By Ediri Ejoh
Analysts have predicted a positive long-term high reward market growth of 9.80 per cent and 11.04 per cent in the Nigerian construction sector for 2015 and 2016 respectively, despite the current decline in major oil projects and continuous fall of oil prices.

Business Monitor International, BMI, in its Infrastructure Key Projects Database, said the growth averages over 10.6 percent within a 10-year forecast period.

According to the BMI, the catalyst to drive the country’s growth as well as revenue generation to the economy is the development in power supply and transport links, adding that the fall in oil prices and its effect on government revenues and the Naira devaluation will stall investments.

It stated that the infrastructure sector is more exposed to the numerous risks in the country’s business environment, adding that current reforms and development plans implemented under the current administration (although slow to get off the ground), are beginning to attract the needed investment that will boost other sectors of the economy.

Moreso, it stated that despite the potential of the country’s infrastructure market which has long been known, a chronic lack of investment and the laborious business environment has limited its growth prospects.

The report highlights persistent risks hampering the implementation of major projects, blaming it on deep-rooted corruption and violence perpetrated by militants popularly known as,Boko-Haram, vandals, and inefficient bureaucracy.

The report had earlier listed Nigeria among other countries to risk over $30 billion about N5.1 trillion worth, of oil and gas pipelines projects due to the persisting decline in crude oil price.

It further stated that some major infrastructure project in the pipeline are being threatened or being heavily curtailed, as falling oil prices force those governments reliant on oil revenues to make cuts.

The report however studied major oil producing and dependent countries like: Iran, Iraq, Russia, and Nigeria, as having at least $30 billion of projects at risk.

The report said: “The current oil price environment will put a strain on infrastructure projects around the world. We have already seen the cancellation of petrochemical projects in Saudi Arabia and Qatar, and we expect that across most markets oil and gas pipelines and industrial construction projects in the refining sector will likely face similar prospects.

However, it predicted that over the coming years the impact will have a much broader effect on some markets in particular, adding that these countries risk project completions because of the falling oil strides.

“With this in mind, we highlight Iran, Iraq, Nigeria and Russia as markets with sizeable portions of their project pipelines ($30billion plus) in the planning stages which are vulnerable to cutbacks.

Continuing, it maintained that “With the instability in the crude price, questions are raised over the country’s fiscal sustainability and ability to fund its infrastructure plan. This is because the country has one of Africa’s largest infrastructure project pipelines, with $65bn worth of projects across all sectors in the planning phase.”