Showing posts with label infrastructure. Show all posts
Showing posts with label infrastructure. Show all posts

Friday, April 11, 2014

GDP rebasing exposes opportunities in real estate, infrastructure

The rebased Gross Domestic Product (GDP) figure recently released by the Federal Government has exposed much more opportunities in real estate and infrastructure investment and development than had been previously imagined by investors and analysts.

This rebasing effort by the National Bureau of Statistics (NBS), which shows that the Nigerian economy is now more diversified with a GDP value of $510 billion, reveals that activities in the services sector have overtaken those of agriculture and industry.

The implication of the present development to the real estate sector, analysts say, is increased opportunities as increased activities in the services sector, including wholesale and retail trade, human health and social services, information and communication as well as professional, scientific and technical services, means more investment in housing and infrastructure.

Obi Nwogugu, head, real estate unit, African Capital Alliance, sees increased potential and opportunities in the economy as a result of the rebasing exercise, pointing out that a lot more people will be looking to invest in the Nigerian economy.

He adds that he does not expect an overnight increase in demand and pricing for housing, but believes there will be additional level of interest in the economy from international investors.

“This increased level of interest is going to drive investment in office space; now that Nigeria has overtaken South Africa in terms of the scale of the economy, some of the international retailers who used to go to South Africa because of the size of their economy will come to Nigeria and this is going to affect retailing,” he said.

Anthony Owuye, MD/CEO, Personal Trust Savings and Loans, sees increased money supply in the economy with the rebasing, contending that if inflation is kept under control, it will be another round of boom for real estate.

Owuye also says because of the increased activities in the services sector, there is going to be a significant investment shift towards commercial real estate, explaining that there will be more investment in retail outlets, leisure, office space and hospitality.

He notes, however, that having been priced out of the reach of many, residential real estate is going to see price adjustment, citing example of Banana Island, where he notes there are many empty houses because people are opting for ‘cheaper’ locations like Parkview Estate, Osborne Foreshore, etc.

Chudi Ejekam, director, real estate, Actis, is of the view that the $510 billion GDP figure, which is materially higher than earlier projections, is yet another example of how Nigeria confounds projections, adding that the rebasing inexorably raises Nigeria’s profile in the eyes of the international business community.

According to him, many are guilty of continuing to grossly under-estimate the true nature of the Nigerian economy and opportunity.

“One of the major challenges has been communicating the depth of purchasing power of Nigerian consumers; an indication of higher per capita income boosts the thesis for retail malls investments and would encourage entry of new brands as well as investors,” he adds.

Yemi Kale, statistician-general of the federation/CEO, NBS, says rebasing the GDP shows a noticeable shift in the share of key industries to the country’s overall GDP, explaining that the rebased 2010 series reveals a decline in the share of agriculture to 24 percent from 30.3 percent in 1990. Industry has also declined to 25.8 percent, down from 46.1 percent, while the share of services has increased to 50.2 percent, up from 23.6 percent within the same period.

Chuka Uroko

Monday, July 15, 2013

CCESSA lauds govt for alliance with investors in infrastructure

Construction & Civil Engineering Senior Team Association (CCESSA) lauds government initiatives to partner with places which can be ready to buy Nigeria, support the infrastructural progress and donate to the development of the economy.

The National Leader of the association, Comrade (Dr.) Augustine Etafo, while commending the Government and the Asian version for the bilateral agreement  and the Memorandum of understanding reached with the China Civil Engineering Construction Firm (CCECC), claimed it's heartwarming to see that the business, as said in one of the Nigerian national dailies, by China's Vice Minister of Foreign Affairs, Mr. U Yucheng, that CCECC is going to be investing enormously in Nigeria, with planned investment in Actual House, concrete manufacturing, Beach Slots, railways, highways progress and the steel market among others.  Mr. Li also added that the Asian Construction big CCECC conducting business in Nigeria has used about 20,000 Nigerians with about 1,000 Expatriates.

CCESSA but note that the Asian construction big unsuccessful to inform people that against 1000 expatriates on history, there are only 35 elderly team in almost all their development in Nigeria. This is certainly indefensible. That is also in comparison variance to the extant law on expatriate quota; and even the labour laws. It's incredible that one of the 20,000 Nigerians used in the entire operations in Nigeria only 35 are elderly staff. It's significant complication for Nigerian graduates.

This indicates very convenient for the Asian multinational organization to utilize 1000 expatriates, and only 35 Nigerians. What goes on to the Nigerian professionals who are likely to perform in the establishments? It indicates the professional like Engineers, accountants, individual resource workers aren't required by the business or what? That leads to motion without development. How do we transfer technology between expatriates and junior team? That trend has identified Asian company in Nigeria. 

If this continues we might be left with no alternative than to end that China doesn't intend to transfer technology to Nigerians. You might have expected that in line with expatriate quota, the type of employees should be such that it may improve transfer of technology to the area populace. That brings us to the 2nd aspect of our fear, which can be; in a desperate effort to have hold on our government they compromise quality, common and choose the best cadre of labour, therefore causing a great space between quality and price.

That 1000 Asian is working wherever only 35 Nigerian graduates are used only leads to conclusion: Nigeria is sinking in to deeper graduate unemployment while Asian is solving their unemployment problems in Nigeria. Again, what is the qualification of the so-called expatriates? A cursory stop by at the internet sites of the corporation display, that individuals have expatriates cooks, expatriate home keepers and expatriate clerks, in the end what they contact expatriates are those who couldn't discover employment in China and are brought to Nigeria.

That brings to problem the type of employment relations such establishment.  Whereas the junior team is wholly Nigerians, and is numerous, the elderly cadre employment is said to be discussed involving the expatriates and the Nigerians.  Expatriates such as the title implies are said to be used wherever the area employees lack capacity however the reverse may be the case.
The Government should take cognizance of the truth that it's inadequate to signal agreements, but that Nigerian personnel interest should also be factored in.  Our trust and need is that Nigerians are experienced to dominate the jobs of expatriates after they have understudied them. 

CCESSA is not advocating that most expatriates should be delivered providing nor is he expressing that Nigerians can handle most of the complexities mixed up in construction industry.  But the idea is that, honestly there are places wherever the presence of experts is imperative.  In many other places, regional team has the capability to control affairs.  Such regional team must get the opportunity to perform, initially beneath the direction of the relevant experts. 
In this market, we have Engineers, Architects, Surveyors, Workers Officers, Accountants e.t.c and we believe if many of these are acknowledged and effectively put, then CCECC Company can not be speaking of less than 2000 elderly team as against the 1000 expatriates they have rightly or wrongly established.
Finally, we but welcome Asian investors in Nigeria, but it should be built to benefit Nigerians and much less a ploy to fix their particular unemployment crisis.