As some existing retailers scaled back their expansion plans, prospective retailers continued to
adopt a ‘wait and see’ approach to entering the market in light of current headwinds facing the
retail sector.
- Divergence between the official interbank exchange rate and the parallel market continued as
the Naira depreciated from N226/US$ to N266/US$ by the end of Q4:2015, whilst the official rate
remained at N197/US$.
- In Q4:2015 38,700m² of mall space was added to the Nigerian retail stock with 36,000m² added
to the core market whilst 2,700m² was added to the secondary market.
- Though no fluctuations in rental levels were recorded across board, tenants continued to push
back against asking rents.
-Despite challenges facing the sector, investors remain bullish as they anticipate increasing
opportunities and long-term growth potential in the sector.
- Investors have persevered to ensure that on-going mall projects come to fruition whilst some
others have gone on to break ground for new developments.
- Over the next 12 to 24 months 183,500m² is expected to be delivered to the market.
