President, Federation of Construction Industry (FOCI), Solomon Ogunbusola, yesterday said the Federal Government is owing construction companies over N500 billion.
He lamented that most of his members are currently on the verge of extinction.
“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 said in a statement.
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 per cent staff strength due to mass retrenchment.
He appealed to the incoming administration for urgent intervention.
The post ‘Fed Govt owing construction firms over N500b‘ appeared first on The Nation.
![[The Nigerian Economy Daily] FG has approved the closure of five foreign missions and embassies](https://nairametrics.com/wp-content/uploads/2017/05/nigerian-economy-today-1.jpg)
