Investing in Nigeria’s Infrastructure boom: racing at the pace of the demand
The Real Estate sector is Africa’s 5th largest contributor to the continent’s GDP and in Nigeria, it accounts for roughly about 8% of the country’s economy.
According to the Federal Housing Mortgage Bank of Nigeria, Nigeria’s housing deficit is estimated at between 17 – 20 million housing unit with a potential cost of N6 trillion (US$16 billion), and a 900 000 annual unit deficit increase. At least 1 000 000 units are needed yearly to bridge this deficit by 2033 if the population continues at its annual growth rate of 3.5 percent, but currently, only 100 000 housing units are produced per year. It is estimated that it will cost US$363 billion to curb the current housing deficit and the number is expected to keep growing.
In terms of home ownership, Nigeria has a low rate of 25 percent, lower than that of Indonesia (84 percent), Kenya (73 percent), and South Africa (56 percent). Investment possibilities are ripe within this sector and currently Japanese and Chinese companies have claimed stakes with various capital intensive projects to be completed by 2019.
This panel will address the opportunities that exist within the Real Estate sector in Nigeria for foreign investors. With the green light given by federal government for public private partnerships in bridging the housing deficit, panelists will be expected to address questions such as; what segments within the real estate sector offers the most return on investment; low cost housing schemes, the middle income housing segment, access to mortgage loans, as well as existing opportunities for public private partnerships.
Moderator: Ayuli Jemide, Lead Partner, DETAIL Solicitors
Panelists
- Hakeem Ogunniran (Mercury Nominees/Ex.MD of UPDC), Nigeria
- Chief Mrs. Taiwo Taiwo, CEO, LEXAM Investments
- Representative of LafargeHOLCIM (TBC)
