•Governor Eno and an 18-storey building
In a recent announcement, Governor Umo Eno of Akwa Ibom State unveiled plans to construct an 18-storey building in Lagos, Nigeria’s commercial hub. The proposal has sparked intense debate, with critics labeling it a “white elephant project” and proponents hailing it as a visionary move.
Much as I do not want to join issues with anyone on this matter, my honest assessment of the business sense of the 18-storey building in Nigeria’s economic hub, is overwhelmingly positive.
I totally agree that there is hunger in the land hence government should focus on reducing poverty and hunger. I also agree that there are other challenges government should be worried about other than building an 18-floor building. It must however be noted that government is made up of many parts, priorities, policies and programmes. From time to time government makes decision on what is paramount and pursues it in the interest of the people.
At the home front, Governor Eno is doing exceptionally well. Political foes are made friends. Youths are being trained, empowered and taken off the streets. Hospitals and schools are receiving facelifts. The poor of the poor are receiving free furnished modern homes. Civil servants and others are not left out of the goodness of Umo Eno Administration.
The novel State Bulk Purchasing Agency set up by the governor has been distributing food to the poor populace twice a month. Through AK-CARES, an intervention programme whose objectives are expansion of access to livelihood support and food security services, provision of grants to the poor and vulnerable households and firms, are ongoing.
There is therefore nothing absolutely wrong in seeking to have a money-making choice property in the commercial nerve center of Nigeria. It makes a lot of business sense to do so especially in this era of diversification of the economy amidst epileptically unstable oil revenue. It behooves on government leaders to think out of the box and discover other sources of income to drive their developmental goals and mission. In otherwords, the 18-floor building in Lagos, the commercial hub of not just Nigeria but Africa, remains one of the best business decisions that Governor Umo Eno has taken.
Speaking on the proposed building during a stakeholders meeting at Government House, Governor Umo Eno said: “previous leaders had acquired a significant number of assets for the state, many of which are currently in a state of disrepair and unused. In Lagos alone, the state government possesses over 10 properties in prime locations. Rather than allow those idle structures to waste, the state plans to enhance them, increase their appeal, and offer them for sale to the public while also keeping some for leasing. This will generate income for the state”.
Gladly, real estate, is a high-yielding business venture. Globally, government at all levels venture into real estate for reasons ranging from economic development to urban planning. Studies show that real estate investment is one of the best investment individuals, corporate organisations and government can make. For example, in Singapore, government has invested nearly $500 billion and generated returns on investment exceeding 120%. Dubai and Abu Dhabi in United Arab Emirates, UAE, are adorned with some of the global best skyscrapers. Such real estate investments run into trillions of dollars in a bid to boost economic diversification, tourism and generate profits that account for more than 96% of their yearly real estate investments.
The Saudi Arabian real estate market size was estimated at around SAR 1.1 trillion (approximately $293 billion USD).
Lagos, where the proposed building is to be located has an estimated real estate market size of around ₦1.3 trillion (approximately $3.5 billion USD) with a market growth rate of 10% from 2020 till now.
Besides, it is an open secret that in Victoria Island, to quote one government official, “there is a high demand for office and residential spaces, thereby making it an ideal location for real estate investment.” Let critics not forget that Governor Umo Eno spent years in Lagos plying his trade before relocating to Akwa Ibom. His entrepreneurial spirit should not be overlooked as he intends to transform every asset of the state into a money-making enterprise.
Notice that, through the Assets Management Board and Akwa Ibom Investment Corporation, AKICORP, Governor Eno has moved already to convert several properties owned by the state in Abuja into viable three-star or five-star hotels, and lease them to a capable hotel management team and transform the ones in Lagos to high rise residential buildings for lease.
Apart from the aforesaid, the move by Governor Eno will not only boost the revenue profile of the state but will create over 5000 direct and indirect jobs during the construction phase. The building will also serve as a beacon for foreign investors, showcasing Akwa Ibom as a prime investment destination, reflecting the state’s financial muscles, strength and ambition to rank among the top subnationals in Nigeria.
Governor Umo Eno’s proposed 18-storey building in Lagos is more than just a building. It is a symbol and signal to increasing the might, capacity and ambition of Akwa Ibom to become a model entity in Nigeria. Projects of this nature serve as well to raise the profile of the state, just like Ibom Air, and boost the confidence of Akwa Ibom people in Nigeria and in diaspora. Luckily, Akwa Ibom State today can boast of one of the most trustworthy, public spirited and prudent governors in Nigeria. Clearly, he means well for the state.
*Comrade Aluu, a journalist and public policy expert, writes in from Obohia Ndoki, Abia State.
