Construction firms lament N900bn debt

The umbrella body for all the big construction companies in Nigeria, the Federation of Construction Industry (FOCI), has called on the three tiers of government to bail its members out of their present dilemma by paying its over N900 billion debts. President of FOCI, Mr. Solomon Ogunbusola, told New Telegraph exclusively that the condition of his members are getting worse by the day over the unpaid money. He pointing out that the Federal Ministry of Works alone owes the construction industry over N600 billion. The FOCI President said that everything has become extremely tough for his members, adding that nobody is even talking to them about the debts owed by the Federal Capital Development Authority (FCDA).

He said: What we are thinking about now is the strategy for survival. Everything is deteriorating; banks are not relenting in getting their money back from us – in fact, they have threatened to publish the names of our members that borrowed money; interest rates are going up and companies are closing shops.” He said that many construction companies that could no longer cope with the situation had sacked their workers due to inability to pay their wages. “As I am talking to you now, some are even contemplating closure,” he said. Besides, he raised the alarm that the cost of ongoing projects might double if naira’s devaluation continues, urging that something critical must be done to arrest the situation. Asked if President Muhammadu Buhari was aware of their plight, the FOCI boss said that the president had invited the permanent secretary in the Ministry of Works to ascertain the status quo.

He stated that the response they got was that “he has promised to look into the matter.” Ogunbusola said that there was no positive story coming from the FCDA yet. Just last week, the China Civil Engineering Construction Corporation (CCECC) sacked about 50 of its workers. This eventually led to protest by the workers over what they said was unlawful sack and poor wage by the management of the company. Over 100 workers barricaded the Iganmu office of the company in Lagos to protest their sack by the CCECC management. Penultimate week also, construction workers at the site of Eko Atlantic City project embarked on indefinite strike over non-payment of salary. Furthermore, New Telegraph’s investigation showed that contractors handling the Lagos-Ibadan road’s expansion project, Messrs Julius Berger Plc and RCC have stopped work. In Abuja recently, Julius Berger had stopped construction works of the Abuja centenary city project. Also, the company has pulled out of the construction site of Second Niger Bridge in Onithsa, Anambra State.