budget 2016

Activities in the construction sector generally nosedived following sharp decline in Nigeria’s biggest revenue earner, petroleum. The fall in our price continued since this year began. But governments across the country have passed budget proposals showing what are there for the construction sector. The majority of real estate projects are government-funded so the bigger the appropriation in the real estate sector, the higher activities in the sector for property development
President Muhammadu Buhari has assured that his government’s priority is on infrastructure. His budget for 2016 has moved capital spending from mere 10 percent in 2015 to 30 percent implying that the construction sector might be busier this year than it was last year. This will be much meaningful if all the states follow this path. But how will it be if some states have zero allocation for construction? Some governors simply announced plans for housing without appropriating monetary figures. Kaduna budgets N31.6 billion for works and housing The Kaduna State government has budgeted the sum of N31.6 billion for works, transport and housing in the 2016 budget. The government which lamented the lack of adequate houses in the state said it will through a Private Public Partnership (PPP) arrangement with interested developers, package mortgages to enable civil servants and citizens purchase homes and pay over a 15 to 20-year period. The budget for works, housing and transport is by far the biggest for any sector as education which comes second in terms of allocation has only N27.5 billion. Governor Nasir el-Rufai to make good his promise, performed the ground breaking ceremony for 2000 housing unit in the state early in the year. At the ceremony chaired by Vice President Yemi Osinbajo, the governor said the 2000 units would be completed before the end of the year and given out to deserving persons to ease accommodation problems in the state. Five hectares of land were carved out for the project. Enugu earmarks N737.5m for housing The  Enugu State government said it has set aside the sum of N737.5 million for housing in the 2016 budget which the governor, Chief Ifeanyi Ugwuanyi presented to the Enugu State House of Assembly  three weeks ago. We recall that in the 2015 budget tagged, “Budget of Transition” which was presented to the state assembly by the immediate past governor Sullivan Chime, housing and other sectors such as commerce and industry, tourism, sports, security, environment, transportation, rural – all shared the  sum of N2.9 billion.  But Governor Ugwuanyi told the legislature that the need to provide comfortable and affordable houses to the “teeming population of our people cannot be over emphasized,” stressing that the state government was “already partnering with the Federal Mortgage Bank and the private institutions in this regard.” Ugwuanyi recalled that through the partnership his administration was able, last year, to provide 100 housing units to 100 civil servants, adding that “by this year, we hope to do more.” Kano plans 7,000 low cost houses this year Kano State government has planned to construct 7,000 low cost houses this year for sale to low-income earners in public, private and non-government organizations sectors in the state. The state governor Dr. Abdullahi Umar Ganduje made the disclosure while presenting the 2016 budget to the state House of Assembly. The governor explained that government has set aside the sum of N1.8bn for housing development in this year’s budget. Ganduje said government will construct 2,000 houses and rehabilitate its dilapidated property located in Sabon gzari area under the supervision of the Kano State Housing Corporation adding that government has directed Kano State Investment and Properties (KSIP) Limited to partner with private investors in developing 5,000 prototype low-cost houses across the 44 Local Government Areas. Ganduje recalled that last year, additional houses and infrastructure were provided by the government in its new cities of Kwankwasiyya, Amana and Bandirawo. “This is in addition to the construction of various categories of houses and provision of infrastructure, access roads, drainages and provision of streetlights across the state,” he said. 14.4bn for Bauchi infrastructure Road construction and infrastructural development in the Bauchi State 2016 budget is allocated N14.4 billion. About 15 roads were earmarked for construction and rehabilitation throughout the state. The governor has already flagged-off road construction projects with two metropolitan roads in Bauchi and the Misau-Bulkachuwa road. According to the Permanent Secretary, Bauchi State Planning Commission,  Mohammed Aminu Ibrahim the amount represents 11 percent of the N135 billion budget presented by the state governor, Mohammed Abdullahi Abubakar to the state House of Assembly. Sokoto to spend N8bn for housing In Sokoto State, over N8billion has been earmarked for Lands and Housing this year. The projects to be executed under the ministry include completion of the ongoing housing schemes and execution of new ones. Kogi has N74.9bn for roads In Kogi State, the outgoing governor, Capt. Idris Wada made a presentation of N74.9 billion before the state House of Assembly on December 29, 2015 as budget proposal for the fiscal year. The budget which he tagged, Budget of Consolidation, has N45.3 billion as recurrent expenditure and N29.6 billion as capital expenditure. Daily Trust reports that in the sectoral breakdown of the capital expenditure, no allocation was made for the housing sector. The budget however has an allocation for road development which is to gulp N7.6 billion representing 25.68 percent of the total capital outlay. According to Wada, the 2016 budget is basically designed to complete all the ongoing projects in the state and add new ones in critical areas of need considering the dwindling resources accruing to the state. Construction plans without appropriation Benue plans owner-occupier housing for civil servants Benue State government has planned to embark on owner-occupier housing scheme for civil servants in the state beginning from this year in order to ensure that they own their houses before retirement from service. Governor Samuel Ortom disclosed the plan while presenting this year’s appropriation bill to the state House of Assembly. “Ownership of a house by a civil servant prepares him/her for retirement better than when he/she retires and starts looking for an apartment to rent and live with the family,” he said, adding that the houses will be built using mortgage financing. Ayade to build new cities Governor Ben Ayade of Cross River State said his government will build additional 5,000 housing units in the three senatorial districts in his first tenure. In his recent budget speech, he reiterated that this has remained a top priority of his government. This much he articulated in the N350 Billion 2016 Budget, which he said will pay particular attention to welfare of the low-income earners and their housing needs. Ayade said to practically illustrate the seriousness, his government has already contracted Irish property giants who are to bring in prefabricated structures into the state. Speaking on the housing policy of the state government and the 2016 budget, Mr George Ekpungu who is  Commissioner for New City Development said that his office is putting measures in place for the rapid establishment of the state’s proposed new cities in accordance with the governor’s pace. According to him, the new cities have been proposed to situate at Ikom, Obudu and Akamkpa local government areas of the state. Ekpungu said he intends to get the legal and institutional frameworks in place before commencement of works on the new cities. “Our governor is interested in building and developing urban centres in some local government area of the state. The cities may not be as big as the Obudu Ranch Resort, but it is going to be an acceptable one which will attract tourists to it,” he assured. The commissioner who observed that there is going to be financial challenges said that with determination and strong will, his office will realize most of its housing and new city goals, maintaining that what are needed are adequate infrastructure which will themselves attract investors. “Our projects are purely based on Public Private Partnership,” he said.  He added that the new cities when fully established, will also imp
rove the revenue profile of the state. Speaking on the housing policy of the state government and the 2016 budget, Mr George Ekpungu who is  Commissioner for New City Development said that his office is putting measures in place for the rapid establishment of the state’s proposed new cities in accordance with the governor’s pace. The commissioner who observed that there is going to be financial challenges said that with determination and strong will, his office will realize most of its housing and new city goals, maintaining that what are needed are adequate infrastructure which will themselves attract investors. “Our projects are purely based on Public Private Partnership,” he said. Reacting to the budget provisions across the states, organizer of Abuja Housing Show and CEO of Fesadeb Communications, Festus Adebayo lamented that many out of the 36 governors do not give serious attention to housing, adding that even  those who mention housing in their budgets hardly do tangible work in the area of housing. “State governors should be given orientation on housing provision. The No Money complaint should stop. They put cost of bridges which are inflated. I’m not impressed. Only few states are talking about housing,” Adebayo said.
Source: Daily Trust Newspaper

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