Nigerian construction sector to expand radically by 2020
A recent Trimetricreport has indicated that the construction industry in Nigeria is expected to expand from 2016 to 2020 with its output value increasing at a compound annual growth rate (CAGR) of 9.49%. This exponential growth is expected to be driven by the infrastructure development investments, housing projects, manufacturing plants, health care and education facilities.
Under the nation’s Vision 2020, Nigerian authorities have plans to develop the country’s rail and related infrastructure. Airports and roads will also be covered under the same programme with expectations of impacting construction sector growth.
As part of the 25-year Strategic Rail Vision programme, government has already announced expansion of the country’s rail network to boost the country’s economic development and promote the nation’s activities.
Nigerian authorities have already signed an agreement with the China Railway Construction Corporation (CRCC) to collaborate on rail rehabilitation projects in the country. The CRCC has agreed to inject US$13.1bn for Nigeria’s rail project.
The nation’s authorities are optimistic in carrying out their plan to attain development targets by adopting a Public-Private Partnership (PPP) model. Other sectors included in the development plan are renewable energy, manufacturing and the housing sector which are expected to influence the nation’s construction sector growth.