The Nation Newspaper

Tag: construction firms

  • Jonathan owes construction firms N600b

    The President, Federation of Construction Industry (FOCI), Solomon Ogunbusola, said yesterday that the Goodluck Jonathan administration owes construction companies N600billion.

    Among the construction companies owed are Julius Berger, which is owed N90billion, N70billion from FG, Others from states. SCC over N70billion, Setraco N80billion and a host of others.

    Ogunbusola spoke at FOCI’s 59th annual general meeting in Abuja, pointing that construction industries in the country are in bad shape.

    He said, “Construction industries in the country are not finding it easy at all, they are all working below 30 per cent. Most of the construction companies have closed with the management staff resuming for the purpose of continuity.

    “Without the construction industries, government cannot make any significant improvement.

    “Recently, the Central Bank of Nigeria (CBN) came up with the idea of publishing the names of debtors, I think it should be looked at holistically, if these companies are genuinely owed by government, it should be left alone, because by the time the names of these companies are published, the public begin to look at the company negatively.”

     

  • ‘Fed Govt owing construction firms over N500b‘

    ‘Fed Govt owing construction firms over N500b‘

    President, Federation of Construction Industry  (FOCI), Solomon Ogunbusola, yesterday said the Federal Government is owing construction companies over N500 billion.

    He lamented that most of his members are currently on the verge of extinction.

    “It is distressing to observe that many construction firms are on the verge of collapse as a result of the huge debts owed by the Federal, states and local governments,” he said in a statement.

    FOCI is the umbrella body for building and civil engineering contractors, sub-contractors, and plant and equipment suppliers.

    While congratulating Gen Muhammadu Buhari (rtd) on his election, he noted that FOCI has contributed in a great measure to the construction of modern Nigeria since FOCI’s incorporation in 1954.

    He said: “Reliable sources confirm that over N500 billion is owed by the Federal Government alone. This has led to loss of jobs within the industry. We wish to bring to notice of our president-elect that at present, the construction companies generally are working at 30 per cent capacity following the mass retrenchment of our workers due to 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 could lead to further loss of jobs and eventual collapse of the construction industries.

    He also noted that with its over 100 registered members across the federation including but not limited to Julius Berger Nigeria Plc, Dantata & Sawoe, Cappa & D’ Alberto Plc, S & M Nigeria Ltd., Setraco Nigeria Ltd., P.W Nigeria Ltd, Gilmor Nigeria Ltd, Zebercel Ltd among others, the sector is operating below 40 per cent staff strength due to mass retrenchment.

    He appealed to the incoming administration for urgent intervention.

  • Erect warning signs, construction firms told

    TO curb road crashes, the Federal Road Safety Commission (FRSC) has urged construction firms working on the Lokoja-Abuja road to put warning signs at diversions and spots where repairs are ongoing.

    The Zonal Commanding Officer of FRSC in Gwagwalada Mr Austen Aipoh, told reporters in Lokoja that the directive became imperative in view of the recent discovery that many of the accidents on the road were caused by lack of signs.

    He said the order was given at a meeting between the commission and the contractors, adding it has taken effect.

    The officer, who stopped over in Lokoja while monitoring the take- off of the “Operation Shield”, which began at the Zuba end of the road, also said it was impossible for the organisation to carry out a 24-hour patrol of Okene-Lokoja-Abuja because to lack of logistics and for security reasons.

    He noted that the operation was meant to reduce carnage on five selected roads across the country, stressing that 18 patrol vehicles, five motorbikes and 150 men and officials of the commission had been deployed in Okene-Lokoja-Abuja road for the seven days exercise.

    Apoh said the commission intended to use the operation to check excessive speeding, overloading, wrongful overtaking, and tyre violation and for clearing of obstruction on the selected roads.

    He urged motorists to restrict their movement to day time, obey traffic rules and have a change of attitude to reduce accidents on the highways.

  • Engineer makes case for construction firms

    The Chief Executive Officer, Pekahtek Project Limited, Engr Oluwatosin Adeyelu, has called on the banks and allied financial institutions in the country to come to the aid of the construction industry, especially by reducing their charges on bank loans giving to contractors.

    Speaking recently at the company’s management talk shop, he said: “The banking sector isn’t helping the construction industry. The industry is not benefiting from the banks’ loan facility. There can be no effective construction without banking support either as a client or a construction.

    He further said: “There is the need for banks to come to their aid since most clients do not want to mobilise contractors well and so they have to rely on financial institutions for assistance. Unfortunately, the bank charges, exorbitant high interest rates ranging from 28%to 30% for short term loads, excluding collaterals compared to the 3%- 5% borrowing rates overseas. The mortgage firms’ rate is even higher from 50% to 55%.

    “This scenario has created difficulties for contractors to fulfil their obligations to their client because when the funds are eventually released, the profit margines would have been eroded.”

    Engr. Adeyelu, therefore, appealed to the government to put an enabling policy in place to enable contractors have access to loans with minimal interest rates since this will create more jobs.