Authors : Isibor Areghan Akhanolu, Ikpefan , Ochei Ailemen and Okafor Tochukwu Chibuzor
Abstract: The pervasiveness of abandoned projects has assumed an alarming proportion in Nigeria. Abandoned projects range from road project, real estate; water project and housing project are the basic amenities a government/leader should provide for its citizens. The menace of abandoned project has been an issue of concern in Nigeria’s infrastructural growth and this can hamper the achievement of vision 2020. This study examines the causes and effects of abandonment of projects in Nigeria. A hundred and forty-five structured questionnaires were distributed to Quantity Surveyors, Builders and Contractors in Lagos States and the completed questionnaires were analyzed using the Relative Importance Index (R.I.I.) method. The result showed the causes of project abandonment as Lack of adequate fund allocation and payment delay, Improper project budgeting, land or legal disputes, death of the owner, improper project estimates, planning and design, project manager incompetence, lack of proper assessment, lack of project risk assessment, inconsistence in government policies, change of investment purpose, leadership instability, bureaucratic bottleneck, community interference and climatic conditions. From the study, project abandonment has negative effect on the total income receivable from real property. The study also shows that abandonment of project negatively de-motivate investment in real properties, employment opportunities in real properties and it deprive government the expected revenue from property tax. The study thus recommends amongst other things that there should be timely release of project funds to project developers/contractors and also adequate policies to tackle this menace should be made.
Isibor Areghan Akhanolu, Ikpefan , Ochei Ailemen and Okafor Tochukwu Chibuzor, 2016. Project Financing: Causes and Effects of Financing Abandoned Building Projects in Nigeria. The Social Sciences, 11: 5818-5823.