(3 minutes read)
· Nigeria’s construction industry is severely hit by the shortages of cement
· Non availability of cement has put many construction projects in a limbo
· The major cement producers in Africa’s most populous nation- Dangote cement and BUA group– could cater to only half of the projected 60 million metric tons of cement in 2020
Nigeria’s construction industry is severely hit by the shortages of cement. Non availability of cement has put many construction projects in a limbo.
The major cement producers in Africa’s most populous nation- Dangote cement and BUA group– could cater to only half of the projected 60 million metric tons of cement in 2020. The scarcity has pushed the prices nearly double in the last two months. It went up from US$5 to US$10 for the standard 50kg bag.
The effects are quite complex affecting the entire construction industry in the country. It is important to increase the cement production in the country to catch up with the demand. Nigeria is expected to record a CAGR of 16.6% to reach NGN 13,202.2 billion by 2024 in the construction sector. The commercial building construction market in value terms is expected to record a CAGR of 15.7% over the forecast period, while the infrastructure construction was estimated to be NGN 2,136.2 billion in 2019, posting a CAGR of 1.4% during the review period.
The growth is expected across residential, commercial, industrial, and institutional sectors in Nigeria, though it remains impacted due to the economic downturn caused by the COVID-19 outbreak. Barring the near term challenges, medium to long term outlook remains positive. In the short term, investment in the construction industry will be driven by government spending in the infrastructure sector.
