Ebekozien, A; Aigbavboa, C O; Thwala, W D; Hafez, M A and Samsurijan, M S (2024) Sustainable development goals under threat: the impact of inflation on construction projects. Engineering, Construction and Architectural Management, 31(13), pp. 323-341. ISSN 0969-9988
Abstract
Purpose: Despite advancements in construction digitalisation and alternative building technologies, cost overrun is still a challenge in the construction industry. The inflation rate is increasing, especially in developing countries, and is critical in cost overrun matters. It can deviate construction built-up rate components. This may thwart improving construction-related Sustainable Development Goals (SDGs). Studies concerning the impact of the inflation rate on construction-related SDGs are scarce in developing countries, including Nigeria. The study investigated the impact of inflation on Nigeria’s construction projects and their outcome on SDGs and suggested possible ways to improve achievement of construction-related SDGs and their targets. Design/methodology/approach: The researchers employed a qualitative research design. This is because of the study’s unexplored dimension. The researchers engaged 35 participants across major cities in Nigeria via semi-structured virtual and face-to-face interviews. The research utilised a thematic method for collated data and accomplished saturation. Findings: Findings reveal that the impact of inflation on construction projects, if not checked, could hinder achieving construction-related SDGs in Nigeria. This is because of the past three years of hyperinflation that cut across major construction components. It shows that the upward inflation rate threatens achieving construction-related SDGs and proffered measures to mitigate inflation and, by extension, enhance achieving construction-related SDGs. This includes a downward review of the Monetary Policy Rate, control of exchange rate volatility and addressing insecurity to restore FDIs and FPIs confidence. Originality/value: Besides suggesting possible solutions to mitigate hyperinflation on construction components to improve achieving construction-related SDGs, findings will stipulate government policymakers put measures in place through favourable fiscal and monetary policy implementation and encourage moving from a consumption to a production nation.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction cost overrun; construction-related; fiscal policy; hyperinflation; Nigeria; sustainable development goals; interview |
| Index terms: | building technology, digitalization, interview, developing country, overrun, face, construction project, inflation, policy implementation, qualitative research, methodology, consumption, Nigeria, cost overrun, construction cost, sustainable development goal, fiscal policy, dimension, construction industry |
| Subjects: | economic analysis, health monitoring assessment and metrics, financial and cost management, public policy, digital technology, psychology, consumer economics, engineering systems, research design and methodology, policy studies, data collection methods, industry analysis, project controls, development economics, sustainable design, Geography, production management, research methods |
| Topics: | Stakeholder Management, Sustainability, Governance, Health and Safety, Business Strategy, Cost Management, Engineering Principles, Research Practice, Geographical Context, Project Management, Time Control, Organizational Design, Digital Applications, International Construction |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here