African Business Intelligence (ABIQ) has projected a significant growth trajectory for Nigeria’s construction sector, forecasting its value to reach $45 billion by 2028. According to ABIQ’s latest quarterly report, the sector is expected to be worth approximately $40 billion by the end of 2024. This growth reflects the broader dynamism of Africa’s construction landscape, driven by rapid urbanisation, infrastructure expansion, and strategic investments.
The report highlights Nigeria as a key player in this surge, with a compound annual growth rate (CAGR) of 2.4 per cent. This positions Nigeria as a frontrunner in Africa’s construction industry, bolstered by a rapidly growing population and increasing urbanisation. The demand for residential, commercial, and infrastructure projects has reached unprecedented levels, fueling this sector’s expansion.
Nigeria’s proactive investment in infrastructure, particularly in transportation and energy, has been instrumental in driving this momentum. These developments not only accommodate the nation’s population boom but also catalyse sustained economic growth by impacting related sectors such as transportation, energy, and trade.
Commenting on the projected growth, construction expert Samuelson Egelege emphasised the importance of emerging trends and ongoing projects. “The anticipated increase is driven by the country’s burgeoning population and urbanisation, which have heightened demand for large-scale infrastructure projects,” he noted. “Nigeria’s strategic investments in transportation networks and energy infrastructure further solidify its role as a central player in Africa’s construction landscape.”
Beyond Nigeria, other African nations are also experiencing notable growth in the construction sector. Egypt, for example, is witnessing a remarkable 8.4 per cent CAGR, with its market expected to grow from $51 billion to $76 billion by 2028. This expansion is largely due to substantial investments in transportation, energy, and urban development. Major projects like the development of a new administrative capital and the Suez Canal expansion underscore Egypt’s infrastructure ambitions, significantly contributing to regional economic growth.
Kenya, too, has emerged as a dynamic force, boasting a 7.1 per cent CAGR. The country’s construction sector is set to expand from $17 billion to an estimated $24 billion by 2028, driven by heavy investments in road networks, railways, airports, and urban housing projects.
Egelege further remarked that the projected $45 billion growth in Africa’s construction sector by 2028 is underpinned by strategic investments, urbanisation, and proactive government policies. These efforts not only bolster the economic prospects of individual nations but also enhance Africa’s position in the global construction market.
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“This growth trajectory offers promising opportunities for investors and stakeholders looking to tap into Africa’s expanding infrastructure landscape,” he concluded, highlighting the continent’s potential for continued economic transformation and prosperity.
