NASS moves to unlock financial opportunities for local contractors

The Joint Committee on Works in the National Assembly has called for innovative interventions to grant local contractors access to finance and unlock their potentials to contribute to national development.

The leadership of the committees made the call on Monday in Abuja, at the opening summit entitled “Empowering Local Contractors for National Development: Bridging Gaps and Building Partnerships.”

The Chairman, Senate Committee on Works, Sen. Barinada Mpigi (PDP-Rivers) said that local contractors were faced with challenges of limited financing, inadequate equipment and insecurity.

He said that the challenges were hindering the potentials of the contractors to contribute to national goals.

The senator suggested innovative solutions like “tokenization of assets and tax credits” to bridge the financial gap experienced by contractors.

According to Mpigi, indigenous contractors have not been given opportunities over the years in the nation’s infrastructural sector.

He said that promoting fair procurement processes, engaging with local communities and prioritising environmental sustainability, while ensuring that infrastructure projects were built with the future in mind must be prioritised.

Mpigi urged the Securities and Exchange Commission (SEC) to explore innovative approaches such as the tokenisation of assets.

According to him, this process allows local contractors to convert their assets into digital tokens, facilitating access to funds from a broader pool of investors.

“Challenges such as limited access to long-term financing, inadequate equipment, lack of insurance facilities, and issues of insecurity have long been obstacles to their growth and success.

“By unlocking these new financing opportunities, tokenization can empower local contractors to raise capital, enable fractional ownership, and improve liquidity in the sector.

“The Federal Inland Revenue Service (FIRS) can play a crucial role in supporting our local contractors by introducing easier access to tax credits, which will ease their financial burden.

“Such incentives can encourage investment in the sector, providing them with much-needed relief and fostering growth,” he added.

In his remarks, the Chairman, House Committee on Works, Mr Akin Alabi (APC-Oyo) said that there was need for partnerships among stakeholders that prioritise local contractors in adherence to Executive Order 5, which promoted local content.

He said that the workshop was aimed at strengthening the bridges among the government, stakeholders and local contractors as well as construction companies, foster partnerships that would empower indigenous industries to transform Nigeria’s infrastructure.

According to him, Nigeria has a diverse landscape which holds immense potential for growth and development.

“However, to truly unlock these potentials, we need an approach that maximises local resources, skills and talents.

“It is time to make the call to embrace our local contractors not only as stakeholders but as partners in our journey to national development.

“We need a construction industry that is driven by local content, benefitting our people and fortifying our economy.

“Today’s summit provides an opportunity to address challenges, explore solutions and deepen collaborations between indigenous contractors, construction companies and key policymakers,” he said.

In her goodwill message, the President, Nigerian Society of Engineers (NSE), Ms Margaret Oguntala, acknowledged the importance of collaboration among the various stakeholders in the country’s infrastructural sector.

Oguntala, represented by the President, Association of Consulting Engineering in Nigeria, Mr Kam-Salem Bukar, called the attention to the principles of Executive Order 5 signed by former President, Muhammadu Buhari.

She said that policymakers and legislatures were tasked with crafting laws that empowered local content and infrastructure initiatives.

According to her, by reinforcing the principles of Executive Order 5, they can ensure that Ministries, Departments and Agencies prioritise Nigerian professionals and resources in public procurement.

The NSE president identified professional consulting engineers and engineering regulatory bodies as important partners with significant input in the infrastructural arena.

Oguntala commended the organisers of the event and called for regular dialogue, training and capacity building as well as regulatory oversight to promote Nigeria’s infrastructural development.