The Minister of Works and Housing, Babatunde Fashola, says the Federal Government is owing contractors N956bn for completed road and housing projects across the country.
He disclosed this in his submission at the 2023 budget defence session with the Senate Committees on Works and Housing.
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He said out of the N956bn debts, the government was owing contractors handling the National Housing Scheme N191.75bn; and those handling road projects, N765bn.
He said the National Housing Project, which started in 2016, had been executed in 35 states with 1,250 contractors.
“The National Housing Project is very much on course, but the problems of the paucity of funds through drastic budget slash and outstanding liabilities of N191.75bn need to be urgently looked into.
“In 2022 fiscal year, while the total capital votes for both Works and Housing Components of the Ministry was N441.18bn; the proposal made for 2023 fiscal year is N146bn.
“Out of the proposed N146bn as capital expenditure for the entire ministry in 2023 fiscal year, only N45bn is earmarked for the housing sector.
“The main challenge to highway development in the country remains inadequate funding.
“As at date, government is committed to highway contractors to the tune of about N10.4trn; while a total of about N765bn are unpaid certificates for executed works,” he said.