Application of Digital Technologies for Risk Management in the Nigerian Construction Industry: A Study of Awareness and Barriers

Abstract

The Nigerian construction industry faces significant challenges in adopting digital tools for effective risk management, including high costs, inadequate infrastructure, limited digital skills, and cultural resistance. These barriers hinder the integration of technologies such as Building Information Modelling (BIM), AI-driven risk analysis, and IoT, which can potentially improve project efficiency and safety. Small and medium-sized enterprises (SMEs) are particularly impacted, often lacking the financial resources and technical expertise needed for digital transformation. This study employed a quantitative approach, surveying construction professionals to identify and rank these barriers, with findings showing that cost and infrastructure limitations are the primary obstacles. The study provides practical recommendations, including financial incentives, infrastructure development, capacity-building initiatives, and supportive regulatory frameworks to promote digital adoption. Additionally, awareness campaigns demonstrating the benefits of digital tools are suggested to help overcome cultural resistance. The Nigerian construction industry can enhance risk management practices by addressing these critical barriers and improving sector resilience and efficiency. This research offers valuable insights into the digital transformation challenges in emerging markets, contributing to a broader understanding of technology adoption within the construction industry.