The Inspector-General of Police, Mohammed Dahiru Abubakar has said that the deductions of monthly salaries of policemen from source is to facilitate the floating of a mortgage bank that will meet the housing needs of every policeman.
This was due to the recent outcry from the rank and file of the Nigeria Police Force over what they described as ‘arbitrary deductions from their salaries’.
Abubakar, who spoke through the Deputy Force Public Relations Officer (FPRO), Mr. Frank Mba, said the N5,500 deductions from all police personnel last month was for the bank which will have a branch in every state across the country.
The floating of the bank became necessary after policemen had repeatedly been disappointed and frustrated by National Housing Fund (NHF) in acquisitions of loans to rent, buy or build a house.
The N5,500 deductions, which will run for only two months, will make every policeman a shareholder in the bank entitled to a share certificate, loans and dividends. The loan will be expected to assist any policeman to have a home of his own.
Mba said: “Food and shelter remain tops on man’s hierarchy of needs. Every police officer needs and deserves not just a temporary shelter but a modest home of his own.”
Last week, after police received their salaries, they had embarked on protest, alleging that since Abubakar assumed office, he had cultivated the habit of deducting from their salaries.
They revealed that the first time, he deducted N1,000 from all policemen’s salaries, saying that it was for Police Games. The latest is the N5,500 deductions, which is presently generating a lot of acrimony.
Few days after the deduction, they were all issued Fokas forms by their superior officer, which was for the procurement of Fokas Savings and Loans Limited shares.
Some of the policemen, who realised that the deduction was towards housing, said they were not interested and as such, do not want further deductions from their salaries but many welcome the idea as it will enable them and members of their family have a place to rest their heads during service and after retirement.
Mba explained that when Abubakar came up with the scheme, he had invited Commissioners of Police from all over the federations to intimate them of his plan, with the idea and belief that they will go back to base and pass the news of the forthcoming deductions to their subordinates but none of them apparently bothered, judging by the shock the deduction was received by the personnel.
Mba said: “The Nigeria Police Savings and Loans Limited (Mortgage Bankers) presently known as FOKAS Savings and Loans Limited (Mortgage Bankers) is the vehicle that will deliver homes to all police officers. It is a retirement Plan that guarantees a roof over every officer’s head both now and in the future.
“How is this possible? First, the initiative is in line with the Federal Government’s plan for every worker to own a home of his own and for which the National Housing Fund (NHF) was established in 1993. Every person employed in Nigeria contributes a percentage of his basic salary to the National Housing Fund, which entitles the worker to access a housing loan from the Federal Mortgage Bank of Nigeria (FMBN), the custodians of the housing fund.
“Loans from the Federal Mortgage Bank can only be accessed through established Mortgage Banks otherwise called Primary Mortgage Institutions (PMIs). The Nigeria Police Force subscribed to the National Housing Fund during the administration of IGP Ibrahim A. Coomassie, in the year 1994, with deduction of NHF contributions from officers and remittance of same to the FMBN. This led to the establishment of the NHF Desk within the Force to harmonize/reconcile deductions and remittances.
“The Nigeria Police Force remains the highest contributor to the Federal Mortgage Bank. As at date, contributions by police officers to the NHF and remittances to the FMBN total approximately N8billion. Unfortunately, the Nigeria Police Force has not benefited from the facilities available at the FMBN under the NHF Act while other agencies and corporate groups benefit from huge contributions of policemen.
“Why? Because the Nigeria Police Force could not float a Mortgage Bank to easily access the required loans for its officers and men. Efforts of the Nigeria Police Force over the years, to establish a mortgage bank had been stalled by administrative instabilities generally occasioned by frequent leadership changes. Apart from other technicalities and statutory requirements by the Central Bank of Nigeria and other regulatory agencies, the capitalisation sum of N2.5 billion for one state branch or N5billion for a national branch is required before a mortgage bank can be licensed. Considering the interests of the police in accessing its huge contributions to the NHF, an entirely owned mortgage bank is needed to maximally protect the long-term housing initiative for generations of officers/men and even retirees.”
The Police Deputy DPRO, said the package will ensure that all policemen are part owners of the Police Mortgage Bank.