Published On: Tue, Oct 11th, 2016

Negative response to Buhari’s ‘too poor’ comments

Muhammadu BuhariLAGOS, (CAJ News) – WITH the global and regional capital continuing to flow into West African real estate, investors are diversifying their  funds across the region and moving away from Nigeria, analysts said ahead of a regional conference.

The setback has been blamed on crippling Central Bank debt and the pegging of the Naira, and sentiments by President Muhammadu Buhari that Nigeria was suddenly poor.”

“The Nigerian real estate investment market is experiencing a unique combination of the first economic recession in 25 years, a rapidly devaluing currency and a retail and commercial development boom.

“This has led to an oversupply of prime real estate at a time when tenant demand has fallen to its lowest levels in over a decade,” said Broll Nigeria Chief Executive Officer, Bolaji Edu.

Edu noted some companies, mostly South African, such as Novare, Old Mutual, Johnson & Johnson and Pick ‘n Pay ha remained in Nigeria and continued to make gains but others, like Sun International, Tiger Brands and Truworths, had opted to take their business elsewhere.

Edu said while the present crisis might seem insurmountable, Nigeria’s experience is no more than the growing pains of developing economy as experienced in South America and Eastern Europe.

“Investors are still withholding from Nigeria as they wait for the storm to pass,” said Edu.

He was speaking ahead of the Africa Property Investment Summit scheduled  for Ghana on November 16-17.

CAJ News

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