18 March 2015, Lagos – Analysts have predicted a positive long-term high reward market growth of 9.80 per cent and 11.04 per cent in the Nigerian construction sector for 2015 and 2016 respectively, despite the current decline in major oil projects and continuous fall of oil prices.
According to the BMI, the catalyst to drive the country’s growth as well as revenue generation to the economy is the development in power supply and transport links, adding that the fall in oil prices and its effect on government revenues and the Naira devaluation will stall investments.
It stated that the infrastructure sector is more exposed to the numerous risks in the country’s business environment, adding that current reforms and development plans implemented under the current administration (although slow to get off the ground), are beginning to attract the needed investment that will boost other sectors of the economy.
Moreso, it stated that despite the potential of the country’s infrastructure market which has long been known, a chronic lack of investment and the laborious business environment has limited its growth prospects.
The report highlights persistent risks hampering the implementation of major projects, blaming it on deep-rooted corruption and violence perpetrated by militants popularly known as,Boko-Haram, vandals, and inefficient bureaucracy.
The report had earlier listed Nigeria among other countries to risk over $30 billion about N5.1 trillion worth, of oil and gas pipelines projects due to the persisting decline in crude oil price.