Market Research Report
Construction in Nigeria - Key Trends and Opportunities to 2025 (Q3 2021)
|Construction in Nigeria - Key Trends and Opportunities to 2025 (Q3 2021)|
Published: August 17, 2021
Content info: 47 Pages
Delivery time: 1-2 business days
GlobalData expects Nigeria's construction industry to grow by 3.9% in real terms this year, following a contraction of 7.7% in 2020. The negative impact from the pandemic, lockdown measures and low oil prices pushed Nigeria into a recession in 2020, with weak public investment, alongside limited foreign direct investment (FDI) amid the global economic downturn, further hampering construction activity across all sectors, especially in retail and real estate.
In 2021, the industry's performance will be positive, reflecting a sharp recovery in construction activity compared to periods in 2020, when works were not permitted. Assuming there is no repeat of the strict lockdown similar to last year, the construction industry is expected to register healthy growth in the coming quarters. According to the National Bureau of Statistics (NBS), the Nigerian construction industry grew by 1.4% year on year (YoY) in Q1 2021, preceded by 1.2% growth in Q4 and 2.8% in Q3 2020.
The industry is expected to post an annual average growth rate of 3.2% in real terms between 2022-2025, supported by the government's plan to invest in the country's infrastructure and energy sector. The 2021 Appropriation Bill is designed to continue achieving the goals of the Economic Sustainability Plan, which provides a road map for post-COVID-19 economic recovery to transition from the Economic Recovery and Growth Plan (2017-2020) to the successor Medium-Term National Development Plan (2021-2025).
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) is expected to bring in new investments in energy infrastructure. On 1st July 2021, the Nigerian Senate officially passed the PIB, after deliberation and input by both legislative and executive arms of government. 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 COVID-19 pandemic - which triggered a 60% collapse in Nigerian government revenues in 2020 - may lead to a pressing need to reform the sector.
This report provides detailed market analysis, information, and insights into Nigeria's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Nigeria. It provides -