The publisher expects the Nigerian construction industry to expand by 2.3% in real terms this year, which is a relatively sluggish recovery from the 2020 contraction of 7.7%. Although the expansion in output in 2021 will be supported by the easing of restrictions, the gradual recovery in overall economic conditions, and investments in the healthcare and energy sector, total construction output will not surpass 2019 levels until 2023.
The industry recorded a steady improving trend in the first half of this year, with its value add expanding by 3.7% year on year (YoY) in Q2 2021, compared to the year-on-year (Y-o-Y) growth rates of 1.4% in Q1 2021 and 1.2% in Q4 2020, according to the National Bureau of Statistics (NBS). Assuming there is no repeat of the strict lockdown similar to last year, the industry is projected to continue recovering over the remainder of the forecast period, and register an annual average growth of 3.8% between 2022-2025, supported by the government’s investment on infrastructure and housing development projects. The industry’s output is also expected to be supported by the government’s plans to improve energy and transport infrastructure. Moreover, the Petroleum Industry Bill (PIB), which was officially passed in July 2021, is expected to bring in new investments in energy infrastructure. The PIB aims to increase government revenue from oil, and establish a strong legal and regulatory framework for the Nigerian oil industry. The plunge in global oil prices due to the Coronavirus (COVID-19) pandemic - which triggered a 60% collapse in Nigerian government revenues in 2020 - may lead to a pressing need to reform the sector. Furthermore, through a 10-year scheme, known as the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, which was announced in 2019, the government plans to attract investment in country, which will further boost the infrastructure sector.
The industry recorded a steady improving trend in the first half of this year, with its value add expanding by 3.7% year on year (YoY) in Q2 2021, compared to the year-on-year (Y-o-Y) growth rates of 1.4% in Q1 2021 and 1.2% in Q4 2020, according to the National Bureau of Statistics (NBS). Assuming there is no repeat of the strict lockdown similar to last year, the industry is projected to continue recovering over the remainder of the forecast period, and register an annual average growth of 3.8% between 2022-2025, supported by the government’s investment on infrastructure and housing development projects. The industry’s output is also expected to be supported by the government’s plans to improve energy and transport infrastructure. Moreover, the Petroleum Industry Bill (PIB), which was officially passed in July 2021, is expected to bring in new investments in energy infrastructure. The PIB aims to increase government revenue from oil, and establish a strong legal and regulatory framework for the Nigerian oil industry. The plunge in global oil prices due to the Coronavirus (COVID-19) pandemic - which triggered a 60% collapse in Nigerian government revenues in 2020 - may lead to a pressing need to reform the sector. Furthermore, through a 10-year scheme, known as the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, which was announced in 2019, the government plans to attract investment in country, which will further boost the infrastructure sector.
The publisher’s Construction in Nigeria - Key Trends and Opportunities to 2025 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 (2016-2020) and forecast (2021-2025) 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 the publisher'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 the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures