‘Strong Private Sector participation in Housing will raise Homes for low income’

WITH the downturn in Nigeria’s construction industry due to slump in oil prices, how will AfricaBuild stimulate investment in the housing sector?

Business should never come to a complete stand still even when the economic circumstances are dire. All business is about relationships. These need to be established, nurtured and maintained. A well -organised trade fair/exhibition like the AfricaBuild facilitates exactly that – the establishment of relationships.

As you know, the exchange rate of Nigeria’s naira to the dollar or Euro has created a huge inflation, especially skyrocketing prices of imported building materials and construction equipment. How will you use the exhibition to generate the market for local industries?

As mentioned earlier, we are well aware of the current challenging business environment in Nigeria. Austrian companies, nevertheless, regard Nigeria as the most important market in West Africa and as a very important market in the larger context of Sub-Saharan Africa. In the medium and long term, Nigeria will become the global boom market, not just for construction but also for manufacturing. I am convinced that Nigeria will arise from the current economic turmoil even stronger, with a more diversified and thus healthier economy. Our companies are participating in the AfricaBuild and other events now, so that they are prepared and have the necessary local ties once business picks up.

The strong demand for affordable housing seems to have been stifled by some economic realities. Considering the large population of low-income earners in the country with its attendant poor living conditions, how will BuildAfrica address the needs of this section of the population?



Again, AfricaBuild provides a platform on which stakeholders in the construction industry can come together and exchange ideas and do business. The more private sector players are involved in the construction market the more likely the huge underserviced population of Nigeria will be perceived as an asset. I am optimistic that innovative real estate developers and investors will begin to understand that only servicing the top tier market (the most affluent) will not be the most innovative business model going forward. Rather a large number of lower and middle-class citizens who are looking for affordable quality housing will be driving the housing market in the future.

Nigeria’s poor population is of the opinion that the government is not doing enough to ameliorate their sufferings, particularly in the area of housing provisions. Do you agree with this view? If you do, what do you suggest should be government’s approach to finding solutions?

I agree that the Nigerian Government could focus more on providing housing for the poor. On the other hand, there are a lot of demands on this government, which are equally important and due to the fall in oil prices the resources to cater to these demands have become increasingly limited. I believe that a strong private sector participation in low-cost housing along with the right incentives from the Government could go a long way in providing housing schemes for the poor.

What is your expectation for the Lagos launch of AfricaBuild?

We are expecting this to be a very well organized and well-attended event with stimulating and interesting presentations and discussions. We are hoping for the Austrian participants to find new customers and business partners, which will enable them to establish themselves in the Nigerian market.

How can you ensure that the launch of AfricaBuild in the country will not compromise the clamour among Nigerian professionals for increased local content in projects in the country?

There is a saying in German „Don’t throw away the baby with the bath water” which means that you should not destroy something good because your good intentions are carried out without reflection and too vigorously. This applies in the context of the debate on local content in the construction industry. While I agree and support the Nigerian effort to create more employment, know how and value added in the country, these goals can only be reached with the assistance of partners and should be planned well over a specific timeline with achievable milestones. It is a fact that many building materials as well as most construction machinery, are currently not available or not available in sufficient quality or quantity in Nigeria and are thus imported from abroad. An adequate local production of these cannot be established from one day to the next. It would be a bad political decision to compromise building standards and market opportunities for populist local content measures.

Will the launch of AfricaBuild translate to the creation of employment opportunities and the local production of goods for the building and construction industry? In other words, what does this launch mean for the average Nigerian on the street?
The AfricaBuild is a commercial trade fair / exhibition aimed at providing a platform for private sector operators (buyers and sellers) to meet each other.

Sourced- TheGuardian