Report Coverage
Construction in Nigeria details conditions in the local sector as well as market opportunities for construction companies in all sectors of the economy. It investigates government initiatives as well as recent developments and factors influencing the success of the sector. The report profiles 29 foreign and local construction companies, including the dominant Julius Berger Nigeria Plc, a majority Nigerian-owned private company that has a workforce of more than 18,000 people. Also profiled are numerous major foreign companies such as China Civil Engineering Construction Corporation (CCECC) and the Egyptian construction giant, Arab Contractors.
The Construction Industry in Nigeria
The US$16bn formal sector, which contributed 3.67% to GDP in 2014, has been earmarked for massive investment and is expected to become the fastest growing Building and Construction industry in the world by 2020.
Opportunities and Challenges
Nigeria’s population is becoming increasingly urbanised and opportunities in the construction sector abound. Current statistics from the Federal Mortgage Bank of Nigeria (FMBN) indicate a housing deficit of 17 million units. The formation of the Nigeria Mortgage Refinance Company (NMRC), which is mandated to raise capital via the bond market, is expected to impact positively on the residential market, as is the government’s National Housing Policy and its National Urban Development Policy which aim to provide approximately 1 million new residential units per annum. There are concerns for the welfare of the sector, however, especially in light of the collapse of the crude oil price, which went below the US$30 per barrel threshold in January 2016. Compared to growth of 18.36% recorded in Q3 2014, the nominal value of the local construction sector grew by a much lower 5.34% year-on-year in Q3 2015. Added to this are challenges related to faulty design, the use of sub-standard building materials, inadequate structural reinforcement and poor workmanship. Stakeholders still urge the government to reduce the cost of obtaining necessary building permits, remove administrative bottlenecks and rid government agencies of corruption.
The Construction Industry in Nigeria
2016
Full Report
R 1 900.00(ZAR) estimated $100.97 (USD)*
Industry Overview
R 1 330.00(ZAR) estimated $ 70.68 (USD)*
Historical Reports
The Construction Industry in Nigeria 2015-06-05
R 1 900.00(ZAR) estimated $100.97 (USD)*
View Report Add to CartThe Construction Industry in Nigeria 2015-04-27
R 1 900.00(ZAR) estimated $100.97 (USD)*
View Report Add to CartThe Construction Industry in Nigeria 2014-05-29
R 1 900.00(ZAR) estimated $100.97 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Value Chain | 2 |
| 2.2. | Geographic Position | 3 |
| 2.2.1. | Key Regions and Cities | 4 |
| 3. | SIZE OF THE INDUSTRY | 5 |
| 3.1. | Key Local and Foreign Players | 6 |
| 4. | STATE OF THE INDUSTRY | 16 |
| 4.1. | Local | 16 |
| 4.1.1. | Corporate Actions | 21 |
| 4.1.2. | Regulations and Government Programmes | 22 |
| 4.1.3. | Opportunities for the Construction Industry | 24 |
| 4.1.3.1. | Transport | 24 |
| 4.1.3.2. | Energy/Power | 27 |
| 4.1.3.3. | Water Supply and Treatment | 29 |
| 4.1.3.4. | Healthcare Facilities | 29 |
| 4.1.3.5. | Education | 30 |
| 4.1.3.6. | Telecommunications | 30 |
| 4.1.3.7. | Residential Building | 30 |
| 4.1.3.8. | Commercial | 32 |
| 4.1.3.9. | Retail | 32 |
| 4.1.3.10. | Hospitality | 33 |
| 4.1.3.11. | Mining and Industrial | 34 |
| 4.2. | Continental | 35 |
| 4.3. | International | 39 |
| 5. | INFLUENCING FACTORS | 41 |
| 5.1. | Economic Environment | 41 |
| 5.1.1. | Effects on the Construction Sector | 44 |
| 5.2. | Socio-Political Environment | 44 |
| 5.3. | Infrastructure Deficit | 46 |
| 5.3.1. | Government Infrastructure Programme Spend | 46 |
| 5.3.2. | Foreign Direct Investment (FDI) | 47 |
| 5.3.3. | Private Sector Investment | 47 |
| 5.3.4. | Public Private Partnerships (PPP) | 47 |
| 5.4. | Urbanisation | 48 |
| 5.5. | Local Content | 48 |
| 5.6. | Corruption | 48 |
| 5.7. | Construction Equipment and Materials: Capacity, Quality and Security of Supply | 49 |
| 5.8. | Input Costs | 50 |
| 5.9. | Cyclicality | 50 |
| 5.10. | Health and Safety Concerns | 51 |
| 5.11. | Information Technology | 51 |
| 5.12. | Technology | 51 |
| 5.13. | Labour Resources | 53 |
| 5.13.1. | Training and Skills Development | 54 |
| 5.13.2. | Licensing | 54 |
| 5.13.3. | Skills Shortages | 55 |
| 5.13.4. | Opportunities for Foreign Professionals | 55 |
| 5.13.5. | Environmental Concerns | 55 |
| 6. | COMPETITION | 57 |
| 6.1. | Barriers to Entry | 58 |
| 6.2. | Public Procurement and the Tendering Process | 58 |
| 6.3. | Research and Development (R&D) | 59 |
| 6.4. | Innovation | 59 |
| 7. | SWOT ANALYSIS | 60 |
| 8. | OUTLOOK | 61 |
| 8.1. | Construction Industry Forecast | 61 |
| 8.2. | Macroeconomic Outlook | 62 |
| 8.3. | Political Outlook | 62 |
| 9. | INDUSTRY ASSOCIATIONS | 62 |
| 10. | REFERENCES | 63 |
| 10.1. | Publications | 63 |
| 10.2. | Websites | 65 |
| APPENDIX 1 | 67 | |
| List of Institutions Offering Building Qualifications in Nigeria | 67 | |
| COMPANY PROFILES | 68 | |
| Arab Contractors Osman Ahmed Osman & Co | 68 | |
| Aurecon South Africa (Pty) Ltd | 72 | |
| Brunelli Construction Company (Nigeria) Ltd | 76 | |
| Buildstruct Nigeria Ltd | 79 | |
| C&C Construction Company Ltd | 80 | |
| Cappa and D'Alberto Plc | 82 | |
| CCECC Nigeria Ltd | 85 | |
| CMB Building Maintenance & Investment Company Ltd | 86 | |
| Costain West Africa Plc | 88 | |
| Dantata & Sawoe Construction Company (Nigeria) Ltd | 90 | |
| Delattre Bezons Nigeria Ltd | 92 | |
| Dutum Company Ltd | 94 | |
| El-Alan Construction Company (Nigeria) Ltd | 96 | |
| G Cappa Plc | 98 | |
| Godstar Engineering Company Ltd | 103 | |
| Group Five Power Projects Ltd (Nigeria) | 104 | |
| HFP Engineering (Nigeria) Ltd | 105 | |
| Hitech Construction Company Ltd | 107 | |
| ITB Nigeria Ltd | 108 | |
| Julius Berger Nigeria Plc | 110 | |
| Lee Engineering & Construction Company Ltd | 113 | |
| Monier Construction Company (Nigeria) Ltd | 116 | |
| Prodeco Engineering Ltd | 118 | |
| PW Nigeria Ltd | 120 | |
| Reynolds Construction Company Nigeria Ltd | 122 | |
| Safko Construction Company Nigeria Ltd | 124 | |
| Setraco Nigeria Ltd | 125 | |
| STEMCO Ltd | 127 | |
| Technova Construction Nigeria Ltd | 128 |
