Renewed Hope housing: Minister threatens to sanction defaulting contractors

Nigeria's Minister of Housing and Urban Development, Muttaqha Darma, has expressed strong dissatisfaction with the pace of work on several federal housing projects under the Renewed Hope initiative. He issued a stern warning that contractors failing to meet their contractual obligations could face sanctions.

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To me, I think it is not good for someone who has signed a contract agreement and said that he will finish the work within a specified time, only to delay the project for whatever reason without extending the duration.

During an inspection of the Renewed Hope Housing Project in Katsina, Darma emphasized that contract agreements are legally binding. He stated that contractors who abandon projects without officially seeking extensions or contract variations are in breach of their terms. "If you violate a contract agreement, then definitely you could always be asked to pay some responsibility, a fine, or whatever obligation that you must pay," he explained, noting this is standard contract management practice globally.

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If you violate a contract agreement, then definitely you could always be asked to pay some responsibility, a fine, or whatever obligation that you must pay. This is contract management and it is practised everywhere in the world.

The minister has directed ministry officials to compile a comprehensive report detailing the award dates, project durations, and current status of all ongoing contracts. This report, expected by Tuesday or Wednesday, will serve as the basis for taking action against any erring contractors. Darma stressed that contractors have a legal duty to inform the ministry of any circumstances preventing project completion within the agreed timeline.

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I asked him to give me a report on every contract taking place here. We should know when the contract was awarded, the duration of the contract and the status of the contract as it is today. That is the only basis we have to take action on each contractor.

Darma also refuted claims that delayed government payments justify project abandonment, stating that contract agreements do not permit stopping work due to non-payment. While he expressed satisfaction with the quality of some completed housing units, a technical assessment team will conduct a more thorough evaluation. The minister remains confident that a significant portion of the housing units will be completed before President Bola Tinubu's administration concludes.

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If you cannot finish the contract in six months for whatever reason, whether it is flooding, lack of funds, ill health or any other challenge, you come back to the ministry and adjust the contract accordingly. What we are saying is that none of them did that. So, as far as we are concerned, they have violated the law of contract.