Nigeria Construction Industry Market Size & Forecast - by Value and Volume (area and units), 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure Construction, City Level Construction by Value and Construction Cost

According to ConsTrack360, construction market in Nigeria is expected to grow by 8.0% on annual basis to reach NGN 25,720.4 billion in 2025.

The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 12.1%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.4% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of NGN 23,817.7 billion to approximately NGN 35,386.0 billion.

This report provides a detailed data-centric analysis of the construction sector in Nigeria, offering 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 the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors.

ConsTrack360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

Nigeria Residential Construction
The urgent housing shortage and government-backed initiatives create significant investment opportunities in Nigeria’s residential construction sector, particularly in the affordable housing segment. Developers and investors stand to benefit from strong demand and supportive policies.However, economic instability, rising costs, and regulatory inefficiencies continue to pose major challenges. Addressing these issues through strategic planning, collaboration with government agencies, and process improvements will be essential. To succeed, stakeholders must leverage tax incentives, adopt innovative construction methods, and engage in public-private partnerships (PPPs). These approaches will ensure long-term sustainability, affordability, and growth in Nigeria’s residential housing sector.

Macroeconomic Factors
• The residential construction sector in Nigeria is grappling with rising material costs, particularly cement and steel, which have significantly increased housing prices and affected affordability for many Nigerians. Inflation and currency devaluation have further escalated costs, making it difficult for developers to maintain affordability.
• With rapid urbanization and population growth, demand for affordable housing in cities like Lagos and Abuja is increasing. Developers are shifting towards cost-effective and sustainable building methods, such as modular construction and prefabricated materials, to mitigate cost pressures and accelerate project timelines.
• Despite these opportunities, the sector faces persistent bureaucratic hurdles, complex land acquisition processes, and high financing costs. These factors delay project approvals and execution, making it challenging for developers to meet Nigeria’s growing housing demand.

Project Landscape
• Key housing initiatives include the Family Homes Fund, which aims to deliver affordable housing units nationwide, and state-led projects that provide low-income housing solutions. These projects are vital in bridging the housing deficit and improving access to homeownership.
• The public sector plays a major role in housing development, providing funding, land access, and regulatory support. However, Public-Private Partnerships (PPPs) are increasingly being leveraged, allowing private developers to contribute expertise and financing in exchange for government-backed incentives.
• In the 2024 national budget, NGN10 trillion ($16.8 billion) was allocated for capital expenditure, including a portion dedicated to housing. This reflects the government’s commitment to reducing the housing deficit through increased investments in residential construction.

Government Policies & Programs
• The National Housing Policy emphasizes affordable housing development through key initiatives such as the Family Homes Fund and the National Social Housing Programme. These programs are designed to increase housing accessibility for low-income earners.
• To incentivize private sector participation, the government offers tax reliefs for affordable housing developers and favorable mortgage schemes for first-time homebuyers. These financial support mechanisms help increase homeownership rates and boost investor confidence.
• While the federal government establishes housing policies, state governments implement localized programs, providing developers with land access, infrastructure support, and additional incentives to attract investments in their regions.

Industry-Specific Developments
• Adopting prefabricated construction and alternative materials is growing, allowing developers to reduce costs and accelerate housing delivery. These technological innovations are helping overcome material shortages and labor inefficiencies.
• Sustainability is becoming a key focus, with developers integrating green building practices, such as solar-powered homes, energy-efficient insulation, and water-saving systems. These efforts align with Nigeria’s environmental and energy conservation goals.
• A shortage of skilled labor in the residential construction sector remains challenging, prompting increased investment in vocational training programs. These initiatives aim to equip workers with modern construction skills and enhance sector productivity.

Nigeria Commercial Construction
Nigeria’s urbanization boom and growing consumer market present strong investment opportunities in commercial construction, particularly in retail, mixed-use properties, and office developments. Demand for high-quality commercial spaces continues to rise, creating growth potential for developers and investors.However, inflation, foreign exchange volatility, and regulatory complexities remain major challenges for the sector. To overcome these hurdles, developers and investors must strategically plan financing, leverage government incentives, and adopt sustainable building practices.To remain competitive, stakeholders should embrace smart building technologies, engage in public-private partnerships (PPPs), and capitalize on government-backed incentives. These strategies will ensure long-term growth, sustainability, and resilience in Nigeria’s commercial construction industry.

