Stakeholders in the built environment and construction industry have described 2025 as a period of recovery and resilience for the sector, expressing cautious optimism for further growth in 2026.
Industry observers are convinced that the construction sector recorded a remarkable improvement in 2025 compared to the previous year.
They project a slight growth in 2026 to be driven by economic rebound recorded in the last quarter of 2025, rapid infrastructure, high population growth, and significant government investment in infrastructure.
Analysts believe that stronger investment in housing, infrastructure, oil and gas, and renewable energy would have driven greater growth, arguing that government initiatives, including the approval of major funding packages and reforms in construction-related laws, helped to create a better environment for the industry.
Major players in Nigeria’s construction space in 2025 include Hitech Construction Company Ltd., Julius Berger Nig. Plc, Megastar Technical and Construction Company, Setraco Nig. Ltd., and Dutum Group Construction Company.
In 2026, stakeholders expect improved performance supported by steady contract flow and earnings from projects secured in 2025.
They expect residential building segment to grow slightly, driven by the Federal Government’s pledge to construct about 550,000 new houses annually, projecting infrastructure development to play a major role, with anticipated investments in roads, rail systems, bridges and urban renewal projects.
Experts also foresee increased adoption of modern construction technologies such as Building Information Modelling (BIM) and digital twin technology, which are expected to improve efficiency and project delivery.
The Chairman, Nigerian Society of Engineers (NSE), Apapa Branch, Mr. Emmanuel Okolo, urges that engineers and other professionals should be fully in charge of construction projects in 2026.
He advises governments and other stakeholders to avoid patronising quacks, saying that professionalism is key to safety, quality, and sustainable growth in the sector.
The Chairman of NSE, Ikeja Branch, Mrs. Nimot Muili, notes that the industry faced a number of challenges in 2025, including rising material costs, labour shortages, brain drain and economic uncertainty, which, she argues, affected foreign investment.
She is, however, optimistic the industry will grow more in 2026.
She believes that the growth will be driven by investments in data centres, water infrastructure, transport, renewable energy, and digital transformation.
According to her, expected expansion in the movement of goods and services will further drive infrastructure investments, while increased adoption of Artificial Intelligence, automation, smart buildings, and BIM will enhance productivity and reduce project delivery time.
She, however, expects labour shortages to persist, as the industry is projected to require about 499,000 new workers in 2026, up from 439,000 in 2025.
Mr. Olumide Adewebi, Vice President, West African Region of the Commonwealth Association for Surveying and Land Economy, and Chief Executive Officer of Geosys Nigeria, describes Nigeria’s built environment in 2025 as resilient “but under strain”.
According to Adewebi, the sector showed adaptability in spite of high inflation, exchange rate volatility, rising material costs and limited access to finance.
Adewebi is convinced that these pressures exposed long-standing weaknesses in planning, regulation, professionalism and project execution.
Adewebi argues that while government at both the federal and state levels showed increased awareness of housing delivery and infrastructure renewal, implementation remained inconsistent due to slow and largely manual planning and land administration processes.
He says investments in roads, rail, ports, and energy projects continued in 2025 largely through public/private partnerships and donor funding, but revealed gaps in project management, local content execution, and maintenance culture.
Adewebi expects that 2026 will be a year of measured recovery and consolidation rather than rapid expansion for the industry.
He expects faster regulatory reforms and digitisation, especially in land administration and planning approvals, which may attract more private investment.
Adewebi also predicts stronger professional accountability, deeper technology adoption, and increased focus on affordable housing, modular construction, sustainability, and climate resilience.
According to him, clients and investors will demand greater transparency, speed, and certainty of delivery, rewarding professionals who prioritise competence, ethics and long-term value.
“While challenges will remain, the industry will increasingly favour competence over connections, systems over improvisation, and long-term value over short-term gains,” Adewebi says.
By Lydia Chigozie-Ngwakwe