How the Federation intervened in Umahi-contractors' feud

The Federation of Construction Industry (FOCI) has initiated a process to resolve the dispute between the Federal Ministry of Works and contractors handling Federal government road projects, specifically regarding signing a new contract for the N870 billion Abuja-Lokoja-Benin highway rehabilitation project. 

According to the Federation, the development has delayed the project’s progress, negatively affecting road users. 

Minister of Works David Umahi recently directed the contractor to sign the new contract between April 25 and 26 or risk forfeiting the project.

The contractors at the meeting and given the marching order by the Minister include Mothercat Nigeria Ltd, CGC Nigeria Ltd, Reynolds Construction Company (RCC) and Dantata and Sawoe Construction Company Nigeria Ltd.

The contractors were working on the 480 km-long project under the Nigerian National Petroleum Corporation (NNPCL) Tax Credit Scheme, which the Minister stated expired due to various reasons, necessitating a new contract. 

However, during a meeting with the Minister, the FOCI delegation, led by its President, Vincent Barrah, expressed concerns the new policy requiring contractors to sign a reviewed contract document was hindering progress on various sites. 

According to FOCI, the impasse has already delayed construction work nationwide, which was supposed to have commenced. 

Barrah emphasised that the meeting’s purpose was to find a solution that minimises the impact on Nigerians while ensuring the nation’s benefits. 

At the meeting, which lasted almost an hour behind closed doors, the Federation discussed its concerns about the new contract signing and its impact on the pace of work with the Minister, who had just returned from a field trip to Lagos and Rivers States. 

Barrah declined to address reporters on the meeting’s outcome, simply stating: “The delegation had a fruitful discussion with the Minister”.

TimesNow.com.ng previously reported that the Federation of Construction Industry (FOCI) in Nigeria has sounded the alarm to the Nigerian government on the impact of inflation on building materials in the country.

In a statement seen by TimesNow.com.ng, the organisation said that the industry plays a pivotal role in driving Nigeria’s economic growth, creating employment, and enhancing the quality of life for Nigerians.

The organisation said the industry is on the brink of collapse due to the country’s soaring price of building materials.

Source: TimesNow.com.ng