RISK FINANCING STRATEGIES AND PROJECT SUCCESS ENHANCEMENT AMONG BUILDING CONTRACTORS IN NIGERIA

Abstract

The construction industry is widely regarded as one of the most risk-prone sectors due to complex activities, multiple stakeholders, and long project lifecycles. In Nigeria, particularly Lagos State, recurrent building collapses have intensified concerns about the effectiveness of risk management and financing practices. This study examines the effect of risk financing strategies on project success among building contractors in Lagos State, focusing on risk transfer (insurance adoption) and risk retention mechanisms. Using a descriptive survey design, data were collected from 170 respondents comprising registered building contractors and heads of property insurance departments of non-life insurance firms. Structured questionnaires measured key variables on a five-point Likert scale, and multiple regression analysis was employed with firm characteristics as controls. The findings show that both risk transfer and risk retention strategies are positively associated with project success, although their effects are statistically insignificant. This suggests that regulatory enforcement, contractor capacity, experience, and operational conditions may play a more decisive role in project outcomes. The study highlights the need for integrated risk management frameworks that combine financial, operational, and regulatory measures to enhance construction project success in emerging economies.