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Blockchain Technology as a Cost Management Tool in the Nigerian Construction Industry: An Empirical Assessment and Adoption Framework

Oluwaseun Adelabi, Oluwamayowa Abimbola,, David Umoren

  1. Building Technology Department, Covenant University, Ota, Ogun State, Nigeria

SURE-Built 2026 — 2nd Global Scholarship for Sustainable Built Environment Research Conference · Digital Built Environment · September 3, 2026

Abstract

The Nigerian construction industry routinely suffers budget overruns of 20-50%, driven by supply chain opacity, endemic corruption, and institutional resistance to digital tools. This study empirically evaluates whether blockchain technology (BT) offers a credible remedy and, if so, under what conditions. A quantitative cross- sectional survey was conducted among 67 professionals and managers from four major construction firms using stratified random sampling and a structured questionnaire (Cronbach’s alpha = 0.903). Key findings showed that: traditional techniques such as budget preparation dominated current practice (RAI = 0.940), while digital tools ranked lowest; fluctuating material costs and corruption were the most pressing barriers; and blockchain applications, especially Supply Chain Management (SCM) for material delivery (RAI = 0.896) and smart contracts for payment accuracy, were highly rated, with experienced professionals showing stronger receptiveness. This implies that blockchain can reduce transaction costs, enhance transparency, and minimize disputes through permissioned ledgers and targeted pilots, provided legal, infrastructural, and skills barriers are addressed. In conclusion, blockchain offers promising potential for cost management in Nigeria despite existing systemic constraints. It is recommended that firms start SCM pilot projects while government enacts supportive policies and regulations. A six-layer, empirically grounded adoption framework is proposed, arguing that blockchain deployment without parallel investment in regulatory clarity, digital infrastructure, and human capital will yield adoption theatre rather than genuine cost-management improvements. Factors Influencing the Adoption of Artificial Intelligence Tools in Quantity Surveying Practice in Lagos State,

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