Former two-term governor of Lagos State and immediate past Minister of Works and Housing, Babatunde Raji Fashola, has said emphasised the nexus between provision of infrastructure and economic development of nations.
Fashola, in a keynote speech at an infrastructure promotion event in Lagos, said infrastructure remains a strong catalyst for economic development and growth.
In apparent reaction to some viewpoints which argue that infrastructure cannot grow the economy, Fashola stated, “Such a position is tantamount to economic heresy in the face of the contrary and preponderant empirical evidence available in global developmental economics.
Amidst the challenges popularly identified as responsible for stressing up critical sectors of the economy, Fashola posited that sectors like tourism and entertainment, among several others, need infrastructure to grow the economy, adding that the current situation accounts for why talents are not being rewarded enough to enhance the nation’s GDP.
“I must say that construction companies are the most legitimate firms doing the most legitimate business right now. The reason is simple: once you disburse money to them you feel the spiral and multiplier effect all over; and because they outsource their jobs, it can easily be said that they are huge sharers of national wealth,” Fashola said.
“Imagine the resources Julius Berger and other construction companies spent on procurements and supplies on the Second Niger Bridge, Apapa-Oworonsoki Expressway and Lagos-Sagamu Expressway. What about their expenditures for haulage, quarry services, among others? Indeed, there is a strong connection between construction of infrastructure and the multiplier effect on development of nations as has been manifestly, historically demonstrated by the Marshall Plan of post World War II era,” he said.
Arguing that funding infrastructural commitments is not easy, Fashola said the resort to ingenious initiatives like SUKUK, the Tax Credit Scheme, and Highways Development Initiatives is a laudable move to ensure the development and growth of infrastructure for the general good and progress of the society and economy.
Citing instances, he recalled that Nigeria Liquified Natural Gas (NLNG) bought into the Bodo-Bonny road infrastructure project, while Dangote Group did same with a N400bn commitment in another project. MTN is on Enugu-Onitsha Highway while BUA also bought into another.
“If there is continuity of these commitments, there will surely be no cause for worry about Nigeria’s infrastructural growth before long,“ he said, adding, however, that the outlook for the construction industry is one of positivity and progress.
Also speaking, Managing Director of Julius Berger Nigeria Plc, Engr. Las Richter, defined the symbiotic relationship between investment in infrastructure and development, saying that, operationally, a huge developmental gap still exists that needs to be plugged in Nigeria’s infrastructure basket.
While acknowledging that Fashola has demonstrated expertise in construction matters, Richter said that good quality costs money.
“If you want to deliver quality asset to government, you must design properly to last and if you want an infrastructure of quality, you have to look for good work and competent and worthy expertise,” Richter said.
He debunked views in some quarters about the cost of Julius Berger‘s projects, saying, “Julius Berger is not expensive. I assure you that if you get Julius Berger to work for you, the great quality you get will be cheaper in the long term and every client will be happy at the end of the day.”
Corroborating Fashola’s position, the Managing Director of Zenith Bank Nigeria Plc, Ebenezer Onyeagwu, said infrastructure is the bedrock of development, even as he lamented that Nigeria still lags behind.
“It is time to look at Bond issuance to fund infrastructures. Apart from government, we can look at PPP. I intend to discuss with Julius Berger on this,” Onyeagwu said.
Julius Berger Nigeria attendees at the 2023 Luminary Soiree include the Board Chairman, Mutiu Sunmonu; Board member and Chairman, Abumet, Mrs Bella Disu; Managing Director, Engr. Dr. Las Richter; Financial Director, Christian Hausemann; Incoming Director, Corporate Development, Jochem Stole; General Manager, Abuja Furniture Production (AFP), Oliver Cohnen, and Commercial Manager, AFP, Kossman Norbert.
Others in attendance include Region West, RWE Regional Manager, Technical, Christl Thomas; RWE Regional Manager, Commercial, Alexander Bauer; Senior Executive, Strategic Business Development, Ndifreke Ukochio; Head, Media Relations Office, Prince Moses Duku; Head, Corporate Communications Department, James Agama; Dayo of the Senior Staff Association; Assistant Senior Liaison Officer, Emmanuel Isibor, among several others.
