Over the course of the past 12 months, growth in the Nigerian economy has been curtailed through a
combination of different monetary, fiscal, and political policies which have hindered overall business
activity, job creation rates and GDP performance. In fact, the annual rate of GDP growth declined
to a 16-year low of 2.8% at the end of last year (IMF), while national unemployment levels
are within touching distance of 10% and inflation is at a threeyear high of just over 11% and climbing
(Central Bank of Nigeria). The most expensive office submarket by some way, at the end of
Q1, was Ikoyi at USD 850 psm, followed by Victoria Island at USD 750 psm. The shrinking level
of overall occupier activity is reflected in the annualised rental fall of 7% in Ikoyi (USD 850 psm) and
the 25% reduction in asking rates on Lagos Island (USD 113 psm) over the same period.
Away from the office market, the retail market has demonstrated a greater degree of stability,
with almost no change in rents being recorded across Lagos’ main shopping centres.The industrial
market appears to have been the most significantly impacted by economic conditions as manufacturers
have struggled to remain operational.
