Authors :
Basiru Muazu Namaiwa; Kaura –Namoda
Volume/Issue :
Volume 7 - 2022, Issue 1 - January
Google Scholar :
http://bitly.ws/gu88
Scribd :
https://bit.ly/3GIIY1C
DOI :
https://doi.org/10.5281/zenodo.6044832
Abstract :
One of the most significant current
discussions in the construction industry is the issue of
late payment of commercial debt to the contractors. Late
payment of debts has been a very serious problem in the
construction industry of both developed and developing
countries. This research investigated late payment of
commercial debt and challenges of working capital to
small and medium enterprises (SMEs) in the
construction industry of Zamfara state (Nigeria). The
research was carried out through the use of structured
quantitative questionnaire survey administered within
the stakeholders in the construction industry of the study
area. The data obtained was analysed using SPSS
software through the frequency, percentage, mean,
standard deviation and ranking tools. It was discovered
that there is an evidence of the existence of late payment
of commercial debt to SMEs in the construction industry
of Zamfara state, Nigeria, because clients don’t pay
contractors as at when due. Poor management and
financial base of the clients has been identified as the
leading factor causing late payment of commercial debt
in the Nigerian construction industry. It was also
discovered that lack of access to bank loans, overdraft
and other facilities is the most severe challenge of
working capital management with the small and medium
enterprises (SMEs) in the construction industry of
zamfara state. This research have recommended among
others that contractors should study and understand the
financial base and management of their clients before
engaging into any contract with them to avert the
likelihood of late payment of monies due to them. The
three tiers of government should initiate a supporting
scheme that will enable the SMEs to access low income
loans so as to contribute maximally to the economic
growth of Nigeria.
Keywords :
Commercial Debt, Construction Industry, Late Payment, Small and Medium Enterprises (SMEs), Working Capital.
One of the most significant current
discussions in the construction industry is the issue of
late payment of commercial debt to the contractors. Late
payment of debts has been a very serious problem in the
construction industry of both developed and developing
countries. This research investigated late payment of
commercial debt and challenges of working capital to
small and medium enterprises (SMEs) in the
construction industry of Zamfara state (Nigeria). The
research was carried out through the use of structured
quantitative questionnaire survey administered within
the stakeholders in the construction industry of the study
area. The data obtained was analysed using SPSS
software through the frequency, percentage, mean,
standard deviation and ranking tools. It was discovered
that there is an evidence of the existence of late payment
of commercial debt to SMEs in the construction industry
of Zamfara state, Nigeria, because clients don’t pay
contractors as at when due. Poor management and
financial base of the clients has been identified as the
leading factor causing late payment of commercial debt
in the Nigerian construction industry. It was also
discovered that lack of access to bank loans, overdraft
and other facilities is the most severe challenge of
working capital management with the small and medium
enterprises (SMEs) in the construction industry of
zamfara state. This research have recommended among
others that contractors should study and understand the
financial base and management of their clients before
engaging into any contract with them to avert the
likelihood of late payment of monies due to them. The
three tiers of government should initiate a supporting
scheme that will enable the SMEs to access low income
loans so as to contribute maximally to the economic
growth of Nigeria.
Keywords :
Commercial Debt, Construction Industry, Late Payment, Small and Medium Enterprises (SMEs), Working Capital.
