The construction industry in Nigeria is expected to grow by 3.1% in 2025, supported by a rise in construction loans, and investment in oil and gas and infrastructure projects. According to the Central Bank of Nigeria (CBN), the annual average credit to the construction industry grew sharply by 61.4% in 2024, increasing from NGN1.4 trillion ($779.4 million) in 2023 to NGN2.3 trillion ($1.3 billion). Similarly, the average credit to the oil and gas upstream industry and oil and gas downstream industries it grew sharply by 96.6% and 93.4% respectively, over the same period. In February 2025, the Nigerian President announced plans to increase the budget expenditure for 2025 from NGN49.7 trillion ($27.6 billion), which was initially presented to the National Assembly in December 2024, to NGN54.2 trillion ($30.1 billion). In March 2025, the local energy company Seplat Energy announced an investment of NGN480.1 billion ($266.2 million) for the construction of its oil infrastructure and drilling of 13 new onshore wells to increase its average output from 48,618 barrels per day (bpd) in 2024 to 140,000 bdp in 2025. However, rising building material costs and a high housing deficit coupled with a grappling inflation rate are likely to weigh on the construction industry over the short term. According to CBN, the annual inflation rate of Nigeria stood at 34.8% in December 2024, up from 34.6% in November 2024.
The Nigerian construction industry is expected to register an average annual growth of 3.1% from 2026 to 2029, supported by investments in the infrastructure, oil and gas, and energy sectors, coupled with the government’s target of achieving carbon neutrality by 2060 under its Energy Transition Plan (ETP). In line with this, in February 2025, the Chinese energy company LONGI Green Energy Technology signed an agreement with the local hydrogen company APPL Hydrogen Limited to develop a green hydrogen project in Akwa Ibom State. This project will be developed at a cost of NGN12.2 trillion ($6.8 billion) and will see the construction of a green hydrogen facility with a capacity of 1.2 million tons per annum. Furthermore, in January 2025, the government secured NGN1.7 trillion ($942.8 million) from the African Development Bank (AfDB) to support energy projects in order to provide electricity to five million people by 2026. Apart from this AfDB will also invest NGN300.1 billion ($166.4 million) to support energy projects in 2025 alone. Growth over the forecast period will also be supported by investments in oil and gas projects. For instance, in February 2025, the Chinese chemical company China National Chemical Engineering partnered with the UK-based investment company Alpha Grip Management Company (AGMC) for the construction of Ogidigben Gas Revolution Industrial Park (GRIP) Project in Delta State valued at NGN30 trillion ($16.6 billion). Previously, in September 2024, the US-based oil company ExxonMobil announced its plan to invest NGN15 trillion ($8.3 billion) for the construction of Owo oil field in line with ExxonMobil's target of increasing its Nigerian oil production by 500,000 bdp by 2029.
The Nigerian construction industry is expected to register an average annual growth of 3.1% from 2026 to 2029, supported by investments in the infrastructure, oil and gas, and energy sectors, coupled with the government’s target of achieving carbon neutrality by 2060 under its Energy Transition Plan (ETP). In line with this, in February 2025, the Chinese energy company LONGI Green Energy Technology signed an agreement with the local hydrogen company APPL Hydrogen Limited to develop a green hydrogen project in Akwa Ibom State. This project will be developed at a cost of NGN12.2 trillion ($6.8 billion) and will see the construction of a green hydrogen facility with a capacity of 1.2 million tons per annum. Furthermore, in January 2025, the government secured NGN1.7 trillion ($942.8 million) from the African Development Bank (AfDB) to support energy projects in order to provide electricity to five million people by 2026. Apart from this AfDB will also invest NGN300.1 billion ($166.4 million) to support energy projects in 2025 alone. Growth over the forecast period will also be supported by investments in oil and gas projects. For instance, in February 2025, the Chinese chemical company China National Chemical Engineering partnered with the UK-based investment company Alpha Grip Management Company (AGMC) for the construction of Ogidigben Gas Revolution Industrial Park (GRIP) Project in Delta State valued at NGN30 trillion ($16.6 billion). Previously, in September 2024, the US-based oil company ExxonMobil announced its plan to invest NGN15 trillion ($8.3 billion) for the construction of Owo oil field in line with ExxonMobil's target of increasing its Nigerian oil production by 500,000 bdp by 2029.
The Construction in Nigeria - Key Trends and Opportunities to 2029 (Q1 2025) 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.
Scope
This report provides a comprehensive analysis of the construction industry in Nigeria. It provides:
- Historical (2019-2023) and forecast (2024-2028) 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 our 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 business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures