CONSTRUCTION PROJECTS FINANCING OF HIGHWAY PROJECTS IN NIGERIA

The complexities of financing highway projects in Kwara State are characterized by insufficient funding, unsuitable financial models, and economic instability, leading to low-quality infrastructure, project delays, and adverse effects on transportation development. This study aims to examine the challenges and dynamics of highway project financing in Kwara State, with objectives to identify available sources of financing, assess the major challenges, and propose solutions to address these issues. Using a quantitative approach and a survey research design, data were collected from a sample of 83 respondents comprising construction professionals and end users, including civil engineers, quantity surveyors, and builders. Analysis was conducted using SPSS 25 software, employing tools such as Mean Item Score (MIS), Severity Index (SI), pie and bar charts, and other statistical techniques for comprehensive insights. Findings revealed that government funding remains the primary source of highway financing, with a high Mean Item Score (MIS) of 4.22, followed by Public-Private Partnerships (PPPs) with a score of 3.92, while private investment was ranked lowest. Major challenges identified included government budget fluctuations, with a Severity Index (SI) of 80.60%, difficulties in attracting private investors, and high loan interest rates. The demographic analysis of respondents show that a balanced representation from both public and private sectors, diverse expertise, and varying academic qualifications, enhancing the study's contextual relevance. The study concludes that addressing highway financing challenges in Kwara State requires a holistic approach involving strengthened government commitment, private sector collaboration, and efficient resource management. By implementing these recommendations, the state can improve financing mechanisms, ensure the timely completion of highway projects, and support sustainable economic growth.