CONSTRUCTION BUSINESS & PROJECT MANAGEMENT CONFERENCE 2022 · Vol. 2022, Issue 1

Financing built assets in Nigeria through crowdfunding

Imoleayo Abraham Awodele, Cecilia Modupe Mewomo, Nathaniel Ayinde Olatunde, Emmanuel Chidiebere Eze and Chinonyerem Ukaji

Keywords: Benefits, built asset, crowdfunding, financing, limitations, Nigeria

Abstract

Crowdfunding offers a great and robust source of funds for financing-built asset projects in Nigeria. However, its usage in the Nigerian context is not popular, despite its huge potential in the construction industry. This study assessed the factors influencing crowdfunding, its benefits, and limitation in financing-built assets in Nigeria. A well-structured questionnaire was purposively used to gather data from 40 construction professionals (Developers, Quantity Surveyors, Architects, Builders/Engineers) on their perception regarding crowdfunding in financing-built asset in Owerri, Imo State. The gathered data was analysed using appropriate descriptive tools. The study found that the major factors influencing crowdfunding to financebuilt assets in Nigeria are; credibility and expectations for rewards, period of funding and goal amount, continuous communication among project participants, and lack of crowdfunding projects, among others. Also, fraud, risk of business failure, a lack of finances, poor management decisions, investor protection difficulties, and other factors are deterring elements to crowdfunding in Nigeria. This study would greatly benefit stakeholders and researchers in understanding the influencing factors to financing built asset projects through crowdfunding. Stakeholders executing construction projects can convincingly implement a crowdfunding approach to finance their projects. Studies on the suitability of crowdfunding in financing-built assets in the context of construction projects are scarce. This study pioneers the suitability of using crowdfunding in financing-built asset.