THE CHALLENGES OF INDIGENOUS BUILDING CONSTRUCTION FIRMS IN NIGERIA

THE CHALLENGES OF INDIGENOUS BUILDING CONSTRUCTION FIRMS IN NIGERIA

chapter One

1.1 Research background

According to the Business Dictionary (online dictionary), “The construction industry is the sector of the national economy concerned with the preparation of land and the construction, modification and repair of buildings, structures and other real estate.

There are many different types of civil engineering works in this industry. These include carpentry, road building, bridge building and home building jobs. Industry occupies a very important position all over the world as it is responsible for creating the infrastructure of cities, communities and countries. Oyefeko (1991) cited in Construction Industry… (2014). The National Housing Policy (NHP 2006), like the building and construction industry (2014), states that this industry accounts for 11% of gross domestic product (GDP) and employs 3% of the country’s labor force. supports this claim when revealing the

The construction industry achieves its goals by combining land with other factors of production, including various raw materials and semi-finished products. This process of combining resources includes all the usual elements and functions associated with the production of goods. Due to the several challenges faced by this area of ​​business management, capital resources, mostly based on long-term sources of funding, are required to purchase materials and coordinate and organize production factors. Products must be designed in detail and financed. As such, they represent a challenge that many domestic construction companies, especially those with poor financial foundations, have to deal with. Compounding the problems faced by local companies, the government only awards contracts to foreign and large contractors, leaving no room for local contractors to participate in national development. Supporting this argument, Enwegbara (2012) sees the construction industry in Nigeria at a crossroads. This is because long-standing government policy has favored awarding construction contracts to foreign contractors over local ones. It is clear that the above reasons make it difficult for local businesses to establish themselves in the industry. This situation is therefore a collapse of the national economy. Because if local contractors are forced out of business due to challenges, their death from the industry is imminent. 1.2 Problem Description

The rate of influx of foreign construction companies into Nigeria and continued government sponsorship, when critically analyzed, do not bode well for the national economy. The public has argued that so-called foreign designers have little or no qualifications for the jobs assigned to them. It is not intended to On the contrary, some local contractors are famous for the services they provide. But the tendency not to patronize domestic construction firms keeps them permanently at the bottom of financial development. In the future, if critically examined, they will only portray the deaths of these local contractors.

On the other hand, when foreign contractors eventually return to their home countries, locals are unwilling to bear the burden of national development because of such circumstances. The time is therefore ripe to provide lasting solutions to the challenges facing domestic contractors, the future developers of the national economy.

1.3 Purpose of the survey

The study aims to critically analyze various factors influencing the progress of the construction companies in the country so that they can adopt solutions to support their growth.

The specific objectives of this research work are to:

1. Research the impact of government policies and procedures on indigenous peoples.

2. Examine the impact of poor financial structures on local construction companies. 3. The proposal was to solve a problem facing a local construction company.

1.4 Research question

The following questions are generated for the survey

1. How will government policies and procedures affect local contractors?

2. Will building a strong financial base support the growth of domestic construction companies?

3. What are the factors and challenges hindering the growth of indigenous construction companies in Nigeria?

1.5 Scope and Boundaries of the Study

The survey is limited to indigenous construction companies in Enugu City. This study examines the structure of indigenous construction companies, the impact of government policies, and the impact on indigenous companies, such as material scarcity and high costs, shortage of skilled labor, facility and equipment condition, and human problems. It focuses on other socioeconomic factors that give Industry resource development, poor resource management and contracting procedures.

1.6 Importance of research

The following are the significance or advantages of this study.

1. Explore data from students studying one of the construction conversations and have a clear idea of ​​the challenges existing practices are already facing and be prepared to face them when starting your target business it’s finished.

2. This research work is also useful for individuals wishing to set up and own a construction company in the country, knowing the challenges faced by companies already in the country and how to address these challenges. help.

3. The results of the findings will be used by builders, governments, builders, professional associations and teams of building professionals to jointly improve the working conditions of members of the building profession as they organize seminars, workshops and conferences. help you to

4. Emerging researchers will find this research paper very useful as it serves as a reference when conducting research on similar or related research topics.

1.7 Research Limitations

The following are the limitations of this research work.

First time:
Time is one of the main limitations to the success of this research work. The research is time-limited because of other activities in which the researcher is involved.

2. finance:
Inadequate funding hampered the success of this research work. Much literature was not consulted and few libraries were visited due to lack of funding.

3. Responder:
In fact, some respondents’ attitudes are discouraging in the sense that they are justifiably pretentious.

1.8 Definition of terms

Construction industry:
This is the sector of the national economy that deals with land preparation, repair of building structures and other real estate. Architecture and Construction:
The process of adding structure to a property or constructing a building.

Gross Domestic Product (GDP):
The market value of all officially recognized finished goods and services produced in a country in a year or period. GDP per capita is often taken as an indicator of a country’s standard of living.

National economy:
This is the state’s coffer and financial management in terms of its productivity.

government:
A country, a group of people responsible for managing and managing the nation economically, a political party created by the government, a corporation, etc.