The Minister of Works and Housing, Babatunde Fashola (SAN), on Thursday said the Federal Government planned to generate 10 % job opportunity through public building maintenance and operation.
He said this would contribute up to 8% to the Gross Domestic Product (GDP) of the country, if realised.
The minister stated this while defending the N76.6 billion capital budget proposal for the housing sector for the 2021 appropriation before the National Assembly Joint Committee on Housing at the National Assembly.
He lamented that the Federal Government did not have enough fund to single handedly solve the housing deficit of the country.
“At the time I was leaving the office as governor of Lagos (2015), the budget for the housing ministry was N40 billion and was not enough.
“So if Nigeria is now doing a budget of over N100 billion six years after when the prices of cement and everything have gone up and put in over 36 places. I have kept explaining that what we are doing in the Ministry is modeling.”
Aside poor budgetary provisions , Fashola told the committee that another challenge facing the ministry was that of maintenance and operation of public buildings.
He cited a report by British Institute of Facilities Management that maintenance and operation had the potential to employ as much as 10 % of country’s working population and contribute up to 8% to GDP in United Kingdom, and in varying ratios in South Africa , Namibia , Australia etc “.
He said, “In some countries, maintenance has employed as much as 10 per cent and contributed up to 8% to their GDP.
“Imagine if we could just employ 5% of our population, and if we could contribute 5% to our GDP, we would be much better. We can start this and persuade the states to do so too.”
“If you go round our public buildings, there are lots of air conditioner not working, pipes leaking, doors needing servicing,floors needing polishing, electric fittings.
“Once we start doing maintenance and operation regularly, we are accelerating the demands for supply for polish, paints, disinfectants. You are also creating an industrial base.
“I think that all Ministries Department and Agencies (MDAs) should make 2 – 10 per cent provision of their capital budget for maintenance. Each ministry does its own procurement, do your maintenance and cleaning.
“For education and health, where we have real identified challenges, it should be a minimum of 7%. Making sure that schools are in top condition.”
Fashola said the ministry would prioritise projects and complete ongoing ones due to N69.9billion outstanding liabilities owed the contractors handling series of capital projects for the Ministry across the country.
“The N76.6 billion projected for the ministry as capital expenditure for the 2021 fiscal year is based on envelope prescription from the Ministry of Finance, Budget and National Planning.
“Nonetheless, the basis of implementation of the 2021 budget will be anchored on priority areas geared towards projects completion .
“Completion of construction of the remaining 2,140 units of houses under the National Housing Programme in 34 states and the Federal Capital Territory is one of the priority areas to be focused on,” he said.
Other projects targeted for completion include ongoing Federal Secretariats in Anambra , Bayelsa, Ekiti, Nasarawa, Osun and Zamfara states, upgrading, completion and running of Building Craft Training Schools in Yaba and Onikan, Lagos State.
The Chairman of the committee, Senator Sam Egwu ( PDP Ebonyi North), assured the minister that the 2021 budgetary estimates for the housing sector would be critically looked into by all the members with a view to making appropriate appropriation.
