The President, Federation of Construction Industry (FOCI), Vincent Barrah has expressed concern over the inadequate funding Nigeria’s construction sector, describing it as major obstacle hindering the completion of critical infrastructure projects.
Barrah expressed the concern at the 68th Annual General Meeting (AGM) of FOCI in Abuja on Thursday.
He said that many projects awarded years ago remained uncompleted due to financial shortfalls and inflation.
“The major problem in the construction industry is a lack of adequate funding.
“Projects awarded 10 years ago are not financially viable under current conditions,” he said.
He said that rising cost of building material and inflation had further complicated project execution.
“If contracts are not reviewed to account for inflation, companies are unable to continue work. This leads to delay and unfinished projects,” Barrah said.
He complained about tha non-completion of many road projects, citing a lack of active construction work due to unresolved issues with the authorities.
“Most construction companies are not actively working on their sites due to challenges with the Ministry of Works.
“If they were, we would not be facing such a severe deterioration of roads during the rainy season.
“The formulation of project institutions implies that inflationary trend and increase in prices will necessitate the variation of prices,” he.said .
Also speaking , Stephen Okoro, National President, National Union of Civil Engineering, Construction, Furniture and Wood Workers (NUCECFWW), highlighted the plight of workers in the sector.
“Many workers are operating without insurance policies or adequate job security. Employers are sacking workers with ease due to the lack of ongoing projects.
“We have been advocating for the normalisation of workers’ employment conditions, so that they can work with the dignity and security that every human being deserves,” Okoro said.
He also expressed concern over the government’s shift towards constructing concrete roads, a policy he believed had contributed to the instability in the sector. (NAN)