The value of the Nigerian construction industry’s (Industry) stood at ₦2.65 trillion in real terms as at 2019, contributing 3.7% to the economy, underpinned by the country’s huge population, rapid urbanisation in key cities such as Lagos, a housing deficit estimated at 22 million units and the country’s severe infrastructure gap. While these fundamental drivers will see to the growth of the Industry over the medium to long term, the construction industry is currently facing substantial challenges, hence making the short-term outlook highly unfavourable.
The COVID-19 pandemic has led to a severe contraction in economic activities in Nigeria, and the economy is expected to suffer an acute recession in 2020. The highly weakened macroeconomic environment portends a challenging year for the construction industry in Nigeria, with pressures emanating from several sectors, thus reducing the flow of projects in the pipeline for Industry operators, squeezing the financial health of operators, ultimately resulting in a sharp contraction in Industry growth, in line with the trend in the overall economy.
Agusto & Co.’s Construction Industry Report includes: