IG states reasons for salary deductions of police, floats police bank

Following the recent outcry among members of the Nigeria Police Force over what they described as arbitrary deductions of their salaries from source, the Inspector General of Police, Mohammed Abubakar, has revealed reasons for the deductions.

Speaking through the Force Public Relations Officer (FPRO), Mr. Frank Mba, Abubakar said that the N5, 500.00 deductions, from all police personnel last month, was for the benefit of the personnel.

According to him, the money is to facilitate the floating of a mortgage bank for the police, which will greatly improve the housing needs of every police every. The bank will be in every state, due to the wide spread of police personnel.

The floating of the police 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, 500.00 deductions, which will run for only two months, will make every policemen, shareholder in the bank, thus entitle 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 salary.

They revealed that the first time, was when he deducted N1000 from all policemen’s salary, insisting that it was for Police Games. The latest is the N5, 500.00 deductions, which is present generating a lot of acrimony.  

Few days after the deduction, they were all issued the Fokas forms by their superior officer, which was for the procurement of Fokas Savings and Loans Limited shares.

Some of the policemen who realized that the deduction was towards housing, said they were not interested and as such, do not want further deductions from their salaries. One of them said: “Even if it’s for housing, I don’t want! Why? It’s because I know that such housing will not get to people like us! I work day and night as a policeman; all I want is my complete salary at the end of the month.

“It’s not right for the IG to deduct our money from source without first alerting or explaining the reason to us. It’s our money after all!”

Another sets of policemen argued that they were not interested in further deduction of their money since they would be going on retirement in a few months or next year.

Mba explained that when Abubakar came up with the scheme, he had invited all 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 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 capitalization sum of N2.5 Billion for one State branch or N5B for a National Branch is required before a Mortgage Bank can be licenced. 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 image maker said that the package will ensure that all policemen be part owners of the Police Mortgage Bank. He said it was a well-thought out Retirement Plan to enable every officer access the Housing Loan and acquire a home of his own.
“The Package requires officer’s minimal subscription for 10,000 ordinary shares of the Fokas Savings and Loans limited (Mortgage Bankers) which is now the property of the Nigeria Police Cooperative Society,” said Mba.  “Total cost of minimal subscription is put at N11, 000.00 only, payable in two installments of N5, 500.00 each, at the rate of N1.10K per share.  Process automatically guarantees part-ownership of the bank by every serving Police officer. Subsequently willing officers are at liberty to increase their subscriptions. Subscription forms are on distribution across all Commands and Formations of the Force to enable Officers appropriately regularize the minimal subscription already deducted and harmonize earlier subscriptions.

“A task force has equally been constituted to ensure fast and early issuance of share certificates to all subscribing officers. Every Police Officer irrespective of Rank is entitled to a Loan of up to N15m at a single digit interest rate not exceeding 8% and repayable over a maximum period of 30 years, to build his own house, renovate his property, purchase a piece of land and purchase a house either independently or through the Police Housing Scheme. The minimal subscription of FOKAS shares for which N11, 000.00 is being deducted, is also across all ranks including the IGP, DIGs, AIGs and CPs down to the last Constable.”