Ahmed Dangiwa, the Minister of Housing and Urban Development, is requesting additional funding for seven important housing-related initiatives.
According to him, these initiatives include the Slump Upgrading and Urban Renewal Program, the Renewed Hope Cities and Estates Housing Program, and others.
Dangiwa made the call during the Senate Committee on Housing’s budget defence session, which was held at the National Assembly Complex on Monday.
“I request that the Distinguished Chairman and Members of this critical Committee use their good offices to increase the budgetary allocation in several key areas.
“This is because these areas are critical to Mr President’s transformative policies and programmes to put the economy on the path of recovery and growth.
“It is pertinent to state here that in the 2024 fiscal year, the sum of N162.609 billion was allocated to our Ministry, which amount was considered inadequate.
“Yet, we have been given an envelope of N83.752 billion is the Ministry’s Capital Budget Ceiling for 2025, which is a far cry from even the 2024 Appropriation.”
According to him, the goal of the Renewed Hope Cities and Estates Housing Program was to boost economic expansion.
The construction and development of these new areas will generate employment opportunities, stimulate local businesses and attract investments.
“The 50,000 units planned to deliver under phase I will create 1 250 000 direct and indirect construction jobs for Architects, Engineers, plumbers, iron benders, masons, etc
“This is in addition to the value chain effect of purchase, supply of building materials and other businesses.
“We have covered 12 States and would like to cover 18 at 250 units per site. The amount needed to achieve this is N108 N6 billion per state.
He said the “Slump Upgrading and Urban Renewal Programme” also required increased budgetary allocation.
“Currently, there are ongoing programmes in four states in each geopolitical zone, including FCT.
“This means four sites in four states of each geopolitical zone, including four sites in FCT, bringing the total to 100. At least N100 billion is needed for better results,” he said.
Dangiwa added that the ministry has enormous liabilities from finished projects that were properly certified for payment before the end of the fiscal year but were not paid because of time constraints.
“There is the need to make adequate provisions for liabilities to enable the ministry to reduce the number of liabilities it is exposed to.
“The Ministry has over N92 billion liabilities but would need nothing less than N60 billion in the 2025 Budget to reduce the exposure,” Dangiwa said.
During his speech, Senate Committee on Housing Chairman Sen. Aminu Tambuwal promised the minister his cooperation in addressing the issue of accrued obligations.
“We will support you by working together to see how best we can approach the Minister of Finance, the budget office, and even the Presidency.
“How best we can get this debt relief on the part of the ministry and the part of our contractors.”