The Nigerian construction industry is poised for a notable recovery, with a projected growth of 3.1% in real terms for 2025, driven by increased construction loans and significant government investments in oil, gas, and infrastructure projects.
According to data from the Central Bank of Nigeria (CBN), total credit to the construction sector rose by 5% year-on-year (YoY) by April 2025, reaching NGN2.4 trillion ($1.3 billion) from NGN2.2 trillion ($1.2 billion) in April 2024, following a robust 61.4% growth in 2024. This financial boost is complemented by an 8% YoY increase in credit to the Downstream Natural Gas and Crude Oil Refining industry over the same period, reflecting a strong push in energy-related development.
The Nigerian government is further supporting this growth trajectory with a revised 2025 budget, escalating from an initial NGN49.7 trillion ($33.1 billion), as presented to the National Assembly in December 2024, to NGN54.2 trillion ($36.1 billion). This adjustment underscores a commitment to infrastructure and economic diversification. In February 2025, the government outlined plans to enhance oil production capacity from 1.75 million barrels per day (bpd) in February 2025 to 2.75 million bpd by December 2026, a move expected to stimulate related construction activities.
Looking ahead, the industry is forecasted to achieve an average annual growth rate of 3.2% from 2026 to 2029. This growth will be fuelled by investments across agriculture, oil and gas, and energy sectors, aligning with the nation’s Energy Transition Plan (ETP) targeting carbon neutrality by 2060. A significant milestone in this plan is the African Development Bank Group’s (AfDB) launch in April 2025 of the NGN970.1 billion ($538 million) Special Agro-Industrial Processing Zones (SAPZ) programme, spanning eight states including Kaduna, Kano, and the Federal Capital Territory. This initiative is set to bolster agricultural infrastructure and create new construction opportunities.
The “Construction in Nigeria – Key Trends and Opportunities to 2029” report offers an in-depth analysis of the industry, detailing growth prospects across commercial, industrial, infrastructure, energy, utilities, institutional, and residential sectors. It provides historical data from 2020-2024 and forecasts through 2029, highlighting key drivers such as government spending and private investment. The report also examines the mega-project pipeline, offering insights into development stages, participants, and major projects, alongside listings of leading contractors and consultants. This comprehensive resource enables stakeholders to evaluate competitive risks, identify market opportunities, and assess growth potential with over 600 time-series data forecasts.
Despite the optimistic outlook, challenges such as regulatory hurdles and economic volatility warrant careful consideration. The report’s actionable insights assist businesses in formulating strategies to mitigate risks, including rising costs and competitive pressures, while capitalising on Nigeria’s evolving construction landscape.
Credits: This article is based on information from the “Nigeria Construction Industry Report 2025” published by GlobeNewswire on August 20, 2025, available at https://www.globenewswire.com/.
