NIGERIA’S CONSTRUCTION INDUSTRY: FUTURE GROWTH POTENTIAL IN 2023
Nigeria’s construction industry is projected to experience rapid growth in 2023 and beyond. How do technological advancements, investment in infrastructure, and increased projects drive this growth and how you can benefit from these changes?
Assessing Industrial Growth Trends in Nigeria’s Construction Industry
To understand the potential for growth in Nigeria’s construction industry up to 2023, it is important first to assess the various trends encouraging this growth. Technological advancements are making it easier to more quickly and efficiently construct buildings, while investment in infrastructure has resulted in improved access to transportation, allowing more contractors to take part in projects as well as reducing costs associated with building projects. Additionally, these developments have increased demand for building materials and services, subsequently driving an increase in construction-related jobs.
The growth of the construction industry in Nigeria is projected to continue into 2023 with expansions in transportation, housing, power transmission and distribution, oil & gas, and telecommunications. Despite this positive outlook, a decline could be expected due to possible disruption of activities during the general election this year.
Over the last few years, Nigeria’s construction industry has surpassed many other sectors of its local economy. It is predicted that this sector will carry on its growth in the years 2020-2030. Despite this, the industry is yet to fulfil its potential, as seen from its minimal contribution to the Nigerian GDP and employment of labour. To take full advantage of what the industry holds, there are plans by Nigeria’s Federal Government to invest in infrastructural developments, which should help attract foreign investors, resulting in more construction activity.
The building sector carries economic benefits, including opportunities for employment, infrastructure renovation and industrialisation; however, this impact on economic prosperity has yet to be felt due to many unexploited avenues within the industry.
There are immense chances available for private organisations to participate in constructing and refurbishing homes, business premises and industrial centres. Nigeria currently has an unprecedented 20 million housing deficit in sub-Saharan Africa – a fantastic opportunity for those within the industry.
Nigeria’s construction industry has seen a surge in activity in 2021-2022, driven by increased public and private spending. Civil engineering contracts account for 60% to 70% of total works, with non-residential and residential construction making up the remainder. This rise has caused many unregistered contractors to enter the sector, one of the main reasons for frequent building collapses. Despite this risk, the continued investment from public and private sources could result in significant growth for Nigeria’s construction industry in the upcoming years.
Despite the global crisis caused by the Russia-Ukraine war, the persistent COVID-19 pandemic and insurgency in some parts of Nigeria, the nation was poised to take its rightful place in the world economy.
Identifying Opportunities and Challenges Facing The Construction Industry in 2023
As the Nigerian construction industry continues to grow in 2023, contractors are expected to face a range of opportunities and challenges. Firstly, competition amongst contractors is likely to increase as more companies enter the market seeking to capitalize on the growth potential. Secondly, with construction costs expected to rise, contractors will need to look for cost-saving measures such as increased automation and green technology implementation to remain competitive.
(43) Nigeria’s Construction Industry: Future Growth Potential in 2023 | LinkedIn