Effect of Delay and Abandonment of Government Projects on the Economy of South East, Nigeria

Abstract

This study focused on the effect of delay and abandonment of government projects on the economy of South East, Nigeria. The key problem that prompted this study was to underscore several multiplier effect of delay and abandonment of government projects that resultantly led to cost overrun, time overrun and incessant changes in work design. The specific objectives were to; examine the extent abandonment of government projects affect standard of living in South East Nigeria, ascertain the extent abandonment of government projects affect underdevelopment of the economic growth of South East, Nigeria, investigate the extent to which incessant changes of work design of government projects affect cost overrun (budget) of South-East, Nigeria, determine the effect of delay of government projects on the time overrun of South-East, Nigeria and ascertain the strategies of minimizing the effects of delay and abandonment of government projects on the standard/cost of living in South-East, Nigeria. The study adopted the survey design. The total population of staff and management of the selected construction companies, clients and consultants were 15,510 drawn from five South East geopolitical zone. The sample size of 577 was obtained using Godden finite population formula, while the stratified sampling technique was used in the selection of the respondents. The choice of the construction companies was done by capacity, coverage and convenience in selecting the more recognized ones. The instrument used for data collection was the structured questionnaire on a 5-point Likert scale. The instrument was checked for reliability using Cronbach alpha and it gave a value of 98% indicating a high items consistency. The hypotheses were tested using parametric and non parametric statistical techniques which include; Regression analysis and Principal factor analysis. The findings indicated untold hardship and diminutive economic development to a great extent are the effect of abandonment of government projects on the standard of living of South East, Nigeria and stagnation and distrust to a great extent are the main effect of abandonment of government projects on underdevelopment of the economic growth of South East, Nigeria. Also the finding revealed that incessant change of work design of government projects to a great extent negatively affect cost overrun (budget) of South East Nigeria and delay of government projects negatively affects the time overrun of South East Nigeria. Further it was found that effective project management/monitoring and appropriate risk management are the key strategies for minimizing the effects of delay and abandonment of government projects on the economy of South East Nigeria. The study recommended that there should be increase commitment on issues related to fund, modalities for release of funds and delays in payment that prominently cause project delays and abandonment. Also that there should be continuity in government as a measure to be put in place to ensure that regime changes both at national and state levels do not impact negatively on ongoing projects.