Abuja Contractors Association has berated the Federal Housing Authority, FHA, for its continued delay in their contract payment years after completion.

Abuja Contractors lament payment delay VAT deduction by FHA

Chairman of the association, Mr Innocent ldika, told journalists yesterday in Abuja that some of the contracts were executed and handed over since 2011 without payment.

He noted that the Abuja Mass Housing Development Project at Zuba and APO Housing Development Project in Guzape District were some of the projects executed without payment.


He said despite the release of N1.5 billion, which is the total payment for Abuja Mass Housing Project, Zuba, last year by the federal government, the money has been with the management of the FHA, noting that some contractors that had payment certificate since December have not been paid and their files stuck at the office of the Executive Director, Business Development, EDBD, since December 2020.

Abuja Contractors lament payment delay VAT deduction by FHA

On the APO Housing Project, the contractors said that the project was awarded in 2011 and was completed since last year February 2020, disclosing that the houses have been purchased and people are living there but up till now a chunk of the money has not been paid.


Similarly, they decried the Illegal deduction of 7.5 per cent Value Added Tax, VAT, as against 5 per cent that was clearly stated in the terms of both projects.

Also, illegal deduction of 7.5% Value Added Tax as against 5% value Added Tex that was clearly stated in our BOQ and our letter of award of 2011 for Apo Project and 2018 of Zuba Zass Housing Project.”

Abuja Contractors lament payment delay VAT deduction by FHA

According to the chairman, several appeals and meetings held with management to resolve the aforementioned were to no avail.

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