The Joint Committee on Works in Nigeria’s National Assembly has emphasized the need for innovative financial solutions to empower local contractors, enabling them to contribute more effectively to national development.
This call was made at the Abuja summit titled “Empowering Local Contractors for National Development: Bridging Gaps and Building Partnerships.”
Senator Barinada Mpigi, Chairman of the Senate Committee on Works, outlined the primary obstacles facing local contractors, including limited financing, inadequate equipment, and security challenges.
These issues, he said, hinder their potential to contribute meaningfully to national infrastructure goals.
Proposed solutions to the funding challenge
To address these, Mpigi proposed solutions such as asset tokenization and tax credits to bridge financing gaps for contractors.
- According to him, asset tokenization would allow contractors to convert assets into digital tokens, giving them access to funds from a wider pool of investors, thereby increasing liquidity and enabling them to raise capital more efficiently.
- Additionally, he encouraged the Federal Inland Revenue Service (FIRS) to support contractors with accessible tax credits, which could reduce their financial burden and foster sectoral growth.
“By unlocking these new financing opportunities, tokenization can empower local contractors to raise capital, enable fractional ownership, and improve liquidity in the sector,” said Mpigi.
He also advocated for fair procurement processes, active engagement with local communities, and sustainable practices that ensure long-term project viability.
Collaborations to strengthen local content
Also speaking at the meeting, House Committee on Works Chairman, Akin Alabi, highlighted the need for partnerships that prioritize local contractors, in alignment with Executive Order 5.
- This order, signed by former President Muhammadu Buhari, mandates that local content be prioritized in public procurement.
- Alabi underscored that Nigeria’s diverse landscape offers enormous growth potential, and maximizing local resources, skills, and talents is critical for sustained development.
“We need a construction industry that is driven by local content, benefiting our people and fortifying our economy,” he said.
In her goodwill address, Nigerian Society of Engineers (NSE) President Margaret Oguntala, represented by Kam-Salem Bukar, President of the Association of Consulting Engineering in Nigeria, stressed the importance of collaboration across the infrastructure sector.
- She urged policymakers to support Executive Order 5, ensuring that government projects prioritize Nigerian professionals and resources.
- Oguntala noted that the involvement of professional consulting engineers and regulatory bodies is crucial for developing effective infrastructure.
- She praised the summit’s organizers and advocated for continuous dialogue, training, capacity building, and regulatory oversight to advance Nigeria’s infrastructural development.