Macroeconomic Factors
• The commercial construction sector in Nigeria is facing significant inflationary pressures, leading to rising material and labor costs. The depreciation of the naira against foreign currencies has further increased the cost of imported construction materials, affecting overall project budgets.
• The growing demand for modern retail spaces, mixed-use developments, and business districts is a key trend shaping the industry. Urbanization and the expanding middle-class drive demand for shopping malls, office buildings, and hospitality infrastructure, particularly in cities like Lagos, Abuja, and Port Harcourt.
• However, economic uncertainties, high financing costs, and fluctuating interest rates remain major challenges for commercial construction. Additionally, land acquisition bottlenecks and regulatory hurdles slow down project approvals and deter foreign and local investors from committing to large-scale developments.

Project Landscape
• Nigeria is witnessing new commercial developments, particularly in retail, office spaces, and hospitality projects. Notable projects include the Eko Atlantic City project in Lagos, a major mixed-use development designed to accommodate businesses, hotels, and luxury residences.
• The private sector dominates commercial construction, with real estate developers, multinational corporations, and foreign investors leading most projects. However, the government is facilitating sector growth by improving infrastructure, offering incentives, and easing business regulations.
• Despite economic challenges, commercial construction remains an attractive investment opportunity. The government’s urban renewal initiatives and plans for smart cities are expected to drive further investments in office parks, logistics centers, and technology hubs across Nigeria’s major urban areas.

Government Policies & Programs
• The Ease of Doing Business reforms introduced by the Nigerian government have streamlined business registration and construction permit approvals, making it easier for developers to launch new commercial projects. Urban renewal policies also encourage investment in modern business districts and retail spaces.
• The government offers various tax incentives, reduced land acquisition costs, and simplified permit processes to attract developers to commercial real estate projects. These policies boost investor confidence and spur development in strategic economic corridors.
• At the state level, governments offer location-based incentives, particularly in Lagos, Abuja, and Ogun State, to attract investors into commercial hubs. These include tax breaks, infrastructure support, and financing assistance for large-scale retail and office developments.

Industry-Specific Developments
• Adopting smart building technologies and digital infrastructure is transforming Nigeria’s commercial construction landscape. Developers are incorporating energy-efficient designs, IoT-enabled building management systems, and automated security solutions to enhance property value.
• Sustainability is becoming a key focus in commercial construction, with more developers seeking LEED certifications and green building compliance. Modern commercial buildings now integrate solar panels, energy-saving lighting systems, and eco-friendly building materials to align with global environmental standards.
• The workforce demand for skilled labor in commercial construction is rising, but there is a shortage of trained professionals in facility management, digital infrastructure integration, and modern building techniques. To address this, private companies and the government are investing in vocational training programs to upskill workers.

Nigeria Institutional Construction
Expanding Nigeria’s institutional infrastructure presents significant opportunities for contractors, investors, and developers, particularly in education and healthcare. The government’s commitment to modernizing schools, hospitals, and research centers provides long-term investment potential.However, funding constraints, project execution delays, and regulatory inefficiencies remain key challenges. To ensure timely project delivery, stakeholders must leverage private sector funding, streamline approval processes, and invest in advanced construction technologies.Developers should engage in PPPs, adopt sustainable building practices, and integrate digital infrastructure into institutional projects to capitalize on growth opportunities. These strategies will help ensure long-term efficiency and resilience in Nigeria’s institutional construction sector.

Macroeconomic Factors
• Nigeria’s institutional construction sector is experiencing significant investment, particularly in education, healthcare, and public infrastructure. However, high inflation and rising material costs have constrained budgets, leading to delays and cost overruns for many government-funded projects.
• The government prioritizes the modernization and expansion of educational and healthcare facilities, focusing on building new universities, technical training centers, and medical institutions. This aligns with the country’s goal of improving access to quality education and healthcare services, especially in underserved regions.
• Despite these efforts, the sector faces bureaucratic delays, inconsistent funding, and procurement inefficiencies, which affect project execution timelines. The industry's reliance on public sector financing makes it vulnerable to budget cuts and shifting government priorities, impacting long-term sustainability.

Project Landscape
• Significant institutional construction projects are underway, including expanding Federal Medical Centers, new teaching hospitals, and revitalizing public universities across different states. In Abuja, major projects include the National Cancer Center and the Abuja Smart City Initiative, which integrates educational and research institutions.
• While the government remains the primary funder of institutional projects, Public-Private Partnerships (PPPs) are increasingly being utilized, particularly in the healthcare sector. Private firms and international donors fund specialized hospitals, research centers, and advanced learning institutions to bridge infrastructure gaps.
• Under Nigeria’s National Development Plan, a significant portion of the budget has been allocated to healthcare and education infrastructure, with additional funding earmarked for digital learning initiatives and medical innovation hubs. These investments aim to enhance service delivery and improve institutional capacity.

