Nigerian construction companies demand FG protection for Chinese contractors

Onwuamaeze dike
Nigerian construction companies have called on the federal government to protect their business from unfavorable competition with Chinese and foreign construction companies by initiating policies that would give them access to finance and human capacity development.

The Managing Director of Dutum Company Limited, Mr. Temitope Runsewe, made the appeal on the sidelines of the ongoing West Africa Real Estate Investment Summit (WAPI) on the theme “Real estate market redefined”, which took place. held in Lagos between 23 and 24 November. , 2021.

Runsewe said building the capacity of local construction companies in Nigeria will boost the country’s GDP and prevent capital flight into the economy.

He said: “We say that Nigerian local construction companies are mostly in competition with the Chinese government. These Chinese companies are coming in with cheap funds from China and will tell our governments that they don’t need money from them to start a construction project. They will tell our government to show us the projects and we will mobilize and start building. It is extremely tempting and most of our officials fall into the trap to the detriment of local capacity building.

“If we continue like this for the next 50 years, the Chinese will hardly do anything in this country. It is therefore important that the indigenous construction company has the support of Nigerian governments so that we can develop. This support provides us with platforms, gives us opportunities and provides us with funding that can make us competitive. These foreign companies come to Nigeria with cheap zero or one percent funding when we as local construction service providers can’t get the funds, or when we do, we get them at 30 percent. percent. You can see that we are struggling to compete. “

Speaking in a similar vein, Purple CEO Mr. Olaide Agboola said local construction companies are demanding policies that will give them access to finance.

Agboola said: “This funding should be led by the private sector but backed by government support. We live in an environment where we know what happens to government funding. So what we are asking is not to raise another public debt for real estate. What the government must do is issue guarantees to qualified actors in the real estate sector that will enable them to raise cheaper financing from the private sector.

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