Market Trends of Nigeria Facility Management Industry
This section covers the major market trends shaping the Nigeria Facility Management Market according to our research experts:
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.
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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.
