There is a huge demand for affordable housing in Nigeria, the housing deficit is approximately 16 million units nationally. More than 80% of the population rent accommodation.
There is a huge demand for affordable housing in Nigeria, the housing deficit is approximately 16 million units nationally. More than 80% of the population rent accommodation. The demand for affordable homes and office spaces within the urban areas far outstrips supply and is an area that provides investors with a relatively quick turnover. In addition to development the opportunities within this sector are varied and cut across all facets of construction and real estate. Nigeria’s major cement processing plants are operating below capacity and more than 25% of the nations cement is still imported.
Nigeria has the largest road network in West Africa, it spans approximately 194,394km a lot of this road network remains unpaved creating opportunities for civil engineering companies , especially companies that can offer fast economical solutions.
Nigeria’s Railway Network
Nigeria’s railway network pictured above is currently being renovated and a greater emphasis is being placed on rail travel. Nigeria has approx 3528km of railway track and the railway renovation project will provide opportunities for contractors throughout the supply chain. Once completed and operational the railway service could also help ease of doing business within Nigeria; although it is important to bear in mind that this renovation is at present still progressing slowly.
The construction and infrastructure sector in Nigeria is currently facing the following challenges:
• Lack of trained manpower
• High import tariffs
• Ban on importation of construction equipments and inability to source quality local options
• Poor financing
• Economic instability
• Inadequate labour availability
• Bureaucracy in tendering methods
• Costs of materials and continued fluctuation of these prices
• Relationship between management and labour
Although these challenges affect the business environment they also provide opportunities for companies entering into the market with solutions that can address some of these challenges. [named data: pull quote]
There is a huge demand for affordable housing in Nigeria, the housing deficit is approximately 16 million units nationally
Some of the main opportunities within this sector are:
Providing technical assistance to local contractors and organisations
Setting up in-country manufacturing plants that supply the needs of the domestic market
Offering training solutions
Participating in supply chain opportunities within high value construction and infrastructure projects
Project managing large scale infrastructure projects
Introducing innovative construction solutions to the market
Getting into the market
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
For more information on Construction and Infrastructure please contact:
Mrs Fehintola Odulaja, British High Commission, Lagos
Tel: +234 (1) 277 0780-2 ext 2284 or mobile: +234 (0) 812 810 8636 or email: Fehintola.email@example.com
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.