Construction in Nigeria: Key Trends and Opportunities to 2023

2019-04-10
Price :
Published : Apr-2019
No. of Pages : 49

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. 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 is expected to expand over the forecast period (2019-2023), driven by the government’s efforts to develop the country’s housing and transport infrastructure. In January 2019, the government approved Executive Order 007 in order to boost private sector investment in the road construction projects in the country. The government’s focus to cut down the housing deficit in the country by providing affordable housing to citizens will also drive the industry’s growth over the forecast period. 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.

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).

GlobalData’s “Construction in Nigeria: Key Trends and Opportunities to 2023”, report provides detailed market analysis, information and insights into the Nigerian construction industry, including –
– The Nigerian construction industry’s growth prospects by market, project type and construction activity
– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Nigerian construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

– GlobalData expects the infrastructure construction market to retain its leading position over the forecast period and account for 30.1% of the industry’s total value in 2023, driven by the government’s focus on developing the country’s transport infrastructure. In August 2018, the government approved NGN348.6 billion (US$1.1 billion) for the road construction between Akwanga to Gombe by 2022-2023. Furthermore, in the 2019 budget, the government proposed to allocate NGN280.4 billion (US$917.7 million) for road infrastructure development across the country.
– Forecast-period growth in the energy and utilities construction market will be driven by government’s focus on developing the country’s renewable energy infrastructure. It aims to increase the contribution of renewable energy in the total energy mix from 15% in 2018 to 30% by 2030. The government plans to build the country’s biggest power plant, the Mambilla hydropower project, to generate 3.1GW of electricity, with a total investment of NGN1.8 trillion (US$5.8 billion) by 2024.
– GlobalData expects the residential construction market to record a forecast-period CAGR of 10.87% in nominal terms, driven by the government’s focus on providing housing to the country’s middle- and low-income citizens. The government will supply 500,000 housing units in the country by 2023, and plans to invest NGN1 trillion (US$3.3 billion) under the Family Homes Fund (FHF) by 2023 to minimize the housing deficit. Furthermore, in October 2018, the government announced it will allocate NGN500 billion (US$1.6 billion) under the FHF over the next five years.
– The government is focusing on building special economic zones (SEZ) and industrial parks in the country to promote the manufacturing and exports sectors. In the 2019 budget, the government proposed to allocate NGN42 billion (US$137.4 million) for the development of SEZs and industrial parks in the country. The government will also provide NGN15 billion (US$49.1 million) in order to develop micro, small and medium scale enterprises (MSMEs) in the country in 2019.
– The total construction project pipeline in Nigeria – as tracked by GlobalData, and 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.

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.

Filed in: Manufacturing
Publisher : GlobalData
More Reports
Title Price Buy Now

Construction in Myanmar – Key Trends and Opportunities to 2023

Construction in Myanmar - Key Trends and Opportunities to 2023 Summary Myanmar's construction industry output grew by 7% in real termsĀ¬ in 2018, following an average annual growth of 9% during the preceding four years. This increase can be attributed to public and private sector investments in transport infrastructure, energy and housing projects, positive developments in economic conditions and improvement in investor confidence. Policy reforms related to foreign direct investment (FDI) and a recovery in exports also supplemented the growth momentum. The industry's output value is expected to continue to expand in real terms over the forecast period (2019-2023), driven by the government's plans to upgrade the country's transport infrastructure. The government's continued investment in......
$1495

Construction in Indonesia – Key Trends and Opportunities to 2023

Construction in Indonesia - Key Trends and Opportunities to 2023 Summary The Indonesian construction industry continues to expand at a fast pace, driven mainly by government investment in energy and transport infrastructure. It registered an annual growth rate of 6.1% in real terms in 2018. The industry's output value is expected to continue to expand at a healthy rate over the forecast period (2019-2023), with investments in housing, transport and tourism infrastructure projects continuing to drive growth. In the 2019 budget, the government increased its total spending on transport infrastructure from IDR410.7 trillion (US$28.8 billion) in 2018 to IDR415 trillion (US$29.1 billion) in 2019. The focus on the development of local energy resources is also expected to drive industry growth......
$1495

Construction in Austria – Key Trends and Opportunities to 2023

Construction in Austria - Key Trends and Opportunities to 2023 Summary The Austrian construction industry registered growth of 3.1% and 2.8% in real terms in 2017 and 2018 respectively, following an average annual growth of -1.3% during 2014-2016. This growth can be attributed to positive developments in economic conditions, improvement in consumer confidence and investments in the commercial, industrial and office construction projects. Over the forecast period (2019-2023), the industry's output is expected to be supported by the government's efforts to develop the country's transport, residential, and energy and utilities infrastructure. The implementation of the Austrian Climate and Energy Strategy will drive investment in the development and expansion of wind and hydroelectric power......
$1495

