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Re: Good Things Happening In Nigeria by Jen33(m): 6:23pm On May 10, 2007 |
Take the current construction boom for instance. Nigeria has decided on a path of private sector-driven development. Once you understand this, you'll grasp the reason why the first batch of apartment blocks springing up are of the relatively upper-scale variety. Look at it from the point of view of an investor. Would you construct for the poor, or for the rich? Good. But there will come a time when the market for the rich elite is saturated and this will force private developers to begin to cater for the lower-income groups, even at the risk of lower profits - or go out of business. But make no mistake, they will aim for the projects that offer the highest returns first. In fact they'll scramble to put them up - as we're currently witnessing. The important thing is for the machinery of state to maintain the economic momentum that supports the construction boom. The rest will take care of itself. |
Re: Good Things Happening In Nigeria by GNature(m): 7:00pm On May 10, 2007 |
Jen33: That is an excellent statement there @Jen33. You see, our country has been on the downside for so long that people are just so pessimistic and honestly speaking, I don't blame them. Until the current wave of change is felt by the common man, no one would ever give any Nigerian government any credit. My prayer right now is that we meet this 10,000 MW target by Dec 2008. I think people can then have a sigh of relief. God Bless Nigeria. |
Re: Good Things Happening In Nigeria by IykeD1(m): 7:03pm On May 10, 2007 |
OK - can someone plaster pictures of Ajegunle and all the slums all over Nigeria so we can make these guys happy? Somehow they get energized from looking at the slums - the mountain of refuse, the filth, the ruggedness, its viciousness, and its hopelessness. That's the only kind of Nigeria some of these people holds dear and wants to keep seeing. Never mind that most humans (at least the non-Nigerian humans) needs something to provide them hope that things can get better or that they can do better. Never mind, that its human to recognize and celebrate the feats that people from humble beginnings such as yours have made in their various endeavors. Please help them to wallow in their misery, its their drug of sort. Not only do I recognize the many contradictions that is Nigeria: its potential for greatness, its brilliance, vibrancy, its many glaring failures in so many areas, but I also acknowledge the many feats of people like Cecilia Ibru, Jim Ovia and Tony Elumelu (all whom are Delta indigenes like me by the way ) in the tough terrain that is called Nigeria. I mentioned these names because most of the projects that have been posted here are been financed by indigenous banks and its safe to bet that Oceanic, Zenith, and UBA are key players in one capacity or the other. How is that not something to be happy about? The newly completed Lagos airport terminal is a sure sign of the collaborative effort between the private and public sectors. As we speak, they are zeroing on the power sector and in time the life of the average man on the street will be impacted. Lest we forget or for those who have no clue, prior to the recent banking reforms, Nigerian banks had no financial muscles to be pulling deals like these. Expect to be seeing major investments by Nigerian banks in areas that will be to the betterment of the lot of Nigerians. You have to be hopeful! |
Re: Good Things Happening In Nigeria by duduyemi: 7:07pm On May 10, 2007 |
jen jen, lol, my guy im feelin u on this thread and the pics, people lets not be pessimistic bout the growth and development being made in nigeria, but jen my guy, lets not alsobe delusional to the reality of the bad roads, the overflowing nepa, the daily robbery,, the fact that all these buildings have to be powered by private generators , with that said, lets still stick to the positive and reach for change, not just physical or landscape wise, but ecomomic and political also, im impressed all the same///, even though slow and not as far reaching, in 8 yrs we have taken baby steps kudos |
Re: Good Things Happening In Nigeria by Topsido(m): 5:05am On May 11, 2007 |
what can i say? jen you are da bomb |
Re: Good Things Happening In Nigeria by Topsido(m): 5:07am On May 11, 2007 |
what can i say? Jen is da bomb |
Re: Good Things Happening In Nigeria by angel101(f): 8:46am On May 11, 2007 |
is there a middle class in nigeria? |
Re: Good Things Happening In Nigeria by angel101(f): 8:50am On May 11, 2007 |
does it really matter what kind of apartment blocks are being built if the people (not the elite) had the purchasing power? |
Re: Good Things Happening In Nigeria by Ndipe(m): 10:51am On May 11, 2007 |
