Who Owns Whom

The Construction Sector in Nigeria

Carole Veitch | Nigeria | 20 September 2021

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.

Infrastructure Focus

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.

Report Coverage

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.

Table of Contents

PAGE
1. INTRODUCTION 1
2. COUNTRY PROFILE 1
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 4
3.2. Geographic Position 6
4. SIZE OF THE INDUSTRY 8
5. STATE OF THE INDUSTRY 11
5.1. Local 11
5.1.1. Corporate Actions 16
5.1.2. Regulations and Government Policies 17
5.2. Continental 18
5.3. International 23
6. INFLUENCING FACTORS 25
6.1. Coronavirus 25
6.2. Economic Environment 26
6.3. Government Interventions 27
6.4. Investment in Infrastructure Development 28
6.5. Population Growth and Urbanisation 29
6.6. Construction Equipment and Materials: Local Capacity, Quality and Security of Supply 29
6.7. Technology, Research and Development (R&D) and Innovation 30
6.8. Environmental Concerns 32
6.9. Labour 33
6.10. Health and Safety Concerns 34
7. COMPETITION 35
7.1. Barriers to Entry 35
8. SWOT ANALYSIS 36
9. OUTLOOK 37
10. INDUSTRY ASSOCIATIONS 38
11. REFERENCES 38
11.1. Publications 38
11.2. Websites 40
APPENDIX 1 42
Summary of Notable Players 42
COMPANY PROFILES 49
ARAB CONTRACTORS (OSMAN AHMED OSMAN) NIGERIA LTD 49
BRUNELLI CONSTRUCTION COMPANY NIGERIA LTD 51
BUILDSTRUCT NIGERIA LTD 52
CAPPA AND D'ALBERTO LTD 53
CHINA CIVIL ENGINEERING CONSTRUCTION NIGERIA LTD 56
DANTATA & SAWOE CONSTRUCTION COMPANY (NIGERIA) LTD 58
DELATTRE BEZONS (NIG) LTD 60
DUTUM COMPANY LTD 62
EL-ALAN CONSTRUCTION CO. LTD 64
GODSTAR ENGINEERING COMPANY LTD 66
HITECH CONSTRUCTION COMPANY LTD 67
ITB NIGERIA LTD 69
JULIUS BERGER NIGERIA PLC 71
LEE ENGINEERING & CONSTRUCTION CO. LTD 74
MERCURY MARITIME CONCESSION COMPANY LTD 76
MONIER CONSTRUCTION COMPANY (NIGERIA) LTD 78
MOTA-ENGIL SGPS S.A. 80
P.W. NIGERIA LTD 84
PRODECO ENGINEERING SERVICES LTD 86
REYNOLDS CONSTRUCTION CO. LTD 88
SAFKO CONSTRUCTION COMPANY LTD 90
SETRACO (NIGERIA) LTD 91
TECHNOVA AFRICA GROUP LTD 93
ZUTARI (PTY) LTD 95