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Contextualizing Foreign Investments in the Nigerian Construction Industry

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Advances in Manufacturing, Production Management and Process Control (AHFE 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 274))

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Abstract

The contribution of the construction industry to the economy of any nation has been proven to be very important not just because it provides the infrastructural need which serves as an indicator of its development but also its immense contribution to the Gross Domestic Product (GDP) . This has placed the industry in a vantage position in calls for adequate financing. In developing countries such as Nigeria, the government is largely responsible for financing capital projects. Over time, it has been experienced that the low gross domestic savings of the nation has inhibited the adequate financing of capital projects, hence leading to a deficit in the provision of infrastructure. Foreign investment which could be either Foreign Direct Investment (FDI) or Foreign Portfolio Investment (FPI) serves as an alternative for capital investment financing and comes with its own benefits to the host nation. This study theoretically examines the infrastructural development in Nigeria and foreign investment in Nigeria with particular emphasis on the construction industry. Findings revealed that the inflow of foreign investment into the construction industry has been irregular and being inhibited by varying factors. The study concludes by emphasizing the need for collaborative efforts by government and other stakeholders to ensure the increase and stabilized inflow of foreign investment into the construction industry by creating a convenient investment environment and strengthening existing enabling investment laws.

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Author information

Authors and Affiliations

  1. cidb Centre of Excellence and Sustainable Human Settlement and Construction Research Centre, Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg, South Africa

    Mathew Ikuabe, Clinton Aigbavboa, Ayodeji Oke, Douglas Aghimien & Wellington Thwala

  2. SARChl in Sustainable Construction Management and Leadership in the Built Environment, Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg, South Africa

    Wellington Thwala

Authors
  1. Mathew Ikuabe
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  2. Clinton Aigbavboa
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  3. Ayodeji Oke
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  4. Douglas Aghimien
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  5. Wellington Thwala
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Editor information

Editors and Affiliations

  1. Poznan University of Technology, Poznan, Poland

    Stefan Trzcielinski

  2. Faculty of Engineering Management, Poznan University, Poznan, Poland

    Beata Mrugalska

  3. University of Central Florida, Cocoa Beach, FL, USA

    Waldemar Karwowski

  4. Lincoln School of Design, University of Lincoln, LINCOLN, UK

    Emilio Rossi

  5. Department of Architecture, University of Chieti-Pescara, Pescara, Pescara, Italy

    Massimo Di Nicolantonio

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Ikuabe, M., Aigbavboa, C., Oke, A., Aghimien, D., Thwala, W. (2021). Contextualizing Foreign Investments in the Nigerian Construction Industry. In: Trzcielinski, S., Mrugalska, B., Karwowski, W., Rossi, E., Di Nicolantonio, M. (eds) Advances in Manufacturing, Production Management and Process Control. AHFE 2021. Lecture Notes in Networks and Systems, vol 274. Springer, Cham. https://doi.org/10.1007/978-3-030-80462-6_35

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  • DOI: https://doi.org/10.1007/978-3-030-80462-6_35

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