No matter the number of luxurious high rises, luxurious cars, and fancy restaurants, in a society, when the purchasing power of the majority of the citizen in a country, declines with each coming here, then, something is totally wrong. That's the situation back home namely, the brutal elimination of the middle class, the decline of the Naira, and the concentration of money in the hands of the rich people. That's being realistic, not pessimistic, or optimistic. When I lived in Nigeria, each time, plans to eliminate fuel subsidy was met with disapproval by the citizens. Back then, before owning a car, I highly doubt if the prices of gas, could determine your ability to afford to maintain a car or not. Sadly, in Nigeria today, people, unable to afford petrol have bypassed buying cars in favor of public transportation. So much stress. When we talk about development in the country, let it start from the grassroots, instead of sprouting up fancy buildings in big cities, that may be inhabited by expatriates and the nouveau riche. |
Re: Good Things Happening In Nigeria by angel101(f): 11:04am On May 11, 2007 |
Ndipe: exactly my point. |
Re: Good Things Happening In Nigeria by Nobody: 11:27am On May 11, 2007 |
@ jen33 the premise of my argument is that the economic model is wrong. which middle class is going to pay upwards of $50000 p.a to rent these luxury apartments? the truth of the matter as the previous poster has implied, is that there is no middle class in nigeria. they've been completely wiped out by decades of economic sabotage and misrule. the only people with the wherewithal to move into your fully serviced apartments, as you have already admitted, are rich people of the same class as the government contractors busy putting up these structures. you guys shouldnt get me wrong, progress in whatever direction is commendable (even if only for its own sake and not for how well its been able to impact the lives of the people whose resources are being tapped to produce these structures) the basic necessities of life : power, security, good roads, functional education. these things are axiomatic to life in other less resource-endowed societies, why should nigeria's case be different? obasanjo failed to even begin to achieve these things after eight corruption-ridden years in power because he catered mainly to the interests of the ruling class. the average nigerian is resilient. he doesnt have to wait for anybody to empower the middle class to come and employ him. he couldnt afford an education so he became an artisan. a barber, a vulcaniser, a battery-charger. but the electricity to power his tools is not available for twenty hours out of twenty four. so he has to buy a generator, where is the fuel, the prices have gone through the roof. . . all these costs are passed along to the next man along the production/service delivery chain, everybody except the elite end up wallowing in want. obasanjo's regime has failed the common man, no matter how many fancy pictures you people post on this thread. all the preferentially allocated oil blocs. all their refineries overseas where the leftover crude is diverted to after the western nations must have drunk their fill of bonny light. the monstrous monopolies which have been built right before our very eyes over the past eight years. |
Re: Good Things Happening In Nigeria by angel101(f): 12:32pm On May 11, 2007 |
spot on. we cannot be decieved. |
Re: Good Things Happening In Nigeria by Jen33(m): 2:31pm On May 12, 2007 |
OBJ has initiated the construction of 13 power plants most of which the next administration will inherit. Between 1978 and 1999 when OBJ came into power just TWO power stations were built by all the presidents - Shagari, Buhari, Babangida, Abacha, Shonekan, Abdulsalami - and they were atrociously maintained which led to massive degradation. OBJ tried to fix the damage done via refurbishment which failed to increase output, and this made him decide to construct an inprecedented 13 plants that should substantially reduce the incidence of power failure. If people are too STUPID to see the potential benefit of such policies to the economy, while wallowing in self-pity, too bad. The New Nigeria is about to LEAVE YOUR SORRY ASSES BEHIND, while you suck up to your salary masters in the west. And one more thing, the middle class is EXPANDING RAPIDLY in Nigeria. Foreign investors are TROOPING IN. Just two days ago a group of investors from Birmingham England stormed Nigeria looking for where to invest $4 billion. The Economy has received a very creditable international rating by financial houses and the stock market is among the fastest growing in the world, as is our economy. SIT IN YOUR COLD LONDON FLAT thinking you know what's going on in Naija. Nigerian graduates in the UK and US are queueing up to return, as they're being offered attractive salary packages in line with