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Term Paper Arc 841 - Group 4 Construction Method and Availability of Skilled Workers in The Manufacturing Process in Nigeria Emuan Vanessa 239051058
Term Paper Arc 841 - Group 4 Construction Method and Availability of Skilled Workers in The Manufacturing Process in Nigeria Emuan Vanessa 239051058
Term Paper Arc 841 - Group 4 Construction Method and Availability of Skilled Workers in The Manufacturing Process in Nigeria Emuan Vanessa 239051058
BY
DR ENITAN N. OLOTO
APRIL 2024
Table of Contents
CHAPTER 1 .............................................................................................................................. 1
INTRODUCTION ..................................................................................................................... 1
1.1 BACKGROUND .............................................................................................................. 1
1.2 AIMS & OBJECTIVES ................................................................................................... 1
1.3 SCOPE ............................................................................................................................. 2
CHAPTER 2 .............................................................................................................................. 3
LITERATURE REVIEW .......................................................................................................... 3
2.1 OVERVIEW OF NIGERIA’S CONSTRUCTION INDUSTRY: .............................. 3
2.2 SIGNIFICANCE OF THE CONSTRUCTION SECTOR TO THE NATIONAL
ECONOMY............................................................................................................................ 4
2.3 UNDERSTANDING CONSTRUCTION METHODS IN NIGERIA'S
MANUFACTURING SECTOR ............................................................................................ 5
2.4 SKILLED WORKERS IN THE MANUFACTURING PROCESS IN
CONSTRUCTION INDUSTRY ............................................................................................ 6
2.5 FACTORS INFLUENCING SKILLED WORKER AVAILABILITY IN
CONSTRUCTION INDUSTRY ............................................................................................ 6
2.8.1 .................................................................................................................................... 6
2.5.1 EDUCATIONAL-PROFESSIONAL IMBALANCES AND REGIONAL
DISPARITIES................................................................................................................. 6
2.5.2 MIGRATION TRENDS AND SKILLED LABOR AVAILABILITY: A
GENDERED PERSPECTIVE ........................................................................................ 7
2.6 IMPACT OF SKILLED WORKERS ON CONSTRUCTION METHODS AND
MANUFACTURING SECTOR PERFORMANCE .............................................................. 8
2.7 CHALLENGES FACED IN EFFICIENT CONSTRUCTION METHODS AND
ENSURING THE AVAILABILITY OF SKILLED WORKERS IN NIGERIA .................. 9
2.8 POTENTIAL SOLUTIONS TO OVERCOME CHALLENGES IN
CONSTRUCTION AND SKILLED LABOR AVAILABILITY IN NIGERIA ................. 11
2.8.1 POLICY INTERVENTIONS:........................................................................ 11
2.8.2 INVESTMENTS IN EDUCATION AND TRAINING: ............................... 11
2.8.3 PUBLIC-PRIVATE PARTNERSHIPS: ........................................................ 12
2.8.4 STRATEGIC GOAL SETTING AND MANPOWER DEVELOPMENT: .. 12
2.8.5 STRENGTHENING INSTITUTIONAL FRAMEWORKS: ......................... 13
CHAPTER 3 ............................................................................................................................ 14
CONCLUSION AND RECOMMMENDATIONS ................................................................. 14
3.1 SUMMARY .............................................................................................................. 14
3.2 RECOMMENDATIONS .......................................................................................... 14
3.2.1 ENHANCE TECHNICAL EDUCATION AND TRAINING: ...................... 14
3.2.2 REVITALIZE APPRENTICE SYSTEMS: ................................................... 14
3.2.3 ADOPT INNOVATIVE CONSTRUCTION TECHNOLOGIES: ................ 14
3.2.4 CREATE INCENTIVES FOR SKILLED DIASPORA: ............................... 15
3.2.5 POLICY REFORMS FOR LABOR MOBILITY: ......................................... 15
3.2.6 GENDER INCLUSIVITY: ............................................................................ 15
3.3 CONCLUSION ......................................................................................................... 15
REFERENCE ........................................................................................................................... 16
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
The construction industry plays a crucial role in the economic development of any country,
generation, and contributing significantly to the gross domestic product (Adebayo & Peters,
2021). Despite the potential for significant growth, driven by factors such as rapid urbanization
and a growing population, the Nigerian construction industry has consistently underperformed
and struggled to meet its full output capacity (Olagunju & Adesanya, 2020). A major challenge
faced by the industry is the availability of skilled workers, where the demand in construction
has outpaced the supply, leading to a shortage of qualified professionals (Eze & Okonkwo,
2019). This shortage of skilled labor has resulted in delays in project completion, increased
construction costs, and compromised work quality (Ibrahim & Oluwaseun, 2022).
