Wasteful projects draining Nigeria’s public finances – CIPMN

The Chartered Institute of Project Managers of Nigeria on Tuesday warned of the growing danger associated with the rising global and domestic financial waste on projects that require corrective works or adjustments after commissioning.

The Registrar-General of the institute, Henry Mbadiwe, raised the alarm while delivering his keynote remarks at the CIPMN 2025 Annual Conference and 6th Induction Ceremony, themed “Regulating Project Management In Nigeria: Policy Dialogue,” in Abuja.

He warned that the trend has become a major drain on public finances and a threat to development planning. He cited a World Bank report estimating that $4bn is lost globally every year to corrective work on newly completed projects, projects that were supposedly finished, commissioned, and paid for.

Mbadiwe described the figure as “ridiculous and unacceptable,” insisting that weak regulation and the use of unlicensed personnel in project execution were at the heart of the problem.

He added that the revelation comes at a time Nigeria is still grappling with an estimated N17tn worth of abandoned projects, according to national audit reports.

He said, “The project management profession is one that is still growing in Nigeria. It’s not as saturated or as respected as it should be in this country. We need to grow this profession. You cannot manage a project in Nigeria or lead a project in Nigeria if you are not licensed by this institute. A report was published recently that said the cost of abandoned projects has reached N17tn in Nigeria.

“The World Bank also published a report where $4bn is being wasted yearly on corrective works on projects. So a project has been commissioned, designed, and then you realise a mistake and spend more money fixing it. That is the waste we are fighting

The reports that project failures requiring reconstruction after commissioning are not new in Nigeria. In multiple instances, projects delivered and commissioned required emergency fixes or full redesigns within months because of structural defects, poor-quality materials, or non-compliance with specifications, driving up costs and disrupting operations.

A notable case is the recent announcement by the Federal Airports Authority of Nigeria to commence reconstruction work at the Murtala Muhammed International Airport in Lagos, a few years after earlier rehabilitation works.

On August 1, the Federal Executive Council approved over N900bn for aviation projects, with the rehabilitation of MMIA’s Terminal One as a central component.

The Minister of Aviation and Aerospace Development, Festus Keyamo, defended the project, saying it was driven by the urgent need to replace decaying infrastructure, expand capacity, and bring the nation’s busiest airport in line with modern global standards.

The CIPMN says such corrective spending mirrors concerns raised and underscores the need for unified standards. Mbadiwe further warned that the law now criminalises the management of any project, public or private, without a valid CIPMN licence, stressing that the era of unregulated project execution was over.

He said many organisations attempt to bypass the law by claiming they have no designated project manager. He noted that the institute was admitting a new set of licensed project managers into its fold, stressing that the profession was still evolving in Nigeria.

He added, “This act has been signed into law by the National Assembly, assented by Mr President, to ensure that we regulate the project management space, that you don’t teach project management, you don’t practice project management if you are not licensed. If you go to a particular company and you tell them, Who is the project manager? Some proudly say they don’t have a project manager and are not in breach of the law. That’s not true. Do you perform any project management functions?

That’s how you ask the question. We have been working on our enforcement team, and once the team is fully set up. We will go out. This will be concluded in the next three months. The law has made it very clear. You cannot be employed, you cannot get involved in leading or managing, or working with any project if you do not have experience, if you do not have the license from CIPMN.”

He disclosed that the institute has set up an enforcement team empowered to visit project sites and verify compliance, adding that even foreign-trained professionals must be licensed locally before handling projects in the country.

In a paper delivered at the event, the Permanent Secretary, Federal Ministry of Special Duties and Inter-Governmental Affairs, Onwusoro Maduka, described standardised project management as a “national governance necessity”, warning that poor coordination across the three tiers of government continues to weaken development outcomes.

Maduka said widespread issues, project delays, duplication, cost inflation, weak monitoring, political interference, and abandonment are symptoms of fragmented standards across MDAs, states, and local governments.

He argued that without uniform national procedures, Nigeria’s implementation of the National Development Plan 2021–2025, the Renewed Hope Agenda, and the Sustainable Development Goals would remain at risk.

To fix the system, Maduka urged the adoption of a National Project Management Framework enforceable across all government levels. The proposal includes: Mandatory licensing and induction for all project officers, annual recertification, State and LGA-level training rollouts, Standardised monitoring templates and digital reporting tools, and Annual compliance audits and sanctions for non-adherence.

He maintained that uniform regulation would reduce leakages, eliminate arbitrary cost variations, improve transparency, and foster inter-governmental collaboration.

Culled from punch