Assessment of Challenges Faced by Indigenous Construction Firms in Nigeria

Indigenous construction firms are critical to Nigeria’s economic development, job creation and infrastructure delivery, yet they remain less competitive than foreign counterparts. This paper assesses the major challenges confronting indigenous construction firms in Nigeria. Using a review of empirical and conceptual literature, the study identifies key constraints relating to finance, procurement practices, capacity and technology, regulatory and institutional frameworks, corruption, project management practices, and macroeconomic instability. The findings show that limited access to credit, delayed payments, biased procurement processes, inadequate technical and managerial capacity, low technology adoption, weak enforcement of regulations, and high levels of corruption significantly undermine the performance and growth of indigenous firms. The paper concludes that a comprehensive strategy is needed, involving policy reforms, targeted financial support, capacity-building programmes, and improved governance of procurement and contract administration. Recommendations include improving access to long-term finance, promoting fair competition in public procurement, strengthening professional and technical capacity, incentivizing innovation and technology adoption, and enforcing stricter regulatory oversight to reduce corruption and project delivery risks.