Senators and members of the House of Representatives on Monday urged the executive to include local contractors in the country’s construction sector, saying it would help stimulate economic growth and foster sustainable national development.
The lawmakers made this call at a summit organised by the National Assembly’s Committee on Works in partnership with Optimum Horizon Limited, to address the importance of empowering local contractors to drive national development.
The event, themed “Empowering Local Contractors for National Development: Bridging Gaps and Building Partnerships,” focused on ways to bridge existing gaps and foster collaborative partnerships for a stronger, self-reliant economy.
Chairman of the Senate Committee on Works, Senator Barinada Mpigi, in his address stressed Nigeria’s vast and diverse infrastructural landscape, noting the immense opportunities for growth, development, and transformation under President Bola Tinubu’s administration.
The senator said he was disappointed over the limited opportunities for indigenous contractors in the nation’s infrastructure sector. “Our local contractors face significant challenges that hinder their ability to contribute to national goals,” he said. “Issues such as limited access to long-term financing, inadequate equipment, lack of insurance facilities, and security concerns have long stifled their growth and success.
“In countries worldwide, governments have adopted strategic measures to bolster their local contractors. From government-backed financing and public-private partnerships to more efficient procurement systems, these nations recognize the value of practical support in empowering local businesses. It’s time we follow suit by ensuring fair procurement processes, engaging local communities, and prioritising environmental sustainability”, he stated.
He said to close the financial gap between local and foreign contractors, the Securities and Exchange Commission (SEC) should explore innovative solutions, such as asset tokenisation, which could provide crucial support for local contractors.
According to him, “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, the Chairman, House of Representatives Committee on Works, Akin Alabi called for a partnership that prioritises the inclusion of local contractors in building the nation’s infrastructure.
He said, “Today (Monday), 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.
He said, “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, of the Nigerian Society of Engineers, Margaret Oguntala, highlighted the importance of collaboration among the various stakeholders in the country’s infrastructural sector.
Oguntala, who was represented by the President of the Association of Consulting Engineering in Nigeria, Kam-Salem Bukar, 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.
She emphasised the critical role of professional consulting engineers and engineering regulatory bodies, alongside local contractors, as key partners in advancing Nigeria’s infrastructure. He highlighted their valuable contributions in shaping the nation’s infrastructural landscape.
