By Ayo Onkoyi

The construction industry in Nigeria is grappling with significant challenges that hinder the effective management of construction supply chains.

A recent study by Abiola Akolade Adegoke, a scholar with expertise in construction management, highlights the key factors affecting supply chain practices within the sector, focusing on firms registered with the Bureau of Public Procurement in Oyo State. In a paper presented at a recent conference, Adegoke emphasized that effective supply chain management (CSCM) is crucial for enhancing project outcomes.

He identified seventeen critical factors: project complexity, a lack of understanding of CSCM, and an absence of trust among companies emerging as the most prominent barriers. “Issues related to communication and information management are foundational to these challenges,” Adegoke noted, underscoring the need for better communication channels between stakeholders.

Adegoke’s research found that many firms struggle to adopt efficient supply chain practices due to poor communication. He stressed that “the lack of trust inside and outside companies is a major setback,” which prevents the formation of alliances crucial for CSCM. Without trust, sharing resources, knowledge, and information becomes challenging, leading to inefficiencies and delays in project delivery. The study categorized the challenges into four broad areas: customer requirements and communication, information and management, project particulars, and trust. According to Adegoke, “the most critical category involves information management and communication,” which he identified as the foundation for improving CSCM practices in Nigerian firms. He highlighted the importance of timely and accurate information sharing between project stakeholders, stating, “Client briefs and contract documents must be effectively managed to ensure that all parties are aligned, minimizing delays and misunderstandings.”

Project complexity was another significant issue, with Adegoke noting that “complex projects require a higher level of coordination and communication,” which can exacerbate existing communication challenges. His research recommended that construction firms invest in training programs to improve their understanding of CSCM, suggesting that “many firms lack a basic understanding of CSCM, which is why it is not fully embraced.” Enhancing knowledge in this area could lead to more efficient project management and better performance overall. Furthermore, Adegoke advocated for developing clear metrics to foster alliances between companies. He argued that “the absence of defined measures for collaboration has hindered firms from working together effectively,” and establishing such metrics could improve trust and cooperation. The study also highlighted the impact of customer demands on CSCM practices, noting that “customer requirements are often poorly communicated, leading to misalignment between client expectations and project outcomes.”

A lack of appropriate management structures was also cited as a barrier, with Adegoke recommending more robust frameworks to address supply chain challenges. He emphasized that the success of Nigeria’s construction industry depends on tackling these issues, stating, “The sector plays a vital role in the country’s socio-economic development, providing shelter, infrastructure, and employment. Improving CSCM practices is essential for the industry’s growth and its contribution to the national economy.” Adegoke concluded by urging firms to prioritize communication and information management as the cornerstone of effective CSCM. “Timely and adequate sharing of information is key to overcoming many of the challenges we identified,” he said, calling for a shift towards seamless information flow among stakeholders. Ultimately, Adegoke’s study serves as a call to action for Nigerian construction firms to rethink their approach to supply chain management. By addressing the issues identified in his research, he believes the industry can significantly enhance its performance and better support Nigeria’s development goals.”