Building failures, numerous regulatory inconsistencies and governance gaps have exposed systemic weaknesses in Nigeria’s construction and real estate sector, the Lagos Chamber of Commerce and Industry (LCCI) has said.

The Chamber warned that urgent reforms are needed to strengthen project delivery, safeguard infrastructure development and protect the industry from collapse.

‎The chamber said the many challenges confronting the sector are not isolated but systemic, affecting construction, engineering and real estate activities across the country and requiring a more structured, forward-thinking response.
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Stressing that the real estate sector contributed roughly 13.4 per cent to Nigeria’s Gross Domestic Product (GDP) last year, it said this underscores the sector’s importance to the economy.

The Chamber stated that tackling these issues requires stronger governance, better regulatory coordination, and a shift towards more sustainable construction practices. It called on government bodies, regulatory agencies, and other stakeholders to align policies, streamline approval processes, and enforce standards to regain confidence and promote long-term growth in the sector.

‎Chairman, Real Estate Group, LCCI, Dr Michael Oladiji, said the sector remains a key contributor to Nigeria’s economy, noting that this underscores the need to position it at the centre of national economic policy.

‎He added that integrating Environmental, Social and Governance (ESG) compliance within the built environment would help drive investment, improve infrastructure quality and enhance global competitiveness. “The goal is to take the ESG adoption from concept to action, from policy discussion towards practical implementation within the built environment,” he said.

Chair, Construction and Engineering Group, LCCI, Soji Adeniji, said Nigeria’s built environment continues to face persistent challenges, including building failures, regulatory inconsistencies, environmental degradation and governance gaps in project delivery. He noted that these issues are not isolated, stressing the need for a more responsible, transparent and sustainability-driven approach to construction and infrastructure development.
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Group Managing Director, Global Property and Facilities International (GPFI), Dr MKO Balogun, emphasised the need to focus on the economic value of ESG adoption, noting that organisations are more likely to embrace the framework when its benefits to businesses, communities and the wider economy are clearly demonstrated. He said the emphasis on compliance alone has often slowed adoption, stressing that highlighting the value of ESG would drive stronger acceptance and enable organisations to build internal governance structures capable of supporting innovation and long-term growth.

“Most times we keep emphasising compliance without looking at what economic value compliance will bring to organisations, institutions, people and the economy,” he said.

He also noted that while several organisations in Nigeria are already on the ESG journey, many are yet to maximise their benefits due to limited awareness.
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Oladiji added that, in response to these challenges, the upcoming conference, themed ‘Mainstreaming ESG compliance in the engineering, construction and real estate sector in Nigeria’, scheduled for tomorrow, March 26, would focus on moving discussions around ESG from concept to practical implementation.