Nigeria’s construction industry, projected to reach a market size of $135 billion in 2023, is a shining example of expansion and potential. The industry is expected to grow at an average annual growth rate (AAGR) of more than 3.2% between 2025 and 2028. This growth will be driven by investments in a variety of areas, such as infrastructure, transportation, energy, and oil and gas projects.
Driving Forces
Many factors influence Nigeria’s construction industry, most notably the growing demand for infrastructure development. Important industries including institutional, commercial, industrial, infrastructure, energy & utilities and residential construction are making incredible progress.
- Infrastructure Construction: Driven primarily by investments in port, rail, and road infrastructure, this industry continues to be essential to Nigeria’s development.
- Residential Construction: Investments in housing projects are continuing to propel growth in this segment, which is being driven by initiatives aimed at addressing the shortage of housing.
- Energy and Utilities Construction: Investments in these projects are essential to driving Nigeria’s economic growth, with a focus on electricity, power, oil and gas, and telecommunications infrastructure.
- Commercial Construction: Nigeria’s commercial landscape is rapidly expanding, as evidenced by the increase in leisure and hospitality, retail, office, and data center construction projects.
- Industrial Construction: This market is expected to grow significantly, driven by investments in the electric vehicle (EV) manufacturing sector and manufacturing activities.
- Institutional Construction: Driven by government programs to improve the infrastructure for healthcare and education, this industry offers a lot of room to grow and expand.
Looking Ahead
Nigeria’s construction industry is changing and offers an array of opportunities to global stakeholders. By gaining a thorough grasp of market dynamics, trends and opportunities, companies can strategically position themselves to take advantage of the rapidly expanding construction industry in the country.
