The construction industry in Nigeria is expected to expand by 2.8% in real terms in 2024, supported by the government's focus on infrastructure development to support economic development, public and private investment in the housing sector, and a strengthening of external demand.
In the 2024 Budget, the government allocated NGN10 trillion ($16.8 billion) for capital expenditure. Of which, NGN2.2 trillion ($3.7 billion) was allocated to the education sector and NGN1.3 trillion ($2.2 billion) to the health sector. The government also allocated NGN548.6 billion ($922.2 million) for road construction and NGN99 billion ($166.4 million) towards the development of 20,000 affordable housing in 2024.
Over the remainder of the forecast period, the construction industry is expected to register an annual average growth of 3.1% between 2025 and 2028, supported by investment in electricity, transport, industrial, infrastructure and oil and gas projects, coupled with the government's plan to produce 5.5 billion cubic feet of gas per day by 2030.
The industry's growth will be also supported by investment as part of the Nigeria Energy Transition Plan, under which the country aims to reduce CO2 emissions to net zero in the power, transport, oil and gas sectors by 2060. As part of this plan, Nigeria aims to develop 197GW of grid-connected solar, about 90GW of energy storage capacity, 34GW of hydrogen power, 11GW of hydropower, 10GW of gas, and 6GW of biomass with an estimated investment of NGN1.1 quadrillion ($1.9 trillion) by 2060.
Source: Globalnewswire
