FG Withdraws Housing Allotments for 1,357 Applicants in 33 States for Failure to Pay

The Federal Government has withdrawn the housing allotments for 1,357 applicants from 33 states under the National Housing Program (NHP) for a failure to make payments.

The withdrawals form part of ongoing efforts at promoting compliance with payment terms offered by the Ministry of Housing and Urban Development.

The action, which affects applicants in various batches of the programme, is following default on the 90-day payment term as prescribed. The National Housing Programme has been a priority by the federal government to bridge the housing gap within the nation. Although the project had initially been funded, part of the subscribers defaulted on the payment within the given timeframe.

After constant reminders to comply, cancellations were issued against subscribers from initial lots, allotted between December 2021 and July 2023, as per a notice sent by the Ministry of Housing and Urban Development. There was an option offered to applicants to pay the sum within a span of 90 days upon getting their allotments, but very few paid according to the stipulated time limit because of which allocations got cancelled for them.

Marcus Ogunbiyi, Permanent Secretary at the Ministry, emphasized that the measures were not punitive but necessary to enable fairness and transparency in the housing scheme.

“We are resolute to see the National Housing Program benefit those who strictly observe the terms and conditions prescribed. Those who fail to do what is expected of them will lose their allocations so others can have a fair chance,” Ogunbiyi added.

In a bid to alleviate some of the issues faced by some applicants, the Ministry gave the first group of allottees an eight-week grace period within which to make payments. This followed the expiration of the initial 90 days’ time without sufficient response from the majority of the applicants.

As of May 2024, the Ministry of Housing had received a total of 8,925 applications for housing under the program. The applications comprised 1,294 outright payments, 2,408 mortgages, 2,184 rent-to-own schemes, and 3,039 installment-based payments, showing the countrywide demand for affordable housing.

In spite of these attempts to see that deserving Nigerians gain from the NHP, the persistent defaults have been a cause of concern. Most citizens have complained about the cancellations, citing the feasibility of the payment mechanism of the program, particularly considering the economic difficulties most citizens go through.

The Ministry has assured all the applicants that it is determined to be transparent and fair, and reemphasized that it would strictly follow rules in case of any future cancellations of allocations. It is hoped that the Federal Government will continue to monitor compliance and put in place further reforms if necessary to assist in making the National Housing Program effective in solving Nigeria’s housing challenge.

In the meantime, the 1,357 affected applicants will lose their housing allocation, but the Ministry has urged them to reapply when they can meet the required financial criteria.