They say that if you are not in Africa then you are not in business.Africa’s construction industry is on the growth and currently Nigeria’s construction sector still remains key as they are in an excellent position at the moment.
The forecast for the sector is continued growth for at least the next five years, and in 2020 it is predicted to become the fastest-growing building industry in the world. As such, it is an excellent market to get involved with.
Companies involved in the build and interiors industry that is looking for a new market should certainly consider Nigeria. There are many opportunities available at the moment, and the industry is set to grow even more over time, so getting involved before it becomes too crowded is a good idea.
Here are some of the reasons you should think about joining the booming Nigeria’s construction industry:
Growing population and economy
Currently Nigeria remains to be one of the most populous country in Africa because in 2014 there was a record of about 173 people living in Nigeria and above all about 21 million people were located in Lagos.
The population is also expected to double up in less than 30 years time and considering the fact that currently the country has the largest economy in Africa, with a GDP of $521.8 billion there are more opportunities that are going to open up.
The high population with ensure that there is rise of and demand of key infrastructure projects in Nigeria.
Increased demand for housing
Nigeria in the past has recorded a constant rising in population and this have directly translated to the demand of housing in the country.
Currently, Nigeria builds around 100,000 homes annually, but in order to keep up with demand – particularly from its middle class of more than 23 million people – it will need to construct 700,000 each year.
In order to tackle this housing shortage, the Nigerian government has launched what it calls the National Housing Policy, along with a National Urban Development Policy, this will see agreta opportunity for construction companies that are eying to carry out business in Africa clinch great deals.
A booming construction industry
Unsurprisingly, this means the construction industry in Nigeria is booming. It is the country’s second-largest employer, with around five per cent of the populace working in the sector, and over the last five years it has averaged an annual growth rate of 9.5 per cent.
One of the benefits of this industry growing so rapidly is the level of profit firms are able to make on construction projects. In Nigeria, the average profit margin on building projects is between 25 and 30 per cent, while in more mature markets this rarely averages at higher than 20 per cent.
All these advantages of the Nigerian construction industry make it a great new market for related businesses. Now is a fantastic time to get involved with this growing market while it is still
