Nigeria Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q3 2024)

Nigeria Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q3 2024)

Summary

GlobalData’s Construction in Nigeria - Key Trends and Opportunities to 2028 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.

GlobalData expects growth in the Nigerian construction industry to slow from 3.6% in 2023 to 1.2% in 2024, owing to high inflation, rising public debt, rising interest rates, and high construction cost. The Central Bank of Nigeria raised its monetary policy rate by 50 basis points (bps) in July 2024, from 26.25% to 26.75%. This was preceded by a continuous increase of 150 bps in May, 200 bps in March, and 400 bps in February 2024. However, increasing investments in the housing sector to address the rising housing deficit and rising hotel construction activity is expected to drive growth in 2024. The Federal Ministry of Housing and Urban Development commenced the construction of 500 housing units in Kano State, in early September 2024. The project involves the construction of blocks of one, two, and three-bedroom semi-detached bungalows.

The Nigerian construction industry is expected to register average annual growth of 3.1% from 2025 to 2028, supported by investment in the transport, housing, and oil and gas sectors. The Minister of Housing and Urban Development announced in July 2024 that 550,000 new housing units must be constructed per year for the next ten years, with an investment of NGN5.5 trillion ($6.5 billion) to reduce the national housing shortage. Growth over the forecasted period will also be supported by investments in power infrastructure projects, particularly in renewable energy projects, in line with the federal government’s target of raising the share of renewable energy in the total electricity mix to 30GW in 2030, from 13.5GW in 2021.

Scope

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

• Historical (2019-2023) and forecast (2024-2028) 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 our 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 business strategies using GlobalData's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors