Chapter One — 1.1 Background to the Study

Procurement Method Selection has increasingly attracted the attention of researchers, regulators, and practitioners concerned with accuracy of cost estimates. This growing interest reflects the recognition that procurement method selection does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected Microfinance Banks in Nigeria.

Within the context of Selected Microfinance Banks in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of procurement method selection on accuracy of cost estimates, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on procurement method selection, there remains limited consensus on the precise nature of its relationship with accuracy of cost estimates, particularly within Selected Microfinance Banks in Nigeria. Many organizations continue to make decisions about procurement method selection without a clear, evidence-based understanding of how those decisions ultimately affect accuracy of cost estimates. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Procurement Method Selection on accuracy of cost estimates in Selected Microfinance Banks in Nigeria.
2. To assess the extent to which procurement method selection influences accuracy of cost estimates within the study area.
3. To identify the challenges associated with procurement method selection in relation to accuracy of cost estimates.
4. To recommend strategies for optimizing procurement method selection in order to improve accuracy of cost estimates.

1.4 Research Questions

1. What is the effect of procurement method selection on accuracy of cost estimates in Selected Microfinance Banks in Nigeria?
2. To what extent does procurement method selection influence accuracy of cost estimates within the study area?
3. What challenges are associated with procurement method selection in relation to accuracy of cost estimates?
4. What strategies can be adopted to optimize procurement method selection in order to improve accuracy of cost estimates?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around accuracy of cost estimates. For managers and practitioners within Selected Microfinance Banks in Nigeria, the study provides practical insight into how procurement method selection can be better managed. Finally, it contributes to the academic literature on quantity surveying by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this study confines itself to Selected Microfinance Banks in Nigeria, focusing specifically on how procurement method selection relates to accuracy of cost estimates within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.