FG urged to adopt cost engineering to bridge N7.1tr infrastructure gap
The Institute of Appraisers and Cost Engineers (IAEC) has called for the adoption of Robust Cost Engineering (CE) to unlock the full potential of Public-Private-Partnership (PPP) for Nigeria’s infrastructure transformation. The institute in a communique issued at the end of its 2025 National Technical Conference said Nigeria’s persistent annual infrastructure deficit, estimated at over N7.1 […]
The Institute of Appraisers and Cost Engineers (IAEC) has called for the adoption of Robust Cost Engineering (CE) to unlock the full potential of Public-Private-Partnership (PPP) for Nigeria’s infrastructure transformation.
The institute in a communique issued at the end of its 2025 National Technical Conference said Nigeria’s persistent annual infrastructure deficit, estimated at over N7.1 trillion, needs PPPs as a vital mechanism for project financing and delivery.
The communique said using cost engineering enables scientific principles and techniques to manage project costs through estimation, analysis, control, value engineering, and risk management, optimizing costs throughout the project’s lifecycle for enhanced accuracy, savings, improved decision-making, and reduced execution risk.
“There is the mixed success of PPPs due to issues like cost overruns, delays, and financial viability concerns. Systemic weaknesses, including inadequate cost estimation, poor risk allocation, insufficient life-cycle costing, and misapplication of value engineering, contribute significantly to project failures.
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It urged the Infrastructure Concession Regulatory Commission (ICRC) to develop and rigorously enforce standardized Cost Engineering (CE) guidelines for projects, encompassing comprehensive estimation (including risk contingencies), Life-Cycle Cost Analysis (LCCA), Value Engineering (VE), and transparent cost reporting, drawing on principles of economic appraisal.
“At the end of the conference, a total of 138 persons were inducted into the various Sections of the institute. The breakdown is as follows: Engineering Economy (EE) Class of 2024 with 34 inductees, Engineering Valuation (EV) Class of 2025 with 47 inductees, and Cost Engineering (CE) Class of 2025 Class of 2025 with 57 inductees. A total of 8 persons were invested with the Fellowship Award,” the communique added.