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FG owes construction firms N500bn – FOCI

By on April 21, 2015

The Federation of Construction Industry has expressed concern over the high level of indebtedness in the construction industry, saying its over 100 registered member companies are utilising less than 40 per cent of their staff strength due to mass retrenchment.

According to the body, which is the umbrella group for building and civil engineering contractors, sub-contractors, and plant and equipment suppliers, the Federal Government alone is indebted to its members to the tune of N500bn.

The President of FOCI, Mr. Solomon Ogunbusola, raised the alarm in a statement in which the body congratulated the President-elect, Maj.-Gen. Muhammadu Buhari (retd), on his recent victory in the presidential election, and President Goodluck Jonathan for his “exceptional show of statesmanship and concession of defeat.”

While stressing that FOCI had contributed in a great measure to the construction of modern Nigeria since its incorporation in 1954, he, however, said “it is distressing to observe that many construction firms are on the verge of collapse as a result of the huge debts owned by the federal, state and local governments.”

Ogunbusola said, “Reliable sources confirm that over N500bn is owed by the Federal Government alone. This has led to loss of jobs within the industry. We wish to bring to your (Buhari’s) notice that at present, the construction companies generally are working at 30 per cent capacity following the mass retrenchment of our workers due to the delay/non-payment of certified jobs by various arms of government.

“FOCI is concerned that if the situation is not arrested in good time, it can lead to further loss of jobs and eventual collapse of the construction industries.”

The FOCI president also stressed that its over 100 registered members, including Julius Berger Nigeria Plc, Dantata & Sawoe, Cappa & D’Alberto Plc, S & M Nigeria Limited, Setraco Nigeria Limited, P.W Nigeria Limited, Gilmor Nigeria Limited and Zebercel Limited, among others, were operating below 40 per cent staff strength due to mass retrenchment.”

He therefore appealed to both the present and incoming administrations to intervene immediately in order to effect the payment of the debts.

 

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