By Chika Okeke,
…Kicks against 15% mobilisation fee
The Minister of Power, Works & Housing, Babatunde Raji Fashola has called for a review of Procurement Laws to facilitate the delivery of affordable housing even as he rejected the 15 percent mobilisation fee paid to contractors for projects.
To this end, he suggested for 50 percent mobilisation fee adding that the procurement law is obstructing the development and growth of Nigeria.
He stated this in Abuja yesterday at the closing ceremony of 6th Meeting of the National Council on Lands, Housing and Urban Development, organised by the ministry with the theme, “Building for Inclusion, Growth and Prosperity”.
According to him, “How can government pay 15 percent mobilisation fee to contractors who don’t have capital but if you mobilise a contractor with 50 percent fee, the houses will almost be completed with the money”.
Fashola maintained that the procurement processes are inadvertently excluding people that should be included stressing that most contractors may never get contracts due to the rigorous processes involved in procurement.
The Minister said though the Federal Mortgage Bank of Nigeria (FMBN) has clear directives but must strengthen their resource management adding that the bank should do more with resources at their disposal.
He emphasised that the bank has about 3,823 completed and available housing units across the States, which he urged the management to advertise in a transparent manner to enable contributors of the National Housing Fund (NHF) key into the projects.
On Cooperatives, he said, “Very sizeable part of our population are excluded from formal processes and many run informal processes which is richer than the national economy”.