The Nigerian Institute of Quantity Surveyors has urged the federal government of Nigeria to promptly tackle the effects of hyperinflation on the Nigerian construction industry.
During a press briefing convened in Abuja, the president of the Nigerian Institute of Quantity Surveyors, Kene Nzekwe emphasised the substantial benefits that accompany a thriving construction sector.
Nzekwe highlighted its potential to generate positive multiplier effects, bolster gross fixed capital formation, and spur growth in the nation’s GDP.
He urged the government to take a keen interest in the developments within the construction industry for economic advancement.
He noted that the Nigerian construction industry is at a critical juncture, and swift government intervention is imperative to stabilise construction costs and safeguard the future of our nation’s infrastructure department.
“Government to sustain engagement with local construction material manufacturers to understand and address their challenges. Some of the challenges highlighted by the local manufacturers include exchange rate volatility which has seen our currency depreciate by about 300 per cent in a few months thereby affecting the imported components of their manufacturing like spare parts, mining explosives and import tariff which is indexed in US Dollars.
“While addressing the challenges faced by the local manufacturers, it is also important that the government look at the structure of the building material manufacturing industries, especially cement manufacturing. Oligopolies and cartels in the construction materials manufacturing industry must be discouraged. Perfect competition should be the aim, aligning local production prices with international standards.
“A friendly tariff regime for imported materials and plants is crucial. Government should adopt a temporary measure of lifting restrictions on the importation of some construction materials which have been restricted hitherto to neutralise any attempt by local manufacturers to manipulate the prices.
“The engagement of quantity surveyors becomes crucial to assist the federal government in navigating these turbulent waters.
“For the promotion of local content in contracts in the planning and execution of projects. This will ensure that the desired increase in the quantum of value created in the Nigerian economy through increased Nigerian content in public procurement is realised,” he said.
He argued that professionals in the quantity surveying field have proven their proficiency in handling project expenses, particularly amidst changing economic circumstances. Embracing a cost-focused procurement strategy guided by certified quantity surveyors, the federal government stands to gain a deeper insight into project costs from start to finish.
