Babatunji Adegoke highlights the impact of Indigenous Talent, Funding and Regulatory Barriers in Construction

Babatunji Adegoke, a highly accomplished professional with over 15 years of experience in project delivery and management across various sectors, including property development,

construction, and civil engineering has pointed that funding is a major hurdle in managing large-scale construction projects. He sites that these projects are capital intensive, making securing adequate financing a significant challenge.

He further argues, “Numerous projects have failed due to insufficient funding to make up for cost overruns. Unstable exchange rates present another substantial obstacle.

Completing large-scale construction projects becomes incredibly difficult when exchange rates fluctuate, especially as many projects rely on foreign exchange for materials, plants, and equipment. Mitigating this risk involves reducing dependence on imported goods by utilizing local materials and human resources.

Historically, the Nigerian construction industry was dominated by foreigners, but many have returned to their home countries due to the rising cost of construction caused by high exchange rates which has made it difficult to pay foreigners who mostly earn in dollars.

This trend however created more opportunities for indigenous professionals to take the bull by the horns and prove that construction projects aren’t magic and that they are more than capable in the design and execution and management of projects.”

However, there has been another trend where the indigenous artisan has not been sufficient to undertake large-scale projects in the country. This has led to the importation of artisans from neighbouring countries.

To reverse this trend, technical schools where trades in the construction industry are taught must be established. Adegoke also points out on adopting a public-private partnership or joint venture approach can alleviate funding challenges, “For example, a JV partner can provide the land whilst the other partner funds the project whilst a sharing formula is agreed on the profits.

Economic factors, such as limited access to loan facilities specifically for the construction industry, also contribute to the problem. Stakeholders must collaborate to find ways to minimize interest rates on construction project loans, recognizing that construction is a key driver of any nation’s economy.

Social issues, such as security concerns and community unrest, also pose significant challenges for large-scale construction projects. However, effectively engaging with these stakeholders and integrating them into the project—through employment opportunities, scholarships, and minimizing adverse impacts on their communities—can foster better cooperation and collaboration between them and the construction team.”

An overabundance of regulatory bodies with overlapping functions also hinders progress, Adegoke further explained. He adds that, “In major cities like Lagos, for example, numerous regulatory agencies exist with similar roles, often creating obstacles to the effective execution of projects.

The Goverment should consider streamlining these agencies, clarifying their roles, and reducing their numbers. Regularly sensitizing stakeholders on the specific responsibilities of each agency is also crucial.

Evolving building regulations and safety standards can impact construction projects positively and negatively. Considering the positive aspect, it can help players in the industry to comply with the requirement, however, there are sometimes barriers in meeting up with this requirement and a result of unprofessional conduct of some personnel in statutory establishments.

Some of these statutory establishments are often more interested in what they can get for themselves rather than conducting their regulatory functions.

This therefore negates the positivity of the creation of the regulation. There has been enough regulation in the industry however the implementation of these regulations is ineffective. If the statutory authorities can effectively enforce the regulations and standards, then safety issues in the construction industry will be minimised to the barest minimum.“

The key factors that will shape the construction industry in the next decade are Digital technologies such as Robots, AI, Drones, 3D printing technology, and augmented and virtual reality.

In addition, the seasoned expert points out that, “Contemporary issues such as Diversity equity inclusion, and sustainability will shape the future of the industry.

There will be more focus on inclusive designs and enable people to partake without any form of discrimination based on age, gender, beliefs or status.

Designs will be more sustainable and responsible. There will also be more specialised areas of practice such as Public Private Partnership, Sustainability and Project Management.”