Why own real estate in Nigeria? Economic facts
There are several reasons why it’s a wise decision to own real estate in Nigeria. Whether you are considering this for investment purposes or for personal use, acquiring property in Nigeria is the way to go. In this article, we’ll look at basic economic rationale for such a decision.
Abundant natural resources
Nigeria is blessed with ample mineral resources. It is estimated to have 3 billion metric tonnes of iron ore deposits, about 700 million tonnes of bentonite, and 40 million tonnes of talc. Its tropical climate also makes it a rich source of agricultural export products, including cocoa, oil palm, and cassava. In view of the enormous potential of its natural resources, the government has sought to diversify its erstwhile fixation on crude oil. Recent policy changes also encourage the commercial development of the agricultural sector, with strong multiplier effects on other sectors. This therefore opens up a vast area for investment by technocrats in the diaspora.
Huge population size
With a population of over 180 million (2016 estimates), and a huge section (about 75%) of this below 30 years, Nigeria is a massive investment destination. Nigeria is the seventh most populous nation in the world. As such, it presents a great opportunity for development across all sectors, particularly real estate. This is particularly significant in terms of potential revenue from rent and sale of real estate assets.
Nigeria is not only a huge market, it is the fourth fastest growing in the world. This means when you acquire a residential property here, you are settling down in a society that offers a lot of opportunities for both young and old.
Lagos, her commercial capital, is the 6th largest urban centre in the world. When you buy property in Nigeria, you are settling into a rapidly urbanizing environment, with all the amenities that come with it. Think of airports for faster travel, electricity for daily convenience, as well as access to information technology to keep us on the cutting edge of global development.
Relative political stability
Since the inauguration of a civilian administration in 1999, the country has enjoyed relatively stable political climate. Elections are regularly held across local, state and federal levels, leading to generally smooth administration and in turn fostering a conducive environment for investment. Already, discussions are on about the forthcoming 2019 elections, suggesting that we can expect the stability to be further sustained.
The government has been trying to promote a freer business climate. Late last year, this drive received an impetus when Nigeria was announced to have advanced 24 points on the ease of doing business index by the World Bank. A freer economic atmosphere means you have more opportunities of generating and increasing wealth. This investment-friendly climate has not gone unnoticed by the global business community as the economy received US$4.4 billion in foreign direct investment (FDI) in 2016, becoming one of the largest beneficiaries of FDI in Africa.
According to African Business Magazine, Nigeria’s GDP has grown by an average of 5.4% between 2008 and 2016. As more investment capital flows in, it is projected to further grow to US$650 billion by 2022.
Still wondering whether to invest?