Strong Growth Projections to 2034
Nigeria’s construction industry is set for major expansion. Analysts project it will grow from $179 billion in 2024 to $337 billion by 2034. Alongside Algeria, Egypt, Tanzania, and Ethiopia, Nigeria ranks among Africa’s top five construction markets. Afreximbank’s African Construction Industry Outlook for 2025 highlights this momentum. The report positions Nigeria’s sector as a key driver of future economic growth.
Short-Term Outlook and Key Drivers
In the short term, Africa’s construction industry will grow by 4.2 percent in 2024. Growth will speed up to 4.7 percent in 2025 and 5 percent in 2026. Looser monetary policies and an improving economy will fuel this progress. Nigeria will benefit especially from population growth, rapid urbanisation, rising commodity investment, and government-led industrialisation.
Urbanisation, Energy, and Mining as Catalysts
Nigeria’s fast-growing cities will demand new homes, transport links, and energy facilities. High energy prices, compared to the 2015–2020 period, will encourage oil and gas investments. Oil production and refinery projects will create new opportunities. In addition, the mining sector, particularly iron ore, will drive major construction activity in the coming years.
Innovation in Project Delivery
Structural changes will reshape how projects are delivered. Afreximbank stresses the need to scale up Engineering, Procurement, and Construction (EPC) models. These models can speed up project completion, manage costs better, and attract financing. Nigeria must adopt these innovations to meet its infrastructure goals.
Navigating Risks and Seizing Opportunities
Despite strong forecasts, risks remain. Fluctuating energy prices, inflation, and political instability could slow progress. However, Nigeria’s long-term fundamentals stay solid. Emerging sectors like petrochemicals and battery minerals in Africa will open further opportunities. Nigeria must prepare to take advantage of them.
Nigeria’s Defining Moment
Nigeria stands at a decisive moment. By embracing innovation and strengthening partnerships, it can close infrastructure gaps. With the right moves, Nigeria’s construction industry can lead Africa’s next wave of growth. The next decade offers a rare chance to shape a stronger, more connected economy.
