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President Buhari, please rescue the construction industry

By Editor
19 July 2015   |   11:20 pm
SIR: The operations of the construction industry, a catalyst needed to drive the nation’s infrastructural growth is being stunted by heavy debts owed by governments both at state and federal levels thus leading to limited capacity and avoidable job losses in the sector. The vital role played by this industry over the years and under…
President Muhammadu Buhari

President Muhammadu Buhari

SIR: The operations of the construction industry, a catalyst needed to drive the nation’s infrastructural growth is being stunted by heavy debts owed by governments both at state and federal levels thus leading to limited capacity and avoidable job losses in the sector. The vital role played by this industry over the years and under various administrations cannot be overlooked. Its optimum engagement by the government and the results therein, acts as a barometer of performance for the government of the day. Indeed, this is one sector that contributes in no small measure to the growth of any serious developing country.

However, heavy contract debts running into hundreds of billions have brought many construction firms to their knees and they are presently dying. Currently, the industry is on the verge of imminent collapse as a result of the heavy contract debts by all tiers of government for projects executed with many commissioned without due payment to the contractors.

Most of the projects any administration showcases as achievements and prospective plans for the governed falls in the purview of the construction industry for it to be actualised. Any government that fails to show off its successful completion of roads, dams, bridges, hospitals, schools and housing units has automatically failed and will not be taken seriously by the electorate.

Members of Federation of Construction Industry (FOCI), an umbrella body of construction firms in Nigeria, are presently owed huge sums of money by the governments both at the federal and state levels amounting to about N600 billion.
To worsen matters, the Central Bank of Nigeria (CBN) recently urged commercial banks to publish the names of their chronic debtors. This puts a twist to the sad story. It is rather, that the names of the ministries, parastatals and agencies indebted to these construction firms be published instead and not the other way round.

President Muhammadu Buhari should urgently come to the rescue of these indigenous construction firms and pay all the debts owed. If the Federal Government can bail out the various states to pay the salaries of their workers due to their reckless and obtuse spending, same measures should be considered for those in the private sector especially the contractors being owed by previous governments.

The Buhari-led administration should act fast; over 15,000 Nigerians have lost their jobs and more are being laid-off daily in this sector. Business is no more the same as more indigenous construction companies and affiliated businesses are shutting down. The right step must be taken as soon as possible to revive this dying sector. If there is to be ‘real change’, this has to start by revitalising the indigenous construction firms from the avoidable dilemma which the players in the sector currently find themselves.

The Federal Government should call on its ministries of Finance, Works and other agencies who seem to be deliberately frustrating the existence of indigenous construction industries to address a situation that could dampen Nigeria’s drive to progress. Members of Federation Of Construction Industry (FOCI), the CBN and relevant authorities should come together to look at ways which this imbroglio can be put to rest.

• Charles Dare, Lagos.

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