The Federation of Construction Industry (FOCI) says about 41,000 construction workers have lost their jobs in Nigeria over the past two years amid project delays, suspensions and non-payment for completed work.
Vincent Barrah, President and Chairman of Council, FOCI, disclosed this at the federation’s 70th Annual General Meeting (AGM) in Abuja on Wednesday. Barrah said the job losses comprised about 1,000 senior staff and 40,000 junior workers, based on reports from unions within the industry.
“Situational reports from our unions show that about 1,000 workers in the senior staff category and 40,000 workers in the junior staff category lost their jobs within the period under review,” he said.
He said the scale of the job losses had consequences beyond the affected workers, extending to their families and communities that depend on their incomes.
“Imagine the consequences and the multiplier effect. To their families, the market women, and the economy at large,” Barrah said.
Barrah attributed the employment losses largely to the slowdown in construction activities caused by inadequate funding, delayed payments and rising project costs.
He said many FOCI members handling government projects were currently unable to work, while those still operating were doing so at very low capacity.
“Most of our members handling various projects are not working as we speak, and those working are operating at a very low capacity due to non-payment of certified jobs,” he said.
According to Barrah, delayed payments had contributed to the accumulation of certified debts, suspension of projects and reduced construction activities, with workers bearing a significant share of the consequences.
He said some contracts had also been terminated because of inadequate funding that delayed project execution.
“It is on record that our members suffered arbitrary termination of contracts by the Ministry of Works,” he said.
“Although the termination of those contracts were done by mutual consent, it was mainly due to inadequate funding that delayed execution of those projects.”
Barrah said workers could not be retained indefinitely when contractors were unable to receive payments for certified work.
He said the suspension, termination or delayed payment of contracts had resulted in significant employment losses and contributed to rising unemployment.
The FOCI president said contractors could not continue executing capital-intensive infrastructure projects without adequate and regular funding from employers.
He argued that delays, suspensions and abandonment of projects should not automatically be attributed to contractors, particularly where funding obligations had not been met.
“So if projects are delayed, suspended, or even abandoned, it is not the fault of contractors,” he said.
“More so, determination, suspension, or delayed payment of our member contracts has resulted in significant loss of employment across the country, thereby increasing the unemployment rate in the society.”
Barrah said the employment situation could worsen if funding and payment challenges affecting construction projects were not addressed.
He called for urgent intervention by relevant stakeholders to prevent further job losses and preserve employment in the sector.
“We, therefore, use this medium to call on all relevant stakeholders to intervene urgently in this dire situation to save the construction industry from total collapse,” he said.
FOCI, incorporated in 1954, represents companies and stakeholders in Nigeria’s construction industry and promotes industrial harmony and regulation within the sector.
