Fashola, Senate differ on 50 per cent mobilization for contractors

The Minister of Power, Works and Housing, Babatunde Fashola and the Chairman of Senate Committee on Housing and Urban Development, Senator Barnabas Gemade, on Thursday differed on contract mobilization fee for project implementation in the housing sector.
Fashola had said during the 6th national council meeting on Lands, Housing and Urban Development, canvassed for an increase in mobilization fee to about 50 per cent.
He said this became imperative to support small contractors and ensure Nigerians really experience genuine development in the sector.
The minister said he had directed the legal department in the ministry to commence legal processes and recommendations to the National Assembly in order to meet up with the new demand.

Fashola disclosed that the Federal Government mass housing project has commenced in 33 states to deliver 2,736 housing units.
He noted that apart from the artisans, 653 contractors were engaged in the pilot scheme and a total of 54,680 people were employed in the process.
He told the delegates at the event that with the ongoing housing projects, the federal government had fulfilled the commitment it made at the 2016 council meeting by 90 per cent.
Fashola said: “Yes, I understand the need to get value for money and the processes that have been put in place by previous administrations to guide procurement. The question we must ask ourselves then is whether we have truly saved money and whether we have developed?
“On the evidence that is available, the country has clearly made more money from oil sales in the last decade that cannot be accounted for by way of project delivery and infrastructure development.
“But if this was not enough problem, the procurement requirements then limits the amount of advance payment government can pay to 15 per cent and sets conditions that overlook the level of literacy of the vast majority of our people and the nature of small businesses that they run.”
“In the last 20 months, small businesses have difficulty complying with our procurement process and this requires not only policy reviews as I have ordered, but also legislative intervention by parliament.
“This is one of the actions we must take to fulfill the objectives of the theme of this Council so that we can build for inclusion, for growth and for prosperity.”
But Gemade disclosed that the NASS was considering 30 per cent initial payment for contractors rather than the 50 per cent sought by the minister.
He said the bill had scaled through NASS but awaiting approval by the President.