Construction & Real Estate
From The Report: Nigeria 2015
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In recent years the construction market in Nigeria has been among the world’s fastest growing, forecast to have expanded by 13% in 2014 on the back of a diverse array of demand drivers, including substantial state investment in infrastructure, rising levels of foreign direct investment and rapidly increasing urbanisation rates. The authorities have launched a host of initiatives that are aimed at addressing many of the industry’s steepest challenges – high building costs, delays in public contract payments, lateness in project delivery, lack of a national building code, reliance on state infrastructure projects and poor quality standards – though the efficacy of these schemes has yet to be confirmed. In the last few years Nigeria’s real estate market has expanded rapidly, continuing a decade-long upward trend fuelled by rising per capita incomes, steadily increasing foreign direct investment, urbanisation and strong corporate demand. Even though local and foreign developers have carried out a large number of projects in recent years, in most segments demand has been outpacing delivery. As a result, the country is undersupplied in a handful of key areas, including high-quality office space, affordable housing and formal retail. Despite a range of pressing challenges, Nigeria’s real estate sector is set to continue expanding in future, albeit at a slower pace than over the past decade.

This chapter contains an interview with David Frame, Managing Director, South Energyx Nigeria.

Articles from this Chapter

Overview

Increased demand and investment have driven rapid expansion in Nigeria’s construction sector
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In recent years the construction market in Nigeria has been among the world’s fastest growing, forecast to have expanded by 13% in 2014 on the back of a diverse array of demand drivers, including substantial state investment in infrastructure, rising levels of foreign direct investment and rapidly increasing urbanisation rates. According to the National Bureau of Statistics (NBS), the sector made up 3.12% of the country’s GDP in 2013, up from 3.01% in 2012 and 2.88% in 2011. With consumer purchasing…

Analysis

The industry has come together to urge the passage of a national building code
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For the past decade Nigeria’s construction industry has remained lively despite the lack of federal building laws. Though a draft National Building Code (NBC) was introduced in 2006, the legislation has been stuck in government limbo since August of that year. As of early 2015, it had yet to be formally endorsed by the National Assembly. While most of Nigeria’s large contractors abide by international building standards or state building codes, many smaller construction firms do not – a situation…

Interview

David Frame, Managing Director, South Energyx Nigeria: Interview
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Interview:David Frame What are the major challenges and cost factors in undertaking a project as large as Eko Atlantic? DAVID FRAME: The standard response is always “getting the message out”. Eko Atlantic City will transform Lagos, yet some people still know little about the project, despite the vast amount of publicity it has received. The technical challenges are one thing for us to meet, but getting people to understand what we are doing and why sometimes seems like an even bigger…

Overview

Demand for housing, retail and office space is driving Nigeria’s real estate market
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In the last few years Nigeria’s real estate market has expanded rapidly, continuing a decade-long upward trend fuelled by rising per capita incomes, steadily increasing foreign direct investment (FDI), fast urbanisation and strong corporate demand. According to a January 2015 report by CBO Capital, the sector was valued at N6.4trn ($39bn) and growing at 10% a year. Even though local and foreign developers have carried out a large number of projects in recent years, in most segments demand has been…

Analysis

The Nigerian government works to meet rising demand for affordable housing
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In January 2014, the Nigerian government announced its establishment of the Nigeria Mortgage Refinance Company (NMRC), a state entity that will provide long-term, low-interest financing to local lenders, to encourage them to ramp up their mortgage offerings for end-users. The new firm is the latest in a long line of affordable housing initiatives the government has launched since 2011. Addressing Nigeria’s acute housing shortage – especially in the low- and middle-end market – has been a major…