The Federal Housing Authority (FHA) is facing intense criticism over its alleged refusal to pay contractors involved in the Bwari Housing Project, leaving many in financial distress and halting progress on the initiative.
The Coalition of Civil Society Groups for Peace and Good Governance, in a statement issued on Saturday in Abuja, accused the FHA Managing Director of deliberately withholding payments despite available funds. The group claimed that some contractors have lost their properties due to unpaid loans, while others have suffered severe health issues, including strokes, as a result of financial hardship.
According to the coalition’s National Coordinator, Comrade Isa Yakubu, the Bwari Housing Project was awarded in April 2022 but faced initial delays due to site unpreparedness. Despite rising costs of materials and labor, contractors pressed on with construction, completing several buildings in line with the Renewed Hope Housing Initiative. However, since the new FHA leadership took office in February 2024, payments have reportedly ceased.
“The current FHA management has refused to honor valuation and payment certificates. Contractors who took loans to finance the project are now losing their properties due to non-payment. Some have even lost their lives due to the stress caused by these financial challenges,” Yakubu said.
The coalition alleged that the FHA leadership is attempting to reassign the project to preferred associates while ignoring contractors who have already delivered completed work. Requests for meetings with the FHA Managing Director have gone unanswered, further fueling suspicions of foul play.
“This is not a case of a lack of funds. The FHA is actively advertising new projects while allowing the Bwari Housing Project to deteriorate. It is a clear case of neglect and favoritism,” Yakubu added.
The Bwari Housing Project is part of the federal government’s Renewed Hope Housing Initiative, which aims to provide 500,000 housing units annually. However, with contractors abandoning the site due to non-payment, the project now risks becoming another failed government initiative.
The coalition has vowed to escalate the matter through legal action and public protests if the FHA failed to settle the outstanding debts. They are also demanding an independent probe into the agency’s handling of the project’s funds.
