Launch of ConstructAfrica’s Nigeria Construction Market Report 2022
ConstructAfrica proudly announces the launch of its latest ‘Nigeria Construction Market Report’ on 9th January 2023.
The report offers the latest insights of interest to industry stakeholders and investors seeking to participate in the Nigeria’s construction industry. A free sample presentation of the report can be downloaded by clicking HERE.
As of Q1 2022, the sector grew by 4.8%, valued at NGN4.4 trillion (US$10.5 billion) in nominal GDP. The estimated market size of the construction sector in Nigeria is about US$40 billion.
Nigeria is the largest country in Africa by population and gross domestic product (GDP). In 2021, the population of Nigeria was estimated at 211.4 million. It is projected to reach 401.3 million by 2050 – surpassing the United States to become the third most populous in the world after China and India. Nigeria had a GDP of US$440.78 billion in 2021, representing over 15% of the continental output. However, per capita income is a little over US$2,000.
The West African country has glaring infrastructure gaps that challenge productivity and economic expansion. However, the federal government is keen to boost infrastructure development in collaboration with the organized private sector. A key part of governments plan to boost infrastructure involves incorporating the private sector into infrastructure development through several PPP (public-private partnership) initiatives embedded in national development strategies. These fall under the National Development Plan, Infrastructure master plan, and the National budget.
Nigeria’s construction sector offers opportunities in key segments such as commercial and residential real estate construction - office buildings, hotels, malls, apartments, duplexes, and country homes. Other key segments of opportunity are industrial construction, such as factories, warehouses, and plants, and infrastructure projects, such as road, rail and power.
The industry has faced various challenges, such as a weak regulatory framework and endemic corruption in the procurement process. It also faces political instability and exogenous factors such as crude oil prices. Other pressures include exchange rate and inflation risks, substandard building materials, and a high incidence of building collapse.
However, despite these challenges, there is an overall positive outlook for the construction industry, especially considering recent reforms like the Petroleum Industry Act 2021, the National Infrastructure Funds, and other initiatives to enhance infrastructure in the country.
The government looks to embark on 11,800 new projects and continue old ones. These projects, valued at over NGN3.6 trillion, would involve constructing schools, hospitals, roads, bridges, houses, energy, and telecommunication infrastructure.
ConstructAfrica's latest Nigeria Construction Market report takes an in-depth look at all major industry trends, the functioning of Nigeria’s construction industry, its size and structure, major projects, key player profiles, and competitors.
Regulatory guidelines and potential hindrances are also addressed in this report for those looking to invest in Nigeria’s construction industry or planning to set up a new business in the country's construction sector.
This report also has a new feature, “Interviews with Industry Stakeholders”, which provides insights and industry tips for prospective investors. Two interviews feature the CEO of a major construction company in Nigeria (Construction Kaiser) and a top construction and arbitration lawyer, Osinachi Nwandem, who is the editor of the Africa Construction Law blog and a regular commentator on construction law in Africa.
To Download a FREE sample presentation of the Nigeria Construction Market Report, please click HERE.
Top Photo: Construction of Akwa Ibom Stadium, Uyo, by Julius Berger Nigeria Ltd (courtesy, julius-berger.com)
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