We forecast --.- y-o-y real growth in Nigeria s construction sector over ----, with growth only marginally set to recover in ---- at -.- . The private sector remains on the sidelines in terms of investment and the government is suffering from reduced revenues making their expansive budget unrealistic. ...The ---- federal budget also had a large focus on transport, although we note government financed projects are more susceptible to delays. � The residential and non-residential building sector has been hardest hit by the economic turmoil, as investment in the economy grinds to a halt due to capital controls limiting access to dollars and banks suffering from exposure to the struggling oil sector. The ---- federal budget also had a large focus on transport, although we note government financed projects are more susceptible to delays. ...� The residential and non-residential building sector has been hardest hit by the economic turmoil, as investment in the economy grinds to a halt due to capital controls limiting access to dollars and banks suffering from exposure to the struggling oil sector.
...We had expected that the implementation of an expansionary budget and a return in investor sentiment following the relaxation of the currency peg would boost growth in the second half of the year. However, the issues surrounding these factors have failed to improve significantly and as such we have again downgraded our growth forecasts which now see a ---- recession in the industry of --.- in real terms y-o-y. ...However, the issues surrounding these factors have failed to improve significantly and as such we have again downgraded our growth forecasts which now see a ---- recession in the industry of --.- in real terms y-o-y. China continues to act as a lifeline for the infrastructure sector, with several rail and energy agreements signed worth several billions of dollars over the last quarter, on top of the USD-bn in loans secured by the Nigerian government earlier in the year. Chinese firms continue to be the major beneficiary of this relationship. ...Chinese firms continue to be the major beneficiary of this relationship. The government s hugely expansionary ---- federal budget has failed to support the industry as dispersal of funds has slowed and the government undertakes a reality check of Nigeria s National Integrated Infrastructure Master Plan, which will significantly delay projects moving forward for at least the remainder of ----.
...Given the country s high levels of corruption and bureaucratic inefficiency, many public sector construction projects have stalled or have had to be cancelled. The economy is over-reliant on the oil sector, as are government revenues. ...
