Construction market hits N1 trillion yearly
Association of Indigenous Construction Contractors of Nigeria (AICCON), has put the size of the country’s construction industry at N1trillion yearly with the Federal Ministry of Power, Works and Housing contributing in excess of N200billion.
President of the Association, Lekan Osifeso, who made the disclosure during the Minister of Power, Works and Housing, Babatunde Fashola, meeting with AICCON members in Abuja, recently, unfortunately noted that most of the sum was lost through capital flight, as a result of non-patronage of local contractors over the years.
He posited that if the indigenous contractors were adequately patronised and made to participate increasingly in the industry, capital flight cases would drop by as much as 60 per cent, and would boost the economy and increase employment opportunities in Nigeria as well as impact the Gross Domestic Product (GDP), and boost government investment.
He declared: “Our mission is in line with Mr. President’s Executive Order Five that clearly supports the participation of the indigenous construction contractors by the government by way of commitment to patronage,” adding that on the long run, the Association’s aim is to build a formidable indigenous construction industry that is capable of attracting funding from financial institutions locally and internationally.
Osifeso disclosed that the Association was on a courtesy visit to the Minister to both commend him for the paradigm shift within the construction industry under his watch in terms of regular payment of contractors, a situation which, according to him, was an experience coming after so many years.
Fashola advised the contractors to look seriously into the idea of equipment leasing that would help in providing easy access to equipment, adding that it would enable indigenous contractors to then compete, as sometimes the difference between one company and another is the difference in equipment and previous experience.
The Minister, however, assured the Association of government’s support in areas where they have capacity, adding that government would appreciate it more if they get the right equipment.
He cited the Maintenance sector as another area where massive scope exists for partnership, and that the Ministry was already working on setting up a maintenance framework. “Whatever we build is built to a design life subject to certain types of maintenance and that is an area that we haven’t really done enough,” he said.
Fashola, who disclosed that the Ministry was working to develop a pilot maintenance framework starting with government buildings and from there build out, adding, “Hopefully may be in 2019 Budget, if we are lucky, we will be able to put a sizeable global Maintenance Budget for the first time, and see how to engage labour and contracting companies to help grow the economy.”
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