Appraisal of Circular Economy Adoption Among Small and Medium Enterprises (SMEs) in the Construction Industry

The adoption of circular economy (CE) practices among small and medium-sized enterprises (SMEs) in the Nigerian construction industry (CI) is essential for addressing environmental degradation and resource inefficiency. However, SMEs face considerable challenges in implementing sustainable practices. This study investigates the factors influencing CE adoption among SMEs in the Nigerian CI using an exploratory sequential mixed-methods approach. Semi-structured interviews with 30 industry professionals were conducted, followed by a quantitative survey of 519 respondents across Nigeria’s six geopolitical zones. Qualitative data were analyzed thematically, and quantitative data were statistically examined. Findings reveal regional disparities, with the Southwest showing the highest CE awareness and knowledge, and the Northeast and Northwest the lowest. Medium-sized SMEs demonstrate greater CE awareness than smaller firms. Key challenges include skills and training deficits, and difficulties in strategic and operational integration. To address these, strategies such as establishing CE ambassador networks, developing microfinance programs, and creating detailed CE roadmaps are recommended. This study contributes to the limited literature on CE adoption by SMEs in the Nigerian CI, offering insights into the barriers and strategies for promoting sustainable practices.