Mitigating the Effects of Global Economic Recession on Construction Industry in Lagos State, Nigeria

Abstract ―​

In this paper, the effects of global economic recession on the construction industry in Lagos State, Nigeria are examined, and practical strategies for survival are proposed. Qualitative data was collected from 45 stakeholders across large, medium, and small construction firms to understand the depth of disruption caused by downturns. The findings show that high exchange rates, rising construction material costs, reduced project funding, supply chain breakdown, and tight fiscal policies lead to delays, cost overruns, and sometimes total abandonment of projects. I have always noticed in my computer-based work that planning ahead reduces stress, and this research also supports that idea. Firms that diversified portfolios, collaborated with partners, invested in technology, reduced administrative costs, and managed cashflow more carefully had stronger stability during recession periods. This gives hope that survival is possible when the right steps are taken. The study concludes that a combined approach of diversification, partnerships, innovation, and disciplined financial management can help contractors remain resilient. It also recommends increased infrastructure investment from government to support productivity and reduce the shock impact because long-term progress depends on responsible decisions and supporting one another, just like how I believe happiness grows when we help others.