some staff of Federal Mortgage Bank of Nigeria (FMBN) offices in Rivers, Akwa Ibom, and Cross River have cited poor documentation as a key factor delaying retirees’ payments.
The respondents remarked while reacting to the News Agency of Nigeria (NAN) survey on the delay in refunding National Housing Fund contributions to retirees.
The agency recalls that the bank disbursed over N500 million to its state offices to pay retirees, but the respondents explained that the payment was not automatic, as certain procedures must be followed.
In Rivers, the Branch Manager, FMBN in Rivers, Mr Melody Ukwa explained that the procedures required some organisations to comply with uploading a complete schedule of the retirees to avoid delays in the payment.
He said that once the schedule records were uploaded and the retirees submitted their applications, the bank would process the refund, which would be effected.
Ukwa said introducing a core banking system had made the refund process seamless and efficient, adding, “Hundreds of millions of naira will be paid out as refunds to retirees every year.”
He stated that with the centralised payment system, applications were processed and treated immediately after approval from the head office, as the bank is committed to refunding contributions to retirees.
According to Ukwa, introducing core banking has significantly improved refund turnaround time, with some applications and refunds processed within a week.
The Federal Mortgage Bank is conducting sensitization programmes for organisations to ensure they upload complete schedules to make the refund process seamless.
“The core banking system has also corrected many errors, making the refund process more efficient while the retirees receive their gratuities, including a 2 per cent interest, once they retire,” Ukwa said.
Similarly, in Akwa Ibom, an official of the bank in Uyo also attributed the delay or lack of refund of retirees’ contributions to non-remittances of deducted housing funds to the banks by the employers.
The official, who did not want his name mentioned, said retirees’ major setback was that most of their contributions were not remitted to the bank, and they could not receive their expected huge sum.
He accused most employers of labour of not remitting proper payment schedules of their employees’ deductions, as ought to be, to the bank, saying that some organisations sent haphazard payment schedules.
He urged employees to always find out if their employer had been remitting their deductions to the bank accordingly, saying that some retirees’ disappointment in receiving low refunds was not the bank’s fault.
He regretted that most organisations short-changed their employees by deducting their money monthly but failing to remit it to the bank. He urged labour union leaders to always ensure that management remits employees’ deductions.
“Some organizations deduct and do not remit, so when a retiree comes for a refund, what he sees is not what he was expecting; this is sad and not the bank’s fault.
“Some of the organisations do not send us payment schedules, so in a situation like this, the bank finds it difficult to make refunds,” he said.
The official said that another factor that could delay refund payments was improper documentation by retirees, including handwritten personal application letters and introduction letters from the office, ministries, departments, or agencies.
Other requirements for an NHF refund include a birth certificate or age declaration, a retirement letter, an appointment letter, and a change of name, if any.
“Once we have the payment schedules, it takes three months from the submission date to process the refund; there is no week, and we do not process up to 20 to 30 applications,” he said.
The Branch Manager of Cross River State Federal Mortgage Bank (FMBN), Mr Chris Oko, said that contrary to claims, civil servants and retirees get their refunds in record time.
He stated, “FMBN is a government-owned institution established to promote affordable housing through mortgage financing. Its primary role is to manage the National Housing Fund (NHF) and provide long-term loans to primary mortgage institutions.
Oko said that it was not true that Civil Servants did not know about the process of getting their funds from the bank, especially after retirement.
He said that he might not tell why some applications take so long, but as soon as they received the applications without any required documents missing and processed them, the applicants received their refunds in record time.
“There is no civil servant who comes to the office, and the bank does not give a checklist when they come to collect the fund application,” he said.
He explained that the checklist included contributors’ written applications, duly completed NHF original forms 11 and 08 introductory/identification letters from the employer, and copies of retirement letters, birth certificates, or affidavits of age.
Others include an original passbook/ photocopy of the first page if issued, copies of the letter of the first appointment, and one-month bank statement, bank name, account number, sort code, and bank verification number.
He added that in the case of death, a death certificate issued by a qualified medical doctor, a letter of administration if the amount is above N10,000, and an affidavit of next of kin were required.
In her reaction, Mrs. Joanna Edem, a Federal Civil Servant, rated the bank as useless to federal employees, attributing this to the fact that many employees did not know the bank’s state offices’ locations.
According to her, any serious person who wants to build a house can’t go looking for FMBN; they must raise their money however they can.
Mr Joseph Amadi doubted that not many civil servants knew or understood the process, adding that you might be shown something on paper when you arrive. Still, the real challenges were usually not on paper.
“The time it took is not worth the stress; every month, deductions are made from our salaries for NHF. Many of us don’t know the essence of the deductions, especially when it concerns FMBN.
Amadi, however, decried the nonchalant attitudes of the Bank officials, saying that they are hardly interested in workers’ existence.
