Why Nigeria’s construction boom may not last — Developer

Nigeria’s construction sector may be expanding on paper, but underlying challenges could undermine its sustainability if urgent reforms are not implemented, a leading real estate tycoon has warned.

Speaking on Business Morning on Channels Television, the Chief Executive Officer of Win Homes Global Services Limited, Stella Okengwu, said the sector’s resilience is masking deeper structural pressures facing operators.

Nigeria’s construction industry was valued at between ₦23 trillion and ₦25 trillion by the end of 2025, with projections indicating a 3.1 percent annual growth rate through 2028. However, Okengwu cautioned that these figures do not reflect the realities confronting developers and investors.

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“Yes, Nigeria’s construction sector is booming. And I describe it as resilient, but that resilience is coming at a cost.

“At the top level, projects are ongoing. But at the operational level, developers and investors are navigating uncertainty, rising cost, and policy inconsistency,” she opined.

She added that many operators are absorbing the shocks from inflation, exchange rate fluctuations, and unexpected disruptions, a situation she described as unsustainable.

“We are absorbing shocks from inflation, exchange rate flotation, and unexpected disruptions. While the industry looks strong, many operators are actually in survival mode. We call it resilience, but in reality, I call it survival.”

Okengwu warned that this situation is sending negative signals to foreign investors, who she said prioritise stability over potential returns.

“Foreign investors don’t invest in sectors. They invest in people and systems. When those are unstable, investment slows down,” she stated.

Nigeria’s infrastructure deficit, estimated at about $3 trillion over the next 30 years, is expected to rely heavily on foreign direct investment. However, Okengwu argued that current conditions are limiting inflows.

“The target is very ambitious, but under current conditions, it depends heavily on foreign direct investment—not just government funding. Investors need confidence, legal protection, policy consistency, and clear returns,” she said.

She stressed that promises alone are not enough to attract capital into the country.

“You don’t attract foreign investment with promises; you attract it with protection,” she said.

Highlighting practical challenges, Okengwu disclosed that her firm is currently seeking $75 million in funding for a housing project but is facing hesitation from potential investors abroad.

“I put up a proposal in a loan company in America to get about $75 million to do a mini estate, but with what is going on, they are skeptical.

“Some of them came down to Nigeria last week to do their due diligence. They want to be sure the climate they are bringing their money into is protected,” she said.

She also alluded to regulatory and policy uncertainties, noting that inconsistencies continue to affect business confidence.

“We don’t want to project our country wrongly, but we just want the right thing to be done. We want the legal part to protect us. We want policy consistency in Nigeria,” she said.

On labour, Okengwu acknowledged that developers still rely on artisans from neighbouring countries due to cost advantages, although more Nigerians are beginning to participate in the sector.

“They are the ones that give us cheaper labour. Although recently, a lot of Nigerians, because of the economy, have started coming out to work.”

She maintained that while the sector remains active, addressing policy instability, investor protection, and economic pressures will be critical to sustaining growth and preventing a potential slowdown.