The building and construction industry in Nigeria is grappling with a major challenge— the high cost of adopting modern technology. While countries around the world embrace new tools, many Nigerian firms say these innovations remain financially and logistically out of reach, CHINEDUM UWAEGBULAM reports.
Despite a growing wave of digital transformation across industries, Nigeria’s building and construction sector is struggling to keep pace due to the high cost of modern technologies.
This development has raised doubts about the promise of faster, smarter, and more cost-efficient building projects through technology for many real estate developers.
From high-end real estate in Lekki to government housing projects across the country, the adoption of modern construction technologies is still hampered by cost and infrastructure challenges.
While innovations such as Building Information Modelling (BIM), drones, and 3D printing are redefining global construction practices, many Nigerian firms remain stuck with outdated tools, held back by financial, infrastructural, and regulatory barriers.
Notwithstanding the challenges, technology adoption in construction is growing gradually than in advanced economies. For instance, in professions like surveying, architecture, and facility management; several companies and initiatives are breaking boundaries through innovative technologies.
Nigerian startups are attempting to bridge the gap. Firms like LiveVend and CDIL are developing digital platforms for procurement and infrastructure mapping, while ThinkLab is experimenting with modular construction and Augmented Reality (AR) visualisation.
Lafarge Africa has supported the early-stage exploration of 3D printed housing for affordable home solutions, especially in rural areas. These projects aim to reduce housing deficits and construction costs by using locally sourced and sustainable materials.
Also, major construction firms like Julius Berger are integrating BIM for large-scale infrastructure like bridges and highways. BIM helps reduce design errors, manage materials efficiently, and support better decision-making.
Companies like Alpha Mead use IoT sensors and cloud-based tools for facilities management in office buildings and malls. Estate Intel is also innovating with real estate analytics platforms that track project delivery, helping investors and developers make informed decisions.
Still, these efforts remain isolated. Without systemic change, experts said, technology will remain a luxury, rather than a lifeline, for Nigeria’s struggling construction sector.
Industry experts said the cost of essential hardware and software is out of reach for most local firms, as a single BIM software license can cost over N4 million yearly. In addition to training and infrastructure, it becomes unaffordable for 80 per cent of the market.
Most of the advanced tools shaping modern property development worldwide—like automated prefabrication units, smart sensors, drones, IoT sensors, 3D printers and construction robotics—are imported, and subject to foreign exchange fluctuations, high customs duties and lack of local alternatives.
In areas like Abuja, Port Harcourt, and parts of Lagos, even basic infrastructure can complicate technology use. Coupled with poor internet connectivity and erratic power supply, companies often need to make additional investments in backup infrastructure like generators and private networks.
“You can’t use AR or cloud-based project tools on a site where the generator breaks down every few hours,” said Helen Ogu, operations head at a real estate firm overseeing a 200-unit estate in Apo, Abuja.
There are also the risks of obsolescence as companies worry that a costly tool bought today may become outdated in two–three years, with limited resale value or local support. This discourages long-term investment, especially without reliable after-sales service in Nigeria.
The financial sector has offered little relief. With double-digit interest rates and limited access to long-term loans, many firms operate on tight margins that leave no room for technological investment.
Experts also blame the government for not providing incentives or mandates for digital upgrades. “There’s no policy pressure pushing developers to adopt smart building tools,” noted Lookman Abiodun, a project manager with over 15 years in the industry. “Public projects still go to the lowest bidder, not the most innovative one.”
Analysts believe that until the cost of adoption is addressed through local innovation, government support, and affordable financing, Nigeria risks falling behind in the global construction race.
Compounding the issue is the lack of trained personnel. Most developers must bring in foreign or diaspora consultants to manage and interpret tech tools, raising operational costs even further.
Developers also complain that there’s little policy incentive to innovate. “Clients, especially in the public sector, focus on cost, not innovation,” Thomas added. “That makes it hard to justify tech upgrades when budgets are already tight.”
With the country’s housing deficit still estimated at over 17 million units, experts warned that failing to modernise construction methods will slow delivery timelines and inflate costs.
“Technology is not a luxury—it’s a necessity if we want to build faster and better,” said Ogu. “But without government support, access to financing, and local skills, we’ll keep lagging.”
With no clear regulatory push or tax incentives, analysts warned that Nigeria may be left behind in the global race to modernise construction. Countries like China, the UAE, and the U.S. have made major strides through government-backed innovation and private sector investment.
Past president, Nigerian Institute of Architects (NIA), Mr Enyi Ben-Eboh, admitted that cost of technology has affected the growth of the building and construction industry. “This is worsened by the fact that most of our companies are relatively small in terms of their yearly turnover, and this has impacted on their ability to make the initial heavy investment required in technology.
“There is also the issue of high cost of maintaining and upgrading technology, which can be a huge burden to these indigenous companies and compounded by the limited support technology infrastructure, such as power and internet bandwidth availability.”
He said most of the components that drive technological advancement in the building and construction sectors are not indigenous, ranging from software to hardware, up to the relevant support infrastructure is imported and with the devaluation of the local currency, a lot of these components have been priced beyond profitable limits for quite a few companies.
According to him, most companies have to resort to alternative energy sources in the form of solar and inverters to drive their energy needs, which is also not cheap. Depending on where the company is located, internet availability is also a big challenge. Other areas worth mentioning include the aspects of system integration and compatibility, as well as challenges with data quality and security.
Ben-Eboh explained that many companies have adopted survival strategies to stay afloat in these challenging times and some of these strategies include prioritising essential technologies such as BIM system, and project management software, which are essential in project delivery, exploring alternative technologies such as open source software to reduce cost and increase accessibility, use collaborative cloud tools, energy transition, collaboration and partnerships, as well as capacity building in relevant software to optimise usage.
He urged the government to create an enabling environment for companies to embrace technology, develop relevant standards and guidelines, as well as encourage public-private partnerships.
“This can take several forms, such as tax incentives, grants and subsidies for companies that invest in digital technology, in addition to driving investment in requisite infrastructure such as steady power supply, steady and reliable internet connectivity, as well as ICT infrastructure to support adoption.”
The Chairman, Nigerian Institution of Surveyors (NIS) Lagos State branch, Kolade Kasim, also told The Guardian that the cost of tech adoption has affected the growth of the industry. “Equipment is expensive, and technology keeps improving, and we have to keep up with our foreign counterparts to overcome this challenge.
“We try to partner with equipment dealers and fashion out ways to make them affordable for members. One of our major subgroups still has such a scheme running. The branch has a Continuous Reference Station (CORS) system running, and, in a few weeks, we should have the second one operational, so that members can also key into that,” he said.
He explained that the equipment is costly because they are not produced locally and is affected by the vagaries of the foreign exchange market. “Modern technology is faster, more efficient and eventually most cost-effective. You can imagine trying to work along a busy road; what would take a while with old methods can be achieved in minutes with new technology.”
Kasim advised the government to prioritise Nigerian surveyors and ensure they’re patronised to enable them to afford the equipment.
The Group Managing Director, Global Property & Facilities International Ltd, Dr Muhammad Balogun, didn’t agreethat the cost of tech adoption affected the growth of the building sector.
According to him, construction technology has been growing, but at a snail’s pace. “We have not really adopted technologies in Nigeria. We don’t have a 3D printed house yet in Nigeria, but professionals are adopting various systems like BIM, Artificial Intelligence to improve construction processes.
“For facility management, technology has long been part of our process from the era of Computerised Maintenance Management System (CMMS) to the adoption of the latest tools, not just to optimise processes but for building management.”
Balogun said the government’s focus should be to enable technology adoption through innovation hubs and funding for innovators.
