Homes & Property

Engineers seek Local Content Act in the construction industry

By Jude Njoku

Distressed by the unrestricted influx of expatriates into the construction industry and the capital flight that goes with it, consulting engineers in the country have called on the Federal Government to extend the implementation of the Local Content Act to the nation’s construction sector.

The Local Content Act is specifically meant for the oil and gas industry. Leading the clamour for the utilisation of indigenous engineering experts in the nation’s construction industry, the visiting President of the International Federation of Consulting Engineers, FIDIC, Engr Gregs Thomopulos stated that no nation can grow its engineering manpower without according a pride of place to its local engineering personnel.

•L-R: Engrs. Ogunbayo, Thomopulos and Adetiba.

Engr Thomopulos who is a Nigerian based in the United States stated that “ a vibrant and strong local engineering industry is necessary for the development of Nigeria”.

He maintained that “Nigeria cannot rely primarily on the expertise and resources of foreign companies for the best projects. The capacity of Nigerian engineering firms needs be beefed up,” he said.

The FIDIC President explained that every country wants to build local capacity. “It is the best thing that a country can do.

But again, I emphasise the way to do this is through feeding companies that do good work, through performance not through any other means because if you are not a good engineer, your projects will not be well constructed or built,” he clarified.

Continuing, the FIDIC President said: “Many years ago, our company Sterling Consultants, had a major deep water pot project in Malaysia and the Government brought in a technology transfer board that was very well defined.

They grouped projects into three categories of complexity. The least complex projects were 100 percent reserved for Malaysian companies. The medium complex projects were also reserved for Malaysian companies but they must hire sub contractors and at least 40 percent of them must be foreign companies.

The most complex projects were reserved for foreign companies who had to also have at least 40 percent participation by the local firms. Eventually, the aim was to move that up so that at some point in the future, the local companies can be primmed and then bring in consultants as they require to boost their expertise because there are some projects that you don’t build every day.

It takes time for local companies to gain the experience and expertise on those projects. The first time they do it, they might still require foreign experts and partners to team with. But as a Nigerian, I can say for sure that it is not in the best interest of the country for us not to build a strong local engineering capacity”.

President of the Association of Consulting Engineers in Nigeria, ACEN, Engr Ibikunle Ogunbayo said the body is now poised to lobby the National Assembly to either extend the implementation of the Local Content Act to the construction industry, or make an entirely new law.

“There is a Nigerian Content Law but that’s more relevant to the oil industry. It was specifically written for the oil industry.