This paper aims to explore two critical factors that contribute to the underperformance of the
Nigerian construction industry: construction methods and the availability of skilled workers in
the manufacturing process. Construction methods are integral to the success of any construction
project. It determines the efficiency, quality, and timeliness of the project. Furthermore,
the Nigerian construction industry, there is a need to examine the existing construction methods
and their effectiveness in order to identify areas for improvement. Availability of skilled
workers is another crucial factor that affects the performance of the Nigerian construction
industry (Akpabio et al., 2019). Skilled workers are the backbone of any construction project
as they possess the knowledge, expertise, and experience required to execute tasks efficiently
1|Page
and effectively (Manoharan et al., 2022). However, in Nigeria, the availability of skilled
workers in the manufacturing process is a concern. The main aim of the literature to examine
the construction methods used in Nigeria and the way in which they are influenced by the type
1.3 SCOPE
between construction methods and the availability of skilled workers within the
manufacturing process in the Nigerian construction industry. It explores how these factors
contribute to the underperformance of the industry and also aims to identify potential areas of
projects in Nigeria. Moreover, the paper investigates the challenges faced due to the shortage
of skilled labor and discusses the impact of such a shortage on construction methods and the
overall performance of the manufacturing sector. The study's primary objectives include an
evaluating the influence of skilled worker availability on these methods. The research is
2|Page
CHAPTER 2
LITERATURE REVIEW
The construction industry in Nigeria plays a pivotal role in the nation's socioeconomic
economic growth. Accounting for a notable portion of Nigeria's GDP, the industry has seen
growth spurred by urbanization, increased demand for housing, and the need for infrastructural
legislation seeks to empower indigenous firms. The construction sector also stimulates related
manufacturing and services sectors through its demand for building materials and services, and
development financing. Overall, the construction industry remains a substantial and dynamic
component of Nigeria's economy (Osuizugbo,I. & Ojelabi,R, 2020). The performance of the
construction industry is highly dependent on the adequacy and availability of skilled labor,
which has become a major challenge. Skilled labor shortages can negatively affect the delivery
of construction projects, hence impacting productivity and the overall health of the construction
sector (Akomah et al., 2020). The authors argue that because of its size, nature of operations,
job creation potential, and ubiquity in development activities, the construction sector is a key
the paper suggests that proper mechanisms must be put in place to stimulate the growth of the
3|Page
2.2 SIGNIFICANCE OF THE CONSTRUCTION SECTOR TO THE NATIONAL
ECONOMY
According to Nigerian Construction Sector" from the National Bureau of Statistics highlights
the growth and significance of the construction industry in Nigeria. It mentions that the industry
has expanded due to factors such as migration, urbanization, a burgeoning middle class, and
the need for infrastructure to cater to a growing population. The industry saw its beginnings in
the early 1940s with a few foreign companies, which have historically dominated the sector.
The 'oil boom' period post-independence particularly led to a surge in construction activity.
The construction sector's contributions to the Nigerian economy, the Gross Domestic Product
(GDP) from the construction sector increased to 756,411.29 million NGN in the fourth quarter
of 2023, up from 653,827.13 million NGN in the third quarter of the same year. Over the period
from 2010 to 2023, the average GDP from construction was 599,447.93 million NGN. Notably,
the fourth quarter of 2023 saw an all-time high of 756,411.29 million NGN, while the third
Furthermore, the local content bill passed in April 2014 aims to level the playing field for
4|Page
The industry is vital to Nigeria's socio-economic progress, not only for infrastructure
development but also for job creation. It has led to growth in other sectors, like manufacturing
and services, which provide intermediate inputs for construction. The expectation is that there
will be an increase in local construction businesses, more job creation, and an enhanced
contribution to the nation's GDP following the local content bill. The industry's integration with
other sectors implies a wider impact, with businesses such as cement, metal, steel, and
MANUFACTURING SECTOR
The construction and manufacturing industries play a crucial role in driving economic growth
and development in Nigeria, the largest economy in Africa. These industries provide essential
infrastructure and contribute significantly to the gross domestic product (Manoharan et al.,
2022). According to a study conducted on the Nigerian construction industry, it was found that
the sector has the potential to lead the country's economy (Oladinrin et al., 2012). The study
further highlighted the importance of skilled workers in the construction process. Skilled
workers in the construction industry are essential for successful project execution and overall
Nigeria, there is a low supply of skilled human capital. This low supply of skilled workers
poses a significant challenge for the construction industry in Nigeria, particularly within the
manufacturing sector.
