This paper explores the efficacy of CBN’s governing system on capital projects based the conditions of contract and the leadership structure used on the projects.

Central Bank of Nigeria (CBN) has been characterized by its large investment in construction and extensive influence. This paper investigated the governance principles of CBN projects’ in Nigeria. The Project governance structure of these projects outlines specific roles and responsibilities for the client, design team, contractors and project managers.

Quantitative data obtained from 124 professionals with experience on CBN’s projects in Nigeria were critically analyzed using relative importance index. This research was based on 10 identified factors that contribute to unsound governance system of a project. The objective is to identify the relative importance of these factors as it relates to the poor performance of these projects.

Although the project delivery procedure were guided by the conditions of contracts, there is strong evidence which shows that the managerial system and structural framework for the decision making process have negatively affected the performance of these projects.

This paper concluded that the lack of goal alignment between the client and contractors, weak leadership or lack of authority, intensive or long approval process and confusion in contract conditions and decision making authority top the list of the most significant factors that contributed to the failure of project governance of CBN projects in Nigeria

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