the demand for their services. WHEN LAST DID THIS HAPPEN IN NIGERIA? In fact many of those apartments you see (plus many you haven't seen) are being snapped up by the young, educated middle classes, including returnees, not government millionaires or whatever. I have many friends renting /buying - paying mortgage in VGC, and other areas springing up, and they are simply educated business men/ IT personnel etc etc - not government officials! So sit there and be moaning about the problems. NIGERIANS SMARTER THAN YOURSELVES are whisking in and out of the country, seeking and taking advantage of the opportunities being created. Over 200,000 Chinese have left THEIR country to come and take advantage of the huge opportunities available in Nigeria. You think they don't know we have this problem or that problem? But they see the direction the nation is heading, and they want to be part of it. While our know it all moaners SIT ON THEIR LAZY BACKSIDES IN THE WEST moaning all day about what their country can do for them. Awon Ode! |
Re: Good Things Happening In Nigeria by GNature(m): 3:21pm On May 12, 2007 |
@Jen33, Take a look at this. SOURCE: http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10434308 Shopping spree in Lagos as malls finally arrive in Nigeria Nigeria's middle class can now enjoy retail therapy closer to home. In the old days, for some, going shopping in Nigeria meant going to London. Now Nigerians, at least in Lagos, can go to the country's first shopping mall and parade past air-conditioned shops of clothes and jewellery, or sit in a coffee shop, sipping a latte or cappuccino. The centrepiece is a South African Shoprite supermarket - again Nigeria's first - where the middle classes can buy ordinary things such as biscuits and pre-packed beef. Not far away, on the edge of the street, are the old shops - open-air markets where women sit with little piles of tomatoes or onions on the ground in front of them. Nearby, in the open air hang slabs of meat feasted on by flies. Until a few years ago, these markets and a few family stores were all that was available as shops. Elements of the old Nigeria are still visible at the Palms Mall. The Shoprite manager, Andrew Mweemba, complains that containers of perishables regularly get held up at the port. The local electricity supply is too unreliable, so the whole mall is powered by generators, which puts prices up. But, says Mweemba, they are hitting their targets and controlling costs. They are planning several other malls in what must be one of the last countries in the world to enjoy retail services the rest of the human race take for granted. This is probably the most visible sign of a new Nigeria, a country that is becoming more in tune with the rest of the planet. Its cause is the growth of a young middle class, many of whom have returned from London or New York to work in the booming financial services industry. The Nigerian "Big Bang" started in 2001 with a free auction for Nigeria's mobile phone licences. Stung by a global reputation for corruption and fraud, President Olusegun Obasanjo's government started to reform the banks, reducing their number from 89 to 25, and supporting businesses that wanted to do things according to international standards. In the old days Nigerian business people were simply agents, getting contracts from the state or acting for foreign companies. Nigeria produced little except oil and gas, and its exceedingly rich elite stayed rich because of connections, not competence. Osaze Osifo, 39, who worked for HSBC in London, is typical of the new generation. He and six other Nigerian professionals are setting up a US$300m ($407m) equity fund in cool, glass-panelled offices with a view across the lagoon and out to sea. They have international businessmen on to their board to make sure everything is done in accordance with international business practice. "It is not just local people and people coming back from overseas," he explains. "Nigeria is where it is at. The hotels are full, and the merchant banks are beginning to arrive." What encouraged people like him to return was the business space opened up by the economic reforms. Obasanjo picked a business-minded team to run the economy and the national bank, and appointed a brave young police officer to run the anti-corruption body, the Economic and Financial Crimes Commission. Its spectacular investigations and arrests of prominent people have helped to persuade outsiders that you can do business in Nigeria without being corrupt. The sale of mobile phone licences in 2001 was the start of the new era, according to Osifo. The business tyros are challenging the old oligarchs in business and, inevitably, in politics. "More and more people in Nigeria have too much at stake. "They have something to fight for, and they don't want their businesses ruined by the reputation for corruption," says Osifo. Lagos also used to have a frightening reputation for robbery and violence, but that too has subsided. Ten years ago the biggest companies on the Nigerian stock exchange were subsidiaries of multinational corporates. Today, the three richest companies are all Nigerian. Its top 10 banks, most of them new, have announced returns of between 14 per cent and 38 per cent on shares. Nigeria's richest business man, Aliko Dangote, turned 50 last week. A manufacturer of everything from cement to orange juice, he is reported to be worth US$8bn ($10.8bn) - and may not be the richest man in Nigeria. Some of the oligarchs may be richer, but not for much longer. |
