CAPITAL BUDGETING TECHNIQUES AND GOVERNMENT CAPITAL PROJECTS IN NIGERIA: A CONCEPTUAL APPROACH

Abstract

This study examines capital budgeting techniques and government capital projects in Nigeria and it is motivated
by the problem of not always allowing the nature of capital projects to detect the choice of some basic investment appraisal
techniques. The purpose of this work is to understand how some basic capital budgeting techniques work and how they are
used in selecting government capital projects. To achieve the foregoing objective, relevant data and information were
obtained from the internet, journal articles, and literature reviews. The study concluded that it is the ineffective use of
capital budgeting techniques that has contributed to poor funding and abandonment of capital projects in Nigeria. Effective
use of capital budgeting techniques will checkmate the problems of funding and abandonment of capital projects in Nigeria.
The implication for practice is that research and statistics units of Ministries, Department, and Agencies (MDAs) in Nigeria
and other developing countries will imbibe the culture of using only those investment appraisal techniques that are suitable
for their capital projects as this will serve as one of the ways of minimizing capital projects’ funding and abandonment
problems.