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Construction industry optimistic of 300% investment value growth by 2021



For the building and construction industry in Nigeria, growth prospect is very high and expectation among industry players is that by 2020, the country, alongside India, will enjoy higher growth rates than notable nations like China, predicting that by 2021, the industry will triple its investment value.

The contribution and impact of this industry to the economy cannot be neglected as it has become a veritable index when it comes to employment generation for both skilled and unskilled employment in Nigeria, and it is estimated that this industry contributes 3.2 percent to the Gross Domestic Product (GDP).

Solomon Ogunbusola, president, Federation of Construction Industries (FOCI), who gave these hints, pointed out, however, that despite these prospects, the state of the nation’s economy has somewhat overstretched members of the association as they task themselves to meet up with contracts awarded to them at various levels. He added that these members operate under serious constraints including high indebtedness by different governments, and many of them owe banks at high interest rates.

In his welcome address at the opening ceremony of the just concluded four-day ‘2014 Building, Construction and Mining Mart’ in Lagos, Ogunbusola explained that the expected growth in the industry would be driven by the Federal Government’s transformation agenda which, he added, has seen infrastructural development in various parts of the country.

“The growth in our members’ investment value will be driven by the Federal Government’s transformation agenda. The government is doing a lot of transformation and in the construction industry, we are not just talking about road construction, we are also talking about transformation in rail and air transport. No government has invested more in infrastructure provision, especially roads, than the present government under President Goodluck Jonathan. If you go to the far north, you will see massive investment in roads and rail infrastructure,” he said.

He further said that in the construction sector, most of the roads in the eastern and northern parts of the country were being dualised, adding: “As all these are going on, some of our 125 members, especially the big ones like Julius Berger, Dantata, PW, etc, are getting involved and if it goes on like that, I am sure by 2021, their investment value will triple.”

Contrary to insinuations in some quarters that the government  has preference for foreign firms in the award of contracts, Ogunbusola disclosed that the government now patronises indigenous construction firms, pointing out that the policy at the Federal Ministry of Works is that any contract that is within N5 billion should be given to indigenous firms, and this is really happening.

He called on FOCI members to take advantage of this opportunity. “But they have to show discipline and integrity by not using money for a contract to marry more wives or buy exotic cars,” he added.
He further informed that the industry was worried about the dearth of artisans in the country, which was why they were in Canada last year solely to source for artisans.

“We wanted technical colleges in this country to help us to train our people who would return home and be hired by our member-industries. We are making progress, and we are on this effort with the Canadian High Commissioner to Nigeria,” he said.

At birth in 1954, FOCI was known as Federation of Building and Civil Engineering Contractors in Nigeria (FOBACEC). It is today a formidable body of 125 members who have, jointly and individually, been involved in development efforts all over the country. All its seven earlier editions of the fair were held in Abuja.

By: Chuka Uroko
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