Renewed Hope housing: Minister threatens to sanction defaulting contractors

The Minister of Housing and Urban Development, Muttaqha Darma has expressed dissatisfaction with the slow pace of work on some federal housing projects under the Renewed Hope Housing, warning that contractors who have failed to meet contractual obligations may face sanctions.

Speaking with journalists on Sunday after inspecting the Renewed Hope Housing Project in Katsina, the minister said contractors who abandon projects without formally seeking extensions of time or contract variations have violated the terms of their agreements.

He stressed that contract agreements are legally binding documents and must be respected by all parties.

“To me, I think it is not good for someone who has signed a contract agreement and said that he will finish the work within a specified time, only to delay the project for whatever reason without extending the duration.

“If you violate a contract agreement, then definitely you could always be asked to pay some responsibility, a fine, or whatever obligation that you must pay. This is contract management and it is practised everywhere in the world,” he stated.

The minister disclosed that he had directed ministry officials to submit a detailed report on all ongoing contracts, including the dates of award, project durations, and current status, before any action is taken against erring contractors.

“I asked him to give me a report on every contract taking place here. We should know when the contract was awarded, the duration of the contract and the status of the contract as it is today. That is the only basis we have to take action on each contractor,” he said.

According to him, the report is expected by Tuesday or Wednesday, after which the ministry will determine appropriate measures.

Darma maintained that contractors have a legal obligation to notify the ministry whenever circumstances prevent them from completing projects within the agreed timeline.

“If you cannot finish the contract in six months for whatever reason, whether it is flooding, lack of funds, ill health or any other challenge, you come back to the ministry and adjust the contract accordingly. What we are saying is that none of them did that. So, as far as we are concerned, they have violated the law of contract,” he explained.

The minister also rejected claims that delayed government payments justify project abandonment.

“I have read all the contract agreements in the ministry. None of them states that if the government does not pay you money, you stop the contract. What is clearly stated is the duration of the contract,” he said.

During the inspection, Darma assessed some of the completed housing units and expressed satisfaction with the quality of construction.

He, however, noted that a technical assessment team would conduct a more comprehensive evaluation of the structures.

Darma expressed confidence that before the expiration of President Bola Tinubu’s administration, between 80 and 90 per cent of the housing units under construction nationwide would be completed and allocated to beneficiaries.

“It is not about just completing the houses and leaving them. It is about completing them and delivering them to people. We built these houses for human beings, not animals,” he said.

The Federal Government, through the Ministry of Housing and Urban Development, on Wednesday, May 22nd, 2024, launched a 250-unit Renewed Hope Housing Estate Project in Katsina State.

The then Minister, Arch Ahmed Dangiwa, while commissioning the project, demanded that the project must be completed within the next three months to enable the Federal Government to begin the process of offtake for Katsina indigents.

The Renewed Hope Estate in Katsina comprises 50 units of 1-bedroom semi-detached bungalows, 100 units of 2-bedroom semi-detached bungalows, and 50 units of 3-bedroom semi-detached bungalows as the different payment options have been designed to enable everyone who has a source of income and livelihood to own the homes when they are completed; and they are single-digit mortgage loans with up to 30-year terms provided by the Federal Mortgage Bank of Nigeria, Rent-to-Own schemes, and Outright Purchase options for those who can afford to pay upfront.