Nigeria is considered by many to be one of the countries sliding into economic recession. This is a period of general economic decline and is accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. However, some who have a contrary opinion believe that the government is using an economic policy referred to as Strict Monetarism. It is an economic policy where the government uses its money to control goods and slow down economic growth and development on a wrong premise.
It is a known fact that recently in Nigeria, because of the harsh economic state of the country, there is an alarming rate of unemployment, big and small businesses folding up, sectors and organizations reducing their staffs, even Foreign Investors are withdrawing from Nigeria. Withdrawer by foreign investors is understandable and expected. This is because foreign investment has an element of risk especially for countries with an uncertain political situation and economic crises because these factors are major deterrents that can frustrate and discourage investors.
Despite all these loopholes and risk of investment especially for foreign investors in this period of the country, it amazes me that foreign investors are investing massively in Nigeria especially in real estate and landed property in the Ibeju-Lekki part of Lagos state. What really caught my interest is the fact that even in the country’s economic crisis and recession; big multinational companies are still investing in Nigeria. Now the big question is WHY?
Before we discuss “the WHY”, let us first take a quick look at what recession means to different investors, as this will drive home the point WHY investors will want to invest in a country facing an economic crisis and recession.
It is important to note that recession does not mean there are no ways to make money for foreign investors. Some investors take advantage of falling markets. In this period, prices tend to increase due to inflation however; most businesses and investors enjoy this period and have flourishing time. A weak exchange rate in a probable host country can attract more foreign investors because it will be cheaper for the multinational companies to purchase assets mostly real estate/ landed property. The fall in the value of Naira makes it cheaper for people who wants to trade with Nigeria.
There are some breeds of foreign investors that do not tremble during a recession in spite of the difficult operating environment caused by the recession and rising inflation. These foreign investors deal with a long-term, buy-and- hold strategy. For example: a foreign investor acquires acres of land from a community at Ibeju-Lekki area of Lagos state Nigeria, during an economic crisis, knowing that in few year’s time after the crisis, the property acquired would have triple the value it was bought.
Some other classes of investors use a technique referred to as Value Investing during or at the point of a recession. This technique involves looking at a fallen stock not as a catastrophe, but as a bargain-basement waiting to be raised up, knowing that better times will eventually return to the economy, value investors use this period as buying splurges, picking up first-rate and high-quality companies and other properties that are selling for cheap prices.
From these illustrations made above, I am sure it is now clear WHY foreign investors will want to invest in a country facing an economic crisis.
Of recent, because of the economic situation in Nigeria, investors are concerned about securing their investment and where growth and value of their assets will come from. It is, however, worthy to state that today, the best investments opportunity for both local and foreign investors is investing in real estate/landed property.
Apart from the fact that real estate property is of great value in Nigeria, it also allows local and foreign investors to invest in a wide range of commercial properties, such as office complexes, apartment buildings, shopping malls, hotels and so on. It has however come to my notice that one of the challenges prospective investors face most especially foreign investors, is the challenge of understanding the process of real estate investment in Nigeria. Another challenge faced by foreign investors is considering an environment with a prospect to invest in.
I am pleased to announce to you that Ibeju-Lekki in Lagos state is an area with a great prospect and developing rapidly. This is where the Lekki free trade zone is situated; the world acclaimed largest refinery in Africa, The Dangote Petrochemical Refinery; The Lekki Deep Sea Port; The Lekki International Airport, and Knauf Group International, a leading Company in Germany who recently acquired 24.717 Acres of Land to build a $70 Million Dollars FACTORY.
This picture shows the execution of the Building/Construction Agreement for the fencing of the entire 24.717 Acres purchased by Knauf Group International.
I am passionate to help both local and foreign investors seeking to acquire land/property in Lagos, Nigeria for either personal or for investment purpose. In furtherance to this I have volunteered to render support, assistance and facilitate at a NO COST the process for any foreign company who wants to acquire land or property in Nigeria for investment purposes, especially within the new Lagos, IBEJU LEKKI/ FREE TRADE ZONE AXIS.
All you need to do is send me an email with your proposal/intent and instruct me thereafter to proceed. It will also interest you to know that His Excellency, The Governor of Lagos State, Gov. Akinwunmi Ambode is eager to meet with you. I have his support on this. Lagos is the economic hub of Nigeria and the state pride itself as the largest of the nation’s economy with the Gross Domestic Product (GDP) of $131billion. Lagos State is the 5th largest economy in Africa, thereby making it investors’ first choice of destination in Nigeria.
Lagos is committed to the rule of law and the Governor will assure you of a safer and secured environment. Send that email today or you want to call me on skype? Here are my details:
My Personal Line: +234 803 486 9295.
Ibeju lekki Lawyer is the Managing Partner, Prince Joel&Associates.
A leading Commercial law Firm based in Lagos, Nigeria. We have been at the forefront of development in Legal practice in Nigeria and have continuously rendered sound technical legal services tailored at client’s needs, both local and international.
This post first appeared on LAND ISSUES THAT CAN GET YOU INTO BIG TROUBLE PT 2, please read the originial post: here