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With rebased GDP figures revealing a sharp rise in sectoral output, Nigeria’s real estate and construction sectors now account for nearly 16% of the nation’s GDP—overtaking crude oil and natural gas for the first time.
August 01, 2025 | Staff Reporter | Nigeria, Africa | Property Management
In a landmark economic shift, Nigeria’s real estate and construction sectors have jointly overtaken crude oil and natural gas to become the third-largest contributors to the country’s Gross Domestic Product (GDP), according to Semiu Adeniran, Statistician General of the Federation.
Speaking at the African International Housing Show (AIHS) in Abuja, Adeniran shared findings from the recent rebasing of Nigeria’s GDP, which reflect a more accurate representation of the country’s economic structure.
“With the recent release of the results of the rebasing of Nigeria’s GDP, we have achieved a more comprehensive understanding of our economy,” he said. “The real estate sector now accounts for 10.7%, up from 6.2%, while the construction sector accounts for 5.2%.”
The combined contribution of both sectors has increased from 12.4% to 15.9% of total GDP—translating into a monetary gain of N14.6 trillion. “This is highly significant by any measure and reflects the expansion of housing activities, from urban development to infrastructure projects,” he added.
Adeniran emphasized that growth in real estate—encompassing property transactions and facility management—has outpaced several traditional industries, “contributing not only to GDP but also to employment, innovation, and value addition across supply chains.”
Crucially, he noted the role of informal sector participants in driving this growth, making real estate the third-largest contributor to GDP after agriculture and trade.
The AIHS, themed ‘Re-imagining Housing through Innovation, Collaboration and Policy’, also addressed Nigeria’s soaring housing demand, driven by rapid urbanisation and population growth. With the nation’s population exceeding 200 million and expected to be the third largest in the world by 2050, Adeniran pointed to rising urban migration and shifting lifestyles as major demand drivers.
“Over half of Nigeria’s population is expected to reside in urban centres within the next decade,” he said. “Available data indicates that only 38.2% of urban dwellers own their homes, highlighting significant opportunities in the rental market.”
He called for better sector-specific data to inform housing policy and investor decisions: “The significance of reliable data in this regard is not in doubt. It guides policy formulation, fosters investor confidence, and supports sustainable solutions to the housing challenges on our continent.”
The Statistician General concluded by underlining the multiplier effect of housing investment, which stimulates demand across industries from manufacturing to finance.
