RMB Westport in Nigeria

African property development jurisdictions

Lagos, the capital city of Nigeria, is one of the continent’s most populous cities. It is touted to become one of Africa’s mega-cities, with a predicted population approaching 20 million by 2025.

Nigeria is Africa’s largest producer of oil and natural gas and it has the largest economy and population in Africa. In April 2014, an economic rebase saw Nigeria overtake South Africa to be the continent’s largest economy with a revised GDP of approximately US$488-billion.

RMB Westport’s projects in Nigeria, at various levels of completion, are:

Nigeria fast facts

Population:179 million
Population of Abuja:1.6 million
Population of Lagos: 10.4 million
GDP:US$488-billion
GDP per capita:US$4 740
Projected GDP Growth (2016): 3.5%
S&P Country Rating:B+

Economy

  • Oil is the pillar of Nigeria’s economy as it stands as the largest oil producer in sub-Saharan Africa
  • Nigeria’s economy is diversifying rapidly, with non-oil sector growth outpacing the petroleum industry
  • The country is experiencing rapid population growth, with a very young population (62% under 25) and a high rate of urbanisation (49.8%)

Context

  • Political landscape: Nigeria had a vibrant and tumultuous political life since its return to civilian rule in 1999, with tensions between the Christian and Muslim populations mirroring a North/South divide
  • Economy: The country is among Goldman Sachs’s next 11 emerging markets, yet Nigeria is still one of the most underinvested countries on the continent
  • Policy environment: Nigeria has a pro-reform government with incentive schemes for FDI
  • Infrastructural challenges: Power supply is intermittent and unreliable. In 2011, Nigeria produced 32 times less than the per capita power generation in South Africa

Retail and commercial property market

  • Rentals in Lagos remain among the highest in the world and there are still only a handful of buildings providing high quality office space over 1 000m2
  • The Eko Atlantic city scheme will create a new city district on reclaimed land south of the Lagos CBD — a market-changing development
  • Lagos State in Nigeria has a GDP (US$31.2-million)
  • Sophisticated market — in 2013 Nigeria’s seven Shoprite stores sold more Moët and Chandon champagne than South Africa’s 361 Shoprite stores combined

*Sources: Economic intelligence unit; IMF; RMB Global Markets Research; OECD