Construction & Real Estate
From The Report: Nigeria 2016
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As the continent’s most populous nation and arguably its biggest economy, Nigeria offers a lot of potential for construction firms – particularly given the significant need for infrastructure work, from housing to roads. However, meeting this demand will require overcoming a number of obstacles, ranging from cash flow issues and payment delays to import of equipment and building material costs. A difficult macroeconomic environment is also constraining efforts to remedy this situation in the short term. The property market is defined by significant long-term potential, but realising it is not necessarily simple. A drop in the price of oil, a lack of foreign exchange and a depreciating currency are all combining to slow the economy, in turn dampening demand for both residential and commercial real estate. However, with a young and urbanised population of more than 184m people, the outlook in the longer term is more positive. If household incomes rise and access to finance improves, the scope for growth is immense.

This chapter contains a roundtable with Ronald Chagoury Jr, Vice-Chairman, South Energyx; Odenigwe Ike Michaels, CEO, Centenary City; Vinay Mahtani, CEO, Churchgate; and Elias Saad, Chairman, Eko Pearl Towers.

Articles from this Chapter

Overview

Lift off: Planned government spending is set to boost the sector
OBG
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As the continent’s most populous nation and arguably its biggest economy, Nigeria offers a lot of potential for construction firms – particularly given the significant need for infrastructure work, from housing to roads. However, meeting this demand will require overcoming a number of obstacles, ranging from cash flow issues and payment delays to import of equipment and building material costs. A difficult macroeconomic environment is also constraining efforts to remedy this situation in the…

Analysis

Roll back: Lower cement prices likely to encourage activity
OBG
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Recent developments in Nigeria’s cement industry bode well for the construction sector moving forward. Indeed, capacity expansion and greater competition should help drive down prices in a market that remains comparatively expensive. Market Size Cement is one of the few building materials in which Nigeria is self-sufficient. The country is home to two of the three largest materials firms listed on African stock markets: local firm Dangote Cement and Lafarge Africa, which is the African…

Overview

Boundless gains: OBG talks to Ronald Chagoury Jr, Vice-Chairman, South Energyx; Odenigwe Ike Michaels, CEO, Centenary City; Vinay Mahtani, CEO, Churchgate; and Elias Saad, Chairman, Eko Pearl Towers
OBG
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Interview:Ronald Chagoury Jr, Odenigwe Ike Michaels, Vinay Mahtani, Elias Saad Which regulatory changes could support efforts to create an enabling environment for real estate development? RONALD CHAGOURY JR: A strong mortgage industry and regulations supporting this industry would revolutionise the real estate market in Nigeria. If we take the total outstanding mortgage in the market, we are looking at a very small figure – 0.5% of the GDP. In South Africa, on the other hand, the…

Overview

All in: A shift in focus to new segments could unlock potential
OBG
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The property market in Africa’s most populous nation is defined by significant long-term potential, but realising that potential for developers is not necessarily simple. A drop in the price of oil, a lack of foreign exchange and a depreciating currency are all combining to slow the economy, in turn stifling demand for both residential and commercial real estate. However, with a young and urbanised population of more than 184m people, the outlook in the longer term is more positive. If household…