Fed Govt, States Owe Contractors N600b

Solomon Ogunbusola

Federation of Construction Industry (FOCI) President Mr. Solomon Ogunbusola yesterday alleged that federal and state governments owed his members over N600 billion. He said the refusal by governments at the two tiers to pay the debts was affecting the construction industry, adding that no payment had been received from the Federal Government since August 2014.

Ogunbusola, who said the Federal Government owed over N300 billion, added that states from the Southeast geopolitical zone were the most indebted. He said the debts were for projects executed and certified by the governments.

The FOCI president, who represents over hundred members in Nigeria and serves the interest of local and foreign construction firms, told reporters in Abuja that over 80 per cent of construction workers had been sacked in the last six months.

He blamed it on the refusal of the governments to award contracts and engage in talks with construction companies.

Ogunbusola said: “We are meeting because we have challenges that are beyond us. For over one year, we have not received anything from the government since August last year. No capital funds have been released.

“We have written to the President and have made noise about it. We are not unaware of the difficulties we are facing in the economy. If the Federal Government can rescue states to pay salaries, they should not behave as if they are not aware of Nigerians in the construction sector. Construction companies have sacked over 80 per cent of their workforce.

“We are only servicing only 20 per cent. We are not working. The banks are not helping matters in our issue. We took loans and there are interest rates to pay.

“Since last year that we received the last payment, the interests have doubled. The government must look into the situation and see how construction workers can be assisted.

“There are some of our members that have executed jobs for state governments and the Federal Capital Territory (FCT) and they have not been paid for two years. It does not show any good sign of governance.”

He urged the incoming minister of Works to look at some of the projects completed so that his members can be paid.

Ogunbusola noted that the country’s roads were in bad conditions and appealed to the federal and state governments to pay contractors so that they could go back to sites.

“Political awards of contracts must also stop. Government must give contracts to people who can do the job. Many so-called big construction firms are at the verge of folding up because of lack of finance. 

“Going forward, the government should only give out contracts they can pay for to avoid what we are going through right now,” he said.