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Infrastructure (Economics)

Institute of Appraisers and Cost Engineers Calls for Robust Cost Engineering Adoption in Nigeria's Infrastructure Transformation

Strategic Insights

— 1 min read

The Institute of Appraisers and Cost Engineers (IAEC) has emphasized the importance of adopting Robust Cost Engineering (CE) in Nigeria's infrastructure development through Public-Private-Partnership (PPP). This initiative aims to address the country's persistent annual infrastructure deficit, estimated at over N7.1 trillion. By leveraging cost engineering, Nigeria can optimize project costs through accurate estimation, analysis, control, and risk management. Furthermore, this approach can lead to improved decision-making, enhanced accuracy, and reduced execution risk.

Key Takeaways:

  • The Institute of Appraisers and Cost Engineers (IAEC) has called for the adoption of Robust Cost Engineering (CE) in Nigeria's infrastructure transformation through Public-Private-Partnership (PPP).
  • Nigeria's persistent annual infrastructure deficit is estimated at over N7.1 trillion, making PPP a vital mechanism for project financing and delivery.
  • Using cost engineering enables scientific principles and techniques to manage project costs, optimizing costs throughout the project's lifecycle for enhanced accuracy, savings, improved decision-making, and reduced execution risk.
  • Systemic weaknesses, including inadequate cost estimation, poor risk allocation, insufficient life-cycle costing, and misapplication of value engineering, contribute significantly to project failures.
  • The IAEC urged the Infrastructure Concession Regulatory Commission (ICRC) to develop and enforce standardized Cost Engineering (CE) guidelines for projects.
  • The IAEC inducted 138 persons into the various Sections of the institute, with the breakdown 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 with 57 inductees.
  • A total of 8 persons were invested with the Fellowship Award on the same occasion.

Statistics:

  • Estimated annual infrastructure deficit: over N7.1 trillion
  • Number of inductees into the IAEC Sections: 138
  • Breakdown of inductees: Engineering Economy (EE) Class of 2024: 34, Engineering Valuation (EV) Class of 2025: 47, Cost Engineering (CE) Class of 2025: 57
  • Number of Fellowship Award recipients: 8

Sources:

  • A communique issued by the Institute of Appraisers and Cost Engineers (IAEC)
  • The 2025 National Technical Conference of the IAEC

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