A framework for adopting smart contracts in the Nigerian construction industry

Joseph Olusola, Quan Anh Phung*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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Abstract

The construction industry in developing countries continues to face significant challenges due to reliance on traditional, paper-based contract administration and management. This approach frequently results in inefficiencies, disputes, transparency issues and unethical practices. Although smart contracts enabled by blockchain technology present a promising solution to these longstanding issues, their adoption in developing countries remains limited. This study investigates the barriers to and strategies for the implementation of smart contracts within the construction industry, using Nigeria as a representative case. Adopting a qualitative research methodology, data were collected through semi-structured interviews with 14 experienced project managers selected via purposive sampling. A thematic analysis of the data identified several critical barriers, including resistance to change, low awareness, privacy concerns, legal uncertainties, technical hurdles, infrastructure deficits and economic instability. To overcome these barriers, the study proposes a strategic implementation framework informed by insights from interviewees and supported by literature. Key recommended strategies include educational and awareness initiatives, governmental support and policy reform, stakeholder collaboration, robust security measures, phased deployment and establishing supportive legal frameworks. The findings of this research offer valuable guidance for developing countries encountering similar constraints, providing a clear roadmap for successfully integrating smart contracts into construction practices.
Original languageEnglish
JournalInternational Journal of Construction Management
Early online date1 Sept 2025
DOIs
Publication statusEarly online - 1 Sept 2025

Keywords

  • Smart contracts
  • blockchain
  • automation
  • construction industry
  • contract management
  • technology adoption
  • Nigeria
  • digital transformation
  • project management

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