The Nigerian construction sector is projected to grow to $45 billion by 2028, according to the latest quarterly report from African Business Intelligence (ABIQ).
The report estimates that the sector will be valued at approximately $40 billion by the end of 2024.
ABIQ’s report highlights the dynamic surge in Africa’s construction industry, driven by rapid urbanization, infrastructure development, and strategic investments. Nigeria is identified as a key player in this growth, with a compound annual growth rate (CAGR) of 2.4%.
“Nigeria is leading the momentum with a robust market in the construction sector, which had a value of $40 billion in 2024 and is expected to grow to $45 billion by 2028,” the report stated. “With a burgeoning population and increasing urbanization, the demand for residential, commercial, and infrastructure projects is at an all-time high.”
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Nigeria’s proactive investment in infrastructure, particularly in transportation and energy, positions the country as a significant contributor to Africa’s construction boom, according to the report.
Built environment expert, Samuelson Egelege, commented on the anticipated growth, attributing it to emerging trends and ongoing projects that signal a promising future for the sector.
“This anticipated increase is fueled by the country’s burgeoning population and urbanization, which have amplified the demand for residential, commercial, and large-scale infrastructure projects,” Egelege said. “Nigeria’s proactive investment in transportation networks and energy infrastructure further cements its position as a central player in Africa’s construction landscape. This growth is not only essential for accommodating the population surge but also for catalyzing sustained economic expansion.”
The report also highlighted the rapid growth of Egypt’s construction sector, which boasts a remarkable CAGR of 8.4%. Egypt’s market size is expected to grow from $51 billion to $76 billion by 2028, driven by strategic investments in transportation, energy facilities, and urban development.
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Additionally, Kenya has emerged as a dynamic force in the African construction market, with a 7.1% CAGR. The sector’s growth from a $17 billion market size to an anticipated $24 billion by 2028 is driven by substantial investments in road networks, railways, airports, and urban housing projects.
Egelege noted that the projected $45 billion growth in Africa’s construction sector by 2028 is underpinned by strategic investments, urbanization, and proactive government policies. He emphasized that these efforts are translating into broader economic growth across the continent, enhancing Africa’s position in the global construction market.
“This trajectory provides promising opportunities for investors and stakeholders interested in tapping into Africa’s burgeoning infrastructure landscape, setting the stage for continued economic transformation and prosperity,” he added.