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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