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Minister says he isn’t familiar with 2024 budget performance, does not know difference between housing projects captured in the budget
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Senate asks Ministry to return with adjusted proposal to Monday
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Lawmakers query Housing Ministry over utilisation of N100b special intervention fund
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Senate seeks special fund to offset contractors’ debts
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Drama as senators bicker over defence of minister
From Adesuwa Tsan, Abuja
The Ministry of Housing and Urban Development has said it is owing a total of 6,455 contractors a total sum of N92 billion for work done in 2024.
This is just as it disclosed that it recorded N6.232 billion in Internally Generated Revenue (IGR) within the same period.
The Minister, who was said to be on an official trip with the president, was represented by the Minister of State, Mr Yusuf Attah, who made this known when he appeared before the Senate Committee on Housing and Urban Development at the National Assembly on Wednesday.
Speaking on the outstanding liabilities, he said, “Many contractors have executed their jobs duly certified for payment but not paid, leaving the ministry with huge outstanding liabilities to the tune of N92,661,800,243.9. Many of these contractors are indebted to their banks, having borrowed the funds to execute the jobs.”
He credited the low IGR to “insecurity across the country and the high inflationary trend experienced throughout the year, among others.”
Speaking on the N100 billion 2023 supplementary budget utilisation, he said, “The amount released so far was utilised to pay outstanding certificates of payments owed to contractors for various projects such as the Renewed Hope Housing Cities and estates, completion of the National Housing Programme, construction and rehabilitation of federal secretariats and general improvements of infrastructure across the country.”
On the status of the Renewed Hope Housing Scheme and Cities Programme and National Housing Programme, he said a total of “7,522 housing units spread across the 35 states of the federation and the FCT have been under construction, out of which 3,388 have been completed, while 4,134 units are still ongoing.”
Responding to his presentation, the senators queried the visibility of the projects he mentioned in his performance report. When asked to explain the difference between the Renewed Hope Housing Scheme and Cities Programme and the National Housing Programme, he responded that he is new and also does not know the difference.
Sen. Abdul Ningi (PDP, Central) started the query, seeking to know where the projects are located because he has never seen any Renewed Hope Housing Unit in the whole of Bauchi State and his constituency in particular.
“This is music to our ears,” he said, adding that “these are very strange to us. I am from Bauchi State. I represent Bauchi State, I don’t know where you are doing this project, I don’t know how. Here I am representing the very good people of Bauchi Central. I have been here for up to one and a half years as Senator, and I’ve no knowledge at all of this Renewed Hope Housing. Is this Renewed Hope only to you or to Nigerians? Even as you’re not reporting details of what you’re doing, are you reporting details to Nigerians? Do Nigerians know of some of these things?”
“I asked my colleagues, members of the Senate if they are aware of the establishment of this ongoing project, if they are aware of the ongoing project, if they are aware of the size of this project.”
He also expressed concern over some exclusions in the budget, especially the recurrent component of the 2024 budget.
Ningi stated, “How I wish it wasn’t the state minister that is in our midst today. How I wish it was the Minister. The Ministry of Housing, even though the Permanent Secretary is new, the state minister is new, the only role in this National Assembly is this yearly ritual during the budget and then nothing happens until next year, and this is exactly what the Ministry of Housing does under the present leadership.
“First, I don’t see the components. We have not seen the personnel, we have not heard about overheads. So, what you are bringing today for defence is actually the capital component and therefore, the committee must arrange for you to also bring in the overheads and the personnel, which we have found in the course of budget defence to be very abused. I am not saying it is abused here.”
He also sought clarification on the whereabouts of N22.6 billion outstanding from the N100 billion since the minister said N77 billion, or 77.3 percent, has been expended so far from the 2023 supplementary budget.
But immediately Ningi finished his observations, Sen. Jimoh Ibrahim (APC, Ondo South) countered him, saying it is erroneous to say the projects are not visible when the implementation timeline has not elapsed.
Jimoh stated, “Building houses, Mr Chairman, you don’t acquire land in one day, do a survey one day, do planning in one day, do approval in one day. More important is the 20,000 housing units and again, in 35 states of the federation. So we know as senators, the fact that we had an extension for the capital projects in 2024. So it may not be out of place that the ministry is projecting and explaining how that intends to be done. Not that 2024 has come to an end and the capital budget has been released to them and they have not done anything. I just want to make that clarification.”
His statement was met with rowdiness from other members of the committee as they raised their voices in disapproval, saying Sen. Jimoh should not be the one speaking for the minister.
Sen. Osita Ngwu (PDP, Enugu West), when yielded the floor, cautioned that as an oversight committee, it is only proper that the minister is allowed to respond to members’ questions.
On outstanding liabilities, he lamented that the ministry has sent hardworking Nigerians to their villages and rendered them useless because they have failed to pay outstanding debts. Adding to his statement, another Senator urged the executive to provide a special intervention fund to offset the debts on behalf of the ministry.
Noting all observations, the Chairman of the Committee, Sen. Aminu Tambuwal, said it was clear that the minister and his team were not prepared for the engagement. He therefore asked them to leave and return on Monday.
He said, “I have been doing some consultation here, and the signal I am getting from my colleagues is that we allow you to go and be better prepared. Come back on Monday.”