Project Abandonment.

INTRODUCTION Longman Dictionary (2005) defines abandon as “to stop doing something because there are too many problems and it is impossible to continue. Planning is foremost thing to be done if projects are to be completely executed. The successful completion of a project depends on adequate planning which also includes financial planning. The sight of abandoned projects scattered across the length and breadth of Nigeria is alarming. BACKGROUND TO THE PROBLEM Abandoned projects including building, Civil Engineering and heavy engineering development project like: houses, churches, schools, roads, bridges, dams, tunnels, airport, seaport etc. litter the whole Nigeria. It was reported that Nigeria has become the “world’s junk-yard of abandoned projects worth billions of naira and it is greatly unthinkable that Nigeria blessed with so great potentials in the construction industry can experience such magnitude of project abandonment. According to another report there are about 4000 uncompleted or abandoned project belonging to the Federal Government of Nigeria with an estimated

cost of above N300 billion which will take 30 years to complete at the present execution capacity of government, also according to him this issue of abandonment been left without adequate attention for too long which is now having a multiplier effect on the construction industry in particular and the national economy as a whole. The construction industry plays a very dominant role in the economy of any nation. A healthy economy usually experience an increase in construction activities, but in a depressed economy, the incidence of project abandonment tends to be more prevalent. Delays and cost overruns have “knock on” the effect on the construction industry and indeed in the whole economy. This applies to Nigeria where construction investments account for over 50% of the gross fixed capital formation. Qualitatively reasoned that some of the causes of project abandonment in Nigeria are: deaths of client, inability of client to attract fund and lack of good planning. The problem of project abandonment is serious and pervading during the era of military rule. This situation has become so worrisome that the Obasanjo administration had to set up a panel

to look into cases of abandoned federal projects in Nigeria. This study is design to examine the incidence of project abandonment. This study will provide information that will serve as a basis for articulating public policy regarding project abandonment in Nigeria. This position has become very necessary because government and their agencies are the single most important client in this industry, they account for over 80% of projects in the industry. This study establish the incidence of cost overrun in building projects, determine the causes of project cost overruns in building and assess the management techniques to forestall overruns in the Nigeria building industry. This study is set up to quantitatively determine other causes of project abandonment and their effects on the construction industry economy. This will help to proffer solutions that will drastically reduce abandonment of projects in Nigeria. Particular barriers and issues associated with projects in a developing and emerging economy.

Abandoned projects have become a common sight in Nigeria. The root causes and probable solutions were studied using some major regional water and irrigation projects as case studies. Parameters assessed include source of funding, appropriateness of the contract conditions, unilateral enactment of government laws, inflationary trends and Contractors’ management technique. Despite stringent project management, successful project completion was negated by certain factors in each case. These include inadequate source of funding, price variation and corruption. Feasible approaches to overcoming these barriers were identified as definition of alternative sources of funding, phased completion of projects and the review of certain clauses in the Particular Conditions. THE EFFECT OF ABANDONED PROJECTS AND PROGRAMMES BY SUCCESSIVE GOVERNMENTS ON THE NATION’S ECONOMY. Since the attainment of independence, Nigeria has witnessed successive governments both military and civilian. Each of the government always comes up with new programmes and projects

for the betterment of the people. Surprisingly, many of the laudable programmes and projects are often abandoned by successive governments both at the Federal and State levels. They ostensibly do so because they don’t want to associate themselves with projects and programmes embarked upon by their predecessors. In other words, they do not want their predecessors to take credit for the success of these programmes. This abandonment is done without taking into cognizance the huge amount of public funds involved in initiating such projects and programmes. These abandoned projects cut across all sectors including Health, Education and Roads. Cases abound where some administrators on assumption of office change every house hold item in their residential quarters because they do not want to share what their predecessors used. Some even pull down the entire building and build new ones. The point is that, as soon as these programmes and projects are abandoned, new ones are initiated only to be abandoned again by yet another successive government. And so, the abandonment continues while the nation’s resources continue to be wasted. In the developed World, those who take over from previous government are always

happy to use items used by the founding fathers of such countries several years back. Projects and Programmes as well as policies there are sustained. They do so because they place the interest of the people and their nation’s above all other considerations. This sustainable policy has yielded positive results as these countries have moved from developing to developed world. So, for Nigeria to take its rightful position in the committee of nation, a concrete and decisive step must be taken to ensure the sustainability of government programmes, policies and projects. The National Assembly should come up with legislation to compel successive government to continue with programmes and projects initiated by their predecessors. This will not only save our resources but will also enable the government to ensure optimum use of scarce recourses for other new projects. The policy of always starting afresh can not lead the country to the promised land. Time has come for political office holders to emulate the sterling qualities of the founding fathers of the nation. Elected officials should know that they are holding offices in trust for those who elected them and therefore place the interest of the people above their personal interest.

The oganised labour civil society, non governmental organizations, students unions and other concerned Nigerians should rise up and speak when ever decisions affecting the interest of the people and the nation are taken. With sustainability of positive programmes, policies and projects, and cooperation by all Nigerians, the country will be a shining example not only in Africa but also in the whole world. RECOMMENDATION To drastically reduce the effects of project abandonment clients should undertake an adequate planning for the project at inception and make should enough fund available based on reliable estimate made by the Quantity Surveyor at the inception. The client should engage services of competent construction professionals; the Architect should at once and at inception produce economic design as dictated by cost plan prepared by the Quantity Surveyor who also controls cost from inception and throughout the duration of the contract. The client should not necessarily vary project scope. Prompt payment to the contractor as dictated by Quantity Surveyors valuation and Architect’s certificate. The government

should also put in all efforts to reduce inflation and when there is change in political government, previously started job should not be abandoned for their new idea. Government should also make sure competent contractor that have strong financial stand are employed to execute contract works.