Investments in Nigeria's construction industry to rise by 10.5 per cent

THE yearly investment inflow into the Nigeria's construction industry in the next four years has increased from the 9.2 per cent it forecasted in the third quarter of this year to 10.5 per cent in fourth quarter.Business Monitor International (BMI), which made this disclosure in its recent quarterly report of the Nigerian construction industry, however highlighted deep-rooted corruption, violence perpetrated by militant Islamists and retaliatory forces, and a vast yet inefficient bureaucracy, as some likely risks to full implementations of the various on-going projects.According to the global watchdog, the cabinet's approval of the long-awaited final draft of the Petroleum Industry Bill (PIB), and the continued unbundling and privatisation of the Power Holding Company of Nigeria (PHCN) are expected to drive more investment into the Nigerian construction sector.'While significant hurdles will need to be surmounted, we still expect that 2012 will see a strong construction industry real growth of 10.5 per cent, bolstered by investment and the consumer sector, as well as a growing oil sector, fuelled by historically high prices', it said.Explaining some of the awarded contract by the Federal Government, BMI stated: 'Bi-Courtney Highway Services (BCHS) has announced that it is to begin its redevelopment of the $559 million Lagos-Ibadan Expressway. The project involves the reconstruction of both existing carriageways, as well as the addition of two more carriageways in each direction between the Lagos-Sagamu interchange.'BCHS has been awarded a 25-year concession contract to manage the expressway, which links Lagos with Nigeria's western states.'Minister of Aviation also announced the plan to construct a new international airport in Abuja. The planned airport would thus join a fleet of already ongoing projects within the airport transport sub-sector: we already note the construction of five new terminals at five different airports across the country, as well as the redevelopment of five existing terminals, approved by the government in February 2011.'Intels Nigeria was awarded a contract by the Nigerian government for Phase 4 of the Onne Port Complex at Port Harcourt in Rivers State. The $370.5 million project includes land reclamation, the widening of the channel entry, the construction of three new berths and the Federal Ocean Terminal, and the enhancement of existing facilities at the port.
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