Modeling the enablers and barriers to circular economy integration in Nigeria's construction industry: a structural equation approach.

Abstract

There is growing pressure on the Nigerian construction sector to reduce construction waste, resource depletion, and carbon dioxide emissions. The circular economy (CE) approach, which emphasizes reuse, recycling, resource efficiency, and design for deconstruction, offers a sustainable alternative to the dominant linear construction model. However, CE adoption remains limited in many developing economies, including Nigeria. This study examines the major enablers and barriers associated with CE integration in the Nigerian construction sector using a structural equation modelling (SEM) approach. The study was conducted using a questionnaire survey of 386 usable responses from professionals and stakeholders in the Nigerian construction sector. Eight latent constructs were examined: Stakeholder Awareness and Engagement (SAE), Technological Readiness (TR), Policy Support and Regulation (PSR), Financial and Market Constraints (FMC), Institutional and Regulatory Weakness (IRW), Information Opacity (IOP), CE Awareness and Implementation Intention (CEAI), and Implementation of CE Practices (ICEP). The results showed that SAE and TR had statistically significant but weak positive relationships with CEAI, while CEAI had a small positive relationship with ICEP. However, several expected direct effects involving PSR, FMC, IRW, and IOP were not statistically significant. The model explained 11.3% of the variance in CEAI and 19.7% of the variance in ICEP, indicating low explanatory power. The model-fit indices produced mixed results, with SRMR = 0.071 and χ2/df = 2.96 suggesting acceptable residual fit, while CFI = 0.88, TLI = 0.86, and RMSEA = 0.082 indicated marginal fit. The findings suggest that awareness, stakeholder engagement, and technological readiness may serve as early-stage entry points for CE integration in the Nigerian construction sector. However, the weak measurement-model indicators require caution in interpreting the SEM results. The study contributes a preliminary SEM-based framework for understanding CE integration in Nigeria and highlights the need for stronger measurement refinement, improved policy implementation, digital capacity development, and industry-wide collaboration to support circular construction practices.