Statistical Study on Types, Causes, Effects and Remedies of Corrupt Practices in Construction Industries in Nigeria

Abstract

The paper examined the issues of corruption in Nigeria by identifying the various corrupt and fraudulent practices that exist in Nigeria Construction Industry. It also examined the different job stages where corruption is common within the industry, involvement of professionals, obstacles to exposing corrupt practices, effects of corrupt practices and solutions to corrupt practices in the construction industry. A total of 1500 questionnaires were administered using a web-survey. Professionals in the industry and construction managers were respondents of the survey. A simple statistical tool such as mean, standard deviation and importance index were used to analyze the result. It was observed from the analysis that the major causes of corrupt practices center around the absence of punishment for corruption, economic recession, competitive bidding and loss of contract money due to change in government. The leading examples of corruption practiced in the construction industry are bribery, extortion and employment of unqualified or quacks. The obstacles faced by employees to reporting corrupt practices are fear of appointment termination imposed by the employer, awareness that the whistleblower is not well secured and lack of assurance in anticorruption agencies. The major effects of corrupt practices are poor quality construction of infrastructure and low economic returns. Remedies according to analysis were good and adequate supervision, use of standard materials, and involvement of professional builders in the construction process, proper soil investigation, and discipline of professionals if proven to be involved.