THE Coalition of Civil Society Groups for Peace and Good Governance has called for the immediate settlement of outstanding payments owed to contractors involved in the stalled Bwari Housing Project.
The group accused the Federal Housing Authority (FHA) of deliberately abandoning the initiative despite available funds.
According to the coalition, the current FHA leadership, which took office in February 2024, has deliberately withheld payments for completed work, leaving contractors in financial ruin. Some have reportedly suffered strokes or even lost their lives due to the distress.
The group alleged that the management is attempting to cancel the project and reassign it to preferred associates while leaving the initial contractors unpaid.
The Bwari Housing Project, awarded in April 2022, faced delays when contractors couldn’t begin work for six months due to site unpreparedness. This setback, coupled with rising costs of materials, labour, and transportation, made completion challenging.
Despite these obstacles, many contractors finished and handed over buildings as instructed by the current administration in line with President Tinubu’s Renewed Hope Housing Initiative, which aims to deliver 500,000 housing units annually. However, once the new management took over, payments ceased.
In a statement signed in Abuja on Saturday by Comrade Isa Yakubu, National Coordinator, the coalition, lamented the contractors’ worsening plight.
They detailed how many took out loans with high interest rates, used properties as collateral, and are now facing confiscations due to non-payment by the FHA.
The coalition claimed that the refusal to pay is not due to a lack of funds but an intentional act to favor new associates.
The FHA, they claim, has advertised fresh projects while allowing the Bwari Housing Project to deteriorate, effectively wasting taxpayer money. Multiple requests for a meeting with the Managing Director have gone unanswered.
According to the coalition, the MD allegedly claims he is not accountable since he didn’t award the contracts and believes his position is secure due to his status as the President’s son-in-law.
Contractors continue to bear the brunt of these decisions, with many unable to return to the site without outstanding payments. What was intended to be an affordable housing project has now turned into an abandoned venture, marred by financial struggles and leadership neglect.
The coalition vowed to escalate the issue through legal action and protests if the FHA does not resolve the matter. They are also demanding an independent probe into the agency’s handling of the project and its funds.
Their statement reads: “This project was awarded to various contractors in April 2022. However, they could not commence work immediately as the site was not ready for construction. By the time work began, material and labor costs had surged. Despite these challenges and delays in payment, contractors remained committed to completing the project within the specified timeline.
“In February 2024, a new management team took over at the FHA. Since their assumption of office, they have refused to honor any valuation or payment certificates. This is despite the fact that some buildings were completed and handed over as instructed by the current administration. Many contractors took bank loans with high interest rates, using their properties as collateral—now lost to confiscation due to non-payment.
“All efforts to secure payments have been met with silence. Our findings indicate that the FHA leadership deliberately stalled the project because they did not award the contracts. Their plan appears to be terminating the project to reassign it to favored individuals.
“As a result of these actions, contractors have abandoned the site, unable to continue work without receiving their dues. This project, which was meant to provide affordable housing, now stands as an abandoned site due to selfish interests, despite the availability of funds.
“Some contractors have suffered strokes and others have died due to stress and financial hardship caused by these delays. The FHA MD has reportedly dismissed accountability, boasting that since he didn’t award the contracts, no one can hold him responsible. His confidence is allegedly tied to his connection as the President’s son-in-law.
“While this project is left to waste, the FHA has advertised new ones, further misusing taxpayer money. We have sent three separate requests for a meeting with the MD to discuss these outstanding payments, but he has not responded in any form.
“As of today, the management has made no effort to settle these outstanding debts to the contractors.”
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