₦airaland Forum

Beyond Rhetorics: Unpacking the Business Sense in Governor Umo Eno's Proposed 18-Storey Building in Lagos

By Aluu Vincent

In a recent announcement, Governor Umo Eno unveiled plans to construct an 18-storey building in Lagos, Nigeria's commercial hub. The proposal has sparked intense debate, with critics labeling it a "white elephant project" and proponents hailing it as a visionary move. This piece delves into the business sense behind the proposed project, exploring its potential economic benefits, strategic significance to the people of Akwa Ibom State

I had resisted the urge to make a post on this issue but I was challenged by a chronic critic of the governor to lend my views. Much as I do not wish to join issues with anyone on this matter, this piece is my honest assessment of the business sense of the 18 storey building in Nigeria’s economic hub.

I totally agree that there is hunger in the land hence government should focus on reducing poverty and hunger. I also agree that there are other challenges government should be worried about other than building an 18 floor building. It must however be noted that government is made up of many parts,priorities, policies and programmes. From time to time government makes decision on what is paramount and pursues it in the interest t of the people.

At the home from Umo Eno is doing exceptionally well - political foes are made friends,youths are being trained, empowerede and taken off the streets, hospitals and schools are receiving facelifts, poor of the poor are receiving two bedroom flats plus cash while civil servants and others are not left out. The State Bulk Purchasing Agency set up by the governor has been distributing food to the poor populace twice a month. Through AK-CARES, an intervention programme whose objectives are expansion of access to livelihood support and food security services, provision of grants to poor and vulnerable households and firms, etc.

There is therefore nothing absolutely wrong in seeking to have such an edifice in Lagos. It makes a lot of business sense to do so especially in this era of diversification of the economy. Given the epileptically unstable oil revenue, it behooves state leaders to discover other sources of income to serve as internal revenue for the state. The 18 floor building in Lagos, the commercial hub of not just Nigeria but Africa, remains one of the best business decisions Umo Eno has taken.

Speaking on the proposed building during a stakeholders meeting at Governmental House banquet hall Governor Umo Eno said, ‘previous leaders had acquired a significant number of assets for the state, many of which are currently in a state of disrepair and unused. In Lagos alone, the state government possesses over 10 properties in prime locations. Rather than allow those idle structures to accumulate waste, the State plans to enhance them, increase their appeal, and offer them for sale to the public while also keeping some for leasing. This will generate income for the state’ he said

Gladly the investment Governor Umo Eno is talking about, real estate,is a high yielding business venture. Globally, government at all levels venture into real estate for reasons ranging from economic development, urban planning, providing affordable housing, generating revenue, or supporting infrastructure projects.

Study shows that real estate investment is high yielding. For example, in Singapore, government has invested nearly $500 billion and generate returns on investment exceeding 120%. Dibai and Abu Dhabi in United Arab Emirates (UA) are adorned with some of the global best skyscrapers. Such real estate investments run into trillions of dollars in a bid to boost economic diversification, tourism and generates profits that account for more than 96% of their yearly real estate investments.

The Saudi Arabian real estate market size was estimated at around SAR 1.1 trillion (approximately $293 billion USD). The market was expected to grow at a CAGR of 5% from 2019 to 2024

Lagos where the proposed building is to be located has an estimated real estate market size of around ₦1.3 trillion (approximately $3.5 billion USD) with a market growth rate at CAGR of 10% from 2020 to 2025.

Besides, as Ubon Marcus said, ‘it is common knowledge that on Victoria Island, there is a high demand for office and residential spaces, thereby making it an ideal location for real estate investment. Those old buildings in Aboyade Cole and Ajose Ajogun will be phased out and replaced with modern buildings’

We seem to also forget that Governor Umo Eno spent years in Lagos plying his trade before relocating to Akwa Ibom. His entrepreneurial spirit should not be over looked as he intends to transform every asset of the state into a money making enterprise. Recall his directive on the state owned airline to be commercialized. Through the Assets Management Board and AKICORP, Pastor Umo Bassey intends to convert several properties owned by the State in Abuja into viable three-star or five-star hotels, and lease them to a capable hotel management team and transform the ones in Lagos to high rise residential buildings for outright sales or lease.

