Construction & Real Estate
From The Report: Nigeria 2024
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With the sector recovering from the stresses of the Covid-19 pandemic and the government’s key financing schemes experiencing notable success, Nigeria’s construction landscape is beginning to look brighter. While the real estate sector has enjoyed a rebound since pandemic-related restrictions began to ease, the lack of affordable housing is a growing concern that has been exacerbated by inflation, volatility in the exchange rate and the rising cost of building materials. To bridge the gap, the government could mobilise private sector investment by implementing land reform and measures to manage construction costs. The future success of the government’s economic diversification measures are likely to play a significant role in determining the long-term health of the property market.

This chapter contains interviews with Attahiru Bala Usman, Managing Director, Allott Nigeria; and Kingsley Muwowo, Managing Director, Shelter Afrique.

Articles from this Chapter

Overview

Cementing the future: Government focus on building infrastructure in priority sectors set to increase stock and spending
OBG
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Following a slowdown preceding the Covid-19 pandemic, Nigeria’s construction sector contracted in 2020, in line with the cessation of global economic activities. In the years since the start of the health crisis, the government has shown a renewed focus on infrastructure in recognition of its importance to broad-based economic stability and expansion. By prioritising critical sectors such as transport, energy and housing the government aims to increase infrastructure stock and spending as a percentage…

Interview

Building green: Attahiru Bala Usman, Managing Director, Allott Nigeria, on adopting sustainable practices and encouraging localisation
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How would you assess the quality of local firms that are working on key infrastructure projects? USMAN: The quality of local technical consulting has improved tremendously, enabling Nigerian offshoots of international firms to become fully indigenous. This has led to reduced reliance on foreign expertise to execute key phases of large infrastructure projects, as demonstrated by our work on the environmental impact mitigation monitoring of the Lekki deep sea port project and the environmental…

Analysis

Supportive measures: Fostering the local and alternative building materials market to lower costs associated with construction
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Nigeria’s infrastructure development drive has the potential to transform the local construction industry and contribute to wider economic growth. One area that stands to benefit from a strong pipeline of large-scale building projects and demand for public housing is the local building materials industry. Due to the underutilization of raw materials, Nigeria is a net importer of such inputs. Indeed, 90% of the resources and supplies used to construct roads and buildings in Nigeria are imported,…

Overview

Smart moves: Economic diversification initiatives will play a significant role in determining the long-term health of the property market
OBG
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Nigeria’s real estate sector is showing signs of revival following the negative impacts of the Covid-19 pandemic. The upward trend in sector activity is expected to continue in the coming years, with the government keen to secure private investment and public-private partnerships in order to boost infrastructure, especially affordable housing construction. The sector was significantly affected by pandemic-containment measures and the reduction of office-based work and non-essential commercial…

Analysis

Creating space: Mixed-use developments are gaining popularity as a result of changing lifestyles and rising demand
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The Covid-19 pandemic initiated and accelerated several consumer and social trends. Mixed-use developments were prevalent in Nigeria before 2020, and lifestyle changes driven by social restrictions made those projects more appealing. “What we have seen is a shift from single-sector developments towards mixed-use real estate,” Bolaji Edu, CEO of Broll Nige-ria, told OBG. “Multiple factors, such as reducing the time people spend in traffic and the security of having amenities close to home are…

Interview

Making room: Kingsley Muwowo, CFO, Shelter Afrique, on efforts to create space for more public and affordable housing
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How do you assess the efforts of the public and private sectors to reduce the housing deficit? MUWOWO: The availability and cost of housing require a specific and measurable redress policy. The federal government is taking the initiative by embracing public-private partnerships (PPPs). This model recognises that a key component of affordable housing is the cost of land, which may range from 30% to 60% of the total cost of a housing unit. To address this, all branches of government must make their…