The Construction Sector in Nigeria
Revenue in Nigeria’s construction industry declined in 2020. Despite ongoing supply chain disruptions and project delays caused by the coronavirus pandemic, construction activity is steadily recovering. Infrastructure development is the cornerstone of Nigeria’s pandemic economic recovery plan. However, the government is grappling with funding challenges and will need to attract private investment if it hopes to start bridging the country’s huge infrastructure deficit. Local companies often operate at a disadvantage as foreign construction companies are generally awarded large projects.
The government’s efforts to reduce Nigeria’s substantial infrastructural deficit have been inadequate for the most part, particularly in the rural areas and in the north. China is the government’s largest infrastructure partner, and several high-value civil engineering and construction projects are financed by the Export-Import Bank of China and China Development Bank. The Infrastructure Corporation of Nigeria (Infra-Co), which will be established before the end of 2021, is expected to support construction sector growth. Nigeria’s central bank, the Nigerian Sovereign Investment Authority and the Africa Finance Corporation will provide initial seed capital for the public-private partnership.
This report focuses on the construction industry and infrastructure development in Nigeria and includes information on the state and size of the sector, major infrastructure and construction projects, corporate actions and developments and influencing factors. These include the effect of the pandemic and commodity prices on the economy and the sector. There are profiles of 24 local and international companies operating in Nigeria including Nigerian Stock Exchange-listed Julius Berger, which is one of Nigeria’s most well-known civil engineering and construction companies. Other profiles include ITB Nigeria, a subsidiary of the Chagoury Group, which is involved in high-rise residential and commercial construction projects, Cappa and D’Alberto, which is Nigeria’s oldest construction company and construction and civil engineering company El-Alan Construction Company Nigeria.