During the 1st quarter of 2015, Nigerian asset markets were characterised by subdued activity and bearish
behaviour. While January and parts of February were dominated by falling equity prices and capital flight from
foreign investors, there was a demonstration of confidence in the final 2 weeks of the quarter mainly due to
relatively peaceful elections and indications that the opposition would claim victory. This resulted in a slight gain of
8% on the Nigerian All share Index (ASI) for the 2 week period. Nonetheless, the return on the ASI for the entire
quarter stood at -6.5%, less than the 5% and 2.5% gain seen in other African powerhouses - South Africa and
Kenya.
As tenants in search of space are increasingly presented with more options, we expect to see
more pushback on lease terms, rental rates and the introduction of more tenant friendly incentives.