Government Policies & Programs
• The National Education Infrastructure Policy supports the expansion of universities, polytechnics, and technical colleges to accommodate Nigeria’s growing student population. The government also invests in STEM (Science, Technology, Engineering, and Mathematics) education facilities to improve technical skill development.
• To encourage institutional construction, the government provides low-interest loans, grants, and tax exemptions for institutions upgrading their infrastructure. International organizations and development agencies are also collaborating with the government to fund new hospitals and medical research centers.
• To streamline institutional project execution, the government has introduced regulatory reforms to fast-track construction approvals for educational and healthcare facilities. However, challenges persist in funding disbursement and bureaucratic inefficiencies, which delay project completion.

Industry-Specific Developments
• Digital learning infrastructure, smart classrooms, and AI-powered medical technologies are revolutionizing Nigeria’s institutional sector. Universities and hospitals are integrating modern IT infrastructure, telemedicine services, and e-learning platforms to improve service delivery.
• Sustainability is a key focus in institutional construction, emphasizing solar-powered schools and energy-efficient hospital designs. New projects are incorporating rainwater harvesting systems, solar energy solutions, and sustainable building materials to reduce operational costs.
• There is a growing demand for skilled professionals in education and healthcare construction, but workforce shortages persist. To address this, the government and private sector invest in vocational training programs and workforce development initiatives to equip workers with modern construction and engineering skills.

Nigeria Industrial Construction
Nigeria’s strong government support, investment incentives, and nearshoring trends make it an attractive destination for industrial development. Manufacturing, logistics, and high-tech industrial construction growth present long-term opportunities for developers and investors.However, regulatory bottlenecks, inadequate infrastructure, and workforce shortages require strategic solutions. Streamlining approval processes, improving electricity supply, and enhancing technical education will be crucial for sustainable sector growth.To remain competitive, industrial stakeholders should leverage government incentives, invest in advanced manufacturing technologies, and adopt sustainable construction practices. These strategies will help position Nigeria as a leading hub for industrial development in Africa.

Macroeconomic Factors
• The industrial construction sector in Nigeria is experiencing growth, driven by manufacturing expansion, nearshoring trends, and government-backed industrialization initiatives. However, rising construction costs, supply chain disruptions, and inflationary pressures have significantly increased the cost of cement, steel, and machinery.
• A key trend shaping the sector is the development of industrial parks and manufacturing zones, particularly in Lagos, Ogun, and Kaduna. The government prioritizes high-value manufacturing sectors, such as automotive, agro-processing, and renewable energy production, to drive economic diversification and reduce import dependence.
• Despite strong investment prospects, regulatory bottlenecks, high energy costs, and infrastructure deficits hinder industrial construction. The lack of reliable electricity and transportation networks remains a significant risk, limiting the efficiency of new and existing industrial zones.

Project Landscape
• Nigeria is witnessing a surge in industrial park developments, with major projects such as the Lekki Free Trade Zone (LFTZ), Ogun-Guangdong Free Trade Zone, and Abuja Technology Village. These projects aim to attract foreign direct investment (FDI) and boost local manufacturing capacity.
• The private sector is leading investment in manufacturing facilities and logistics hubs, with multinational corporations and local developers expanding industrial estates. To facilitate growth, the government provides infrastructure support, such as road networks, power plants, and water supply systems.
• Substantial funds have been allocated under the Nigeria Industrial Revolution Plan (NIRP) to promote industrial expansion in strategic sectors like textiles, automobile assembly, and steel production. This investment aligns with the government’s goal of making Nigeria a manufacturing hub for West Africa.

Government Policies & Programs
• The National Industrial Policy supports the modernization and expansion of industrial zones by providing investment incentives, tax holidays, and low-interest loans for industrial developers. Special economic zones (SEZs) offer duty-free imports and tax breaks to attract foreign manufacturers.
• The Manufacturing Expansion Program (MEP) provides financial support and regulatory incentives for companies investing in high-tech and export-driven industries. Additionally, the Green Manufacturing Initiative promotes investments in sustainable industrial construction.
• The government formulates industrial growth policies at the federal level, while state governments provide location-based incentives to attract investors. This decentralized approach allows regional industrial hubs to develop specialized infrastructure suited to their economic strengths.

Industry-Specific Developments
• Adopting automation, robotics, and AI-driven manufacturing is transforming industrial construction. Companies invest in smart factories with automated production lines and digitally integrated logistics centers to enhance efficiency and reduce operational costs.
• Sustainability is gaining attention, with a focus on low-carbon industrial parks and renewable energy adoption. Many companies are integrating solar power, energy-efficient designs, and water recycling systems into their new industrial facilities to lower their environmental impact.
• The demand for skilled labor in AI-driven and high-tech manufacturing is increasing, but there is a shortage of specialized workers. To address this, Nigeria is expanding vocational training programs and partnering with technical institutions to equip workers with Industry 4.0 skills.

