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) - Co-

opted

ED Adebisi (CRC) HOU (NHF) - Member

OL Mohammed (CRC) Fin Sec FRSC Housing Coop - Co-opted

AO Abuul (ACC) SO MFS (CS) - Mem/Sec.

AO Osang (SRC) SOPR (CS) -

Recorder

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. Voluntary Membershipii. Registration of the Scheme as a Company Limited by Guarantee, andiii. Incorporation of a Primary Mortgage Institution (PMI)

b. 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 – ChairmanACM (AHR) – DirectorACM (F&A) – “CLA – “MD of the PMI (Safety Homes Ltd) – “Corps Officer, Housing Scheme (COHS) – “

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 MONTHLY SUBSCRIPTION (N)

CC and above – 15,000.00ACC – DCC – 10,000.00RC – CRC – 8,000.00ARC/DRC – 6,000.00ACRM – CRM – 6,000.00PRM – 4,000.00SRMA – SRM – 2,500.00RMAIII – RMAI – 1,000.00

j. 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. Staff of other servicesiv. Members of ROSOWAv. Members of Special Marshalsvi. Public Servants, and vii. 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.

l. 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.

m. An independent audit panel should be set up to audit the accounts of the Housing Co-operative from inception to date.

n. An Annual General Meeting (AGM) of members of the Housing Co-operative should be held within the third quarter of 2009.

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 - 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.

• ACM - 4B/R Duplex with a 2-room BQ 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 pro-rata 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) Member

8. AO Abuul (ACC) SO MFS (CS) Mem/Secretary

9. FY Shingu (ACC) HOU (Estate) Co-opted

10.OL Mohammed (CRC) Fin-Sec FRSC Housing Co-opted

11. AO Osang (SRC) SOPR (CS) Recorder