Construction & Real Estate
From The Report: Nigeria 2019
View in Online Reader

Although currency volatility and a recession in 2016 impacted private sector investment, public spending on new infrastructure has surged in recent years, and is expected to rise again for the remainder of 2018 and into 2019. However, public funds do not suffice to close the country’s widening infrastructure deficit, something that has led the government to increasingly target private sector investment to launch new projects. In addition to successful bond issuances that should relieve budgetary constraints and boost transport spending, the authorities have moved to increase the deployment of public-private partnerships to deliver big-ticket projects, a strategy that has had considerable success, and should keep the industry on the path towards positive growth going into 2019. Meanwhile, the real estate sector is set to stabilise in 2018 as markets absorb new supply, and macroeconomic indicators improve. The 2018 budget boosted public spending by 16% from 2017 levels, with a significant portion of funding channelled into new projects under the Federal Ministry of Power, Works and Housing, as well as the Federal Ministry of Transportation.

This chapter contains interviews with Babatunde Fashola, Minister of Power, Works and Housing; and Paul Onwuanibe, CEO, Landmark Africa.

Articles from this Chapter

Overview

Strengthening links: Government plans aim to align national economic development and infrastructure goals
OBG
plus

The Nigerian construction industry has remained resilient through the country’s recent macroeconomic volatility, benefitting from mid- and long-term economic development policies emphasising infrastructure investment, and a sizeable deficit that has created new opportunities in the transport, energy and real estate sectors. Although currency volatility and a recession in 2016 impacted private sector investment, public spending on new infrastructure has surged in recent years, and is expected…

Interview

More power: Babatunde Fashola, Minister of Power, Works and Housing, on developments in housing and power generation
OBG
plus

Interview:Babatunde Fashola How would you assess the progress Nigeria has made in addressing the housing deficit? BABATUNDE FASHOLA: While the housing deficit is a problem that mainly afflicts urban centres like Abuja, Lagos and Kano, as a result of migration there are empty houses in both rural and urban areas. But they do not meet the needs of most buyers. This has led to the government’s decision to develop a pilot housing project that is currently running in 34 states, responding to…

Interview

Home improvements: Paul Onwuanibe, CEO, Landmark Africa, on the prospects for sector growth and the rise of mixed-use developments
OBG
plus

Interview:Paul Onwuanibe What opportunities are likely to arise within the post-recession housing sector? PAUL ONWUANIBE: There is currently a significant undersupply of housing and an extremely low rate of home ownership. The second-hand sales market is also very weak, due to the lack of an adequate mortgage system. This has resulted in a situation where a very small percentage of the population can afford to own a house or buy homes as assets. With a viable mortgage system, a new group…

Overview

Building upwards: Property prices have been impacted by oscillating oil receipts, but are now growing at a steadier rate
OBG
plus

After a boom period marked by high oil prices and double-digit growth, Nigeria’s real estate sector was significantly impacted by the country’s economic downturn, with growth dropping off in 2015 and 2016, and remaining subdued in 2017 and early 2018. With some high-end office and residential projects stalled, developers are increasingly turning their attention towards smaller and more affordable projects, which should benefit from ongoing government efforts to grow the country’s mortgage…

Overview

Sustainable urbanisation: As urban populations undergo rapid growth around the globe, planners are striving to create efficient spaces
OBG
plus

In 2008, for the first time in history, more than half of humanity was living in urban areas. Perhaps the most remarkable observation about this trend is the speed at which it has happened: as recently as 1900 urban areas accounted for 13% of the global population. Towns and cities are seen as the crucibles of opportunity for many rural dwellers. The UN estimates that by 2030 urban areas will host 60% of the world’s population – up from 54.5% in 2016 – with the pace of urban growth especially rapid across Africa and parts of Asia. Urban areas are home to more than 470m people in Africa, accounting for 40% of the continent’s population,…

Overview

Sustainable urbanisation: As urban populations undergo rapid growth around the globe, planners are striving to create efficient spaces
OBG
plus

In 2008, for the first time in history, more than half of humanity was living in urban areas. Perhaps the most remarkable observation about this trend is the speed at which it has happened: as recently as 1900 urban areas accounted for 13% of the global population. Towns and cities are seen as the crucibles of opportunity for many rural dwellers. The UN estimates that by 2030 urban areas will host 60% of the world’s population – up from 54.5% in 2016 – with the pace of urban growth especially rapid across Africa and parts of Asia. Urban areas are home to more than 470m people in Africa, accounting for 40% of the continent’s population,…