Engineers, under the auspices of the Nigeria Society of Engineers(NSE), have called on the government to take urgent steps to address comprehensive funding for construction companies in Nigeria, noting that the move would revive the sector’s performance and enhance the capacity of construction companies.
The managing director of Dromo International Company Limited,David Omoya, who made the call during the prestigious 2023 Distinguished Engineer Lecture orchestrated by the NSE, Akure branch, underscored the urgency for the federal government to stabilise the national currency and mitigate inflation to invigorate the sector.
Addressing the challenges of the sector, Omoya articulated the imperative for the sector to secure substantial funding and investment in cutting-edge machinery, including; bulldozers, excavators, graders, rollers, and more, all of which command significant financial outlays.
He bemoaned the multifaceted challenges confronting industry entrepreneurs, while citing the scarcity of capital, proficient workforce, and requisite machinery as primary concerns.
He lamented the staggering surge in construction material and machinery costs, citing the example of construction trucks that have skyrocketed from N10 million a decade ago to approximately N52 million today.
Amidst the financial constraints faced by contractors due to high-interest rates, Omoya fervently called upon both governmental bodies and financial institutions, including the Bank of Industry(BoI) to extend loans at single-digit interest rates to construction industry entrepreneurs. The current 27 percent interest rates make it infeasible for contractors to access funding from commercial banks, he emphasised.
Furthermore, he underscored the pivotal need for competent personnel encompassing surveyors, operators, and drivers, essential for executing road projects, and urged these professionals to adopt innovative technologies as integral components of their business operations.
This opens avenues for enhancement and offers entrepreneurs a substantial platform for elevating their performance, he added.
Delving into the lecture’s theme, ‘Nigerian Transportation System and Place of Entrepreneurs in Development of the Construction Industry,’ Omoya underscored the importance of government investment in diverse transportation modes to alleviate the burden on road infrastructure and ensure its longevity.
He advocated for the optimisation of Nigeria’s water transportation system by harnessing cost-effective and efficient boat-based transport. Highlighting the repercussions of road-centric vehicular importation, he stressed that diversifying transportation would relieve pressure on foreign exchange.
Chairman of NSE Akure branch, Stephen Bolawole, articulated the society’s commitment to driving engineering education, research, and practice advancement across all dimensions. The lecture platform was envisioned as a catalyst to augment the transportation system’s evolution and secure favourable prospects for entrepreneurs in the construction sector.
The resounding appeal for specialised funding resonates as a clarion call to propel Nigeria’s construction industry into a futuristic landscape, powered by innovation and resilience.
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