers PenCom to apply sanction on any erring PFA, which may include cancellation of the operating licence of the affected PFA[25].

   Notably, pension funds were not included in the “Resources of the Fund” under the 1992 Act. The National Insurance Trust Fund, the old pension administrator in Nigeria and precursor to the PFAs, was not under any mandate to invest the assets under management in the Fund.

5. Financial contributions by the Federal Government for long-term housing loans:

   As contained in the 1992 Act, the new NHF Act also provides that the Federal Government (“FG”) may make any grant of money to the Fund as it may determine or deem necessary[26]. Specifically, the FG is required to make adequate financial contributions to the Fund for the purpose of granting long term loans and advances for housing development in Nigeria[27]. 

     

22 Section 12(1), ibid.
23 Section 12(2), ibid.
24 Section 12(3), ibid.
25 Section 12(4), ibid.
26 Section 5(4) & Section 7(2), ibid.
27 Section 7(1), ibid.