FEATURED PAPER
By Nathan N. Agu; Nkechinyere P. Nnolum; Nnaemeka J. Anikwe
Nigeria
Abstract
Project failure in developing economy is often linked to technical and financial shortcomings, with institutional and governance factors not given proper attention. Nigerian construction industry has witnessed persistent project delays, cost overrun and abandonment, indicating a strong governance weakness rather than mere operational failure. This research goes beyond descriptive assessment, to empirically identify the hidden governance aspects that negatively contribute to construction project failure. The study utilized a cross-sectional survey, involving 321 construction professionals in Nigeria, and evaluation of 25 institutional and governance related factors on project delivery, using 5-point Likert scale. The data was further validated for its factor analysis appropriateness using the Kaiser Meyer Olkin measure (0.881) and Barthlet test of sphericity (X2 =852.031, P<0.001). The Principal Component with Varimax rotation identified 11 components that accounts for 64.97% of the total variance observed and grouped into 11 interpretable factors which include institutional accountability, weak decision-making, political influence and transparency. The result of the study showed that construction failure in the Nigerian construction industry is not an isolated phenomenon but a complex outcome of underlying governance dysfunction. Political interference and poor inter-agency coordination was ranked the most significant factors, but deeper construct such as paradoxical relationship between transparency and technical capacity provides a significant theoretical insights. For effective policy making, institutional reforms must tackle not just the over-bearing barriers, but also the hidden structural issues. The validated factor structures offer a diagnostic tool for future governance interventions for developing country`s infrastructure sector.
Keywords: Construction project delivery, institutional factors, governance, Nigeria, factor analysis, principal component analysis.
1.0 Introduction
The construction industry is fundamental to a country`s economic growth, especially in emerging markets and contributing significantly to gross domestic product (GDP), job and the development of physical infrastructure that supports industrialization and social welfare.
The construction industry holds similar significance in Nigeria, supporting the nation’s general output and offering employment opportunities for millions of its citizens. Despite its crucial role in the country, its hounded by chronic underperformance, particularly in the execution of public infrastructure projects, in form of cost-overrun, prolonged delays, contract cancellation and poor workmanship, resulting in economic and social consequences (Ogunlana, 2010; Ogunsemi & Jagboro, 2006; Nzekwe, 2025,)
Several research has examined the causes of project failure, with factors linked to inadequate management practices, poor project supervision, delayed payment and fluctuating material prices, that results in project inefficiencies (Ndubueze et al, 2021; Oke et al, 2024)
While these operational factors serve as a valid cause of project failure, the deeper structural conditions that shaped project initiation, execution and monitoring of construction projects and research had persistently focused on the institutional and governance frameworks. Where public projects procurement and delivery takes place, emphasizing that project failure cannot be comprehensibly understood without considering the quality of institutions that guide them (Iroha et al, 2025; Scott, 2014).
Akintan et al. (2025) in their study opined that institutional theory offers a useful framework for grasping construction project delivery in developing economies, and emphasizing how organizational practices are influenced by regulations, normative and cultural cognitive institutional pillars, inherent in project delivery, inform of laws and regulations, professional norms, ethics and shared believe that pilots decision making processes ((World Bank, 2025).
However, the presence of weak, conflicting or poorly enforced institutional structures, always results in fragmented governing structure, reduced accountability and poor project performance (Nwachukwu. & Michael. 2024)
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How to cite this paper: Agu, N. N., Nnolum, N. P., Anikwe, N. J. (2026). Governance Issues Behind Construction Project Failure in Nigeria; PM World Journal, Vol. XV, Issue VII, July. Available online at https://pmworldjournal.com/wp-content/uploads/2026/07/pmwj166-Jul2026-Agu-Nnolum-Anikwe-Governance-issues-behind-construction-project-failure.pdf
About the Authors
Nathan N. Agu
Enugu State, Nigeria
Nathan N. Agu is a Professor in the Department of Quantity Surveying, Nnamdi Azikiwe University, Awka, Anambra Sate, Nigeria and the principal partner of Nathquants Associates, a firm of chartered Quantity Surveyors based in Enugu State, Nigeria. His research interests are in professional practice management and construction arbitration. He has a number of notable professional achievements as a professional quantity surveyor and has contributed immensely to the development of the quantity surveying profession in Nigeria. He is also a fellow of the Nigerian Institute of Quantity Surveyors (FNIQS) and a registered member of the Quantity Surveyors Registration Board of Nigeria (QSRBN). You can reach him on nathquants@yahoo.com
Nkechinyere P. Nnolum
Owerri, Nigeria
Nkechinyere P. Nnolum is a lecturer in the Department of Quantity Surveying at the Federal University of Technology, Owerri, and a registered professional with the Nigerian Institute of Quantity Surveyors (NIQS) and the Quantity Surveyors Registration Board of Nigeria (QSRBN). She partners with Devcost Associates, a quantity surveying firm based in Owerri, where she applies her expertise to practical construction projects. Her research interests include Construction Economics, Construction Project Management, and Value Engineering, with focus on enhancing cost efficiency and project delivery in Nigeria’s construction industry. Through her integrated roles as educator, researcher, and practicing quantity surveyor, she bridges academic theory with professional practice, training future professionals while contributing to improved sectoral performance. Contact: nnolumnk@gmail.com
Nnaemeka J. Anikwe
Ebonyi State, Nigeria
Nnaemeka J. Anikwe is a Chief Lecturer in the Department of Quantity Surveying, Akanu Ibiam Federal Polytechnic Unwana Ebonyi State, Nigeria. A principal partner of Emkan Associates, a chartered Quantity Surveying Consultancy Firm based in Abakaliki, Ebonyi State, Nigeria. His research interests are in the areas efficient procurement and delivery of construction projects. A member of the Nigerian Institute of Quantity Surveyors (MNIQS) and a registered Quantity Surveyor with the Quantity Surveyors Registration Board of Nigeria (QSRBN). He has served as a resource person to conferences and workshops organized by Nigerian Institute of Quantity Surveyors (NIQS). He can be reach on anikweemeka@gmail.com
