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Construction in Nigeria: Key Trends and Opportunities to 2023

Construction in Nigeria: Key Trends and Opportunities to 2023

Summary

The Nigerian construction industry recovered in 2017 and 2018, after registering a gloomy performance in 2016. The industry registered growth of 1% and 2.3% in real terms in 2017 and 2018 respectively. Consequently, the industry’s output value, measured at constant 2017 US dollar exchange rates, increased from US$42.7 billion in 2016 to US$44.2 billion in 2018. This was supported by improvements in economic conditions, an increase in oil revenues and the government’s investment in the development of overall infrastructure projects across the country. In the 2016 and 2017 budgets, the government allocated NGN1.7 trillion (US$5.6 billion) towards capital infrastructure development.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 5.39% over the forecast period - up from 0.36% during the review period (2014-2018). The industry is consequently expected to rise from a value of US$44.2 billion in 2018 to US$57.4 billion in 2023, measured at constant 2017 US dollar exchange rates. The total construction project pipeline in Nigeria including all mega projects with a value above US$25 million - stands at NGN123.2 trillion (US$403.1 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 55.1% of the pipeline value being in projects in the pre-execution and execution stages as of April 2019.

In the 2019 budget, the government proposed to allocate NGN30 billion (US$98.3 million) towards affordable housing under the National Housing Program. Improvements in consumer and investor confidence, along with developments in regional economic conditions, are expected to bode well for the industry’s growth. Forecast-period growth will also be supported by ongoing urbanization and population growth.

Accounting for 28.3% of the industry’s total value in 2018, infrastructure construction was the largest market in the Nigerian construction industry during the review period. The market is expected to retain its position over the forecast period, with a market share of 30.1% of the industry’s total value in 2023. Over the forecast period, the market output is expected to be supported by government investments to develop the country’s transport infrastructure. Energy and utilities construction accounted for 24.8% of the industry’s total output in 2018, followed by residential construction with 21.9%, commercial construction with 12.1%, industrial construction with 7.0% and institutional construction with 5.9%.

Scope

  • This report provides a comprehensive analysis of the construction industry in Nigeria.
  • Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in Nigeria, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants.
Reasons to buy
  • Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.


  • Executive Summary
  • Construction Outlook: At-a-glance
    • Table Construction Outlook
    • Table Figure 1:Key Markets, Construction Output Growth Matrix and Risk Matrix
    • Table Figure 2:Nigeria, Construction Projects Pipeline by Sector (NGN Trillion)
  • Latest News and Indicators
  • Key Drivers and Risks
    • Economic Performance
      • Table Nigeria, Key Economic Indicators
    • Political Environment
    • Demographics
    • Risk Profile
      • Table Figure 3:Nigeria, Risk Profile
      • Table Figure 4:Nigeria, Risk Comparison
  • Construction Outlook
    • All Construction
      • Outlook
        • Table Figure 5:Nigeria, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate
        • Table Figure 6:Nigeria, Construction Output Value, Growth Matrix
        • Table Figure 7:Nigeria, Construction Output Value, by Sector (NGN Billion), 2014-2023
      • Project analytics
        • Table Figure 8:Nigeria, Construction Projects Pipeline, Projected Annual Spending by Stage (NGN Billion), 2018-2023
        • Table Figure 9: Nigeria, Construction Projects Pipeline, Value by Stage (NGN Billion)
        • Table Nigeria, Construction Output Value (nominal, NGN Billion)
        • Table Nigeria, Construction Output Value (nominal, US$ Million)
    • Commercial Construction
      • Outlook
        • Table Figure 10:Nigeria, Commercial Construction Output by Project Type (NGN Billion), 2014-2023
      • Project analytics
        • Table Figure 11: Nigeria, Commercial Construction Projects Pipeline, Value by Stage (NGN Billion)
        • Table Figure 12: Nigeria, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (NGN Billion), 2018-2023
        • Table Nigeria, Top Commercial Construction Projects by Value
    • Industrial Construction
      • Outlook
        • Table Figure 13:Nigeria, Industrial Construction Output by Project Type (NGN Billion), 2014-2023
      • Project analytics
        • Table Figure 14: Nigeria, Industrial Construction Projects Pipeline, Value by Stage (NGN Billion)
        • Table Figure 15: Nigeria, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (NGN Billion), 2018-2023
        • Table Nigeria, Top Industrial Construction Projects by Value
    • Infrastructure Construction
      • Outlook
        • Table Figure 16:Nigeria, Infrastructure Construction Output by Project Type (NGN Billion), 2014-2023
      • Project analytics
        • Table Figure 17:Nigeria, Infrastructure Construction Projects Pipeline, Value by Stage (NGN Billion)
        • Table Figure 18:Nigeria, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (NGN Billion), 2018- 2023
        • Table Nigeria, Top Infrastructure Construction Projects by Value
    • Energy and Utilities Construction
      • Outlook
        • Table Figure 19:Nigeria, Energy and Utilities Construction Output by Project Type (NGN Billion), 2014-2023
      • Project analytics
        • Table Figure 20:Nigeria, Energy and Utilities Construction Projects Pipeline, Value by Stage (NGN Billion)
        • Table Figure 21:Nigeria, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (NGN Billion), 2018-2023
        • Table Nigeria, Top Energy and Utilities Construction Projects by Value
    • Institutional Construction
      • Outlook
        • Table Figure 22:Nigeria, Institutional Construction Output by Project Type (NGN Billion), 2014-2023
      • Project analytics
        • Table Figure 23: Nigeria, Institutional Construction Projects Pipeline, Value by Stage (NGN Billion)
        • Table Figure 24: Nigeria, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (NGN Billion), 2018-2023
        • Table Nigeria, Top Institutional Construction Projects by Value
    • Residential Construction
      • Outlook
        • Table Figure 25:Nigeria, Residential Construction Output by Project Type (NGN Billion), 2014-2023
      • Project analytics
        • Table Figure 26:Nigeria, Residential Construction Projects Pipeline, Value by Stage (NGN Billion)
        • Table Figure 27:Nigeria, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (NGN Billion), 2018-2023
        • Table Nigeria, Top Residential and Mixed-Use Construction Projects by Value
  • Key Industry Participants
    • Contractors
      • Table Nigeria, Key Contractors
      • Table Figure 28:Nigeria, Headquarters of Key Contractors (% of Total Project Pipeline)
      • Table Figure 29:Nigeria, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
    • Consultants
      • Table Nigeria, Key Consultants
      • Table Figure 30:Nigeria, Headquarters of Key Consultants (% of Total Project Pipeline)
      • Table Figure 31:Nigeria, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)
  • Appendix
    • What is this Report About?
    • Definitions
      • Table GlobalData Construction Market Definitions
      • Table Construction Risk Index Ratings and Scores
  • About GlobalData
    • GlobalData at a Glance
      • Table Figure 32:GlobalData at a Glance
    • GlobalData Construction
    • Disclaimer
    • Contact Us

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