By Mary Onyia
Nigeria’s construction and real estate sectors recorded strong nominal growth in 2025, hitting N19.36 trillion and N58.16 trillion, respectively.
Meanwhile, real growth was slower, highlighting the persistent challenge of value transfer amid the country’s housing deficit.
According to the Gross Domestic Product (GDP) data released by the National Bureau of Statistics (NBS), the construction sector’s nominal contribution to GDP rose 18.8 per cent to N19.36 trillion in 2025 from N16.29 trillion in 2024, while the real estate sector posted a much higher 40.93 per cent increase in turnover to N58.16trillion from N41.27trillion in 2024.
The construction sector’s real GDP growth in 2025 was 5.53 per cent, up 1.37 percentage points from 4.16 per cent in 2024, indicating that actual output expanded alongside rising prices.
In contrast, the real estate sector experienced a slowdown in real GDP growth to 3.78 per cent in 2025 from 6.59 per cent in 2024, suggesting that the sharp rise in nominal value did not fully translate into increased physical output or productivity.
Quarterly data for 2025 shows that the construction industry’s best-performing quarter was Q4 at N5.52trillion, while the least was Q2 at N4.02 trillion. In the real estate sector, Q3 led with N18.24trillion, and Q2 lagged at N9.13trillion.
The nominal expansion, particularly in real estate, according to analysts, underscores a structural issue. While money is flowing into the sector, the pace of delivering tangible housing units remains slow, worsening Nigeria’s persistent housing deficit, the said.
According to the Chairman of the Lagos Chamber of Commerce and Industry (LCCI) Construction and Engineering Group, Soji Adeniji, the industry witnessed strong infrastructure demand and urban expansion.
“The growth we are seeing in Nigeria’s construction sector is driven by strong infrastructure demand, urban expansion, and sustained private sector investment”, said Adeniji, a quantity surveyor.
Adeniji, however, cautioned that rising construction costs due to inflation and exchange rate pressures mean that much of the reported growth is nominal.
“In simple terms, projects are costing more, and that is reflecting in the sector’s GDP contribution”.
Also, Meanwhile, Chairman of the LCCI Real Estate Group, Dr. Michael Oladiji, attributed the real estate sector’s surge in turnover to population growth and increasing demand for housing.
“As the population increases, demand for housing rises, and housing is a basic need”, he said.
He noted that diaspora inflows and remittances have also been instrumental in financing real estate developments across the country.