As the construction industry in Nigeria navigates the complexities of 2025, stakeholders are cautiously optimistic about the year ahead, viewing 2026 as a period of recovery and resilience. The sector has shown remarkable improvement compared to the previous year, driven by an economic rebound in the last quarter of 2025, rapid infrastructure development, high population growth, and significant government investment. Analysts project a slight growth in 2026, but they argue that stronger investment in housing, infrastructure, oil and gas, and renewable energy could have driven greater growth. Government initiatives, including the approval of major funding packages and reforms in construction-related laws, have created a more favorable environment for the industry.
Major players in Nigeria’s construction space in 2025, such as Hitech Construction Company Ltd., Julius Berger Nig. Plc, Megastar Technical and Construction Company, Setraco Nig. Ltd., and Dutum Group Construction Company, are expected to see improved performance in 2026. This growth is anticipated to be supported by steady contract flow and earnings from projects secured in 2025. The residential building segment is projected to grow slightly, driven by the Federal Government’s pledge to construct about 550,000 new houses annually. Infrastructure development is expected 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 of the 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 patronizing quacks, emphasizing 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 several challenges in 2025, including rising material costs, labor shortages, brain drain, and economic uncertainty, which affected foreign investment. She is, however, optimistic that the industry will grow more in 2026, driven by investments in data centers, water infrastructure, transport, renewable energy, and digital transformation. She believes that the 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.
Despite these positive outlooks, labor shortages are expected to persist, with the industry 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. He argues that these pressures exposed long-standing weaknesses in planning, regulation, professionalism, and project execution.
Adewebi is convinced 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 expects that 2026 will be a year of measured recovery and consolidation rather than rapid expansion for the industry. Adewebi anticipates faster regulatory reforms and digitization, especially in land administration and planning approvals, which may attract more private investment. He also predicts stronger professional accountability, deeper technology adoption, and increased focus on affordable housing, modular construction, sustainability, and climate resilience.
According to Adewebi, clients and investors will demand greater transparency, speed, and certainty of delivery, rewarding professionals who prioritize competence, ethics, and long-term value. “While challenges will remain, the industry will increasingly favor competence over connections, systems over improvisation, and long-term value over short-term gains,” Adewebi says. As the construction industry in Nigeria looks ahead to 2026, the focus on professionalism, technology adoption, and sustainable practices will be crucial in shaping a resilient and prosperous future for the sector.