Assessment of the Financial Management Practices of Indigenous Contractors in Zamfara State

Indigenous construction contractors in Nigeria face persistent financial management challenges that limit their capacity to execute projects effectively and sustain business growth. This study assesses the financial management practices of indigenous contractors in Zamfara State, focusing on firms registered with the state's contractors' database. A survey design was adopted, with 70 indigenous contractors and quantity surveyors forming the respondent group. Structured questionnaires were administered and data analysed using descriptive statistics and the Relative Importance Index. Findings reveal that inadequate project cash flow management, poor separation of personal and business finances, limited bookkeeping practices, and high reliance on client advance payments are the primary financial management weaknesses among contractors in Zamfara State. The study finds that most small indigenous contractors do not maintain project-specific cost accounts, making it difficult to identify unprofitable contracts or isolate cost overruns at source. Regulatory capacity to enforce financial reporting requirements is also found to be limited. Recommendations include tailored financial management training programmes co-developed by NIQS and the Nigerian Contractors Association, development of simplified project accounting templates, and integration of financial literacy into contractor prequalification criteria. Government procurement agencies are advised to require evidence of basic financial management systems as a prequalification condition. This research contributes to the construction business management literature in North West Nigeria. Keywords: financial management, indigenous contractors, Zamfara State, cash flow, construction business