INCIDENTS OF ABANDONED PROJECTS IN NIGERIA: IMPLICATION FOR NATIONAL DEVELOPMENT

Abstract

This study was on incidents of abandoned projects in Nigeria: implication for national development. Five objectives were raised which included; To determine the effect poor cost estimation on abandoned project in Enugu-Onitsha road, to examine the effects of abandonment of Enugu-Onitsha road on National development and to determine the relationship between abandoned project and national development. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Julius Berger. Hypothesis was tested using Chi-Square statistical tool (SPSS).

Chapter one

Introduction

1.1Background of the study

Successive government in Nigeria since independence have come up with one programme or the other targeted at embarking on developmental projects that could better the life of her citizens. Surprisingly, most of such projects and programmes at both Local, State and Federal levels are often partially or completely abandoned. Ukpanyang (2011) observed that the reasons most often given by successive governments in Nigeria for such abandonment are the differences in party programmes or manifesto.

The causes and effects of projects abandonments are not just peculiar to a particular reason rather cut across several reasons (Ayodele and Alabi, 2011), and as well as creating a total dwindling effects on the values of developed properties located close and within the vicinity.

The Abandoned projects including building, Civil Engineering and heavy engineering development project like: houses, churches, schools, roads, bridges, dams, tunnels, air port, sea port etc. litter the whole Nigeria (Okon, 2012).

According to Osemenan (1987) stated that Nigeria has become the “world’s junk-yard of abandoned projects worth billions of naira and it is greatly unthinkable that Nigeria blessed with so great potentials in the construction industry can experience such magnitude of project abandonment.

According to another report by Kotangora (1993) there are about 4000 uncompleted or abandoned project belonging to the Federal Government of Nigeria with an estimated cost of above N 300 billion which will take 30 years to complete at the present execution capacity of government, also according to him this issue of abandonment been left without adequate attention for too long which is now having a multiplier effect on the construction industry in particular and the national economy as a whole.

In Nigeria, the provision of or investment in infrastructural projects such as roads, bridges, hospitals, construction of dams, drainages, electricity, water, telecommunication, railways, airports etc are considered largely a responsibility of government. These lofty projects when conceived, developed and completed are meant to boost economic activities and give a robust standard of living to the citizenry; but sadly, its unabated abandonment littering all the nooks and crannies of Nigeria has drastically undermined the expected dividend of such investment. Perhaps, this may be the reason why Osemenam (1987) observed that Nigeria has been the worlds’ “junk yard” of abandoned projects worth billions of naira, while the nation is blessed with abundant mineral and human resources. Kotangora (1993) collaborating this position reported that about 400 uncompleted or abandoned projects belong to the Federal Government of Nigeria (FGN) with an estimated worth of over N300 billion, a development that has a negative multiplier effect on the national economy

The construction industry plays a very dominant role in the economy of any nation. A healthy economy usually experiences an increase in construction activities, but in a depressed economy, the incidence of project abandonment tends to be more prevalent. According to Akinolu (1980) delays and cost overruns have “knock on” the effect on the construction industry and indeed in the whole economy.

The introduction of due process is having tremendous impact on the management of public construction work as it ensure fairness in contractor’s selection, reduces corruption and saves money for the government. However, it is still uncertain if the due process would be able to reduce cases of project abandonment since emphasis is on price rather than quality and sometimes ridiculous offers are accepted from desperate contractors for executing well- known costly projects. Also due process certifications are major cause of delay to contractor’s payment in public contract. In Nigeria, where construction investment accounts for over 6% of the gross fixed capital formation, the issues of delays and overruns have greatly affected the completion period of the construction projects. Indeed, the cost of finance is a function of the rate of interest, which depends on inflation, time and risk. A project development where the firms borrow to execute the project before it becomes self-financing suffers a major setback in the event of delay in payment.

Statement of the problem

In many parts of Nigeria, normal interactions have been frustrated by abandoned roads. Vehicles owners are in distress as their vehicles are not used optimally. Travelling by road, especially in the South East, and particularly in Enugu-Onitsha highway, which is our case study, is a nightmare as the roads are in terrible conditions despite she so-called huge expenditure on their reconstruction and maintenance. This failure of the Enugu-Onitsha highway bugs the mind of its regular users, and the lack of maintenance of this road has resulted to the formation of big potholes on the lanes; the accumulations of flood along the highway, environmental pollution and erosion have completely cut off a section of its lanes. In fact, these problems have become an embarrassing stigma for those who use it. In addition, these dents have also resulted in many vehicles breaking down on the Enugu-Onitsha highway. Hence, emergency mechanics have sprung up to assist stranded drivers and commuters, sometimes with disastrous consequences. The road, as a matter of fact, is so deplorable that most vehicles which ply that road invariably end up at mechanics’ workshops at the end of every journey. Armed robberies, raping and other mischievous activities have assumed steady menaces along this road, particularly at night. There have been accidents and in some cases, loss of lives and property. Based on this, the researchers seek to add to the existing knowledge by investigating on the economic impact of this abandoned highway construction project in Nigeria, with special reference to that of Enugu – Onitsha highway, which has caused a lot of problem to those who use it. This study will help to proffer solution that will drastically reduce abandonment of road projects in Nigeria.

Objective of the study

The objectives of the study are;

1. To determine the effect poor cost estimation on abandoned project in Enugu-Onitsha road
2. To examine the effects of abandonment of Enugu-Onitsha road on National development
3. To determine the relationship between abandoned project and national development

Research hypotheses

The following research hypotheses were formulated:

H0: there is no effect poor cost estimation on abandoned project in Enugu-Onitsha road

H1: there is effect poor cost estimation on abandoned project in Enugu-Onitsha road

H0: there are no effects of abandonment of Enugu-Onitsha road on National development

H2: there are effects of abandonment of Enugu-Onitsha road on National development

Significance of the study

The results of this study will educate the general public on the causes and effect of abandonment of projects in Nigeria with a view of reducing the issues of building abandonment in Nigeria.

The outcome of this study will guide the government and policy makers on ways to make and implement policies that will reduce the rate of building abandonment in Nigeria.

This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

Scope and limitation of the study

The scope of the study covers incidents of abandoned projects in Nigeria: implication for national development

The research material available to the researcher is insufficient, thereby limiting the study

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Definition of terms

Abandon project: Abandoned project can be. defined as a project which has been 1) totally abandoned, or 2) indefinitely delayed for the purpose of this study. Abandonment may happen at any stage of a project lifecycle and incur significant amount of loss.

National development: National development is the capacity of the country to raise the standard of living of its residents. It can be achieved by providing individuals with basic livelihood requirements and supplying them with employment, etc. Development is a process that creates growth, brings in progress and positive change

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