President Buhari declines assent to National Housing Fund Bill

Nigerian President Muhammadu Buhari, has declined assent to the National Housing Fund Bill (“the Bill”). In a letter to the National Assembly, the President stated that he declined assent to the Bill because the various levies proposed in the Bill will be disruptive and punitive to industries, other sectors of the Nigerian economy and will also have a negative impact on the Nigerian workers.

He also noted that some provisions in the Bill may undermine the administration of the pension industry by the National Pension Commission and unfavorably affect the safeguards that protect the industry against unreasonable investment risks.

Recall that the Bill provides for the following amongst other:

 Every commercial or merchant bank, insurance company and Pension Fund Administrator to invest 10% of its profit before tax into the National Housing Fund at an interest rate of 1% above the interest rate payable on current accounts of banks.

 Employees and self - employed Nigerians who earn above the minimum wage are required to contribute 2.5% of their monthly salaries to the National Housing Fund.

 A levy on locally-produced and imported cement, at a rate of 2.5% ex-factory price before transportation cost, for each bag of 50kg or its equivalent in bulk.

This is a very good strike down from Buhari...the proponents of the bill should go back to the drawing board and correct all the anomalies of probable multi taxation inherent in that not so well thought out bill if indeed they proposed it in good fate for the Nigerian workers and not some phantom way to have another pot like the Pension funds to dip their thieving sticky fingers into.

Dundee legislooters...