There are reports that Kakatar CE Limited, one of the big indigenous construction companies in Nigeria, owned by Mr. Azibaola Robert  has laid-off over 1,000 workers due to federal government indebtedness to construction companies as the company is unable to meet its obligations to thousands of its staff.

It was said that the employees were disengaged in batches, first in June and then July.

The situation was worsen by the freezing of the company’s accounts by the Economic and Financial Crimes Commission (EFCC) in the wake of investigation of the operations of a sister company, OnePlus Holdings, over a $40 million pipeline security contract.

Reports say that the company is being owed over N10 billion by the FG for various construction projects.

In the Federal Capital Territory (FCT) alone, Kakatar is building infrastructure for Maitama Extension and Kyami Districts, as well as the Karshi-Apo Expressway which is expected to help decongest traffic into the FCT from the AYA/Mararaba axis.

Kakatar’s Media Manager, Mr. Austin Ekeinde, said that the company is rationalising its operations but declined to confirm the number of workers affected, saying it was “management’s economic decision.”

“We are not the first construction company to lay off workers. Even banks have been disengaging their workers, so I wonder why this is of particular interest to your newspaper,” he said.

On the alleged freezing of the company’s accounts, Ekeinde said he was unable to confirm the information but said that Kakatar has faced challenges from the EFCC on an issue that had nothing to do with it.

He also confirmed that like several construction companies, the FG was indebted to Kakatar, but declined to disclose the amount.