Re: Good Things Happening In Nigeria by Bankole01(m): 3:31pm On May 12, 2007 |
Jen33: Classic Nigerian form of debate. If you can't convince detractors and make them see your point, abuse and curse them out, this will change their minds, or make you feel better about yours. Cheers and kudos to you. Two power stations built between 1978 and 1999. Since then, nothing has been done for the country in perpetual darkness inspite of the trillions accruing to the nation! Initiating 13 power stations is not equated to completing them. This is nothing new with the government dreaming on paper with there so called 'white paper' where they write all sorts of mouth watering projects for which money will be appropiated but nothing to show for it at the end of the day! Over 200, 000 chinese left their country not only to do business in Nigeria, for which their government and businesses gave them money for. We should actually be quacking in our 'ode' (stupid) minds because these are mordern colonialists who are out to take over our poor country. It is not those of us sitting in our 'cold flats' who can't see thes but our leaders who pander to the outside world instead of lifting up our people to produce and better themselves. A lot of us sitting in US, UK etc and have high skills in whatever would just like nothing better than to come back home and start businesses. Where do we get the money, most of which you will spend bribing the goverment officials. So while wesit on our 'lazy backsides' most of us earn more money out here than you can 'shake a stick at' but at the same time, we have investments and families that can't be easily uprooted just like that. With only $200,000 grant, i will readily uproot myself to start my dream business in Nigeria, beacuse I believe I can carve out a niche and make a fortune while at the same time making the lot of the people better. For this same reason, I refused to sell the products of my casava farm to foreigners. Instead opting to turm them to end products to seel to Nigerians. With kids in law school and other colleges do you think it is easy for anyone to just pack up and move to uncertainty? Your point is now crystal clear to this 'ode' THANK YOU |
Re: Good Things Happening In Nigeria by Uche2nna(m): 3:33pm On May 12, 2007 |
I dont know what middle class is talked about here. Nigeria has just 3 economic classes : The very rich , the struggling and the wretched. Last time I checked , any Nigerian who can travel abroad for shopping can not be labelled as middle class . This is the preserve of the very rich. Also, somebody who is involved in an equity fund of 300 million US dollars cannot exactly fit into my definition of a middle class. |
Re: Good Things Happening In Nigeria by GNature(m): 3:44pm On May 12, 2007 |
@Uche2nna There are middle class folks in Nigeria. They may be just a couple of folks, but they do exist. There are people in Nigeria who make between N70, 000 and N200,000 a month. Many of them work for MTN, the banks etc. Some of them are university lecturers. I consider them middle class folks. @Bankole01 Have you had a chance to visit this thread ? Two of the power stations being built have been commissioned. A world bank team took a tour of some of the power construction sites and were very impressed with what they saw. They are not just white elephant projects. |
Re: Good Things Happening In Nigeria by Backslider(m): 3:49pm On May 12, 2007 |
Please you guys belleful yourself with Yankee or London. No one will tell you. It is better you stay where you feel you are Ok. @ Jen no need to Insult. They will come around They are Disillusioned and You can not command it out of them. Let them see and they will be converted NEW NIGERIANS. When a Nigerian comes home and gets a Job and house and there is light and security there will be no need to beg people to come home. @ Gnature Good My brother Works in a company he finished school and he is working he is far better off. No connection before he got the Job oh! He wanted to travel but he Changed his mind. Very soon This Embassy will beg us to travel out. |
