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Construction Project Financing for Sustainable Development of Nigerian Cities (6398)

Olufemi Oyedele (Nigeria)
Mr OLUFEMI OYEDELE
Senior Special Assistant
Governor's Office, Government of the State of Osun
Abeere, Osogbo
State of Osun
Governor's Office, Government of the State of Osun
Abeere, Osogbo
Osogbo
3500001
Portugal
 
Corresponding author Mr OLUFEMI OYEDELE (email: femoyede[at]yahoo.com, tel.: +2348162481223)
 

[ abstract ] [ paper ] [ handouts ]

Published on the web 2013-02-02
Received 2012-10-30 / Accepted 2013-02-02
This paper is one of selection of papers published for the FIG Working Week 2013 in Abuja, Nigeria and has undergone the FIG Peer Review Process.

FIG Working Week 2013
ISBN 978-87-92853-05-9 ISSN 2307-4086
http://www.fig.net/resources/proceedings/fig_proceedings/fig2013/index.htm

Abstract

Provision of infrastructure in Nigerian cities is a great challenge which needs to be tackled as infrastructure development is now a yardstick for measuring political achievements of leaders. Construction project finance poses as herculean task in city development and must be tackled if meaningful development must take place. A construction project is transcient, that is, a one-off task, on which resources has been committed for its development and has start-, and finish-, period. It is also unique in that no two sites are the same. The agitation for construction projects are more in democratic governance while the means of providing them are limited. Leaders must therefore, innovate means of financing construction projects to meet majority of people’s yearning. Construction projects tend to be the best means of reaching the widest range of followers in terms of empowerment. It creates the platform for job creation and supply facilities for poverty eradication through community assets. It is a good means of reducing poverty. Despite the failure of Public-Private Partnership (PPP) in the finance of projects in Nigeria (for examples, Lagos-Ibadan Expressway, Guto-Bagana in Nasarawaand Kogi States, and Maevis Concession projects in all International Airports in Nigeria), the federal government has signified intention to concession two more bridges for private-investors’ development. These two bridges are the Second Niger Bridge between Onitsha and Asaba and River Niger Bridge in Nupeko, Niger State. The federal government also plans to concession the Approach Road of Murtala Mohammed International Airport, Lagos. The financing methods has placed our infrastructures in horrible states across the country. This paper will adopt the triangulation method of research (quantitative and qualitative) in order to have an in-depth knowledge of the challenges of construction project finance and how to solve them. Construction project finance methods like the Traditional Method (Direct Labour (DL) and Design, Bid and Build (DB&B)) and Modern Methods (Design and Build (DB); Build, Operate and Transfer (BOT); Partnering, Public-Private Partnership (PPP) etc, will be discussed. Lagos-Ibadan Expressway Concession, Lekki-Epe Expressway Concession, and Murtala Mohammed International Airport Concession to Messrs Maevis Limited will be discussed as case studies of PPP in Nigeria construction projects finance.
 
Keywords: Real estate development

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