Influence of Macroeconomic Variables on Cost of Road Infrastruture Development in Nigeria: The Case of Lagos State
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Babalola, A. J.
Oni, S. O.
, Journal of Contemporary Urbanology, Department of Urban and Regional Planning, Benue State University, PMB 102119, Makurdi, 970001, BNS, Nigeria or P.O.Box 735, Makurdi.
Nigeria is deficient in the area of infrastructure development and this is seriously affecting the growth and' sustainable development of the country. This study assessed the influence of macroeconomic variables on the cost of road infrastructure development in Nigeria. The Ex-post facto survey research or causal-comparative research design was adopted. The data on the macroeconomic variables used in the study, including inflation rate, interest rate, exchange rate and Foreign Direct Investment (FDI}inflows in construction sector were obtained from the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN), the cost of road infrastructure development for the years under review were obtained from the Ministry of Works Housing and Infrastructure Development, Lagos State while the rates used in the buildup of the cost of the materials were from Guardian's monthly review of building materials prices which has taken care of all states of the country. The study fo that the trends of both the dependent variable and the independent variables were unstable, therefore affecting the nature of the macroeconomic environment prevailing in Nigeria and then causing the slow economic growth of the country. The study also found that there is relationship between the inflation rate, interest rate, exchange rate, FDI inflows in construction sector and the cost of road infrastructure development in Nigeria. The study recommends that the government should embark on policies that will make the Macroeconomic environment to be stable so as to increase the pace of the economic growth, reduce thefrequentfluctuation of construction materials prices and also increasing the development of infrastructures in the country.
Construction Sector , Macroeconomic Environment , Macroeconomic Variables , Nigeria , Road Infrastructure Development , Research Subject Categories::TECHNOLOGY
Babalola, A. J. and Oni, S. O. (2019). Influence of Macroeconomic Variables on Cost of Infrastructure Development in Nigeria: the Case of Lagos State. Journal of Contemporary Urbanology, Department of Urban and Regional Planning, Benue State University, Makurdi, Vol. 6, no. 2, Issn 2315-8050, pg. 57-73.