Interim Project Financing in the Nigerian Construction Industry

Abstract

Out of the 47 variables identified through a structured survey, that can adversely affect the construction industry in Nigeria, “the difficulties in securing credit for interim construction finance on reasonable terms”, is ranked as the 6th most important factor, while “client's unwillingness to pay for advance for mobilization and purchase of equipment”, was ranked 13th, resulting in the inability of most local capacities to be utilized in the local construction industry.

Given that the growth of any industry in any economy is necessarily related to the local participation in that economy and the ability to integrate the local capacities in the developmental process, this paper looks at the implication of the current policies on lending and mobilization fees and postulates that the payment of mobilization fees and or material advances should be encouraged but with enough safeguards to protect the client.


(Journal of Civil Engineering, JKUAT: 2002 8: 47-60)