This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 2/23/2017






2016 (estimated)

Total Market Size





Total Local Production





Total Exports





Total Imports





Imports from the U.S.





Exchange Rate:   1 USD





Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:   National Bureau of Statistics website:;; Http://
Total Local Production:   Building Materials (Cement, Wood, Iron Rod)
Total Exports:  Cement, Wood, Iron Rods African countries
Total Imports:  National Bureau of Statistics website:;
Imports from U.S.:
*Figures for 2016 are based on 3.8 percent GDP forecast versus 3 percent in 2015.
To promote foreign direct investment and development of the real (manufacturing) sector in Nigeria, the federal Government has made infrastructure development a top priority, particularly the building and construction subsector.  As Africa’s largest economy with a population of about 180 million, a growing middle class and a total national road network of about 200,000KM, linking all the thirty-six states, the federal capital and the nation’s major sea ports, there is a growing demand for more houses and better transport links.  The Federal Ministry of Works and Housing has allocated 62 percent of its 2016 total (proposed) budget of $2.2billion (N433 billion) to road construction and 15 percent to housing projects.  The main focus of this budget is to complete over 200 stalled projects left by the previous administration, prior to starting new ones.  In its three-year plan, the federal government intends to complete 6,000 kilometers of road projects, champion delivery of affordable housing units, and formulate policies that would increase private sector participation and ownership.  The federal government of Nigeria intends to leverage the National Policy on public private partnership (PPP) strategic initiative to complete and manage multiple development projects, including the second Niger River Bridge at Nupeko and development of free trade zones and seaports in Lekki (Lagos), Akwa Ibom, and Ondo States.  It would also deploy this model in the development and granting concessions for high trafficked and interstate road networks to facilitate transportation of food items, raw materials and finished products between local communities and urban centers across the six geo-political zones.  
To address the housing deficit and deliver on its political campaign promises, the federal government has increased its budget for national housing from $9.04 million (N1.8 billion) in 2015 to $331 million (N66 billion) in 2016.  The government is also set to review and reverse existing housing policy which promotes the sale of government houses and exclusion of the federal government from building houses for the masses.  Rather, the current administration plans to take the lead in constructing affordable housing units (starting with 40 blocks in each state), and formulation of investor-friendly policies to increase private sector participation.  The Nigerian government will further leverage the state-backed Mortgage Refinance Company to expand access to housing finance to help reduce a deficit of 17 million houses.  Many states have joined in building affordable homes for their growing populations.  Private real estate operators are constructing homes for resale to Nigerians in the key cities of Abuja, Lagos, Port-Harcourt, Ibadan, Uyo, Calabar, Asaba and Owerri.  In Lagos, the construction work on a new model city, Eko Atlantic City, has advanced to near completion of its first set of units with 2016 target delivery date.  Other states in Nigeria, including its capital Abuja, are planning to copy the Atlantic City concept and establish these cities in their states. 
As part of its diversification drive, the Federal Government of Nigeria is encouraging private firms to engage in mining activities for which heavy construction machinery will be needed.  The U.S. is the market leader in construction equipment but is facing stiff competition from Chinese and European firms who offer prospective buyers financial incentives in the form of cheap financing and often lower prices.  The Nigerian construction and mining companies favor U.S.-origin equipment because of their reliability and availability of spare parts and technical personnel to maintain them in-country.

Sub-Sector Best Prospects

Imports of construction equipment, and heavy construction machinery (dredges, graders, dump trucks) used and new, will continue to be fueled by the desire of contractors to own and operate their own equipment rather than lease from other contractors. 
Nigeria’s Delta region continues to attract much attention in the areas of dredging, access roads and home construction.  U.S. manufacturers of heavy construction equipment such as dredges, cranes, excavators, swamp buggies, quarry and asphalt plants (especially used) will find the Nigerian construction equipment market very lucrative and attractive.  U.S. manufacturers of prefabricated homes will find a ready market in the Nigerian building and construction industry. 
Construction companies should plan to participate in the vast construction of new homes, towns, air and sea ports and repair/reconstruction of roads and other infrastructures in several states of Nigeria.


Following the steady growth in Nigeria’s construction industry, the following opportunities exist for U.S. companies in the construction sector: 

  • Construction of new green field (or newly developed) projects
  • Construction of a Golden Triangle Super-Highway (proposed 4- to 6-laned super-highway) that will Connect key economic hubs and add additional 5,000 km to the national network of roads in Nigeria
  • Construction of the Second Outer Ring Road to decongest traffic from the Lagos metropolis and increase evacuation of goods from Lagos Sea Ports
  • Improvements of existing highway alignments
  • Construction of new towns to de-congest Lagos and Abuja metropolis which provide residential and office accommodations for residents.

Construction companies should plan to participate in the vast construction of new homes, towns, air and sea ports and repair/reconstruction of roads and other infrastructures in several states of Nigeria.

Web Resources
For further information, e-mail Joseph Umoetteh, Commercial Specialist, U.S. Commercial Service, Lagos, Nigeria at
Joseph plans to promote and lead delegations to:   

  • NAHB’s International Builders' Show® (IBS), 2017 in Orlando, Fl.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting

More Information

Nigeria Design and Construction Trade Development and Promotion