Contractors Warn of Project Suspensions, 41,800 Job Losses Over Unpaid Certified Work
The Federation of Construction Industry (FOCI) has warned that Nigeria’s construction sector is facing a severe crisis due to inadequate funding and delays in payment for certified projects.
In a statement signed by its President and Chairman of Council, High Chief Vincent Barrah, and Director-General, Fidelis E. Imoisili, the federation said many contractors had suspended operations or were working at significantly reduced capacity.
FOCI attributed the situation largely to the gap between budgetary provisions and the actual release of funds for infrastructure projects.
It said many projects were awarded without adequate multi-year funding arrangements, resulting in delayed payments, accumulation of certified debts, reduced activities and, in some cases, suspension of projects.
“Most of our members handling various projects are not working and those working are operating at a very low capacity due to non-payment of certified jobs,” the federation said.
FOCI also criticised the termination of some contracts by the Ministry of Works, arguing that contractors should not be blamed for delays caused by inadequate funding.
The federation said the funding crisis had contributed to about 41,800 job losses, comprising