According to a Big 5 Construct analysis, the Construction industry in Nigeria is expected to increase at a Compound Annual Growth Rate (CAGR) of 2.4% between 2024 and 2028. The government’s emphasis on plans and support for Infrastructure development was commended by the firm. It added that the government is transforming the sector and the nation’s future by giving economic development, governmental and private Investment in the housing sector, and bolstering foreign demand top priority. This was mentioned during the announcement of the fourth edition of Big 5 Construct Nigeria, scheduled for September 24-26, 2024, at the Landmark Center in Lagos, which aims to capitalize on prospects arising from current and forthcoming projects in the nation.
Mehtap Gürsoy, the portfolio director for Construction at DMG Events stated that Big 5 Construct Nigeria is scheduled this year to correspond with the spike in construction activity in the nation, generating major interest for innovative products and solutions, especially from key clients involved in current and future projects in Nigeria’s $128 billion construction market. This year’s exhibition would feature a large number of new exhibiting enterprises from various nations. Numerous well-known international firms will be presenting their goods, services, and solutions for the first time.
Rising trends are driven by several key variables.
Among them are Swiss Krono, a prominent provider of wood-based flooring, building materials, and interior design; Schneider Electric, a French multinational company with expertise in digital automation; and Framecad International, a pioneer in Steel framing construction innovation, situated in the United Arab Emirates. Others include Bosch, a multinational engineering and Technology business based in Germany; Peri Formwork, a manufacturer and provider of scaffolding and formwork; and Saint Gobain, a massive French light and sustainable construction company. Big 5 Construct Nigeria, the biggest construction Trade show in Lagos to date, conveys experts in the field to partnerships and possibilities.
Recent developments in the sector point to a positive growth pattern, supported by significant infrastructure projects, foreign investments, and more government spending. This increasing trend is being driven by several important variables. Nigeria’s construction sets and models industry is expected to generate US$87.9 million in Revenue by 2024, according to data from a Statista analysis. The forecasted compound annual growth rate (CAGR) for this market category is 4.47% from 2024 to 2028. Nigeria would earn US$0.38 per person in revenue in 2024, based on per capita data. By 2028, it is expected that the industry would have grown from its estimated $42.7 billion in 2023 to $50 billion.
Building sets and models market in Nigeria is booming.
With an emphasis on Electricity projects, bridges, and highways, infrastructure continues to be a major motivator. In 2023, 32% of all construction work was done on infrastructure projects. These numbers demonstrate the significance of the sector to Nigeria’s economy, with continuous expenditures in housing, energy, and infrastructure supporting the sector’s sustained expansion. The market for building sets and models in Nigeria is booming despite obstacles in the country’s infrastructure development since young people are becoming more and more interested in engineering and urban planning.
Furthermore, the need for housing, infrastructure, and commercial Real Estate has increased as a result, propelling the building industry’s expansion. Residential and commercial development investments are on the rise in major cities such as Lagos, Abuja, and Port Harcourt. The real estate industry has grown as a result of the need for cheap housing, especially in urban areas. In addition to building hotels, offices, and malls, developers are now building residential estates to serve the growing middle class. Utilizing new technologies and methods, construction is becoming more efficient and cost-effective.
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For instance, prefabrication, modular building, and 3D printing, are just beginning to gain traction in the sector. Nigeria’s construction industry is predicted to keep expanding as a result of ongoing government infrastructure projects, urbanization, and rising housing demand. But in order for the sector to grow steadily, regulatory changes, local capacity investments, and easier access to funding are all necessary. While the industry faces macroeconomic headwinds, the combined effort of government programs, private investments, and foreign capital is anticipated to fuel substantial growth in the near future.