The Federal Government must budget at least N600bn yearly to deliver its set target of building 200, 000 housing units annually , The PUNCH
has learnt .
But the Ministry of Works and Housing has already complained it is impossible to realise the target at the current budgetary funding pace.
Incidentally, the combined capital budget for works and housing in the 2020 budget is N 315. 5bn .
Findings by The PUNCH indicated that this is apart from other challenges like control of access to land in the states, approval of building plans and compensation demands by communities.
A ministerial performance report the ministry submitted to the government showed that the Federal Housing Authority , mandated to execute the houses , had so far embarked on the construction of 700 housing units at Zuba , Federal Capital Territory , now at “ various stages of completion and scheduled for inauguration in 2020 .”
This came amid a separate presentation to the Senate Committee on Works detailing “ over N 300bn generated certificates owed road contractors ” on portions of jobs completed since 2016.
The document reads, “ It must be pointed out that the figure of 200, 000 housing units set for the ministry appears unrealistic and impractical as long as it is a sole Federal Government of Nigeria target .
“ For the 36 states and the FCT, this target appears more feasible as each state will be expected to deliver 5, 405 houses per annum; this is more consistent with a target of about one million houses over five years, and is comparable to the targets set in the UK for 300,000 – 500, 000 housing units every five years –which are not always fully met .
“ One of the limitations of the FG seeking to deliver 200, 000 housing units every year, apart from not controlling access to land, and the issuance of building plan approvals, is the cost element that will require the FG to provide N 600bn per annum , assuming that each home is to be built and sold for N3m times 200, 000 units ( N 600bn ).
“ The total capital appropriation for 2020 for the combined works and housing is N315, 563, 564, 269. 00, which reveals the stark financial deficit between resources and the target for housing. ”
However , the ministry said between 2015 and 2019 the Federal Mortgage Bank of Nigeria completed 43 projects , comprising 5, 542 housing units .
It projected that in 2020 the bank would deliver another 52 housing projects , comprising 4,624 housing units .
On home renovation and mortgage loans, the document indicated that N 38.2 bn “ was originated between 2015 and 2019. ”
It added, “ Of this amount , 220 mortgages valued at N1. 9bn were originated between August and December 2019. In addition, N34. 85bn was disbursed as home renovation loans to 42, 037 beneficiaries between 2015 and 2019 , out of which 10, 051 loans valued at N8 .5bn were disbursed between August and December 2019. ”
On roads , the document stated that besides the funding challenges, 514 highway projects were created in the last 100 days of the second term of the Major General Muhammadu Buhari government , a proof of its commitment to addressing the country ’s infrastructure gaps .
It said the projects provided 49,080 direct jobs and 95, 315 indirect jobs, while 826. 84 kilometres of roads were “ constructed up to wearing course. ”
The report noted that work progressed on the Abuja- Kaduna- Zaria -Kano Road ( Sections I , II , III) , 2nd Niger Bridge and Lagos- Ibadan Expressway , as the government introduced other funding windows outside budgetary allocations to try and close the gaps.
It said , “ The normal budgetary allocation to the ministry is insufficient to fund early completion of the highways and bridge projects . To complement the budgetary funding , the FG has introduced alternative sources of finance, namely the SUKUK Bonds , Tax Credit Scheme, Borrowing from China Exim Bank and other multi- lateral agencies .
“ The ministry also sends a list of viable road projects to the Infrastructure Concession Regulatory Commission for prospective Public Private Partnership financing. ”
On the rehabilitation of the Abuja - Kaduna- Zaria - Kano Road II, the certificates generated by contractors totalled N50 .8bn as of January 2020.
Out of the figure , The PUNCH learnt that only N29. 6bn had been paid to the contractor, leaving “ progress of work at 25 .58 per cent. ”
Similarly, on the construction of the main work of the 2nd Niger Bridge, N86. 5bn was generated by the contractor, Julius Berger Plc .
However, the amount paid up to January 2020 , was N 80. 2bn . The progress of work on the main project was put at 25. 63 per cent.
As for the work on the access roads to the bridge , the total certificate generated was N13 .7bn , out of which N 5.9bn had been paid .
The “ physical progress is 96. 16 per cent” , the document said , scoring the Buhari regime high for its commitment to completing the project between 2021 and 2022 .
The 2nd Niger Bridge has a total contract sum of N 206. 1bn .
Speaking last week at the end of the Federal Executive Council meeting , the Minister of Works and Housing , Mr Babatunde Fashola, said the government was focused on its infrastructure development policy and would deliver many of the roads under construction and housing projects , with improved funding .