Re: Good Things Happening In Nigeria by Bankole01(m): 3:53pm On May 12, 2007 |
@Gnature Thanks for the education, it was an eye opener. We need more of this as that is the only way Nigeria will develpo when the services and infrastructure exist for the citizens to execise and display their God given tallents. Also, thank you for not calling me 'ode' |
Re: Good Things Happening In Nigeria by GNature(m): 4:08pm On May 12, 2007 |
@Backslider, I am so happy for your brother. I have seen people get job offers even through this Nairaland (through the job posting section). Someone got a job at Virgin Nigeria airlines and did not have any connections. When I visited Naija last in 2004, I was told that things are better than the days of Abacha. Much, much better ! Infact, part of the reason why there is so much traffic congestion in Lagos is due to the boom in economic activities. My ibo friend, Chuks, said you can't compare how busy the ports are now to the days of Abacha, and they are charging more fees now at the ports than ever. The only things people complained of were inflation, power supply and gasoline prices (and of course, the infrastructure). @Bankole01 My brother, why would I call you 'ode' ? I don't resort to name calling just because someone has a different point of view than mine. That's childish |
Re: Good Things Happening In Nigeria by Uche2nna(m): 4:09pm On May 12, 2007 |
Well, for one to earn anywhere from 70k to 200k is somewhat comfortable to a certain degree. But the question is, what percentage of the total population has this earning power. To me that percentage is statistically insignificant. An economy being driven by a middle class is not hard to spot. That economy is usually bouyant and aggressive and I dont see these qualities in the Nigerian economy. That is why I am skeptical about the existence of a middle class in the Nigerian setup I know a lot of lecturers and I know that for the last couple of years they have been having it good relatively to the conditions they were subjected to in the past. However, I also know that many can not afford a trip to london for thier shopping. |
Re: Good Things Happening In Nigeria by GNature(m): 4:31pm On May 12, 2007 |
Uche2nna, I do agree that the middle class folks are on the low end in Nigeria, there is no doubt about that. But it has increased a little bit under obasanjo due to his economic reforms Have you ever heared of Pencom ? Nigerians now have money deducted from their salaries (monthly) that goes towards their retirement (similar to the social security system here in the states). As of October 2006, over 600 billion naira has been contributed to this fund [url=http://209.85.165.104/search?q=cache:nL7oZFAV7UEJ:financialstandardnews.com/page.asp%3Fid%3D71+Pencom+Nigeria+billion+naira&hl=en&ct=clnk&cd=6&gl=us](Source)[/url]. As a result, Nigeria has witnessed an influx of portfolio managers and stock market folks from the UK and the U.S. at a rate never witnessed in its history as a Nation. About 14 licenses have been granted to firms to help manage this fund. Now uche, do you know how much money stock market folks, portfolio managers make per annum ? Positions such as Market analysts, Research people et al are the middle class jobs created here. When you have a chance, visit the Pencom website to learn more. I gave this as an example of how the non-public sector middle class has increased (even if it is only marginal) in Nigeria. Also, remember that lots of middle class jobs were created as a result of our boom in telecommunications. @Uche, why do you keep mentioning going to shop in London ? |
Re: Good Things Happening In Nigeria by Uche2nna(m): 4:41pm On May 12, 2007 |
Nigeria's middle class can now enjoy retail therapy closer to home. In the old days, for some, going shopping in Nigeria meant going to London. Sorry, bro if I got stuck up on dat Anyway, it will be great if this middle class does really exists and it will be fantastic to see it growing. That is a good omen. We just have to wait and see. |
Re: Good Things Happening In Nigeria by IykeD1(m): 5:59pm On May 12, 2007 |
I am no economist, but where do you guys propose things start from? Virtually most of these projects are private sector driven, meaning they target in areas where they expect to make their profits soonest. Should they wait for the middle class to appear out of thin air or should they jump-start the developments and by so doing encourage the government to invest in ares that can nurture the middle class? Lastly, are the people being hired to work on these construction projects not Nigerians? Are some of the construction materials being sourced by these projects not purchased or made in Nigeria by companies who are in turn employing Nigerians? As someone with a better knowledge of economics said earlier, eventually the market will determine when there is an over supply of high end or high rise apartments, thus signaling the need to expand the market/demand for those in lower income brackets. I will have serious problem if the government is investing in waterfront apartments for the wealthy as supposed to investing in mass housing projects or social infrastucture. Gradually, both the private and public sectors in Nigeria are getting the formula down, as demonstrated by the newly constructed Lagos terminal and Tinapa. |
