Nigeria - Country Commercial Guide
Construction Sector
Last published date:


Unit: USD Millions

Total Market Size for Construction





2022 (Estimated)

Total Market Size





Total Local Production





Total Exports





Total Imports





Imports from the U.S.





Exchange rate: 1 USD





Total Market Size = (Total Local Production + Total Imports) – (Total Exports) 

Data Sources: National Bureau of Statistics; McKinsey & Company, Globaldata

Total Local Production: Estimated based on previous year trends

Total Exports: Estimated based on previous year trends

Total Imports: National Bureau of Statistics  

Imports from U.S.: U.S. Census Bureau 

Nigeria has a massive infrastructure deficit with total infrastructure stock in the country amounting to 30% of gross domestic product (GDP). This falls short of the international benchmark of 70% set by the World Bank. With Nigeria’s population growing at a rate of over 2.5% per year and an expected population of 400 million people by 2050, the current infrastructure in the country is likely to be overwhelmed. Some prevalent construction infrastructure challenges in the country include insufficient road networks linking commercial centers across the country and an insufficient stock of affordable housing.

Nigeria’s construction market is expected to grow by 5.7% in 2022, with an annual average growth of 3.2% between 2022 and 2026. This is an improvement from 3.1% growth in 2021. The country saw a 7.7% decline in 2020 due to COVID-19 restrictions and a drop in demand for oil and gas – the main source of government earnings.

The World Bank estimates that Nigeria will need to invest $3 trillion in infrastructure to reduce the infrastructure deficit in the country. The government of Nigeria has begun to take steps towards reducing the infrastructure deficit through increased spending as part of a 30-year infrastructure plan (National Integrated Infrastructure Master Plan), which aims to bring Nigeria’s infrastructure stock to the 70% of GDP level by 2043.

Construction projects in Nigeria are driven by both the government and private investors. The government provides key infrastructure such as roads, bridges, dredged waterways and ports, and railways. These projects are pursued via government financing, public-private partnerships (PPPs), multilateral development banks (MDBs), and bilateral creditors. Due to the increasing cost of key infrastructure projects in the country and shrinking government coffers, the government has made use of PPPs as a tool to finance projects where the government was not able to secure debt financing. The Senate approved about $22 billion in external loans for key infrastructure projects in the National Infrastructure Master Plan. The housing sector is expected to account for 11% of this fund while transportation may account for around 25%.

According to Federal Mortgage Bank of Nigeria (FMBN), Nigeria’s housing deficit is currently at 28 million units as at January 2023. The Central Bank of Nigeria (CBN) has estimated an amount of $46.7 billion (21 trillion Naira) is needed to finance the deficit, and with a growing population of over 200 million people, the current deficit is extremely high. It is estimated that the country needs to build a minimum of 700,000 houses per year to close this gap. In 2019, the Ministry of Works and Housing set aside a total sum of $463 million (19.8 billion naira) for the construction of 2,383 units of housing across the 36 states of Nigeria under the National Housing Program. The government has indicated commitment towards reducing the housing deficit in the country by proposing an additional $154 million (66 billion naira) for the housing sector in the 2022 budget. State governments have also embarked on projects aimed at providing affordable housing. The Borno state government commenced an “owner-occupier” program for 2,787 housing units in the state. In 2020, the Governor of Lagos state commissioned 246 housing units in the Lekki area. Other affordable housing initiatives can be found in Delta, Ebonyi, Enugu, Edo, Ekiti, and Gombe states, as well as the Federal Capital Territory (FCT).

Between 2005 and 2021, several financial institutions, including the Nigerian Mortgage Refinance Company, have increased their capacity to finance the affordable housing market through the provision of loans and advances topping $3.4 billion. The Nigerian government’s bid to support the mortgage industry included a waiver for the initial 10% payments on mortgages below $12,000 (5 million naira) provided by the state-owned Federal Mortgage Bank. In addition, the government has set up the Family Homes Fund of $1.57 billion to construct two million housing units utilizing PPPs. However, the initiative met challenges due to the COVID pandemic.

Private investors are active in the residential and business construction sectors. Commercial estates are being built by private investors to meet the housing demand of high-earners in high-cost areas across Nigeria. Property values in urban centers such as Lagos and Abuja can be high.

On the commercial side, the largest deep seaport in West Africa is being built in Lagos through a partnership between Singapore-based Tolaram Group, Lagos state government, and the National Investment Promotion Commission (NIPC). The project, commissioned in 2022, cost $1.5 billion with a 16.5-meter water depth capable of berthing large vessels previously not serviceable in West African waters. This will increase the berthing capacity in Nigeria. This project has become a template for other states in Nigeria and some have begun plans for similar infrastructure projects to boost their local economies.

The Nigerian government is increasing its efforts to develop infrastructure and recently created a $2.7 billion Infrastructural Corporation of Nigeria Limited fund backed by the Central Bank of Nigeria, Africa Finance Corporation, and the Nigerian Sovereign Investment Authority.

Leading Subsectors

The construction equipment and building materials subsectors continue to lead the areas of opportunity in the construction industry.

Heavy construction equipment such as dump trucks, excavators, dredgers, generators, and graders are in demand due to numerous ongoing projects. The equipment is bought new or used from manufacturers or dealers. Some equipment companies have implemented a lease-to-own service for their equipment. U.S. equipment is preferred in this subsector due to its durability and reliability, though price competitive Asian competitors are making progress. Nigeria has substantial capacity with some building materials such as concrete, but those not available locally are imported. Several types of construction materials are deemed ineligible for official foreign exchange with the Central Bank of Nigeria.


Following the Nigerian Senate’s approval of the President Buhari’s request for a $22 billion loan for infrastructure projects, the construction sector will see investment - particularly roads and housing. The rehabilitation and construction of approximately 300 road projects covering more than 13,000 kms across the 36 states of the federation are included in the 2022 budget.

There are also plans by the Nigerian government to concession several road projects under the Highway Development and Management Initiative. This would be done through the Federal Ministry of Works and Housing and the Infrastructure Concession Regulatory Commission (ICRC). The rationale behind this initiative is to ensure private sector engagement to increase outside funding sources.

For more information, e-mail: Banksharon Nwaneri, U.S. Commercial Service, U.S. Consulate General, Lagos, Nigeria at

Local Trade Shows

West Africa Property Investment Summit

November 16 – 17, 2022

Landmark Event Center, Lagos


BuildMacex Nigeria

October 11 – 13, 2022

Eko Hotel & Convention Center


The Big 5 Construct Nigeria

September 27 – 29, 2022