Developing Infrastructure in Nigeria: Why is the Cost so High?

Abstract

The total cost of infrastructure in normal circumstances is expected to be the sum of the cost of materials, labor, site
overheads, equipment/plant, head office cost and profit but in many parts of the world particularly in Nigeria, there are other
costs to be allowed for. This study seeks to investigate and report the other costs to be allowed for, which are the reasons why
the cost of infrastructure is so high. A sample of 70 respondents comprising of construction clients, consultants and contractors
were randomly selected and data were gathered using a set of questionnaire to identify the reasons for high cost of
infrastructure. Spear man rank order correlation was used to analyze the study hypothesis. The findings revealed cost of
materials, incorrect planning, wrong method of estimation, contract management and fluctuation of material prices as the five
most important factors affecting cost of infrastructure. It was also found that construction clients, consultants and contractors do
not generally agree on the severity rank of the factors affecting cost of infrastructure in Nigeria. While it is recommended that the
government should develop adequate frameworks for monitoring and controlling cost of infrastructure, consultants especially
cost experts should ensure that they make use of accurate estimating methods and that contractors should employ adequate
planning and scheduling techniques because proper planning and scheduling is the key to utilizing project resources and
minimizing wastes.