Nigeria Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Nigeria Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

Growth in the construction industry in Nigeria is expected to slow to 0.9% in real terms this year, down from 4.5% in 2022, owing primarily to weakness in the industrial and residential sectors. Rising interest rates, lack of credit, cash shortages, and high construction costs will severely dampen investment in the construction sector this year. According to the Central Bank of Nigeria, the average cost of building materials in Nigeria rose by 18.9% in 2022. As a result, several property developers may defer investment in speculative projects. Furthermore, the debt crisis could weigh on investment growth. According to the Nigeria Debt Management Office, total public debt is expected to rise to 37.1% of GDP this year, close to the government's self-imposed 40% limit, which could limit the government’s future borrowing.

The construction industry is expected to register annual average growth 3% from 2024 to 2027, supported by investment in transport, electricity, water and sewage, and housing projects as part of the National Development Plan 2021-2025. The plan focuses on economic rejuvenation, including strengthening industrialization and alleviating poverty. The government plans a total capital expenditure of NGN49.7 trillion ($99.6 billion) for infrastructure projects during the period, with NGN298.3 trillion ($598 billion) expected from the private sector. It also targeting an increase in foreign direct investment (FDI) from NGN605.8 billion ($1.2 billion) in 2020 to NGN2.5 trillion ($5 billion) by 2025.

This report provides detailed market analysis, information and insights into the Nigerian construction industry, including -

• The Nigerian construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Nigerian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Nigeria. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Nigeria, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.