More homes, better roads coming as FG budgets N433.4bn for critical infrastructure

Nigerians may in the days and years ahead, be seeing improved power supply, more housing being built
and more road infrastructure being constructed, reconstructed and rehabilitated, as the Federal Government has earmarked N433.4 billion to be spent on providing critical infrastructure, including power, works and housing, in the 2016 fiscal year.

President Muhammadu Buhari who disclosed this in his 2016 budget presentation at the National Assembly Tuesday, said the increased budgetary allocation to these ministries which have been fused into one ministry, was a fulfillment of his administration’s promise to align expenditure to longterm objectives, adding that it was a sign of government’s commitment to sustainable development.

These ministries, especially those of works and housing which had only N18.132billion and N1.8 billion allocations respectively in the 2015 budget, had not had it so good, but the president explained that increased investments in infrastructure and security were meant to support the administration’s reforms in the Agriculture, Solid Minerals and other core job creating sectors of our economy.

Expectation is therefore high that these increased allocations would translate into more homes for Nigerians and increased number of roads to be constructed, reconstructed or rehabilitated.

Babatunde Fashola, the Minister in charge of Power, Works and Housing, had in his maiden media briefing, during which he unveiled government’s agenda for these very important sectors of the economy, assured that there would be increased budgetary allocation to these sectors to enable the government achieve its set objectives for economic development.

“The housing sector presents an enormous opportunity for positively impacting the economy to promote not only growth, but also inclusion”, the minister observed, adding, “government will lead the aggressive intervention to increase supply, by undertaking construction of public housing and formulate policies that will invariably lead to private sector participation and ownership to reduce our housing deficit”.

For a start, the minister said government would be building 40 blocks of housing comprising 12 flats (homes) each in each state and the federal capital territory (FCT), Abuja which translates to 480 flats (homes) per state, and 17,760 flats (Homes) nationwide, for a start.

With this increased allocation, will come more jobs for Nigerians, more so when the minister had noted that as at May 2015, many contractors had stopped work because of payment, and many fathers and wives employed by them had been laid off as a result.

“Some of the numbers from only four companies that were sampled, suggest that at least 5,150 workers have been laid off as at March 11, 2015, and if we realise that there are at least 200 contracts pending, on the basis of one company per contract.

“If each contractor has only 100 employees at each of the 200 contract sites, it means at least that 20,000 people who lost their jobs can return to work if the right budget is put in place and funded for contractors to get paid”, he said.

Johnson Chukwuma, a structural engineer, says government’s planned intervention in the housing sector is long overdue, and so applauded the move, but Adetokunbo Ajayi, MD/CEO, Propertygate Development & Investment Company Plc, warns that government should tread cautiously with the planned intervention.

“Government should avoid the temptation of getting into housing construction in its zeal to accelerate housing delivery. That will lead to regression and breed corruption. The government should rather focus on helping to build strong housing and mortgage systems with the private sector serving as the engine of execution”, Ajayi advised.