A construction expert, Mr Temitope Runsewe, says construction industry will be a significant growth driver for the Nigeria’s economy in 2021.
Runsewe, Managing Director, Dutum Construction Company Ltd., made the assertion on Thursday at the “2021 Nigeria Real Estate Market Outlook” meeting in Lagos.
He said that with the over N3.85 trillion budgeted for capital expenditure by the Federal Government in 2021, spending on infrastructure would help to drive economic growth.
Runsewe said that though, the Coronavirus pandemic had affected economies and businesses globally, the medium to long term outlook for the industry remained positive.
He said this was because the construction industry increased its contribution to Nigeria’s GDP to N572.9 billion from N513.6 billion in Q2 2020.
Runsewe said the National Bureau of Statistics had projected the construction industry to record a Compound Annual Growth Rate of 16.6 per cent to reach an all-time high of N13.2 trillion by 2024.
According to him, this makes it imperative for players in the real estate and construction industry to exploit the attendant opportunities for growth that will be presented.
He shared the plan for one year of his firm to grow the sector in 2021.
“With the positive outlook of the construction industry for 2021 and the forecasted growth in the industry, Dutum construction intends to participate and contribute toward the development of various industry segments,” he said.
Dutum is a Nigerian company with interests in public and private industry construction that has delivered projects in the education, energy, aviation, hospitality and social sectors.
Also, Mr Ayo Ibaru, Chief Operating Officer, NorthCourt Real Estate, listed opportunities being presented to stakeholders in the industry as demand for real estate increases.
Ibaru said Nigeria was at a great risk of losing Foreign Direct Investment (FDI) to less volatile neighbouring economies, if it failed to adapt to economic realities or continue with the trend of policy inconsistencies.
He added that the situation would present an opportunity for local investment in the construction industry to thrive.
The chief operating officer pointed out the role technology and innovation would play for the future of the industry.
According to him, the adoption of virtual viewings of properties and other property technology offerings are increasing despite cultural concerns.
Other speakers at the event took turns to share their thoughts on measures to grow the construction industry.
The speakers included Mr Tayo Odunsi, Chief Executive Officer, NorthCourt Real Estate; Mrs Sandra Momah, Assistant Director Ernest & Young; Mr Olaide Agboola, Chief Executive Officer, Purple and Mrs Funke Okunbadejo, Director Actis.
The Real Estate Market Outlook 2021 event was organised by NorthCourt Real Estate, in partnership with Dutum Construction Company Ltd., to provide insight into the Nigerian real estate market.
The annual event brings together experts and stakeholders in the Nigerian real estate and construction industry to share industry projections, trends, opportunities and insight into what to expect for the year.