Nigeria’s construction industry has been projected to expand by 3.8% between 2022-2025, supported by the government’s investment on infrastructure and housing development projects according to market research company Research and markets.
According to the reports, total construction output will not surpass 2019 levels until 2023.
The industry recorded a steady improving trend in the first half of 2021, with its value add expanding by 3.7% year on year (YoY) in Q2 2021, compared to the year-on-year (Y-o-Y) growth rates of 1.4% in Q1 2021 and 1.2% in Q4 2020, according to the National Bureau of Statistics (NBS).
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), which was officially passed in July 2021, is expected to bring in new investments in energy infrastructure.
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 Coronavirus (COVID-19) pandemic – which triggered a 60% collapse in Nigerian government revenues in 2020 – may lead to a pressing need to reform the sector.
Furthermore, through a 10-year scheme, known as the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, which was announced in 2019, the government plans to attract investment in the country, which will further boost the infrastructure sector.
