Lagos — Following the debt of over N100 billion  owed local contractors by the government and some  multinational companies, management of  construction companies in Nigeria have said that at  least 100 ,000  workers may be laid off as the  companies could no longer meet obligations to their staff.

President of the Federation of Construction Industry (FOCI), Engineer Mobolaji William told newsmen in  Lagos that sites had to be closed because of  government's failure to release the cash backing in  line with the agreed completion date and stages of work done on various capital projects.

"Construction companies involved are increasingly  worried because of the piling debts, some of which  date back to the mid 2010 , before the Federal  Government reviewed its budget downward by 40  per cent.

The federal  Ministry of Works already owes and the payments have almost stopped. The ordinary interpretation of this is that having reviewed the budget by 40  per cent, programmes for the capital projects were disrupted as debts for jobs continue to build up and companies are being forced to run  down operations on many sites and send workers home," he said. He said unless urgent measures are taken to offset the debts, the  completion targets for the various capital projects may be frustrated as  the construction companies cannot continue to work. He further warned  that once the rains set in, construction work may be.

http://allafrica.com/stories/201103090710.html

[size=15pt]What a shame.  [/size]

A job loss of 100,000 is alarming.The consequences of losing 100,000 jobs will be worse than kidnapping.

Can someone forward the message across to GEJ, we need a reply from him, else maybe his happy then with the development

May be somebody is fixing the money meant for these projects in an account somewhere so that it can yield interest.
Anything is possible in Nigeria

^^ exactly

Election is around so government will need money to buy votes from cheap heads lol

So, where is our depleting foreign reserve going to if it is not being used to pay contractors?

this is something unheard of,government owing a construction company to an extent that it is laying off its workers.what a tragedy!. niger which way?

Results of useless govt planning and spendings(even though they earmarkseveral billions for the same projects), and still some people want this clueless guys to continue in govt!

What worries me is that the same government that led us into this mess is asking for a second chance with incompetent individuals. I say HELL NO!! Lets vote PDP out of power

nawa oo, God is in control

Nigeria is making over N420 billion daily from crude oil as a result of the on-going crisis in the middle east and North Africa - read fully story at http://www.nogtec.com
With such money, the country can not plan for the sustainability of its people? its sad, very sad and sad indeed. No plan, no plan and no plan to develop and grow capacity. Anyway, when idiots are allowed to rule, the wise and educated will bear the consequence.
Joblessesness in the midst of wealth and plenty. We still do not get it in Nigeria.

Another Reason why you Must for PDP!!!!

that niaja for you presido will not hear this one

passyjango:

So, where is our depleting foreign reserve going to if it is not being used to pay contractors?

its used 2 fund election, they hv nt been pd since mid yr,whn election campaign began

But Dangote gets to keep his job as the biggest debtor in Nigeria.

Mu he he he he

omo9ja1:

Can someone forward the message across to GEJ, we need a reply from him, else maybe his happy then with the development

omo9ja1 ur suggestion would hv been ok bt GEJ is nt ready 4 such now, ''its ACN that is inciting the construction companies''ask GEJ campaign manager

Na lie jor, na only 100,000 jobs? . Is it not the same inflated contracts they use to rip Nigerians in collabo wit Govt officials. Difficult getting any govt contract job without money exchanging hands or reaching agreements with officials concerned.

With the little knowledge i have of govt contract most contrators dont work beyond what the get from govt as takeoff funds for contracts. Moreso hw much do they pay grad staffs on the averege?, peanuts. like 15k - 30k on the average, at times no up to in some states.

Contracts the major source where politician and their agents (contractors) loot naija silly. some take off fund can even fund the project.

Very few genuine contracts in naija. Others na Man no Man. Mostly scams and overpriced!.

Most govt contract nowadays na supply and some favoured contractor get paid 100 % before commencement of project

Government is simply insensitive to our problems,

what a mess! 100,000 jobs? economic genocide!

How many times will I say this? This govt is clueless.

Would the laying off bring back the N100 Billion?

hw re we sure the govt has nt released this funds but may b has been diversified by scrupulous personnels.

nigeria is a fail state big time

No way! Nigeria is not a failed state.


Nigeria has 150+ million FAILED Citizens!!!!!


Period!

Yep, just heard it this afternoon from someone quite up there. With just 40% of the capital vote released I think last year the engineering industry is in shut down mode. Abandoned jobs everywhere. Driving through CBD, Abuja this morning and its one hanging bridge after another. I understand the East-West road is affected too so its not political. The guy said 'its like the country has simply run out of money'. Don't understand. I tell you its puzzling.

omo9ja1:

Can someone forward the message across to GEJ, we need a reply from him, else maybe his happy then with the development

Why don't you do it yourself?
This is the problem with us. We are a selfish, self-centered people. Always waiting for someone else to do the job. If we could only get up and get something done, we would go a long way.