New to site?


Lost password? (X)

Already have an account?



Forex: Reps reject move to prioritise construction industry – The Nation

HomeNewsForex: Reps reject move to prioritise construction industry – The Nation
  • dollar to naira
Forex: Reps reject move to prioritise construction industry – The Nation
  • Author
    Alex Ikechukwu
  • Comments
  • Category

The House of Representatives yesterday rejected the idea of encouraging the Central Bank of Nigeria (CBN) to consider listing the construction industry in the priority list for foreign exchange (forex) liquidity along with other sectors.

The lawmakers felt there was no need to prioritise forex access to construction industry players in spite of apparent infrastructural deficit facing the country.

Segius Ogun (PDP, Edo) moved a motion that construction companies be prioritised along other critical sectors of the economy in accessing forex but was roundly defeated in a voice vote.

The outcome of the vote shocked Speaker Yakubu Dogara but was left with no option but to rule against the motion.

In his debate,  Ogun had noted that the construction industry plays a critical role in the socio-economic growth and enhancement of the Gross Domestic Product (GDP) of any nation through the development of infrastructure, provision of skilled and unskilled labour and generation of income.

He said: “Most construction materials cost a lot of dollars to import and due to an increased cost of doing business, there are bound to be major price fluctuations with ongoing construction projects that will affect previous budgets negatively because the money quoted for some of the projects might no longer be enough to complete them due to increase in the prices of machineries and materials occasioned by forex challenges.

“We are all aware of fluctuations in the rate of exchange of the naira to the dollar which is threatening the completion of those projects as the naira has been devalued from N155 to $1 to around N305 to $1 at the official rate and around N405 to $1 at the black market.

“We should be concerned that there are many road projects that were awarded in the various states of the federation and the cost of completing them is over N2 trillion, while the value of the naira attached to those contracts had reduced as a result of the forex crisis, and paucity of fund is a major reason why many construction projects are abandoned, to the detriment of the nation’s infrastructural development.”

His prayers that Committees on Works, Public Procurement and Banking and Currency be mandated  to work out modalities for achieving the objective and also breaking down payments into naira and dollars for all major construction projects also fell through.

Related Posts