ASSESSING THE CONSIDERATION OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CRITERIA IN PUBLIC CONSTRUCTION CONTRACT EVALUATION IN NIGERIA

Abstract

Public construction contract evaluation in Nigeria is largely driven by price competitiveness and technical compliance, with limited consideration of sustainability principles. This has contributed to environmental degradation, weak labour standards, and governance challenges, despite increasing advocacy for sustainable procurement. The lack of clearly operationalised Environmental, Social, and Governance (ESG) criteria within evaluation frameworks has reduced the effectiveness of public procurement in promoting sustainable construction outcomes. This study examined the integration of ESG criteria in public construction contract evaluation in Nigeria, focusing on how environmental, social, and governance factors are applied during bid evaluation and contract award decisions. A quantitative research design was adopted, and data were collected through a structured questionnaire administered to procurement officers, quantity surveyors, engineers, and architects involved in public procurement in selected public institutions. Respondents were selected using purposive sampling based on their direct involvement in procurement and evaluation processes. Out of 230 questionnaires distributed, 142 valid responses were retrieved, representing a 61.7% response rate. Data were analysed using Mean Item Score (MIS) and Relative Importance Index (RII), which were used to rank ESG indicators. The results show uneven integration of ESG criteria. Governance indicators ranked highest, particularly transparency (MIS = 3.84; RII = 0.77) and financial accountability (MIS = 3.71; RII = 0.74). Environmental criteria such as regulatory compliance (MIS = 3.45; RII = 0.69) and waste management (MIS = 3.32; RII = 0.66) were moderately considered, while social criteria such as community engagement (MIS = 3.10; RII = 0.62) ranked lowest. The study concludes that ESG integration in public construction contract evaluation in Nigeria is inconsistent and underdeveloped. It recommends a standardised ESG evaluation framework, mandatory ESG weighting in bid assessment, and capacity building for procurement professionals.