Title: Appraisal of project financing options by construction small and medium-sized enterprises in the Nigerian built environment

Authors: Shehu Isah Yesufu; Abubakar Zakariyya Al-Hasan; Yakubu Gimson Musa-Haddary; Shaka Momoh; Nurudeen Ibrahim Momoh

Addresses: Department of Quantity Surveying, School of Environmental Studies, Auchi Polytechnic, Auchi, Edo State, Nigeria ' Department of Urban and Regional Planning, School of Environmental Studies, Auchi Polytechnic, Auchi, Edo State, Nigeria ' Department of Quantity Surveying, Faculty of Environmental Design, Ahmadu Bello University, Zaria, Kaduna State, Nigeria ' Department of Urban and Regional Planning, School of Environmental Studies, Auchi Polytechnic, Auchi, Edo State, Nigeria ' Department of Quantity Surveying, School of Environmental Studies, Auchi Polytechnic, Auchi, Edo State, Nigeria

Abstract: In proffering solutions to emerging global environmental challenges, e.g. management, risks and opportunities toward effective participation, and performance of construction small and medium enterprises (SMEs) financial management challenges, this study necessitated the appraisal of project financing options for construction SMEs in the Nigerian built environment. Variables options were identified from an intensive literature review and grouped into six primary sources: commercial banking, traditional sources, non-financial institutions, modern financing arrangement, World Bank related and non-interest (Islamic banking). These variables are requirements to develop a framework for the selection of appropriate project financing options available for construction SMEs to determine most suitable project financing options. The research data were collected using semi-structured questionnaires. 363 questionnaires were administered randomly to some selected construction SMEs in Abuja. They are registered with Corporate Affairs Commission and pay their taxes through Federal Inland Revenue Services. 219 questionnaires were received, validated and suitable for descriptive statistics analysis. Term loans are common among small construction enterprises, while medium enterprises are primarily familiar with overdrafts. These are among the options required in a framework developed for construction SMEs' selection of appropriate project financing options.

Keywords: construction industry; project financing; construction; SMEs; small and medium enterprises.

DOI: 10.1504/IJSRECE.2023.136436

International Journal of Sustainable Real Estate and Construction Economics, 2023 Vol.2 No.3/4, pp.241 - 259

Received: 20 Oct 2022
Accepted: 15 Jan 2023
Published online: 01 Feb 2024 *

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