By Gloria Ikibah
Members of the National Assembly have called on the need to empower indigenous contractors in the construction industry to boost national development.
Lawmakers made this call a summit organised by the Senate and House of Representatives Committees on Works on Monday in Abuja, with the theme: “Empowering Local Contractors for National Development: Bridging Gaps and Building Partnerships.”
In his remarks the Chairman, Senate Committee on Works, Senator Barinada Mpigi, who stressed the importance of empowering indigenous contractors, highlighted the challenges local contractors face, including limited financing, inadequate equipment, and insecurity.
Mpigi who who decried that indigenous contractors have not been given opportunities over the years in the nation’s infrastructural sector, suggested innovative solutions like tokenization of assets and tax credits to bridge the financial gap.
He said, “Our local contractors face significant challenges that hinder their potential to contribute to national goals. Challenges such as limited access to long-term financing, inadequate equipment, lack of insurance facilities, and issues of insecurity have long been obstacles to their growth and success.
“Globally, other nations have implemented strategic measures to support their local contractors. From government financing and public-private partnerships to streamlined procurement processes, these countries have recognised the importance of providing practical solutions to empower local businesses. We must follow suit by promoting fair procurement processes, engaging with local communities, and prioritising environmental sustainability, ensuring that our infrastructure projects are built with the future in mind.”
To bridge the financial gap between local contractors and their foreign counterparts, he urged the Securities and Exchange Commission to step in by exploring innovative approaches, such as the tokenisation of assets.
“This process allows local contractors to convert their assets into digital tokens, facilitating access to funds from a broader pool of investors. By unlocking these new financing opportunities, tokenization can empower local contractors to raise capital, enable fractional ownership, and improve liquidity in the sector.
“The Federal Inland Revenue Service can play a crucial role in supporting our local contractors by introducing easier access to tax credits, which will ease their financial burden. Such incentives can encourage investment in the sector, providing them with much-needed relief and fostering growth.,” he added.
Also Speaking, Chairman, House Committee on Works, Rep. Akin Alabi, stressed the need for partnerships prioritizing local contractors.
He said, “Today, we gather with a shared purpose to strengthen the bridges between the government, stakeholders and our local contractors and construction companies, fostering partnerships that will empower our indigenous industries and transform our country’s infrastructure.
“Nigeria has a diverse landscape which holds immense potential for growth and development. However, to truly unlock these potentials, we need an approach that maximises local resources, skills and talents. It is time to make the call to embrace our local contractors not only as stakeholders but as partners in our journey to national development.
“We need a construction industry that is driven by local content, benefitting our people and fortifying our economy. Today’s summit provides an opportunity to address challenges, explore solutions and deepen collaborations between indigenous contractors, construction companies and key policymakers.”
In her goodwill message at the summit, the President, Nigerian Society of Engineers, Margaret Oguntala, highlighted the importance of collaboration among the various stakeholders in the country’s infrastructural sector.
Represented by the President, Association of Consulting Engineering in Nigeria, Kam-Salem Bukar, Oguntala called attention to the principles of Executive Order 5 signed by former President, Muhammadu Buhari.
“As policymakers, legislatures are tasked with crafting laws that empower local content and infrastructure initiatives. By reinforcing the principles of Executive Order 5, they can ensure that Ministries Departments and Agencies prioritise Nigerian professionals and resources in public procurement,” she said.
Apart from local contractors, the NSE President also identified professional consulting engineers and engineering regulatory bodies as important partners with significant input in the infrastructural arena.
Oguntala while commending the organisers of the event, called for regular dialogue, training and capacity building as well as regulatory oversight to promote Nigeria’s infrastructural development.
The summit aimed to address challenges, explore solutions, and deepen collaborations between indigenous contractors, construction companies, and policymakers.