Nigeria’s National Assembly’s Joint Committee on Works has underlined the necessity of creative financial solutions to empower local contractors and allow them to make more meaningful contributions to the country’s development.
At the Abuja summit, “Empowering Local Contractors for National Development: Bridging Gaps and Building Partnerships,” this request was made.
The Senate Committee on Works’ chairman, Senator Barinada Mpigi, listed the main barriers that local contractors must overcome, such as a lack of funding, subpar equipment, and security issues.
He claimed these problems significantly limit their ability to advance national infrastructure objectives.
Ideas For Solving Financial Challenges
In order to solve them, Mpigi suggested tax credits and asset tokenization as ways to help contractors fill funding shortfalls.
He said asset tokenization would allow contractors to turn assets into digital tokens, which would increase liquidity and allow them to raise finance more effectively by providing them with access to funds from a larger pool of investors.
He also urged the Federal Inland Revenue Service (FIRS) to provide contractors with easily available tax credits to lessen their financial burden and promote sector growth.
“By unlocking these new financing opportunities, tokenization can empower local contractors to raise capital, enable fractional ownership, and improve liquidity in the sector,” Mpigi said.
Additionally, he promoted sustainable techniques that guarantee long-term project viability, equitable procurement procedures, and active community engagement.
Collaborations To Enhance Local Content
Akin Alabi, the House Committee on Works chairman, also spoke at the meeting and emphasized the importance of forming alliances that give preference to local contractors following Executive Order 5.
Former President Muhammadu Buhari signed this directive requiring governmental procurement to prefer local content.
Alabi emphasized that utilizing local resources, abilities, and talents is essential for long-term development and that Nigeria’s diversified geography offers tremendous economic potential.
“We need a construction industry that is driven by local content, benefiting our people and fortifying our economy,” he explained.
In her goodwill speech, Nigerian Society of Engineers (NSE) President Margaret Oguntala emphasized the value of cooperation throughout the infrastructure industry through Kam-Salem Bukar, president of the Association of Consulting Engineering in Nigeria.
She encouraged lawmakers to approve Executive Order 5 to guarantee that Nigerian professionals and resources are given priority in government initiatives.
Oguntala pointed out that creating efficient infrastructure requires the participation of regulatory agencies and qualified consulting engineers.
She commended the summit’s organizers and argued for ongoing communication, training, capacity building, and regulatory supervision to further Nigeria’s infrastructure development.
