FG Owing Construction Firms Over N500b

As stated by the President, Federation of Construction Industry (FOCI), Solomon Ogunbusola, the Federal Government is owing construction companies over N500 billion. "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 stated in a statement yesterday. 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 percent staff strength due to mass retrenchment. He therefore appealed to the incoming administration for urgent intervention.