The Joint Committee on Works in Nigeria’s National Assembly has stressed the importance of innovative financial solutions to support local contractors and enhance their contribution to national development.
At the summit in Abuja titled “Empowering Local Contractors for National Development: Bridging Gaps and Building Partnerships,” Senator Barinada Mpigi, Chairman of the Senate Committee on Works, highlighted the key challenges faced by local contractors, including limited access to finance, inadequate equipment, and security concerns. These factors, he explained, hinder contractors’ ability to effectively support national infrastructure goals.
To address these challenges, Senator Mpigi proposed solutions like asset tokenization and tax credits. He suggested that asset tokenization, which involves converting assets into digital tokens, could help contractors access a wider pool of investors, increasing liquidity and enabling more efficient capital raising. Additionally, he urged the Federal Inland Revenue Service (FIRS) to provide contractors with tax credits to reduce their financial burden and encourage growth in the sector.
“By unlocking new financing opportunities, tokenization can empower local contractors, enable fractional ownership, and improve liquidity in the sector,” Senator Mpigi stated.He also called for fair procurement processes, better engagement with local communities, and sustainable practices to ensure long-term project success.
House Committee on Works Chairman, Akin Alabi, emphasized the need for partnerships that prioritize local contractors in line with Executive Order 5, signed by former President Muhammadu Buhari, which mandates the prioritization of local content in public procurement. Alabi pointed out that Nigeria’s diverse landscape presents vast growth potential, and fully utilizing local resources, skills, and talents is essential for long-term development.
“We need a construction industry driven by local content, benefiting our people and strengthening our economy,” Alabi remarked.
In her address, Nigerian Society of Engineers (NSE) President Margaret Oguntala, represented by Kam-Salem Bukar, President of the Association of Consulting Engineering in Nigeria, called for enhanced collaboration across the infrastructure sector. Oguntala emphasized the need for policymakers to support Executive Order 5, ensuring that Nigerian professionals and resources are prioritized in government projects.
She also highlighted the importance of professional consulting engineers and regulatory bodies in creating effective infrastructure and encouraged ongoing dialogue, training, capacity building, and regulatory oversight to further advance Nigeria’s infrastructure development.
