Nigeria Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)

Nigeria Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)

Summary

GlobalData’s Construction in Nigeria - Key Trends and Opportunities to 2028 (Q4 2024) 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 estimates stunted growth in Nigeria’s construction industry, slowing from 3.6% (in real terms) in 2023 to 1.2% in 2024, resultant of high inflation, rising interest rates, rising cost of building materials, and a worsening housing deficit. According to the Debt Management Office Nigeria (DMO), domestic and external debts increased by 24.9%, from NGN121.6 trillion ($143 trillion) in March 2024 to NGN134.2 trillion ($157.9 trillion) in June 2024. This increase is attributed to the depreciation of the local currency (Nigerian Naira - NGN) and additional borrowing undertaken to partially cover the 2024 Budget deficit. Furthermore, fluctuating exchange rates, inconsistent fiscal policies, and higher borrowing costs have disrupted construction activities, leading to delays and workforce shortages. For instance, in November 2024, the state-owned oil company Nigerian National Petroleum Company (NNPC) missed its deadline for completing the Port Harcourt Refinery rehabilitation project, due to unforeseen risks and challenges; this marks the seventh missed deadline, with the most recent promise of operational status by September 2024 remaining unfulfilled. However, government’s plan to address the rising housing deficit, coupled with public and private investments in industrial, energy and healthcare construction projects is expected to have supported the industry’s growth in 2024.

The Nigerian construction industry is expected to register an average annual growth of 3.1% from 2025 to 2028, supported by investment in the housing, and oil and gas sectors. In July 2024, the Minister of Housing and Urban Development highlighted the need to build 550,000 new housing units annually over the next decade; this requires an investment of NGN5.5 trillion ($6.5 billion) to address the national housing deficit

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