Breaking News

Nigeria Spends $36bn In Construction Projects, Tops West Africa Featured

Written by 
Published in Finance
Saturday, 23 May 2015 00:00

Data from a recently released Deloitte African Construction Trends report has placed Nigeria at the forefront ofWest African countries in major infrastructure construction projects in 2014, with the country spending about has $36.4 billion in major infrastructure construction projects for the year under review.

Investment has been on the rise following the rebasing of the country’s gross domestic product (GDP) to $509.9 billion in April 2014.  According to the report, the projects range from Water which took 39 percent, Energy and Power (17 percent), Oil and gas (17 per- cent), Transport (15 percent), Real Estate (11 percent) and Manufacturing (1 percent).

“Whereas South Africa was previously the choice market in Africa for scalable operations, Nigeria now has a more attractive profile, offering scale and strong growth,” Deloitte said in the report.

“Yet the country faces some lofty hurdles if it is to realise its required infrastructure developments.”

Deloitte notes that South Africa has significantly more value in projects under construction or development than Nigeria does, showing that while a market may have scale and growth, it also needs a stable business environment, which Nigeria struggles with.

The report says reforms and development plans implemented under President Goodluck Jonathan are beginning to take effect, with the privatisation of the state-run Power Holding Company of Nigeria virtually complete and an increasing number of Public Private Partnerships (PPPs) entering the market.

There is also significant activity underway in Lagos (the commercial capital), which accounts for more than 60 percent of non-oil GDP.

Some of the more noteworthy moves in the country have been the breaking ground on a second Niger Bridge, according to Deloitte.

“It could boost the Nigerian construction industry, improving East-West trade and helping to progress the nascent PPP model,” the report said.

“The finalisation of an agreement between the Dangote Group and 12 banks for a loan of $3.3 billion to build a Greenfield refinery and petrochemicals complex in the south of Nigeria cannot be discounted.”

The transport sector where Chinese companies dominate could also emerge as one of the strongest sources of growth for the Nigerian construction industry over the medium term, according to Deloitte.

Two projects that demonstrate such dominance are the $1.49 billion Lagos to Ibadan railway contract, which has been awarded to China Civil Engineering Construction Corporation (CCECC), and the Olokola Deepwater port project, awarded to the China Ocean Shipping Group.

The post above and its ensuing comments, if any, is purely the opinion of the writer(s). It therefore should never be considered as an investment advise of any sort. If required, readers should please consult a competent professional financial adviser for any investment decision.

 

Source: Naija247 news

Read 2621 times Last modified on Tuesday, 02 June 2015 16:22
Editor

Online Editor at Interarchtiv Media Company

Sponsored Links

LAGOS ARCHITECTS FORUM 2015: THE BUSINESS OF ARCHITECTURE
REGISTER NOW
Wed. 6th – Sat. 9th May 2015, at the Jasmine and Zinnia Halls, Expo Centre of the Eko Hotel & Suites, Victoria Island, Lagos.
Original VRay Software
www.verticaimages.com
Buy your original VRay software in Nigeria now and get special benefits

Mailing List

Contact us

No. 5 Olusesi Street,Behind Tyse Oil Filling station by Chevron Toll Gate, Lagos.

Tel: +234 [0] 1 293 1819

Tel: +234 [0] 809 357 7122

Tel: +234 [0] 805 341 8334

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Twitter: @interarchtiv

Facebook: Interarchtiv

LinkedIn: Interarchtiv Media

Pintrest: Interarchtiv

Google+: Interarchtiv

Website: http://www.interarchtiv.com

Facebook



Connect with Us

About Us

Interarchtiv is a Media House with a Focus on Architecture, the built Environment, Innovative solutions to complex urban problems in our society and environmental issues. We are interested in how architecture & the environment influences the lives of people & how people in turn interact with the former. We believe our environment shapens our perspective, efficiency, creativity & general well being. 

We are an aggregation of People, Places & Events in one space with a goal of making Architecture Social

JoomShaper