How Nigeria's exit from recession unlocks opportunities in real estate across West Africa

Date of broadcast: November 11,2017

Key financial institutions in Nigeria including the Central Bank of Nigeria and Bank of Industry, as well as other relevant government and private stakeholders in the country, are collaborating with global experts to develop the real estate sector in the West African subregion.

A foreign investment promoter,Mr. Kfir Rusin who made this known in an interaction in Lagos said the investors are leveraging on Nigeria's exit from economic recession to unlock the West African property potential.

Rusin who described Nigeria's exit from recession as a huge blessing to Africa pointed out that the development has restored the confidence of international Community to invest in the continent. Correspondent Innocent Onoh reports.

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According to Rusin the fact that most investments meant for African markets pass through Nigeria is not by mistake but because the country has strong influence in the continent's economic landscape.

He said local and foreign stakeholders in the property sector are now leveraging on the country's exit from economic recession to develop the market in Africa, especially West Africa.

Rusin who is the convener of the forthcoming West Africa Properties Summit noted that the recession grounded activities in the real estate sector in West Africa, with very reduced local and direct foreign investment, saying the time is apt to bring back the investments.

His words: " Prior to 2016, there were upsurge of innovations and Investments in projects specifically in Nigeria and Ghana. It dropped with subsequent recession in Nigeria. The real estate market was very much hampered from macroeconomic issues. There was a huge slow down over the last two years. We saw low Investment locally and from foreign direct Investment in Nigeria. But now , things are changing and looking more positive and we have to leverage on that to drive the sector".

Earlier in a statement, he said the impact of Nigeria's exit from recession and other activities are causing the recovery of economies across the West African nations.

"The trend towards recovery is permeating throughout West Africa with the Ivory Coast and Senegal showing continued growth and Ghana’s peaceful elections cementing the country’s political and democratic maturity. This bodes well for business in Ghana as the International Monetary Fund has pegged the country’s GDP growth at around 6% for the year.

"Nigeria has faced strong headwinds in the past two years however, the currency uncertainty and falling oil price and production that have weighed heavily on consumer confidence are giving way. The World Bank predicted an exit from recession this year and economic growth of 1%, which was later reviewed to 1.2% by mid-year.

He empasized that the opening up of real estate market will further accelerate Economic growth in the West African region leading to massive job creation and wealth generation, especially in Nigeria.

"With a population of over 185 million people, strong real estate development fundamentals and a +6% contribution of real estate to GDP, we believe in the long-term potential of Nigeria’s real estate sector and are excited to host our conference in Lagos.

“Whilst there have been some short-term headwinds there are encouraging signs of market improvement and the summit will provide a vehicle in driving back prosperity into the local and regional property market,” he adds.

With participation from over 350 delegates and 175 companies, the West Africa Property Summit which is organized in collaboration with Lagos State Government is expected to provide the perfect platform for initiating a dialogue between West Africa’s private and public sectors.

Covered by Innocent Onoh