FG Owes 3,504 Local Housing Contractors N69.9bn – Fashola

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FG Owes 3,504 Local Housing Contractors N69.9bn - Fashola

The Minister of Works and Housing, Babatunde Fashola, has said that his ministry owes 3,504 local contractors in the housing sector 69.9 billion naira.

Fashola disclosed this on Thursday when he appeared before the National Assembly Committee on Housing to defend his ministry’s 2021 budget proposal.

The Minister sought the assistance of the lawmakers on how to defray the liabilities because the 76.4billion naira allocated to the ministry in the 2021 budget would be grossly inadequate to execute its proposed 186 projects across the country.

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He said 2,601 of the contractors being owed 33.9billion naira executed zonal intervention projects popularly referred to as constituency projects.

Fashola urged the lawmakers to identify the affected projects in their constituencies that had attracted huge liabilities and pick them as their special intervention programmes for 2021 instead of proposing new ones.

He also said that there is need to amend the Public Procurement Act to ensure that contractors in the housing and other allied sectors gets 50 per cent mobilization fee instead of the present 15 per cent which has become rather insufficient to kick start any major housing project in the country.

The lawmakers, however, rejected the idea and instead asked the minister to propose a supplementary budget for the purpose of paying the contractors that handled the building of schools under the special intervention programmes.

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