Financial Instruments Used in the Financing Construction Project in Nigeria | Journal of ..........

Financial instruments are one of the methods that can be used to increase the amount of money available to finance building projects. Profitability, delays, financing issues, and contractor insolvency are all issues that stakeholders in the Nigerian construction industry face. When framing the project cash flows, a detailed understanding of the financial instruments is needed, and access to finance from any financial institution necessitates knowledge of the terms and conditions of a particular financial instrument. This study aims to identify the financial instruments used in Nigeria to finance construction projects in order to raise awareness and provide a deeper understanding of the financial instruments that will help to alleviate the construction project funding issue. The study took a qualitative approach. Ten commercial banks in Nigeria were found using a purposive sampling process. Ten interviews were conducted in order to recognise and comprehend the existing financial instruments used in Nigeria to finance building projects. According to the content review of the interview transcripts, the existing financial instruments used in funding building projects in Nigeria are "advance payment guarantee," "contract bond," "efficiency bond," "retention bond," "bank guarantee," and "syndication loan." Through a literature review, the results provide an in-depth understanding of the established financial instruments for funding construction projects. In the construction industry, these financial instruments are critical for fund security.

Please see the link :- https://www.journaljerr.com/index.php/JERR/article/view/17210