BARRIERS TO RISK MANAGEMENT ADOPTION AMONG PROPERTY DEVELOPERS IN ABUJA, NIGERIA: A MULTI-DIMENSIONAL EMPIRICAL ANALYSIS

Risk management has become an essential component of successful property development because of the increasing uncertainties associated with economic volatility, regulatory changes, financial constraints, technological complexity, and stakeholder expectations. Despite its recognized importance, the adoption of formal risk management practices among property developers in Nigeria remains limited, contributing to project delays, cost overruns, contractual disputes, and project failures. This study examines the barriers to the adoption of risk management strategies among property developers in the Federal Capital Territory (FCT), Abuja, Nigeria. Specifically, the study identifies and ranks the barriers to risk management adoption, examines differences in perceived barriers according to firm size, and explores the underlying dimensions of these barriers. A quantitative cross-sectional survey design was adopted. Primary data were collected using structured questionnaires administered to registered property development firms in the FCT. Of the 254 questionnaires distributed, 206 valid responses were retrieved, representing an 81.1% response rate. Data were analysed using descriptive statistics, one-way Analysis of Variance (ANOVA), and Exploratory Factor Analysis (EFA). The findings reveal that all identified barriers significantly hinder the adoption of risk management practices, with an overall mean score of 3.894 (out of 5.0). The most significant challenges are limited financial resources (mean = 4.115) and insufficient trained personnel (mean = 4.048). Other major barriers include fragmented regulatory frameworks with weak enforcement (mean = 3.946), inadequate risk management culture (mean = 3.918), and lack of management commitment (mean = 3.846). The ANOVA results indicate significant differences in perceived barriers according to firm size, with small firms experiencing greater financial and technical constraints than medium and large firms. Furthermore, factor analysis classified the barriers into three principal dimensions: Financial–Technical, Organizational–Cultural, and Regulatory–Institutional barriers, collectively explaining 81.0% of the total variance. The study provides empirical evidence on the multidimensional barriers to risk management adoption among property developers in Abuja and offers practical recommendations for policymakers, professional bodies, financial institutions, and property developers aimed at strengthening risk management practices and improving project delivery in Nigeria's property development sector.