Nigeria Infrastructure Construction
Nigeria’s government-backed infrastructure projects provide long-term stability for developers and investors, especially in transportation, energy, and digital infrastructure. The country’s push toward urbanization, economic diversification, and technological innovation presents significant opportunities for the sector.However, budget constraints, bureaucratic challenges, and funding limitations continue to pose hurdles. Streamlining approval processes, strengthening PPP frameworks, and prioritizing sustainable infrastructure development will be crucial for successful project execution.To capitalize on growth opportunities, stakeholders should align with government priorities, leverage available incentives, and invest in smart and green technologies. These strategies will enhance efficiency, resilience, and competitiveness in Nigeria’s evolving infrastructure sector.

Macroeconomic Factors
• Nigeria’s infrastructure construction sector is witnessing increased investment in transportation, energy, and digital infrastructure. However, rising material costs, currency devaluation, and high interest rates continue to inflate project expenses and slow down execution timelines.
• A key trend shaping the sector is the expansion of road networks, rail systems, and power generation projects to improve national connectivity and economic productivity. Additionally, the government is prioritizing green infrastructure and smart city projects, particularly in urban centers like Lagos, Abuja, and Port Harcourt.
• Despite these advancements, the sector faces budget constraints, regulatory inefficiencies, and public opposition to large-scale projects. Land acquisition disputes, political instability, and funding shortages frequently delay infrastructure development, affecting long-term feasibility.

Project Landscape
• Several large-scale infrastructure projects are currently underway, including the Lagos-Ibadan Expressway expansion, the Abuja-Kano Rail Line, and the Second Niger Bridge. These projects aim to improve transportation efficiency and ease congestion in key economic corridors.
• The public sector remains the primary financier of large infrastructure projects, but private sector participation through Public-Private Partnerships (PPPs) is increasing. Foreign investors from China and the European Union fund and manage large infrastructure projects, particularly in energy and transportation.
• Under the National Development Plan (NDP) 2021-2025, billions of naira have been allocated to transport, power, and urban renewal projects. The plan focuses on regional connectivity, logistics hubs, and renewable energy infrastructure, reflecting Nigeria’s long-term economic and environmental priorities.

Government Policies & Programs
• The National Infrastructure Master Plan aims to develop modern transport systems, expand the power grid, and strengthen digital infrastructure. Federal policies also emphasize mass transit solutions, port modernization, and waterway developments to boost economic efficiency.
• The federal government oversees major infrastructure projects, while state governments manage local infrastructure, such as road maintenance, urban sanitation, and waste management. This decentralized approach ensures targeted infrastructure growth across different regions.

Industry-Specific Developments
• Nigeria is integrating smart technologies into infrastructure development, with cities like Lagos adopting AI-driven traffic management systems and digital tolling solutions to ease congestion. Building Information Modeling (BIM) is also increasingly used in large-scale infrastructure planning to enhance cost control and efficiency.
• Sustainability is a growing priority, with investments in renewable energy infrastructure such as solar farms, hydroelectric plants, and electric vehicle (EV) charging stations. The government also enforces green building standards to ensure new public infrastructure projects meet energy efficiency and carbon reduction targets.
• The sector faces a high demand for skilled labor, particularly in railway construction, power projects, and digital infrastructure. Nigeria is expanding technical training programs and vocational education to address workforce shortages to equip workers with engineering, digital technology, and infrastructure management skills.

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 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

• 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)

Reasons to buy

• Comprehensive Insight into Construction Market Dynamics: Gain a deep understanding of the construction market, including opportunities, industry trends, and key drivers across over 40+ market segments and sub-segments.

• Detailed Analysis of Construction Costs: Explore construction costs broken down by type, including material and labor costs. The report provides detailed information on costs by construction type and worker.

• Top Ten Cities Construction Value: Access valuable data on the construction market size for major cities, focusing on key city-level sectors.

• In-Depth Volume and Value Data: Obtain a thorough understanding of the market from both value and volume perspectives, covering historical data and forecasts by activity and units.

• Strategic Market-Specific Insights: Formulate targeted strategies by identifying growth segments and opportunities and assessing key trends, drivers, and risks within the construction industry.

• City-Level Trend Analysis: Get detailed trend analyses for tier-1, tier-2, and tier-3 cities, offering actionable insights for urban-focused strategies. Show more