Federal Capital Territory (FCT) Minister, Barr. Nyesome Wike, has expressed concerns over the agreement entered into by government officials in the N85 billion affordable housing project in Abuja. He queried the arrangement that allowed developers to build and sell affordable housing without any benefit to the government, suggesting that the government should receive 10% of the proceeds while the private sector takes 90%. With N21 billion already paid and N64 billion outstanding, the project has only achieved 24.5% completion after nine years.
Federal Capital Territory (FCT) Minister, Barr. Nyesome Wike, has raised objections to the agreement made by government officials regarding the N85 billion affordable housing project in Wasa, Abuja. The minister questioned the terms of the agreement, which allowed developers to construct and sell affordable housing without any monetary gain for the government.
Wike argued that it would have been more reasonable for the government to receive a 10% share of the proceeds while the private sector takes 90%. He expressed his dissatisfaction with the current arrangement, stating, "The government provides land and infrastructure, then the private sector builds and makes money while the government makes nothing; who does that?"
The minister also criticized the affordability aspect of the housing project, suggesting that the pricing structure was not accessible to the masses. He promised to review all aspects of the agreement, ensuring that contracts are awarded based on merit rather than political considerations.
The affordable housing project in Wasa was initially awarded to Gilmor Construction Company in 2014 at a cost of N28 billion. However, the project cost was later revised to N85 billion in 2018. Currently, N21 billion has been paid, leaving an outstanding balance of N64 billion. Despite the nine-year duration, the project has only reached 24.5% completion.
Originally, the affordable houses were designed as one-bedroom and two-bedroom units, with the latter priced at N7 million. However, the minister's concerns about affordability raised questions about the suitability of the pricing structure for the intended target market.
During an assessment tour of the Kabusa community, where shanties were demolished earlier in the week, Wike assured residents that efforts would be made to prevent miscreants from returning to the area. He emphasized the government's commitment to maintaining order and preventing the proliferation of unplanned settlements in Abuja.
Source of content: OOO News 2023-09-04 News
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