EFFECT AND MITIGATION OF ABANDONED PUBLIC PROJECTS IN RIVER STATE NIGERIA

Abstract

The predominant and frequent abandonment of projects is alarming and it makes negative impacts to this sector of the economy. The motivation behind this paper is to review some related literature and find out the different circumstances and the effects of project abandonment in Rivers State and its consequences in the Nigerian economy with a view to propose a framework for addressing the problem. Data were collected via distributed questionnaires and case studies. The study utilized a qualitative, descriptive research method. The article is theoretical in nature and drew its arguments from secondary sources, such as journals, books, newspapers, Internet sources, and official documents. The data collected were analyzed using nonparametric statistics such as the t-test statistic. Findings revealed the causes of project abandonment as lack of project planning, inadequate project funding, and delayed payment. This was confirmed by the results of the statistical test of the hypothesis in Table 4.7 ((60%, X2=12.932, n=100, p<0.05). Economic effects of project abandonment include waste of resources, decrease in employment opportunities, shortage of revenue to the government, disappointment of the users, and difficulty in attracting foreign loans and investors. This was confirmed by the results of a statistical test of the hypothesis in Table 4.8 (48.0%, X2=24.103, n=100, p<0.05). Solutions to these negative effects on our economy for sustainable growth and development are identified as: Adequate project planning should be undertaken by the client (government) or its consultants and the government should make funds available before embarking on the project; also engaging contractors that have strong financial stand for their projects is another possible solution to this problem