Re: Good Things Happening In Nigeria by Pain(m): 7:32pm On May 12, 2007 |
Dont Bother. Those That Would See Would See. Vision and Insight Is Not For All. Wisdom is Not So Common Afterall |
Re: Good Things Happening In Nigeria by Uche2nna(m): 7:55pm On May 12, 2007 |
Iyke-D: I think we are all the same page here. I wonder y U are all getting riled up. My point is dat there is no middle class in Nigeria and ur point is dat the economy now driven solely by the private sector will create one. That makes perfect sense and seems very logical. Of course, it has to start from somewhere and if the private sector in Nigerai can provide that then so be it. However , my wait and see attitude is knowing the fact that most theories of economics can be turned into absolute crap with very bad and inconsistent government policies. The private sector is thought to be supposedly driving the economy because current government policies made it possible and in Nigeria the fickleness of governmental policies is always a strong factor. @Pain Wisdom does not accomodate naivety |
Re: Good Things Happening In Nigeria by Ndipe(m): 9:46pm On May 12, 2007 |
"He wanted to travel but he Changed his mind. Very soon This Embassy will beg us to travel out." (Backsider) Funny indeed!. |
Re: Good Things Happening In Nigeria by Nobody: 2:59am On May 13, 2007 |
Yeah, lets build houses for the rich and this will somehow trickle down to the poor and the economy will take off. Lest we forget, nothing has been done to change the micro-level issues in Nigeria that has led to the deterioration we see. Nothing is going to change unless we change the fundamental things that have caused the economy to backslide so much , e.g. corruption and an elite class who willl killl their moms for foreign consumption. Government and private sector spending on projects like apartment buildings do not lead to GROWTH, they're more likely to lead to BUSINESS CYCLES i.e. periodic ups and downs in the economy wuthout any long run sustainability. If you push the spending too much, you generate massive inflation. If you want growth, do what Korea, Japan, India and China have done in recent times, change the many things that have handicapped the economy over time. It may be protectionist measures, huge Government restrictions to business, corruption, poor transparency in management, urban bias in development, name it. Those micro-level changes are more likely to generate long term growth than speending. I don't need to go far for examples of how micro-level changes can only lead to long term growth. Take a look at the TELECOMS sector, it is the deregulation and liberalization of this sector that lead to the changes we see. For as long as I know, rich men have always had access to cellular phones in Nigeria but these phones never trickled down to the common man, did it?. . .Ofcourse technological change had a lot to do with the cellphone boom but fundamental changes in the telecoms sector led to its boom IMO because under the former regime, cellphones couldn't have reached the common man. As someone with a better knowledge of economics said earlier, eventually the market Faulty analysis, you're contradicting yourself.ou claimed earlier that low end apartments are not profitable. Why will excess high end apartments push them into a not so profitable investment especially when the lower class is getting poorer?. . .All this is assuming that the Nigerian market is anything to write home about! By the way, some of the recommendations (not all since i haven't gone through it all) look good enough as a growth strategy but the problem is that I haven't seen evidence of some of the institutional reforms mentioned, Government is still as ugly as the man who heads it. |
Re: Good Things Happening In Nigeria by azorjiu(m): 7:04am On May 13, 2007 |
dangote is bringing good things to nigeria. before you start spanking me, here is the source http://www.thisdayonline.com/nview.php?id=78025. nigeria is definitely moving in the right direction. 10,000 new jobs by the new cement production plant is no joke. ask tony blair. and remember, these jobs are not for the rich. the masses will benefit. President Olusegun Oba-sanjo yesterday in Oba-jana, Kogi State said what Nigeria needed to turn its economy around were forthright and foresighted businessmen investing in the manufacturing sector rather than those who solely engage in buying and selling. |
