By Christiana Ekpa
Federal lawmakers on Monday called for the inclusion of local contractors in Nigeria’s construction industry to boost national development.
The Assembly Lawmakers both from Senate and House of Representatives at a summit in Abuja, emphasized the importance of empowering indigenous contractors.
The summit tagged, “Empowering Local Contractors for National Development: Bridging Gaps and Building Partnerships stressed the need for local contractors inclusivity.
Addressing participants at the event, The Chairman, Senate Committee on Works, Barinada Mpigi, highlighted the challenges local contractors face, including limited financing, inadequate equipment, and insecurity.
He suggested innovative solutions like tokenization of assets and tax credits to bridge the financial gap.
He further lamented that indigenous contractors have not been given opportunities over the years in the nation’s infrastructural sector.
He said, “Our local contractors face significant challenges that hinder their potential to contribute to national goals. Challenges such as limited access to long-term financing, inadequate equipment, lack of insurance facilities, and issues of insecurity have long been obstacles to their growth and success.
“Globally, other nations have implemented strategic measures to support their local contractors. From government financing and public-private partnerships to streamlined procurement processes, these countries have recognised the importance of providing practical solutions to empower local businesses.
“We must follow suit by promoting fair procurement processes, engaging with local communities, and prioritising environmental sustainability, ensuring that our infrastructure projects are built with the future in mind.”
To bridge the financial gap between local contractors and their foreign counterparts, Senator Mpigi urged the Securities and Exchange Commission to step in by exploring innovative approaches, such as the tokenization of assets.
“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 Committee on Works, Akin Alabi, stressed the need for partnerships prioritizing local contractors. Nigerian Society of Engineers President, Margaret Oguntala, emphasized collaboration among stakeholders and adherence to Executive Order 5, which promotes local content.
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.”
