Transcript REPORT OF THE COMMITTEE ON FORMULATION OF POLICY …

REPORT OF THE COMMITTEE ON
FORMULATION OF POLICY ON
HOUSING SCHEME
IN
FEDERAL ROAD SAFETY COMMISSION
TABLE OF CONTENTS

Table of Contents

Committee Members

Terms of Reference

Introduction

Overview of operations of FRSC (NHF) and FRSC Housing Cooperative Activities
of FRSC (NHF)

FRSC Housing Cooperative

Overview of Housing Schemes run by the Nigerian Army and the Nigeria Police

The Nigerian Army Housing Scheme

The Nigeria Police Housing Scheme

Findings

Recommendations

Conclusion
COMMITTEE MEMBERS:
CD Nwachukwu (ACM)
CLA
-
Chairman
JO Adepegba (ACM)
SA-COMACE
-
Member
KAB Lawal (CC)
HOS (Budget), CPL
-
“
GO Omiko (DCC)
Sec. FRSC Housing Coop
-
“
CB Nkwonta (ACC)
PIO-COMACE
-
“
A Umar (ACC)
HOU (Welfare)
-
“
FY Shingu (ACC)
HOU (Estate)
-
ED Adebisi (CRC)
HOU (NHF)
-
OL Mohammed (CRC)
Fin Sec FRSC Housing Coop
-
Co-opted
AO Abuul (ACC)
SO MFS (CS)
-
Mem/Sec.
AO Osang (SRC)
SOPR (CS)
-
Recorder
Co-opted
Member
TERMS OF REFERENCE
• The Committee’s Terms of Reference are as follows:
• To critically examine and identify conflicts in the functions
performed by FRSC National Housing Fund and that of FRSC
Housing Cooperative with a view to removing the areas of overlaps.
• To study Housing Schemes run by the Nigerian Army, the Nigeria
Police and other Para-military organizations so as to fashion out a
Housing Policy for staff of FRSC.
• To advise on whether or not FRSC should float a Primary Mortgage
Institution (PMI).
• To recommend the streamlining of the activities of the existing
FRSC Housing Cooperative in such areas as membership, tenure of
its executive members, and related matters.
• To give broad-based recommendations incidental to the Terms of
Reference.
INTRODUCTION:
1.01
Following conflicts in the roles played by FRSC (NHF) and FRSC Housing
Cooperative in accessing staff loans for home ownership, FRSC Management
appointed a Committee to look into the areas of overlaps and consequently
adopt a holistic approach to fashion out a policy on Staff Housing Scheme in
the Organization.
1.02
In carrying out the assignment, it was observed that what precipitated the
conflict between the two offices was administrative overlaps.
1.03
Incidentally, both the FRSC Housing Cooperative and FRSC (NHF) offices
have limited facilities to meet the demand for home ownership by staff due to
paucity of funds experienced by both entities.
1.04
This Committee, in its proceedings, examined critically, the duties performed
by FRSC (NHF) and FRSC Housing Cooperative respectively. It studied
documents relating to the operation of the respective offices; especially the
Housing Cooperative Bye-Laws, and the National Housing Fund (NHF) Act,
1992. To have a broader view of Housing Schemes, the Committee also looked
into the Nigerian Army Housing Scheme and that of the Nigeria Police, among
others.
1.05
The mode of operation of both the FRSC (NHF) and FRSC Housing
Cooperative and a comparative evaluation of the modus operandi of Housing
Schemes run by the Nigerian Army, as well as the Nigeria Police provided
useful information upon which the Committee based its recommendations.
OVERVIEW OF OPERATIONS OF FRSC (NHF) OFFICE AND FRSC
HOUSING COOPERATIVE
ACTIVITIES OF FRSC (NHF)
2.01 From the schedule of duties and interview held with the HOU
(NHF), the followings are the main functions of the office:
a.
Administration of the National Housing Fund (NHF) Scheme for
FRSC staff.
a.
Registration of staff with the Federal Mortgage Bank of Nigeria
(FMBN) for monthly subscription under the NHF Scheme.
a.
Updating schedule of staff monthly subscriptions and remittance of
same to FMBN
a.
Ensuring refund of subscriptions to retired, terminated, dismissed or
deceased staff, and
a.
Assisting staff to access mortgage loans from FMBN under the NHF
programme.

