FG owes 3,504 contractors N69.9bn on housing projects
The Federal Ministry of Housing has outlined budget implementation plan for the 2021 fiscal year that would see to completion of series of its ongoing projects across the country.
It also admitted owing 3,504 contractors handlings various housing projects about N69.9billion.
According to the Blueprint, Minister of Works and Housing Babatunde Raji Fashola stated this Thursday in Abuja while defending the 2021 budgetary proposals for the Ministry of Housing before the National Assembly joint committee on housing.
He said prioritisation of projects by the ministry for the 2021 fiscal year was necessitated by the difficult situation at hand of having N76billion approved for capital projects in the coming fiscal year, a little above the N69.9billion outstanding liabilities.
He, therefore, said the allocated sum would be grossly inadequate to execute 186 projects across the country.
The liabilities, the minister explained, were monies owed the various contactors handling series of capital projects for the ministry across the country.
“The N76billion projected for the ministry as capital expenditure for the 2021 fiscal year is based on envelope prescription from the Ministry of Finance, Budget and National Planning.
“Nonetheless, the basis of implementation of the 2021 budget will be anchored on priority areas geared towards projects completion.
“Completion of construction of the remaining 2,140 units of houses under the National Housing Programme in 34 states and the Federal Capital Territory is one of the priority areas to be focused on” he said.
Other projects targeted for completion by the ministry in the 2021 fiscal year as declared by the minister are completion of ongoing federal secretariats in Anambra, Bayelsa, Ekiti, Nasarawa , Osun and Zamfara states.
He also listed upgrading, completion and running of Building Craft Training Schools in Yaba and Onikan, Lagos state; design and installation of Solar Power PV Microgrid System and Energy Retrofitting of the Federal Ministry of Works and Housing Headquarters, Mabushi, Abuja etc.
Fashola further explained to the committee that the major factor militating against timely completion of projects was insufficient budgetary provisions which requires affected agencies to go the extra mile in getting the required funds for project implementation.
Aside poor budgetary provisions, Fashola told the committee members that another challenge the ministry was grappling with and by extension, the nation as a whole, is that of maintenance and operation of public buildings.
He suggested that all MDAs should provide a sum representing 2-10% of capital budget annually as maintenance provision.
“Maintenance and operation has the potential to employ as much as 10 percent of country’s working population and contribute up to 8 percent to GDP , as adjudged in the United Kingdom by British Institute of Facilities Management and other climes in varying ratios , such as South Africa , Namibia , Australia etc,” he said.
In his remarks, Chairman of the committee, Senator Sam Egwu (PDP Ebonyi North), assured the minister that the 2021 budgetary estimates for the housing sector would be critically looked into by all the members with view to making appropriate appropriation for the ministry.
Culled from blueprint.ng
