For the past three decades, the Oil and Gas sector has continually dictated the pace and structure of growth of the Nigerian economy. Nigeria’s huge oil and gas resource base, currently standing at about 38 billion barrels of proven oil reserves and 187 trillion cubic feet of gas, has positioned the country as one of the key players in the global energy supply. Nigeria is the 10th largest oil producer in the world and the 7th in proven gas reserve with potential to grow to 600 TCF. In 2009, the oil and gas sector accounts for approximately 16.05 per cent of Gross Domestic Product, (GDP), 95 per cent of total foreign exchange earnings and 85 per cent of total government revenue resulting in near total dependence on oil and gas revenue for national development.
Civil and Building Construction Industry
The construction industry though a relatively small player in terms of Nigeria’s gross domestic product, is yet an admittedly very active sector bound to also benefit from growth in tourism, retail and manufacturing.
We have identified four main factors largely responsible for the recent upsurge in the construction and property sector. These are:
The increasing demand for buildings across all sectors of the economy
A growing focus on infrastructural development by state and federal governments
The recent focus on privatisation and commercialisation as instruments of federal government policy
The tightening of regulations on the conduct of business in Nigeria
According to the Nigerian National Bureau of Statistics, construction is a small employer that accounts for less than 1% of the total labour force. Yet, it also accounts for 69% of fixed capital formation, meaning that an estimated 70% of the total net capital investment in the country goes to the sector.
It is therefore safe to assume that the construction sector will be the fastest growing sector in the next decade. Now though investments in this sector have primarily been state led, the recent private investments in retail, manufacturing and tourism have also stimulated the construction industry