Nigeria’s Real Estate Sector Overtakes Oil as Third-Largest GDP Contributor

The rebased GDP figures, which update the reference year to capture emerging industries and economic dynamics, show that real estate now contributes 10.7% to the GDP—up from 6.2%—while the construction sector accounts for 5.2%. Together, the two sectors represent 15.9% of Nigeria’s GDP, an increase from 12.4%, translating into a staggering N14.6 trillion in real terms. Adeniran described this growth as evidence of the sector’s central role in national development, highlighting the impact of urbanization, infrastructure expansion, and the informal operators driving grassroots housing activities.

For decades, Nigeria’s economic fortunes rose and fell with global oil prices, exposing the country to volatility that hindered the development of non-oil industries. The rebasing exercise has once again expanded the economic picture, revealing how rapidly real estate has surged, outpacing traditional industries and surpassing the oil and gas sector. This transformation reflects an economy increasingly shaped by internal demand, demographic pressures, and investments in physical infrastructure, rather than the fluctuating fortunes of global commodities.

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