Federation of Construction Industry warns of Nigerian sector crisis

The Federation of Construction Industry (FOCI) has warned that Nigeria’s construction sector is facing a severe crisis driven by inadequate funding and the rising cost of materials. FOCI President Vincent Barrah reported that the depreciation of the naira and increased prices for cement, steel, and diesel have significantly impacted operations.

According to FOCI, the gap between budgetary provisions and the actual release of funds has led to the accumulation of certified debts and the suspension of various projects. The federation noted that many contractors are operating at reduced capacity or have ceased work entirely due to non-payment. Furthermore, the group criticized the Ministry of Works for the arbitrary termination of contracts, arguing that delays are a direct result of insufficient funding rather than contractor negligence.

The economic consequences have been severe, with FOCI reporting the loss of approximately 41,000 jobs in the sector over the last two years, including 1,000 senior staff and 40,000 junior staff. This downturn is expected to have a multiplier effect on the broader economy and national security. In response, the Nigeria Employers’ Consultative Association (NECA) has called for industrial harmony and urged companies to invest in local capacity building to reduce reliance on foreign expertise.