Construction firms howl, as economy bites harder

• Resort to diversification of operations
• Plead for N600bn debt payment

The ongoing economic crunch is forcing construction companies to eye alternative sources of revenue to stay afloat.

A visit by The Guardian to Julius Berger Plc, Setraco Nig. Ltd, Dantata & Sawoe, as well as Bouygues Construction Company, all in Abuja, revealed that strategies such as staff reduction, overdrafts from banks, resort to building of houses and extension of services to neighbouring Ghana and Sierra Leone are among survival tactics being explored.

Besides these notable firms, others have closed shop permanently, having little or no capacity to withstand the present downturn.

Before now, the National Union of Civil Construction and Engineering Workers (NUCCEW) and other affiliate bodies have, at different fora, appealed to federal and state governments to offset debts owed their employers, in order to forestall mass purge.

The construction industry alone has created a substantial percentage of direct and indirect jobs for the nation’s masses and its inability to cope with the present recession is already affecting many families as a result of job losses.

The Guardian’s investigation also revealed that the promise by the federal government to release, at least, N320bn to the companies, to reduce their debt burden and return to site, is yet to be implemented fully, as some firms are yet to receive a kobo from the authorities.

The Media Officer, Setraco Nigeria Ltd, Abuja headquarters, Mr. John Ogbamgba, told The Guardian that as the economy bit harder, the management decided to lay-off a sizeable number of staff. He said this is a regrettable decision because lot had been spent towards their training and re-training.

He added that the company has also expanded its operations with the introduction of a building department that would focus on construction of houses for individuals and government.

“Before now, our company focused mainly on construction of bridges and roads. But since these are no more coming, we have to diversify operations,” he explained.

Another operator disclosed that his firm, like others, source overdrafts from banks “to keep the company going, with the hope that once government releases our trapped debts, we shall find it easier to pay back.”

Similarly, construction giant, Julius Berger Nigeria Plc, has concluded arrangements to extend its services to other West African countries of Ghana and Sierra Leone, as part of efforts to remain relevant in the industry.