Impact of Asset Replacement Decisions on Organisational Performance in Nigeria

Decisions on when and how to replace physical assets are central to organisational strategy and long-term sustainability, particularly in asset-intensive and resource constrained environments. This study examines the impact of asset replacement decisions on organisational performance in Nigeria using a desk review methodology. Relying on secondary data from peer-reviewed journal articles, industry and consultancy reports, policy documents, and publications by international organisations, the study synthesises contemporary evidence on replacement timing, lifecycle assessment, maintenance strategy, technological upgrades and their implications for productivity, cost efficiency, operational reliability, and competitiveness. The findings show that timely and strategic asset replacement enhances productivity, reduces unplanned downtime, lowers maintenance costs, and strengthens competitive positioning. However, the study also highlights contextual challenges that hinder effective asset replacement in Nigeria, including high financing costs, infrastructural deficiencies, macroeconomic volatility, and weak internal control systems. These constraints make asset replacement decisions more complex than in advanced economies, for which many existing frameworks were originally developed. The study recommends the adoption of structured asset replacement models, stronger internal controls, supportive government policies, and flexible financing arrangements. It concludes by identifying gaps in the extant literature and proposing areas for further empirical research on asset replacement and organisational performance in Nigeria.