Challenges Confronting Nigeria Indigenous Construction Enterprise

Abstract

Construction activities in Nigeria are dominated by foreigners’ managed construction enterprises. These companies constitute less than 5 percent of the number of construction enterprises in Nigeria; however, they are involved in over 95 percent of high net-worth construction activities. Nigeria Indigenous Construction Enterprises (NICE) are faced with numerous challenges that have limited their performances. This makes construction clients to patronize foreigners’ managed construction firms because of the flaws in the performances of NICE. There have been measures on how to make NICE relevant, but most attempts have achieved little or no success. This study was aimed at examining the challenges of NICE in the face of the present scenario and to proffer ways of possible improvement. Primary data were collected by administering a structured questionnaire to both clients and contractors who are involved in the day-to-day construction activities. Data collected were analyzed using descriptive statistics, mean score and Kruskal-Wallis test. The study identified 25 challenges of NICE and 18 ways of improving NICE performance through careful literature reviews. The analysis of the total ranking among stakeholders revealed that limited technical expertise, insufficient profit on projects and delay in the payment of contractors for work done were the highest-ranked challenges. Application of project management techniques in construction activities, quality control of materials and improving production capabilities were the most important means of improving NICE performance as identified. The findings of this study will help to improve the competitiveness of indigenous contractors if well implemented as it will help to reduce the cost of construction as the competition nest for performing contractors will be widened.

Enhanced Local Contractor Participation: Case of Zambia Water Supply and Sanitation Sub-Sector

“…Nigeria saw foreign contractors dominate larger projects [14], while local contractors struggled with profit loss, late payments, poor tendering practices, and inadequate skills.…”

“…Several studies [6], [7], [8], [9], [10], [11], [12], [13], [14] have aimed to highlight two main points: the significance of increased local involvement in developmental projects and the examination of obstacles hindering such participation. However, there appears to be minimal scholarly effort in uncovering the underlying phenomena, strategies, and mechanisms crucial for enhancing local contractor engagement in public sector projects.…”

Competitive Advantage among Indigenous Construction Firms in Competing with Expatriate Contractors in Nigeria

“…It was also discovered that ICFs had significant rates of time overruns (traditional: 34-146 percent; non-traditional: 45-60 percent), and cost overruns (traditional: 35-47 percent; non-traditional: 31-36 percent). According to the study by Akinsiku (2020), the most significant obstacles for ICFs and contractors includes a lack of technical experience, unsatisfactory turnover on projects, and delays in disbursement of funds to subcontractors for work done. The most important measures of enhancing ICFs' performance were the application of project management techniques in building operations, quality control of materials, and boosting delivery capacity.…”

“…This preference for expatriate is as a result of the perceived quality performances expected of the expatriate which is largely lacking the performances prevalent to the local contractors. Consequently, the poor performances of these indigenous contractors was emphasized by the study of Akinsiku (2020), who suggested delays in meeting project completion time, reduced quality of work and insufficient capital leading to bankruptcy as the poor performance related factors prevalent to this indigenous contractors.…”