Re: Good Things Happening In Nigeria by GNature(m): 7:34am On May 13, 2007 |
Dangote is really trying, atleast he is investing in Nigeria and providing jobs for the masses. He is even making people rich by placing some of his companies on the Nigerian stock exchange (Nigerians can own a bit of his massive empire). If the man really ends up building a 50,000 MW power station (did they mean to write 5,000 MW ?) , we might have to name one of the naira notes after him. lol |
Re: Good Things Happening In Nigeria by IykeD1(m): 1:44pm On May 13, 2007 |
@donzman,
Hope you didn't miss my disclaimer about not being an economic expert. Having said that, I am not sure where I contradicted myself or expressively stated that "low end apartments are not profitable". What I did say was that obviously investors are targeting areas where they can make the quickest profit. Believe it or not, there is a very strong demand for these high end apartments (not to say there are none at the low end market) which is the reason developers are breaking new ground almost everyday. With the little knowledge I have about the market system, there is something called product maturity. As more and more developers engage in catering for the super rich, you are more likely to end up with a situation where there is an over-supply of housing for the super-rich which ultimately means that the profit margins may not be as attractive as before. Sooner or later, the market being what it is will come to the sudden realization that while the profit margin for low end apartments may not be as high, the difference in profits could be made up based on its sheer volume as you definitely have way more people to sell to. The government can also play a role by providing incentives to developers focusing on mass housing development. As per Nigerian getting poorer, please provide me with facts or numbers and be sure to make adjustment for the population growth. Also, as per "there is nothing to write home about the Nigerian market", please cite concrete proof as well, are you suggesting that the Chinese, or the South Africans that are invading Nigeria at the moment don't know what they are doing? For once try to be objective (I know this is very hard for some people to do) - there has to be some good that the present administration and the private sector has done over the past 8 years, don't just make sweeping generalization. Nigeria is far better positioned econmocially today to invest in social infrastructures than any other time within the past decades or so as the money that will be used for debt servicing can be re-invested in those areas. There is more transparency in the government contract bidding processes and allocations made to the state and local governments than at any other time in the history of the country. Those are some achievements that the next government can build on. Our problems weren't created in just 8 years and will not disappear within 8 years! |
Re: Good Things Happening In Nigeria by GNature(m): 4:38pm On May 13, 2007 |
Some of the folks on this thread are under the impression that the luxury apartments et al show-cased on this thread by Jen33 are government built/financed. Wrong ! All of those properties are privately owned with no government stake whatsoever. I agree with Jen33 and Iyke-D. When the market for luxury homes becomes saturated, I have no doubt that the home builders would turn their attention to the lower income earners. It is not that lower income properties are not profitable, they are just not as profitable as the luxury homes/apartments. With the lower income scheme, it'll take much longer for developers to recoup their investment, but in the long run, its still profitable. Here in the states, there are housing estates/apartment complexes (privately owned, of course) that are catered to the "not so rich" folks. Many of them are half or one-third the size of festac town in Lagos. With some incentives such as free (or leased) land from the government, I have no doubt that with time we'll replicate the practice in Nigeria. ( i think there is already a public/private partnership estate being built in abuja, but I don't know if the estate is catered to the rich folks). Wouldn't it be nice if top notch real estate developers can go to the Nigerian Stock Exchange to source funds to build apartments and bungalows that are in the cadire of 1-3 bedrooms, i.e. not catering to the rich ? I believe such estates can be built with estimated rental income of ~ N70 million - N100 million a month. Because they'll be privately owned and managed, the facilities are not likely to rot and decay that easily - revenue is at stake ! This is the direction we should be heading and I believe we will get there. |
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