Engineers are seeking special funding for construction companies to enable them to build capacity of their workers on new technology in the industry.

The Managing Director, Dromo International Company Limited, David Omoya, who made the call at the 2023 distinguished engineer lecture organised by the Nigerian Society of Engineers (NSE), Akure branch, also charged the Federal Government to stabilise the naira and control inflation as a means to activate the sector.

Omoya noted that the sector requires huge funding and investment in machinery such as bulldozers, excavators, graders, rollers and others, which are expensive.

He lamented that entrepreneurs in the industry are exposed to multi-faceted challenges. These, he said, include lack of capital, competent manpower and machines for projects.

He lamented the increase in the cost of construction materials and machinery, saying that 10 years ago, a construction truck that was sold for N10 million, now cost about N52 million.

Omoya, therefore, appealed to government and financial institutions such as the Bank of Industry (BoI) to provide loans at single digit to entrepreneurs in the construction industry. “Capital is difficult to get for contractors with interest rates as high as 27 per cent, it is not workable for contractors to borrow from commercial banks.

“They also need competent and sound personnel like surveyors, operators, drivers and others to execute road projects. All these cost money. What is more important is for the Federal Government to increase the value of the naira. Is like a vicious circle, as every construction material is increasing in price, it will affect the cost of construction projects,” he said.

He urged construction companies to adopt new technology as part of their business operations, adding, “This leaves a lot of room for improvement and an enormous opportunity for entrepreneurs to improve their performance.”

Speaking on “Nigerian Transportation System and Place of Entrepreneurs in Development of the Construction Industry”, Omoya said the government should invest in various modes of transportation to reduce pressure on roads, ensure their longevity and make them sustainable.

He said Nigeria water transportation is not as effective as they should be. “We should be using boats that are cheap and convenient. There is so much pressure on the road infrastructure because the capacity of our roads is small. One of the reasons for pressure on foreign exchange is that many of the vehicles being used in Nigeria are imported,” he said.

The Chairman, NSE Akure branch, Stephen Bolawole, said the society is promoting advancement of engineering education, research and practice in all its ramifications.

According to him, the forum was organised to contribute to the development of the transport system and ensure better deals for entrepreneurs in the construction sector.