5|Page
2.4 SKILLED WORKERS IN THE MANUFACTURING PROCESS IN
CONSTRUCTION INDUSTRY
4.0, has further increased the demand for skilled workers. These new technologies require a
higher level of knowledge and skills, which are often lacking in developing countries like
Nigeria. As a result, the construction sector in Nigeria faces challenges in bridging the
knowledge and skills gap among professionals. The availability of skilled workers in the
Nigeria. As total employment in the construction sector decreased, so did the share of
employed migrants.
CONSTRUCTION INDUSTRY
societal challenges. The manufacturing sector in Nigeria grapples with a myriad of challenges
concerning skilled labor. These challenges encompass inadequate training and skill
incentives for skilled workers to remain within the industry. This has led to a scarcity of skilled
labour and a high turnover rate, impeding the sector's potential for sustainable growth and
development.
scarcity of skilled workers in Nigeria. These imbalances arise from the mismatch between the
output of higher education institutions and the needs of the labor market, causing surplus
specialists in some areas while others face a severe shortage (Honcharenko & Sirenko, 2020).
6|Page
2.5.2 MIGRATION TRENDS AND SKILLED LABOR AVAILABILITY: A
GENDERED PERSPECTIVE
Migration trends, particularly from rural to urban areas, significantly influence the availability
of skilled workers. Individuals, especially females aged 15-35 years, migrate in pursuit of better
educational and work opportunities, which affects the labor market dynamics in both rural and
urban contexts (Okemini & Orlu). This migration is fueled by a quest for higher education
Furthermore, the challenges faced by women in accessing and participating in technical and
To address the shortage of skilled workers, Nigeria must focus on the development of targeted
training and increasing the level of education, especially in areas of high demand such as the
construction and service sectors. In addition, vocational training institutions in Nigeria should
cultural-humanistic, and technological, to meet the citizens' needs for quality vocational
policies, and strategies to mitigate the effects of urban migration is critical for improving the
policies that stimulate job creation, especially in sectors with a high demand for skilled labor.
The availability of skilled workers significantly impacts the adoption of construction methods
and the overall performance of the manufacturing sector in Nigeria. The exodus of
professionals from the Nigerian Construction Industry due to global demand for skilled
workers affects project delivery, underscoring the need for a conducive economic, political,
7|Page
and social environment to retain qualified personnel (Arowojolu-Alagwe et al., 2013). This
talent drain underscores the critical need for retaining skilled workers to ensure project
Moreover, the limited skilled workforce in the construction industry adversely impacts project
execution success, affecting time, cost, and quality. This challenge hampers Nigeria's overall
economic development and stresses the crucial role that skilled workers play in enhancing
construction methods and boosting manufacturing sector performance (Dabok, Ganah, & John,
2018).
Factors such as low wages, the lack of skill acquisition centers, and insufficient incentives have
been identified as significant causes affecting the performance of skilled workers in Nigeria's
construction industry (Zannah et al., 2017). These issues not only deter the effectiveness of
skilled labor but also the adoption of advanced construction methods that require specialized
skill sets.
Furthermore, the skill and training needs among craftsmen in the Nigerian construction
industry underscore the importance of team work, innovation, understanding designs, work
safety, and leadership. Effective methods such as in-house and on-the-job training are
highlighted as crucial for enhancing craftsmen's performance, which is pivotal for improving
construction methods and manufacturing sector performance in Nigeria (John, Faremi, &
Lawal, 2016).
An investigation into the factors impeding craftsmen's productivity in the construction industry
in South-Western Nigeria pointed out inadequate tools and equipment, rework, material
8|Page
Addressing these challenges is essential for enhancing craftsmen's productivity and, by
development of the service sector in Nigeria, indicating that capacity building through training
and workshops is necessary to further enhance the impact of these professionals on sector
construction methods and the performance of the manufacturing sector in Nigeria. Addressing
the causes of low performance among skilled workers, improving training and development
programs, and creating a conducive environment for retaining talent are essential strategies for
Implementing efficient construction methods and ensuring the availability of skilled workers
face several key challenges in Nigeria. These challenges stem primarily from barriers to
sustainable construction efforts, revealing the necessity for collaborative training among
Moreover, the construction industry in Nigeria experiences a critical shortage of skilled labor,
which impacts project execution and industry output, making effective training and skills
development essential for industry growth and economic prosperity (Dabok, Ganah, & John,
2018).
