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Construction Overview
The awakening of a sleeping giant
Nigeria has the potential to be one of the biggest construction markets on the planet.
While the world is still struggling to emerge from the global economic collapse, Nigeria’s construction industry is growing fast and is likely to grow astronomically over the next decade, according to forecasts made in a June 2010 report by Global Construction Perspectives and Oxford Economics.Estimates suggest that current growth in the construction industry is greater than that of India. Indeed, the report found that “Nigeria’s population of approximately 154 million is urbanising at one of the fastest rates in the world, but construction is now only 3.2 per cent of the Gross Domestic Product. From 2009 to 2020, only Nigeria and India will enjoy higher growth rates than China in their construction output.”
Hopes for the Future
This outlook is excellent news for the country as a whole. Every ambition that the Nigerian government has — such as creating much-needed housing, improving public services, developing its tourist sector, improving transport links, creating new jobs and eradicating poverty — can be linked to the construction sector.
Foreign investment is desperately needed to build roads, ports, bridges and airports. The country’s archaic railway network, barely altered since colonial days, is also in great need of an upgrade.
Roads, in particular, are a problem. Only the capital Abuja and, to a lesser extent, the coastal metropolis of Lagos, has a reasonable road network. Nationwide, road fatalities are one of the most common causes of death. In June 2010, the World Bank announced that it would invest USD300 million for the overall development of Nigerian roads. However, far greater investment is needed to bring the country up to scratch.
Hotels and numerous tourist-related facilities will need to be built if Nigeria is to achieve its target of becoming one of Africa’s most desirable tourist destinations. Many existing tourist attractions are in need of major work.
It is hoped that Nigeria, which has been to a certain degree protected from the global economic crisis by rising oil prices, can attract overseas companies seeking new markets in developing countries.
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