Apart from the aforesaid, the move by Umo Eno will not only boost the revenue profile of the state but will create over 5000 direct and indirect jobs during the construction phase. The iconic building will serve as a beacon for foreign investors, showcasing Akwa Ibom as potential as a prime investment destination. The 18-storey structure will serve as a symbol of Lagos' commitment to excellence, reflecting the state's aspirations and ambitions.

How many of us remember the Etiebet place along Bank Anthony in Ikeja? Think of it and reminisce on how strategically impactful the 18 storey building will be.

Governor Umo Eno's proposed 18-storey building in Lagos is more than just a building. It is a plan that has futuristic value in mind. It is an attempt at diversifying state economy, have multiple strings of income, begin to position self in the emerging real estate market in Nigeria and ensuring that unused assets of the state are put into judicious and productive use.

Comr Aluu Vincent,a Journalist and public policy expert contributes this piece from Obohia Ndoki Abia State 08036688375

There is no justification for that project

If you want to invest why not invest in foreign stocks like Norway does

Building an 18 story building in another state makes little to no sense

Nellyvin:
Governor Umo Eno's proposed 18-storey building in Lagos is more than just a building. It is a plan that has futuristic value in mind. It is an attempt at diversifying state economy, have multiple strings of income, begin to position self in the emerging real estate market in Nigeria and ensuring that unused assets of the state are put into judicious and productive use.

Comr Aluu Vincent,a Journalist and public policy expert contributes this piece from Obohia Ndoki Abia State 08036688375

What in the world is this nonsense that I just read?

Lol, una don start again. A state must not have a skyscraper, but it became more worrisome is when it will be built in another state. You need businesses to sustain such.

The maintenance is out of this world.

Senseless post. As senseless as the idea of building a says rapper in Lagos

mrvitalis:
There is no justification for that project

If you want to invest why not invest in foreign stocks like Norway does

Building an 18 story building in another state makes little to no sense

You know nothing rather than hatred. Real estate business in Lagos, expecially island is a huge profit making venture. You expect him to build it in area were there is sit at home abi. Visit the corridors of ikoyi, VI and lekki and see for yourself. When built expecially in VI, top companies rent or purchase flats almost immediately. In my estate here at Ajah, as soon as a new building is erected, buyers will be flocking around and in space of few time it is bought. You can't compare Lagos with even Abuja in terms of real estate boom. Go and ask how much to lodge in hotel around VI or apartment per night. Keep you hateful mind and face how you people will bring sanity to your zone. Land with dimensions of 100 by 100 is not sold for less than 500m in VI. In your zone is there were a land of that dimension sold for half of it. Always saying rubbish.

kedeojo:
You know nothing rather than hatred. Real estate business in Lagos, expecially island is a huge profit making venture. You expect him to build it in area were there is sit at home abi. Visit the corridors of ikoyi, VI and lekki and see for yourself. When built expecially in VI, top companies rent or purchase flats almost immediately. In my estate here at Ajah, as soon as a new building is erected, buyers will be flocking around and in space of few time it is bought. You can't compare Lagos with even Abuja in terms of real estate boom. Go and ask how much to lodge in hotel around VI or apartment per night. Keep you hateful mind and face how you people will bring sanity to your zone. Land with dimensions of 100 by 100 is not sold for less than 500m in VI. In your zone is there were a land of that dimension sold for half of it. Always saying rubbish.

I lived in akwa ibom for a few years have investment there... This project would cost 50 billion minimum...

I can tell you 10 different investment opportunities the state can make that would create more jobs boast here GDP and generate far more revenue that that building

Talk about real estate even

South East is the worse place for real estate investment... Land are expensive and rent are supper cheap

Uyo has cheap land expensive rent

Lagos has expensive land expensive rent same with Abuja

The smartest place to invest in real easte is cheap land expensive house rent... And uyo is prime for that

Delta state govt house in Lagos was sold by delta governor okowa to his son in-law. Okowa entered a private partnership agreement to that gave his son in-law the power to run delta state international airport at asaba built solely by the state govt with over 120 billion.

Any governor who develops Lagos instead of developing his home state has a sinister motive. The building will be sold out before he leaves power or leased out to his family and cronies at cheap prices, those cronies will now sublet it at very high cost. Niger delta has the highest number of brain dead and dead beat money miss road governors in Nigeria since 1999

Are these governors scared of agricultural revolution.