Construction in Romania – Key Trends and Opportunities to 2023

Construction in Romania - Key Trends and Opportunities to 2023 Summary GlobalData's Construction in Romania - Key Trends and Opportunities to 2023 report provides detailed market analysis, information and insights into the Romanian construction industry, including: - The Romanian construction industry's growth prospects by market, project type and construction activity - Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Romanian construction industry - Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline. Construction activity in Romania was weak in 2017 and 2018, due to low public and private sector investments in const......
$1495

Construction in Canada – Key Trends and Opportunities to 2023

Construction in Canada - Key Trends and Opportunities to 2023 Summary The Canadian construction industry registered minimal growth in 2018, with output expanding by 0.6% in real terms - down from 4.3% in 2017. The sharp deceleration in activity was mainly driven by significant declines in residential construction, as well as repair, engineering and other construction activities. Overall, the industry posted negative growth during the review period (2014-2018), registering a compound annual growth rate (CAGR) of -0.29% in real terms. Low commodity prices, weak household spending and a decline in manufacturing investment hindered growth during the review period. Over the forecast period (2019-2023), Canadian construction activity is expected to be supported by the government's planned inv......
$1495

Project Insight – Port Construction Projects: Europe

Project Insight - Port Construction Projects: Europe Summary According to CIC analysis, Europe has the lowest investment of all the regions in port construction, which reflects its position as a mature but slow-growth economic area with developed port facilities. The EU growth rate of 2.4% in 2017 is relatively low compared with the dynamic economic growth of Asia-Pacific. Uncertainty resulting from the Brexit vote in the UK, together with declining global demand for manufactured goods, has dampened economic activity in Europe. Ports for the EU28 countries handled 975 million tonnes of cargo in Q1 2018, down from 978 million tonnes handled in Q4 2017, but up by 2.8% on the cargo handled in Q1 2017. Rotterdam was the leading port in the EU, with 433 million tonnes, followed by Antwerp, wi......
$1950

Project Insight – Port Construction Projects: Asia-Pacific

Project Insight - Port Construction Projects: Asia-Pacific Summary The rapid pace of economic expansion in Asia-Pacific - with China, India and Vietnam among the fastest growers - registered over 6.5% annual GDP growth in 2018, which highlights the region as a major global trading area. The region includes nine of the world's top ten ports by twenty-foot equivalent unit (TEU) volume handled. Shanghai leads in both the region and globally, with a volume of 40.2 million TEU in 2017, followed by Singapore with 33.7 million TEU. Recently, China has not invested as much in ports as its neighbors, as there is overcapacity in its existing port facilities. Unused port capacity in China is expected to double by 2030, due to the consolidation of shipping and reduced port trade. GlobalData's Const......
$1950

Project Insight – Port Construction Projects: Middle East and Africa

Project Insight - Port Construction Projects: Middle East and Africa Summary The Middle East and Africa region's economies are largely dependent on the export of oil-based products and commodities. The Middle East - particularly the Gulf Cooperation Council (GCC) countries - is a major exporter of petroleum products, and a major exporter and importer of liquefied natural gas (LNG). The improvement in demand for commodities should provide relief for economies in Africa, where dependence on commodities exports is high; this in turn will increase the need for higher capacity ports in the region. Africa, with its population of 1.2 billion, only handles about 6% of the global water-borne traffic and approximately 3% of the world container traffic, so it is overdue for port expansion. Africa h......
$1950

Project Insight – Port Construction Projects: The Americas

Project Insight - Port Construction Projects: The Americas Summary The US is the leading economy and trading power in the Americas, and consequently has the largest volume of trade through its ports in the region. The busiest container port, Los Angeles (LA), with 9.34 million twenty foot equivalent units (TEU) in 2017, is only 17th globally, as Asia-Pacific ports dominate the global stage. Long Beach (California) and New York/New Jersey, in second and third place, handle trade through their ports of 7.54 million TEU and 6.70 million TEU respectively. According to the American Association of Port Authorities (AAPA), the customs district of New Orleans, LA was the busiest port in the US, in terms of total tonnage, with 268.4 million metric tons (MMT) in 2017, closely followed by the cust......
$1950

Project Insight – Power Generation Construction Projects: Asia-Pacific

Project Insight - Power Generation Construction Projects: Asia-Pacific Summary Asia-Pacific remains a key engine of global economic growth, and this is mirrored in its increased demand for power to fuel its vibrant industrial production and expanding populations. The Asia-Pacific region comprises 60% of the global population, and consumes more than half of the global energy supply. China is by far the leading consumer of energy; in 2017 total consumption in China reached 3,132 million tonnes oil equivalent (Mtoe), equivalent to 23% of the world total, according to the BP Statistical Review. The Asia-Pacific region's total consumption stood at 5,744 Mtoe. China is the dominant investor in renewable energy, driven by the requirement to be less dependent on fossil fuels, which powered the ......
$1950
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy