Nigeria Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Nigeria Facility Management Market is Segmented By Type of Facility Management (In-House Facility Management, Outsourced Facility Management), By Offering Type (Hard FM, Soft FM), By End-User Industry (Commercial, Institutional, Public/Infrastructure, Industrial).

Market Snapshot

Nigeria Facility Management Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 5.4 %

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Market Overview

The Nigeria Facility Management Market is expected to grow by registering a CAGR of 5.4% during the forecast period (2022-2027). The growing urbanization in the country is driving the demand for facility management services for proper maintenance of properties, especially commercial and industrial properties.

  • The increasing rate of urbanization in the country is driving the growth of the construction industry as the demand for both commercial and residential properties is increasing. For instance, in September 2021, the Edo State government and Persianas Nigeria Limited signed an agreement for the development and construction of a shopping center in Benin City, the state capital.
  • Increasing investment by the government to develop their public infrastructure is also supporting the growth of the construction sector in the country. For instance, in March 2022, the construction activity of a USD 537 million new consulate building at Eko Atlantic City in Lagos was flagged off by the U.S. Embassy in Nigeria.
  • Additionally, the country has also been witnessing increased investment in data center infrastructure owing to the rising demand for cloud solutions. For instance, in April 2022, Kasi Cloud Ltd. broke ground for the construction of a new data center in Lagos, Nigeria. The company has acquired approximately 4 hectares of land and is planning to invest around USD 250 million in the project.
  • However, lack of awareness and skilled workforce, along with the volatile economic condition, are among some of the major factors holding back the growth of the studied market.
  • A significant impact of COVID-19 has been observed in the country. The widespread lockdown, along with a decline in crude oil prices, which is a major source of revenue for the Nigerian government, stalled the construction activities. Additionally, the disruptions to the supply chain and disruption in import activities of construction equipment and material further supported this cause. However, with the condition moving towards normalcy, the market is expected to gain traction, which in turn will drive the demand for facility management services.

Scope of the Report

Facility management refers to a set of services or tools that helps organizations reduce maintenance costs and ensure the well-being of employees. By addressing many of its immediate and long-term needs, these services add value to a business. The report provides an extensive analysis of the trends and dynamics of the Nigerian facility management services market.

By Facility Management Type
In-House Facility Management
Outsourced Facility Management
Single FM
Bundled FM
Integrated FM
By Offerings
Hard FM
Soft FM
By End-User
Commercial
Institutional
Public/Infrastructure
Industrial
Other End-users

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Key Market Trends

Oil and Gas Sector to be a Major Demand Driver

  • When compared to the African market, the oil and gas sector in Nigeria is among the largest. According to Nigerian National Petroleum Corporation (NNPC), the maximum crude oil production capacity of the country is about 2.5 million barrels per day.
  • Several aspects of the petroleum industry, ranging from the exploration of the possible location of the reservoir up until decommissioning, is subjected to several uncertainties and are affected by financial, operation and maintenance, government law, construction, and political and regulatory factors the role of facility management becomes even more crucial.
  • To ensure the effective operation of the oil exploration sites and other related industries, the demand for facility management services is increasing in Nigeria. For instance, in November 2021, Seplat Petroleum Development Company, an independent oil, and gas company in Nigeria, rolled out tenders for the Provision of Facility Maintenance Services for Sapele West Field Logistics Base (FLB).
  • Such trends are encouraging more and more vendors to include services that can cater to the demand of this sector. For instance, Petrogap, a Nigerian company, offers a comprehensive portfolio of facility management services for the oil and gas sector, which includes an integrated service package for heat exchangers and subsea control systems, and gas turbines, as well as services such as maintenance, repairs and operation of platforms, drill sites, and processing plants.
Nigeria Facility Management Market Trends

Growth of ICT Sector to Drive the Demand for Facility Management Services

  • Currently, the ICT sector in Nigeria is among the fastest-growing sectors in Nigeria and has emerged to be among the leading contributors to the country's GDP. For instance, according to the National Bureau of Statistics, in the first half of 2021, the ICT sector contributed NGN 5.5 trillion to the real GDP of the country.
  • The presence of several tech companies such as IBM, Accenture, and Google is driving the demand for office spaces in the country, which is a major consumer for facility management services.
  • Additionally, the growing consumption of digital solutions is encouraging new players to enter the market and is also supporting the growth of the local vendors operating in the ICT sector. For instance, in May 2021, Nigerian fintech startup Mono announced that it had closed over USD 2 million in seed investment to power the internet economy in Africa.
  • In its drive to diversify the economy from oil and gas, the Nigerian Government recognizes ICT as the enabler for developing other critical sectors, including healthcare, education, agriculture, and manufacturing, and is encouraging partnerships between foreign investors and local ICT companies. Such trends are expected to lead to the creation of a business environment that is more supportive of the growth of the facility management market in the country.
Nigeria Facility Management Market Analysis

Competitive Landscape

The facility management in Nigeria is moderately competitive and is expected to grow in competition during the forecast period as the increasing awareness and demand are encouraging new players to enter the market. Some of the major players operating in the market include Total Facilities Management Limited, Greenkey Facility Management Services, Global PFI Limited, and Solid Rock Facility Management Company Limited.

  • April 2022 - The Federal Executive Council (FEC) approved NGN 35 billion for various projects in the aviation sector. To maintain the nation's new international building terminals in Port Harcourt and Abuja, about NGN 5.6 billion of the money was approved.
  • August 2021 - Global Property and Facilities International Limited (GPFI), a facility management company offering its services in Nigeria, secured contracts to provide integrated Facilities Management services for Heritage Mall, RIVTAF homes' Golf Estate Port Harcourt, Ibadan, and Reckit Benkiser in Lagos.

Recent Developments

  • June 2021 - Nigerian National Mirror Committee (NMC) of the International Organisation for Standardisation (ISO) Technical Committee announced that it had planned a maiden Stakeholders Round Table on the subject (ISO/TC 267) under the auspices of the Standards Organisation of Nigeria (SON) to promote facility management practices in Nigeria.
  • February 2021 - To expand its presence in the Nigerian facility management market, Starsight, one of the prominent West African Commercial and Industrial (“C&I”) solar power providers, invested in UPDC Facility Management Limited, which is a joint venture with UACN Property Development Company PLC.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porters Five Force Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Surge in Construction Activities due to increasing Urbanization

      2. 5.1.2 Increasing Awareness About Proactive Maintenance & Asset Protection in Industrial Sector

    2. 5.2 Market Restraints

      1. 5.2.1 Shortage of Skilled Workforce and Low Capital Investment

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Facility Management Type

      1. 6.1.1 In-House Facility Management

      2. 6.1.2 Outsourced Facility Management

        1. 6.1.2.1 Single FM

        2. 6.1.2.2 Bundled FM

        3. 6.1.2.3 Integrated FM

    2. 6.2 By Offerings

      1. 6.2.1 Hard FM

      2. 6.2.2 Soft FM

    3. 6.3 By End-User

      1. 6.3.1 Commercial

      2. 6.3.2 Institutional

      3. 6.3.3 Public/Infrastructure

      4. 6.3.4 Industrial

      5. 6.3.5 Other End-users

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Total Facilities Mgt Ltd

      2. 7.1.2 Greenkey Facility Management Services

      3. 7.1.3 Global PFI Limited

      4. 7.1.4 Broll Property Group

      5. 7.1.5 Solid Rock Facility Management Company Limited

      6. 7.1.6 Cxall Facilities Management

      7. 7.1.7 Gwill Facility Management & Maintenance Company

      8. 7.1.8 Eko Maintenance Ltd

      9. 7.1.9 Grandeur Real-Estate Company

      10. 7.1.10 James Cubitt Facility Managers

      11. 7.1.11 Alpha Mead Group

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Nigeria Facility Management Market market is studied from 2020 - 2027.

The Nigeria Facility Management Market is growing at a CAGR of 5.4% over the next 5 years.

Total Facilities Management Limited, GreenKey Facility Management Services, Global PFI Limited, Broll Property Group, Solid Rock Facility Management Company Limited are the major companies operating in Nigeria Facility Management Market.

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