The Nigerian economy has grown significantly over the last decade and it supplanted South Africa in 2014 as the largest economy in Africa following a rebasing of their gross domestic product (GDP). 2015 was however challenging year for the Nigerian economy as it was negatively affected by the sharp fall in the oil price and a change in investment sentiment towards emerging markets.The dramatic changes to both the Lagos skyline and shoreline bear testament to the rapid urban development that has taken place over the last decade. This wave of development, particularly office towers in the new CBD’s of Victoria Island (VI) and Ikoyi was driven primarily by the acceleration in oil and gas activity and the petro-dollars that flowed from it. The interbank NGN-USD exchange rate is officially pegged at around 200 but with Naira risks escalating, economists are anticipating that the official interbank rate could move beyond 250 this year.The recently appointed Nigerian cabinet is drawing up plans to launch a highly expansionary fiscal policy as a means of economic stimulus, which will be anchored around a massive infrastructure program for transport, roads, housing and power. The long term investment case for the Nigerian real estate market and Lagos in particular, remains underpinned by the vast economic potential of Africa’s largest population, rapid urbanisation, compelling demographics and gateway status.
