The Nigerian Construction Industry remains a vital pillar for national economic growth and development, contributing approximately ₦6.5 trillion (4% of GDP) in 2024, with a projected annual growth of around 7% for 2025. The sector spans residential, commercial, industrial, and infrastructure segments, with public infrastructure projects driving over 60% of output, reflecting the government’s determined agenda to address Nigeria’s vast infrastructure deficit estimated at $3 trillion over the next 30 years. Urbanisation and population growth are significant demand drivers, intensifying the housing shortage, with over 31 million units needed to bridge the gap.
Macroeconomic challenges such as inflation (33.2% in 2024), currency depreciation, and elevated interest rates constrain profitability and increase input costs, particularly for imported materials. Regulatory bottlenecks and bureaucratic delays persist, complicating project execution and fostering inefficiencies alongside corruption issues. Labour shortages, exacerbated by skills emigration, disrupt project timelines and quality.
Nevertheless, opportunities abound, supported by robust government investments exceeding ₦8 trillion in capital projects for 2025, enhanced public-private partnerships, and rising foreign direct investment flows. Technological advancements, including Building Information Modelling (BIM), AI, and sustainable construction practices, offer avenues for efficiency gains and environmental compliance. The sector’s adoption of green building certifications and renewable energy solutions aligns Nigeria with global sustainability paradigms. While leading construction firms such as Julius Berger and CCECC underpin industry capacity with technical expertise and financial strength, financing remains a key constraint, with reliance on advance payments and bank borrowings amidst a challenging lending environment.
Sustainability and environmental considerations are gaining prominence, with increased focus on green building standards, energy efficiency, and waste management. The industry’s future success depends on effective project management, improved regulatory compliance, technological adoption, reliable supply chains, skilled workforce development, and stable government policies. Overall, while facing substantial headwinds, Nigeria’s construction sector is positioned for steady growth due to demographic trends, policy support, and infrastructural priorities, warranting a “Bb” risk rating with a stable outlook.
This report provides information on the Nigerian Construction Industry (“the Industry”). The report includes;
The following audience has been taken into consideration in compiling the report:
