The "Nigeria Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Nigeria is expected to grow by 8.0% to reach NGN 25.72 trillion in 2024.

Despite near-term challenges in certain construction sectors, Nigeria's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 4.4% is projected during 2024-2028, with the country's construction output expected to reach NGN 33.75 trillion by 2028, indicating substantial growth potential.

This market intelligence report offers a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in Nigeria, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

The construction industry in Nigeria is poised for growth, driven by government investment, urbanization, and a focus on sustainability. While challenges such as labour shortages and rising material costs remain, the overall outlook is positive. Senior executives should focus on leveraging infrastructure, residential, and industrial construction opportunities while adapting to the increasing demand for sustainable practices. By aligning strategies with government initiatives and market trends, stakeholders can successfully navigate the evolving landscape of Nigeria's construction industry.

Residential Construction: Addressing Housing Needs

• Growing Demand for Affordable Housing: The Government initiatives to increase affordable housing availability will benefit the residential construction sector. The allocation of NGN 99 billion for the construction of affordable housing units reflects a strategic focus on addressing the housing deficit.
• Shift Towards Sustainable Housing Solutions: There is a growing emphasis on sustainable and green building practices within the residential sector. Developers increasingly incorporate eco-friendly materials and energy-efficient designs to meet regulatory standards and consumer preferences.

Commercial Construction: Revitalizing Urban Spaces

• Investment in Commercial Real Estate: The commercial construction sector is expected to see increased investments in office buildings, retail spaces, and mixed-use developments. This growth is driven by a recovering economy and rising consumer spending.
• Focus on Smart Buildings: The trend towards smart buildings is gaining traction, with developers integrating technology to enhance energy efficiency and tenant experience. This includes using IoT devices for building management and sustainable energy solutions.

Institutional Construction: Enhancing Public Services

• Increased Spending on Education and Healthcare: The institutional construction sector benefits from heightened government spending on educational and healthcare facilities. In the 2024 budget, the government allocated NGN 2.2 trillion (USD 3.7 billion) to the education sector to improve infrastructure and access to services.
• Disaster Resilience in Institutional Projects: Given Nigeria's vulnerability to natural disasters, institutional projects increasingly incorporate resilience measures. New schools and hospitals are being designed to withstand environmental challenges, ensuring continuity of services.

Industrial Construction: Supporting Economic Diversification

• Expansion of Manufacturing Facilities: The industrial construction sector is experiencing growth driven by increased demand for manufacturing and logistics facilities. The government's focus on reducing reliance on imports and enhancing local production capabilities is fuelling investments in this area.
• Investment in Renewable Energy Infrastructure: Significant investments are being made in renewable energy projects, particularly in solar and wind energy. The government aims to increase the share of renewables in the energy mix, which will require extensive industrial construction efforts.

Infrastructure Construction: Building for the Future

• Major Infrastructure Projects Underway: Infrastructure construction remains a cornerstone of Nigeria's development strategy, with major projects such as the Lagos-Ibadan Expressway and the Second Niger Bridge progressing. These projects are crucial for improving connectivity and supporting economic activities.
• Focus on Transportation Networks: The government prioritizes transportation infrastructure, including roads, railways, and ports, to enhance logistics and trade. Investments in transportation networks are essential for facilitating economic growth and regional integration.
• Government Focus on Infrastructure Development: The Nigerian government has allocated NGN 548.6 billion (USD 922.2 million) for road construction and NGN 99 billion (USD 166.4 million) to develop 20,000 affordable housing units in 2024. This emphasis on infrastructure is critical for stimulating economic growth and attracting foreign investments.
• Investment in Energy Transition: As part of the Nigeria Energy Transition Plan, the government aims to reduce CO2 emissions to net zero by 2060. This includes plans to develop 197 GW of grid-connected solar and other renewable energy sources, requiring significant construction efforts in energy infrastructure.
• Mega-Project Pipeline: A range of mega-projects is in the pipeline, including oil and gas, electricity, transport, and industrial infrastructure investments. The government's commitment to shortening contract negotiation times in the oil sector is expected to accelerate project execution.

Scope

Market Data and Insights: This report provides market size and forecast across 40+ construction segments for ten years from 2019 - 2028 in Nigeria. KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Nigeria Construction Cost Structure Analysis: 10-year market size & forecast in value terms

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

Nigeria Economic Indicators

Nigeria Top Cities Construction Data

Nigeria Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Nigeria Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

Nigeria Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

Nigeria Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

Nigeria Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

Nigeria Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

Nigeria Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

Nigeria Infrastructure Construction Sectors: 10-year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Nigeria Green Infrastructure Construction: 10-year market size & forecast in value terms

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