- Construction Industry Struggling to Survive
Financial and construction experts have lamented that the bad economic situation in the country is affecting the growth of the construction industry.
The experts discussed ‘Foreign exchange problems, prospects and solutions in Nigeria: Construction industry perspectives’, at the 9th Annual Distinguished Lecture of the Nigerian Institute of Quantity Surveyors, Lagos Chapter.
Experts, who spoke at the event, said the government needed to make funds accessible to players in the construction industry to prevent further damage.
The Managing Director, Allied Technol System Limited, Mr. Henry Boyo, expressed concerns about the government’s approach to managing inflation.
He explained that the failure of the Central Bank of Nigeria to properly manage excess liquidity was causing hardship.
Boyo stated, “There are critical contradictions in the Nigeria economy. The management of inflation is so important but the government seems to be taking it for granted. It affects as much as terrorism.
“The government’s financial institutions should address excess liquidity and funding should not be made more expensive.”
A past President, NIQS, Mr. Olusegun Ajanlekoko, said Nigerians should engage more in local production of goods in order to reduce the near total dependence on importation.
The Director, Property Development, UACN Property Development Company Plc, Mr. Yemi Ejidiran, advised the experts to consider the current situation as a challenge and adopt survival strategies, adding that the demand for residential properties had dropped drastically.
“Commercial real estate has suffered most. There are also weaker supplies. It is important for the industry to be formalised and the challenge of foreign exchange needs to be addressed. As professionals, we need to adopt survival strategies, avoid overhead costs, outsource where necessary, and avoid budget errors,” he said.
According to the President, Nigerian Institution of Estate Surveyors and Valuers, Dr. Bolarinde Patunola-Ajayi, professionals in the building industry should desist from borrowing to complete projects, adding that huge debts might result in losses.
The Chairman, NIQS, Lagos Chapter, Mr. Bamidele Mafimidiwo, urged the government to consider experts as major stakeholders in the development of the country.