Indigenous construction contractors seek FG’s ‘better patronage’

The Association of Indigenous Construction Contractors of Nigeria (AICCON) has called on the Federal Government to prioritise patronage of local contractors, saying the ripple effect on the Nigerian economy would be massive. AICCON’s National President, Otunba Lekan Osifeso, after a meeting with the Minister of Power, Works and Housing, Babatunde Fashola, said the request was […]

The Association of Indigenous Construction Contractors of Nigeria (AICCON) has called on the Federal Government to prioritise patronage of local contractors, saying the ripple effect on the Nigerian economy would be massive.

AICCON’s National President, Otunba Lekan Osifeso, after a meeting with the Minister of Power, Works and Housing, Babatunde Fashola, said the request was in line with the presidential “Executive Order 5”, which supports increased patronage of local companies.

He said the size of the construction industry in Nigeria is over N1trn annually but over 75% of this capacity flees the country’s borders.

This, he said, often resulted in major funnel for capital flight and money laundering due to the weak participation of indigenous contractors over the years.

“Our forecast is that with an increase in participation of indigenous companies by up to 30%, capital flight cases will drop by 60%, up to 40% of the wealth generated percolates the economy and construction related employment will grow up to 25% annually,” he said.

“This will impact our gross domestic product and yield better returns for government’s investment,” he added.

Osifeso said prioritising local contractors will also build a Nigerian construction empire that will be a cynosure of eyes worldwide.