It should be noted that subscription to NHF is compulsory for all staff of
the Commission.
FRSC HOUSING COOPERATIVE
2.03 The Housing Cooperative Scheme was established in June, 2004.
Membership of the Scheme is voluntary. The activities of the cooperative
include:
a.
Procuring, building and allotting houses to members.
b.
Providing estate management services for the houses developed.
c.
Assisting members to access the NHF loan from FMBN.
d.
Collecting monthly subscriptions from members and investing in real
estate development for the benefit of members.
e.
Acquiring land for estate development and or allotting same to
members and,
f.
Performing general housing finance activities.
2.04 The FRSC Housing Cooperative has a 5-year tenure for its executive. The
present executive members have been on seat since 2004. The Scheme
does not have provision for payment of dividends to members.
OVERVIEW OF HOUSING SCHEMES RUN BY THE NIGERIAN ARMY, AND
THE NIGERIA POLICE
THE NIGERIAN ARMY HOUSING SCHEME
3.01
The Nigerian Army Housing Scheme is a welfare strategy adopted by the
Army to provide houses and plots of land to Officers and soldiers.
3.02
Subscription to the Scheme by serving Nigerian Army personnel is
voluntary.
3.03
Under the Scheme, subscription is made through monthly contributions
which are deducted at source from salaries. Houses are allocated not only
to members of the Nigerian Army but also to staff of other Services and
civilians.
3.04
The Nigerian Army Housing Scheme is duly registered with the
Corporate Affairs Commission (CAC) as a Company Limited by
Guarantee. A Primary Mortgage Institution (PMI) is also established as a
subsidiary of the main Scheme.
3.05
Board of Directors exist for the Scheme. The Board is answerable to the
Chief of Army Staff (COAS), who also appoints its Chairman. Only serving
senior Army Officers make up members of the Board.
THE NIGERIA POLICE HOUSING SCHEME
3.06 The Nigeria Police granted interview to members of the Committee on
their Housing Scheme:
a.
Like the Nigerian Army, their Scheme is a welfare programme
designed to assist staff own houses during or after service.
b.
Membership of the Scheme is compulsory for all Police personnel,
while subscription to the Scheme is graduated according to the rank of the
staff.
c.
The Scheme is registered with the Corporate Affairs Commission as a
company engaged in estate development and enjoys the membership of
Real Estate Development Association of Nigeria (REDAN).
d. The Scheme does not have a PMI as a subsidiary neither does it have a
counterpart arrangement with a Housing Cooperative.
e.
Land is secured at suitable locations in State capitals or other towns
and cities, developed into estates, and allocated to staff, accordingly.
f.
The Scheme adopts a system of Public Private Partnership (PPP) to
develop the estates.
FINDINGS
4.01 From the Committee’s deliberations and evaluation of the Schemes mentioned above,
the followings findings were made:
a.
Nigerian Army
Highlights of the Nigerian Army Housing Scheme include:
i.
ii.
iii.
b.
Voluntary Membership
Registration of the Scheme as a Company Limited by Guarantee, and
Incorporation of a Primary Mortgage Institution (PMI)
Nigeria Police
i.
Membership is compulsory for all staff in the Nigeria Police Housing Scheme.
ii.
Estates are developed under Public Private Partnership arrangement (PPP).
iii.
The Scheme provides accommodation and home ownership as a welfare package
to staff
c.
FRSC
i.
The involvement of FRSC Housing Co-operative in assisting staff obtain mortgage
loans from FMBN and the complete exclusion of FRSC (NHF) office in estate
development is the major conflict between the two offices.
ii.
Membership of Housing Co-operative is voluntary.
iii.
Membership of NHF is compulsory.
iv.
The steering Committee managing the affairs of the Housing Co-operative has
served for almost 5years. No Annual General meeting has been held.
5.00
RECOMMENDATIONS
5.10
Based on the foregoing, the Committee recommends as follows:
a. FRSC should establish a Home –ownership Housing Scheme for staff
b. FRSC Home-ownership Housing Scheme shall be registered with the
Corporate Affairs Commission (CAC), as a company limited by guarantee.
c. FRSC to establish a Primary Mortgage Institution (PMI).
d. Membership of the Scheme should be made compulsory for all staff.
e. The Scheme would set up a Primary Mortgage Institution to be known as
Safety Homes Ltd, to mobilize deposits and access mortgage funds at the
local and international markets.
f. A Corps Office should be created to manage the affairs of the Scheme to be
headed by Corps Officer Housing Scheme (COHS).
g. A Board of Directors should be constituted for the Scheme as follows:
COMACE
ACM (AHR)
ACM (F&A)
CLA
MD of the PMI (Safety Homes Ltd)