Global demand for skilled workers and pull factors such as better wages and political stability
9|Page
exacerbating the challenges in project delivery and implementation of efficient construction
methods (Arowojolu-Alagwe et al., 2013). To address these issues, there is a need for strategies
like adequate funding, education policy reform, value re-orientation, and good incentive
schemes to enhance the quality of work delivery in the construction sector (Amusan et al.,
2016).
The unavailability of highly skilled labor significantly impacts work quality and productivity
in the construction sector. Proposed mitigation strategies involve improving training modules,
enhancing recruitment practices, and implementing incentive schemes to address the skill
poor project planning, inadequate risk management, corruption, and ineffective stakeholder
management. Improving project management practices and ethical standards in the industry is
tools and equipment, rework, material shortage, inclement weather, and fatigue, is pivotal for
To overcome these challenges, Nigeria's construction industry calls for efforts like developing
& Udoka, 2023), addressing construction externalities and regulatory issues (Ugochukwu,
Christopher, & Uche, 2015), and adopting new technologies and implementing effective
manpower development strategies (Olaniyan, Halkias, & Neubert, 2020; Monday, 2009).
Training handled by competent human resources experts is recommended for ensuring efficient
manpower productivity and development in Nigeria's public sector (Adeyoriju & Fajebe,
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2019), and government regulatory capability and persuasive devices are suggested as means to
These challenges highlight the need for a comprehensive approach that includes regulatory
reforms, targeted training and development programs, and the promotion of ethical practices
within the construction industry to ensure the availability of skilled workers and the adoption
reforms, targeted training and development programs, and ethical practices promotion within
the construction industry. Here are several potential solutions or strategies that could be pivotal
sustainable construction practices and ensure the safety and rights of construction
workers. These could include policies to incentivize the retention of skilled workers
and to penalize unethical practices within the industry (Davies & Davies, 2017).
institutions. This would ensure that graduates are equipped with the relevant skills
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sustainable practices. These programs could be designed to upskill existing workers
and prepare students for the workforce (Davies & Davies, 2017).
training for workers. Such programs can play a crucial role in skill transfer and the
identify and attract the best talents. Additionally, fair compensation and incentive
schemes should be established to retain these talents within the construction sector
the necessary funding for constructing and equipping training institutes with state-of-
the-art facilities. These institutes would be focused on imparting practical skills relevant
methods. These technologies could include software for project management, as well
education, and strategic goal setting for employee progress (Olaniyan, Halkias, &
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Competent Human Resource Management: Introduce training handled by human
development in the public sector. This could include leadership training, project
sustainable and efficient construction methods and that skilled workers are
improve the efficiency of construction methods and the availability of skilled workers
economic prosperity.
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CHAPTER 3
3.1 SUMMARY
This study has thoroughly investigated the interplay between construction methods and the
availability of skilled workers within Nigeria's manufacturing sector. Despite the construction
industry's substantial potential to be a driving force for Nigeria’s economic development, this
research has highlighted the systemic issues that impede its growth. The shortage of skilled
labor is evident and significantly affects project timelines, costs, and quality, which in turn
compromises the overall performance of the manufacturing sector.
The research has illuminated the complexities involved in the recruitment and retention of
skilled workers, including educational and professional imbalances, as well as regional
disparities in the availability of trained professionals. Additionally, the study has noted the
impact of changing migration trends and cultural factors that influence the gender composition
of the workforce.
3.2 RECOMMENDATIONS
Based on the research findings, the following recommendations are offered to address the
challenges faced by the construction industry in Nigeria, particularly concerning the methods
employed and the skilled labor force:
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3.2.4 CREATE INCENTIVES FOR SKILLED DIASPORA:
Establish programs to attract Nigerian professionals back to the country and retain the
skilled workforce within the construction sector.
3.2.5 POLICY REFORMS FOR LABOR MOBILITY:
Implement policies that enable easier migration of skilled workers within the country
to address regional shortages.
3.2.6 GENDER INCLUSIVITY:
Promote policies that encourage the participation of women in the construction sector
to tap into the underutilized female workforce.
3.3 CONCLUSION
In closing, the insights garnered from this study not only shed light on the current challenges
faced by the Nigerian construction industry but also pave the way for strategic interventions.
The significant correlation between the efficiency of construction methods and the availability
of skilled workers is undeniably a catalyst for industry success.
Let this research not simply be a record of current conditions but a catalyst for change, inspiring
all involved to take decisive action towards a more proficient, sustainable, and inclusive future
for the Nigerian construction industry.
This reflective closure encapsulates the research's core findings and emphasizes the importance
of actionable strategies and continuous progress. It acknowledges the complexity of the issues
at hand while reinforcing the vital role that such research plays in driving industry
advancements.
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