Abstract

This article explores how Nigeria’s construction cost and commercial management practices must evolve to meet net-zero carbon targets. As the global construction industry undergoes a sustainability transition, Nigeria faces unique challenges: from weak carbon data infrastructure to limited technical capacity in low-carbon design and costing.

This article examines the intersection of climate policy, carbon accounting, and traditional cost consultancy roles, focusing on integrating carbon costing and life cycle analysis into the practice of Cost & Commercial Managers, the major function of the Quantity Surveying practice. This article critically assesses the barriers to decarbonization in the Nigerian built environment and explores opportunities for digital innovation, policy reform, and professional capacity-building. Recommendations are drawn to reposition cost & commercial manager/quantity surveyor as a strategic contributor to Nigeria’s sustainable development goals.

Introduction

The global imperative to limit greenhouse gas emissions has given rise to the net-zero carbon agenda, which aims to reduce emissions to as close to zero as possible and offset the remainder through carbon removal strategies. As construction and the built environment contribute significantly to carbon emissions, the role of quantity surveyors (QS)/cost & commercial managers is evolving.

In Nigeria, this transition is both an environmental necessity and an economic opportunity. The environmental necessity is due to the following: Climate Vulnerability (climate change impacts like desertification, flooding, and coastal erosion, which negatively affects its citizens and economy), health impacts (air pollution from fossil fuel combustion contributes to respiratory illnesses, particularly in urban areas). Environmental degradation (unsustainable practices, like gas flaring, contribute significantly to greenhouse gas emissions and environmental damage). On the positive side is the economic opportunity, which is enormously beneficial to the country and her economy. The economic opportunities are showcased here, renewable energy development options including solar energy (with an average daily solar radiation of about 5.5 kWh/m2. Investment in utility-scale solar farms, off-grid solar solutions for rural areas, and hybrid systems present a significant opportunity), wind energy (northern regions and coastal areas offer viable locations for wind energy development. Investment in wind farms like the 10MW Katsina Wind Farm showcases the potential of this sector), biomass energy opportunities (harnessing agricultural waste and other organic materials for biomass energy production which creates a sustainable energy source and can benefit the agricultural sector). Other economic opportunities include green hydrogen economy, which includes production and export, value chain development, and infrastructural development, all of which will be of tremendous economic value to the Nigerian economy. In addition to green hydrogen is the opportunities abounding in carbon market trading (carbon credits, market infrastructure and climate finance innovations).

However, the integration of carbon considerations into traditional cost and commercial management remains nascent. This article highlights the importance of aligning Nigeria’s QS practices with global sustainability imperatives while considering local economic and institutional contexts.

Net-zero carbon goals and Nigeria’s policy landscape

Nigeria is a signatory to the Paris Agreement and has committed to achieving net-zero emissions by 2060. The Climate Change Act (2021) provides a legal framework, while other instruments such as the Nationally Determined Contributions (NDCs) and Green Building Councils are being gradually institutionalised. However, implementation faces numerous challenges: lack of standardised carbon accounting methods, poor data availability, insufficient government incentives, and minimal private sector engagement. This policy and institutional gap hinders the mainstreaming of low-carbon construction and cost management strategies.

Evolving role of the quantity surveyor in a low-carbon economy

Traditionally, QS/cost and commercial management professionals focus on cost estimation, tendering, value engineering, and contract administration. There is an added twist when it comes to expectations on the low-carbon construction-related functions. In the net-zero era, these responsibilities are expanding to include:

• Carbon costing: Quantifying carbon impacts alongside financial costs. Explanation of carbon pricing and its implications for project costs. Integration of embodied and operational carbon into cost plans. Case studies (local or global examples) and applicability in Nigeria. The ability of the cost & commercial management practitioners to enlighten project stakeholders, especially the project promoters/owners, will go a long way in allowing all players to see the value available to them. The skillset required here are sustainability literacy, digital tools, and data analytics.

• Carbon budgeting: Establishing project-level emission limits. Carbon budgets help quantify how much more CO2 can be emitted while still achieving these temperature goals. Essentially, it’s a way to track how much “carbon space” is left before exceeding the desired temperature limit. 

• ESG advisory: Supporting clients in meeting environmental, social, and governance targets

• Lifecycle costing (LCC): Incorporating carbon impacts in decision-making. Whole Life Carbon (WLC) refers to the comprehensive carbon emissions of a built asset throughout its entire existence, encompassing all stages from the initial sourcing of materials to construction, operation, maintenance, and eventual demolition and disposal. It involves a holistic evaluation of a project’s environmental footprint, capturing both operational and embodied emissions. 

This would necessitate a redefinition of professional competencies, including sustainability literacy, data analytics, and familiarity with digital tools such as BIM-enabled carbon models.

Carbon Costing and Life Cycle Costing (LCC) in Practice

Carbon costing places a monetary value on carbon emissions associated with construction activities and materials. When combined with LCC, it allows project stakeholders to make informed decisions that balance initial capital costs with long-term environmental impacts.

In Nigeria, the practice is still emerging. Key obstacles include absence of carbon pricing mechanisms, inadequate emission factors databases, and limited industry knowledge. However, the adoption of international standards (e.g., RICS Whole Life Carbon Assessment) and tools (e.g., OneClick LCA, eToolLCD) could be adapted for local use with government and institutional support.

Barriers to adoption in Nigeria

• Institutional: Weak enforcement of environmental regulations, lack of inter-agency coordination all contributes to the inefficiency of adopting and practicing net zero related principles in Nigeria. Inadequate support for professional organizations too can be a major stumbling block.

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• Market: Clients’ prioritization of short-term costs over long-term value because of either ignorance or perceived difficulties of executing a decent process.

• Capacity: Shortage of professionals trained in carbon costing and sustainable design from the academia to continuous professional development of different built environment practitioners.

• Technical: Poor data availability on embodied and operational carbon

• Cultural: Resistance to change and innovation in procurement practices

Opportunities and strategic pathways

Despite these challenges, several opportunities exist:

• Policy Reforms: Incentives for green buildings, carbon pricing, public procurement mandates as this allows practitioners to see opportunities and take advantage of same.

• Professional development: Inclusion of climate-related competencies in QS education and CPD as well as other professional organizations expected to function in the built environment.

• Digital innovation: Leveraging BIM, digital twins, and AI for carbon-informed cost planning.

• Partnerships: Collaboration with academia, international agencies, and tech firms to localize best practices and improve on those best practices to further create newer best practices and standards.

Conclusion and recommendations

As Nigeria embarks on its net-zero journey, cost and commercial management must evolve beyond traditional financial parameters to embrace environmental accountability. Cost & commercial managers/quantity surveyors are well-positioned to lead this transformation by integrating carbon-conscious decision-making into every project phase.

Key recommendations include:

• Integrating carbon literacy into QS training and certification

• Developing localized carbon databases and pricing frameworks

• Mandating whole-life costing in public procurement

• Strengthening policy support and cross-sectoral collaboration

The path to a low-carbon future is not without obstacles, but with strategic investment and institutional support, Nigeria’s QS professionals can be pivotal actors in shaping a sustainable built environment.

Oyenubi, a graduate of quantity surveying from Obafemi Awolowo University, Ile Ife, Osun State, and a master’s holder in project management from George Washington University, District of Columbia, United States, is an internationally recognised quantity surveyor and currently senior cost consultant/project cost lead for Turner & Townsend for data centre projects.