Corps Officer, Housing Scheme (COHS)
–
–
–
–
–
–
Chairman
Director
“
“
“
“
h. The present Housing Co-operative should be merged with the FRSC
Home-ownership Housing Scheme after a transition period of about two
(2) years.
i. The Scheme should set up a Home-ownership Fund into which staff
would subscribe on monthly basis as given below:
CATEGORY
CC and above
ACC – DCC
RC – CRC
ARC/DRC
ACRM – CRM
PRM
SRMA – SRM
RMAIII – RMAI
j.
MONTHLY SUBSCRIPTION (N)
–
–
–
–
–
–
–
–
15,000.00
10,000.00
8,000.00
6,000.00
6,000.00
4,000.00
2,500.00
1,000.00
Subscribers:
Apart from staff of FRSC, the following members of the public are
eligible to subscribe to the Scheme:
i. Retired FRSC staff
ii. Widows/Widowers of FRSC staff
iii.
iv.
v.
vi.
vii.
Staff of other services
Members of ROSOWA
Members of Special Marshals
Public Servants, and
Responsible members of the private sector. The subscription
rates for non-staff would be determined by the Board
governing the Scheme.
k.
All housing loans or other transactions involving NHF should
be made to pass through FRSC (NHF) for records and
attestation.
The Bye-laws for the Housing Co-operative should be
amended especially as it relates to tenure of elected officials.
The tenure should be reduced from five (5) to three (3) years.
An independent audit panel should be set up to audit the
accounts of the Housing Co-operative from inception to date.
An Annual General Meeting (AGM) of members of the
Housing Co-operative should be held within the third quarter
of 2009.
l.
m.
n.
5.01 Accommodation and Quartering of staff
5.02 The Committee equally examined the nature of accommodation of other
military and Paramilitary organizations for their Officers and men and
arrived at the following recommendations:
i.
No member of staff apart from Commanding Officers should be
compelled to occupy FRSC quarters if they choose to make private
arrangements.
ii.
Official Accommodation for staff should be graduated based on cadre as
follows:
•
COMACE - 7B/R House, with a swimming pool, 3- room BQ attached
to the 7B/R House,2 nos Guest Houses situated at different
locations. Each property should be located in a low density
area and furnished according to FRSC approved standard.
•
DCM
-
•
ACM
- 4B/R Duplex with a 2-room BQ Located in a low density
area and furnished according to FRSC approved standard.
5B/R Duplex, 3-room BQ attached, 1 no. Guest House.
Each property should be located in a low density area and
furnished according to FRSC approved standard.
•
DCC – CC - 4B/R Bungalow, with 1-room BQ, Located in a low density
area and furnished according to FRSC approved standard.
•
SRC – ACC - 3B/R flat located within the city and furnished according to
FRSC approved standard.
•
ARC – RC - 2B/R flat located within the city or Barrack to be furnished
according to FRSC approved standard.
•
Marshals - Located in Barracks, graduated in 1 to 2 B/R flats according
to rank and furnished according to FRSC approved standard.
iii. Rent allowances would be deducted from staff occupying Quarters on prorata basis, ranging from 0% - 100% depending on the type of facilities.
iv. All other rules governing allocation of quarters and the maintenance of
same as provided in the revised FRSC Conditions of Service will apply to
this Scheme.
6.00 CONCLUSION
•
The Committee shares the same view with Management in
considering the development of a well defined policy for FRSC
Staff Housing Scheme, having studied the activities of the FRSC
(NHF) and FRSC housing Co-operative. It has therefore,
recommended the formal registration of a Home-ownership
Housing Scheme for staff.
•
In its proceedings, the Committee took an overview of Housing
policies implemented by sister organizations such as the
Nigerian Army and the Nigeria Police vis-à-vis the existing one
in FRSC. The Committee further appreciated and identified the
need for FRSC to implement a scheme that would provide
accommodation and quartering; as well as a home-ownership
Housing Scheme for the staff.
•
To facilitate the Home-ownership Sub-Scheme, the Committee
considered the setting up of a Primary Mortgage Institution
(PMI) as imperative. The PMI would be called “Safety Homes
Limited”.
•
Based on the foregoing, the Committee humbly presents its
recommendations to Management for consideration and
implementation.
NAME
SIGN/DATE
1. CD Nwachukwu (ACM)
CLA
Chairman
2. JO Adepegba (ACM)
SA-COMACE
Member
3. KAB Lawal (CC)
HOS (Budget), CPL
Member
4. GO Omiko (DCC)
Sec. FRSC Housing Coop
Member
5. CB Nkwonta (ACC)
PIO-COMACE
Member
6. A Umar (ACC)
HOU (Welfare)
Member
7. ED Adebisi (CRC)
HOU (NHF)
8. AO Abuul (ACC)
SO MFS (CS)
Mem/Secretary
9. FY Shingu (ACC)
HOU (Estate)
Co-opted
Member
10.OL Mohammed (CRC)
Fin-Sec FRSC Housing Co-opted
11. AO Osang (SRC)
SOPR (CS)
Recorder