THE IMPACT OF FEASIBILITY STUDIES ON THE SUCCESS OF CAPITAL PROJECT DEVELOPMENT IN NIGERIA
Abstract
Capital project development in Nigeria faces significant challenges, including the frequent failure and abandonment of projects. This study examines the impact of feasibility studies on the success of capital project development in Nigeria. The specific objectives of the study are to; identify critical components of feasibility studies that have the most significant impact on the success of capital projects in Nigeria, assess the influence of feasibility studies on the success of capital project development, and recommend strategies for improving the accuracy and effectiveness of feasibility studies in the context of capital project development in Nigeria. A quantitative research approach is employed in this study, utilizing a survey research design. The study focuses on construction professionals in Kwara State, specifically architects, quantity surveyors, engineers, and builders, with a sample size of 83. Data analysis primarily uses the Mean Item Score (MIS) method to assess the research objectives. A high response rate of 94% was achieved from the distributed questionnaires, with 78 responses analyzed. The findings highlight the key components critical to successful feasibility studies, with market analysis considered the most important, followed by financial feasibility and legal/regulatory analysis. Environmental impact assessment and technical feasibility were also identified but ranked lower. The study emphasizes that risk reduction, enhanced profitability, better project scope definition, and securing financing are significant outcomes of effective feasibility studies. For improving feasibility study accuracy and effectiveness, strategies such as enhancing data collection methods, engaging experts, updating market and financial data, and strengthening regulatory oversight were recommended. In conclusion, comprehensive feasibility studies are essential for the successful development of capital projects in Nigeria. Accurate and detailed market analysis, financial feasibility, and legal/regulatory assessments were found to be key to minimizing risks and enhancing profitability. The study recommends investing in advanced data collection, engaging multidisciplinary teams, regularly updating market and financial data, strengthening regulatory oversight, and adopting technologies like Building Information Modeling (BIM) and Geographic Information Systems (GIS) to improve the feasibility study process and ensure project success.
Full-Text Access Notice
In accordance with the NERD Policy on promoting peer-reviewed publication, public access to the full text of a project, thesis or dissertation is restricted for three years, allowing the author and supervisors sufficient time to pursue peer-reviewed publication.
During this period, researchers with legitimate academic or research purposes may request authorisation directly from the author to enable NERD to release the indexed full texts of the work using the form below.