Reps, Fashola trade words over N35b Housing budget implementation

Fashola 

House of Representatives Committee on Housing Tuesday accused Babatunde Fashola – led Ministry of Power, Works and Housing of incompetence over the implementation of the 2016 N35b budget for the Housing component of the Ministry.

This is as Fashola expressed concern over poor response from States for provision of land for the National Housing project with 17 out of 36 States responding to the request so far.

Chairman of the Committee, Mustapha Bala (APC, Kano) during an interactive session with the Ministry on the status of the implementation of the budget doubted the competence the Ministry to implement the National Housing project, six months into the fiscal year 2016.

The Committee became agitated when the Minister, Babatunde Fashola in his presentation said the Ministry was still in the process of sorting out the designs for the project.

Fashola, who said he inherited a 2012 Housing plan that had no blueprint on how to implement it, disclosed that the public private partnership (PPP) agreements entered into by previous administrations could not solve the country’s housing challenges.

With a target of 21,008 units, the previous PPPs could only deliver 2750 units over the years.

He regretted that most of the PPPs that claimed to have delivered their targets had no evidence to show for it, while the delivered houses were inaccessible and out of the reach of most Nigerians.

In view of the failure of the previous PPPs, he said the Ministry had to look at a sustainable and affordable housing project for Nigerians.

Besides going into partnership with a German firm for the provision of energy efficient housing units to be incorporated into the National Housing code, the Minister disclosed that the Ministry has commissioned Shelter Afrique for a $5,000 housing unit for low income earners.

He said the Ministry is looking at either mortgage financing or rent-to-own option as modes of payment for the prospective house owners.

According to the Minister, the Ministry was yet to advertise for the project because it has just was in the pruned down the unit designs from 480 to 12 but had to further reduce it to six.

He also disclosed that letter have been written to States for provision of suitable land in the capitals and Local governments headquarters for the project but only 17  have so far given commitments from the 19 that responded.
He said the Ministry can only commence with just four States that have completed the process from 17 that have given their commitment.

He said the Ministry will not provide single design nationwide but different House types that include one, two and three bedroom bungalows and duplexes taking into consideration  the peculiarities, culture and  environment of each State.

The Committee Chairman was not however impressed by the Minister’s presentation saying it appears the Ministry is incompetent to implement the budget.

He said: “What has the Ministry been doing since November last year when the budget was presented till now that appropriate designs are not ready, you have not even advertised for it?

“Are you not competent or what, because you ought to have competed the design by February so that once the budget was passed you commence. Design should not take more than 15 days because your experts in the Ministry have been doing it for years.

“By the time you start this project, you will have just about three months left in the year, even if the budget is extended to March 2017 that will be just six months”.

The Committee also wondered why the Ministry could not dispense with redundant and non-performing PPPs while wondering if there was a framework and criteria for qualification.

Fashola, in his response said the blame for the late implementation of the budget should not be heaped on the Ministry

He said: “That is a strange question because a bulk sum was proposed in the budget for the National Housing project and we asked States in need to access it willingly but the House insisted that it must go round.

“The result is what we are seeing now; many did not respond because housing needs of each State differs, taking into cognizance the role migratory factor plays here”.

He also said the Ministry should be commended rather than criticized for the work it has done on the project, adding, “The Ministry should be commended and not condemned because the budget is inadequate.

“As a result of that, we are focusing on sustainable housing plan that works rather than rushing the budget, affordability and slum prevention is key to this design.

“Other countries that had housing program decades ago did not even have 100 percent home owners but they have a near uniformity of designs. By the time we go full circle, we won’t be talking of N35b but hundreds of billions

“Why it took so long for the design to be ready, infrastructures-roads, sewage disposal, water and others   have to be planned into the housing and that’s what the Ministry is doing.

“To say all these should be done in three months is difficult because we need a plan that will accommodate cultures and other peculiarities of each State. Our designs are based on feedback.

“I appeal to the Honourable House that we look at the larger picture, even if you are not impressed with my staff, I have a different opinion.”