Posted on and Updated on

How to Choose a Construction Company in Nigeria

The construction business is almost always booming, with more than 100 billion dollars-worth of work going on at any time internationally.

Having professionals build a structure for you is usually the best option but choosing the best construction company isn’t always easy. With so many choices, it can be difficult to find the perfect match for your project.

However, with a little insight, it’s much easier to locate and hire the right team of expert contractors.

The Top 6 Tips for Choosing a Construction Company

There’s a lot of construction companies in Nigeria, so be sure you know what you’re looking for prior to hiring anybody to do the work:

1. Ask for Examples

It’s common for construction companies to show work samples or to come out to give bids and estimates. A company which refuses to do so should raise lots of red flags. Make sure the estimates are clear and detailed as well, so there aren’t any surprises once the work begins.

2. Establish a Good Line of Communication

If the construction company you choose has trouble communicating with you and/or other clients in a timely manner, it may be best to pick someone else for the job. Phone calls, emails, and on-site visits are part for the course and should be expected throughout the entire project.

3. Check on Their Workload

Construction companies that are popular are often overloaded with projects which make them slow to complete work. However, that’s not always the case. Double check the company’s workload to make sure they have adequate time to handle your desires and demands.

4. Make Sure They Have Insurance

Although most reputable construction companies work diligently to maintain safe and secure working conditions, accidents are prone to happen. Be sure the company you choose and the employees therein are covered by a general liability and/or worker’s compensation insurance just to be on the safe side.

5. Be Clear about Your Expectations

Each construction project is unique in a variety of ways, so be clear about your expectations so you can determine whether the specifics of your project are feasible for the company.

Additionally, it’s always a good idea to see some other projects of the contractor, to see the quality and speed. Use your best judgment when reviewing other projects, and don’t let the company make excuses for their failures.

6. Ensure the Deal Can is Put in Writing

Some construction companies won’t even start a project until a working contract is written up, while other companies don’t mind beginning without one.

However, it’s not always a good idea to hire a contractor that isn’t thorough in that manner. Written contracts help keep everyone on the same page, not to mention they protect all parties from discrepancy.

7. Change companies if needed

Whenever economies grow, real estate and construction is the booming sector. Nigeria is expected to grow in 2018 and there should be many options for your building project, so don’t be afraid to change the contractors at any moment.

Nigeria has internet catalogs and business directories, like AfricaLinked and they usually have special sections showing all the companies in a specific niche.

Posted on and Updated on

Real Estate Effects on Economic Growth

The recession of the last decade is a thing of the past. Although it was primarily triggered by what the market calls a real estate bubble, the sector has revived like a phoenix.

In all fairness, the real estate crisis was confined largely to the United States. The recessionary impact on Asian economies was more of a ripple effect, mainly due to a slump in exports and services for countries like Singapore.

The real estate market did peak in 2007 and since then it has been largely steady with modest growth rates over the years. The market peaked again in 2017 with more than forty billion dollars in total investment sales.

The Singaporean economy is continuing to grow and the government remains buoyant about every major industry, including the real estate sector.

The real estate sector and economic growth are correlated. While there may be concerns about rising prices and vacant homes in Singapore, the overall scenario remains promising and that is partly the reason why most investors are confident about the city state.

The positive momentum is poised to continue. Bearing such developments in mind, let us explore the effects of real estate on economic growth.

Direct impact felt by foreign

Investment in real estate has a direct impact on the gross domestic product. Unlike larger economies like China, Japan and India, Singapore does not have staggering agricultural produce or industrial output.

Most industries are flourishing in Singapore but their sizes cannot be compared with much larger and the most populous nations like China and India. Financial services, trading & commerce, shipping and aviation, technology and tourism aside, Singapore has always been a prime real estate market for domestic and foreign investments.

Very rich Chinese people

Recently, the high net worth individuals or the ultra rich of China have expressed their intent to invest in Singapore real estate, shipping their perennial favorite Hong Kong.

Such investments have a direct impact on economic growth, it helps local construction companies and affects the market in many other ways.

Real estate directly reflects the economy

Growth in real estate also reflects economic well being in a country. People are likely to invest in residential properties when there is ample employment, substantial income, money to spare and there is considerable confidence in the economy.

Not many people will buy homes or even upgrade their rental properties if they are not feeling secured about their job and have enough cash to spare. A buoyant and stable economy will always spur growth in real estate.

Hence, just as economic growth creates a stir in the real estate sector, the vice versa is also true.

Environment to scale exciting operations

Real estate is also a strong indicator of how companies, investors and traders are feeling about the economy. More companies would set up their bases and branch out across the country if they are confident of the prospects.

This propels a growth in commercial real estate. The same rationale is applicable for industrial real estate. If confidence is low and there is no positive momentum, the sector will witness a slowdown.

In a nutshell, if there is increasing interest in properties and similar assets, then an economy is in a sound state and growing.

Posted on and Updated on

Economic Forecast of Nigeria in 2018

According to the report, “January 2018 Global Economic Prospect”, published by the World Bank, economic forecast of Nigeria for the year is substantially more positive than that of 2017.

Nigeria is expected to grow by at least two and a half percent compared to the one percent growth recorded by the end of last year. The same report illustrates that the gross domestic product of Nigeria is poised to grow by around three percent over the next two years. Global economic growth for 2018 is poised at around three percent.

The World Bank launched the report on January 9, 2018, in Washington D.C. and it has remained largely positive about growth across the Sub-Saharan African nations. All of Sub-Saharan Africa is poised to grow through the year, at a rate of around three percent which may increase to three and a half percent through the next year.

This growth will be predominantly supported by the stabilizing of prices of commodities. Domestic demand is expected to solidify and will increase notably to have an impact on the gross domestic product.

The re-surging growth in Nigeria is yet to scale to the peak recorded before the crisis. It is actually below the averages leading up to the crisis. There is still some serious shortcoming in policies and private investment has not received the boost it needed to spur things up.

Still tough times ahead for Nigeria

Economic activity is on the rise but not nearly enough to script a turnaround story just yet.

This is not unique to Nigeria as larger economies are also finding it difficult to provide a fillip to private investment. The Nigerian government needs to improve the business sentiment and more importantly the business environment.

Nigeria eurobond launch on LSE

There has to be initiatives that will support new investments, even if there is to be a modest rise in that in the next few months. Short term whopping rises in private investment are not likely.

Should Nigeria be able to stabilize its policies and come up with structural reforms, the major hurdles will be easier to deal with. Policy uncertainty remains a concern for most institutional investors and also the ultra rich that would look at large infrastructure projects and exploration of natural resources.

Production of oil is expected to recover significantly and that will fuel the growth in other sectors to an extent. The right policies can provide the additional boost needed for most industries unrelated to oil.

In contrast to Nigeria, South Africa is expected to record a growth of around one percent. This will be a substantial twenty five percent year on year growth but not nearly enough as the government down there would like to see.

Angola is poised to grow at just over one and a half percent. The success of the political transition in Angola has raised hopes of reforms and experts are expecting a huge improvement in the ease of doing business.

Côte d’Ivoire is expected to grow by over seven percent, Senegal is likely to grow at just under seven percent and Ethiopia will clock more than eight percent of growth.

Tanzania may clock up to seven percent while Kenya will find five and a half percent growth as most of these countries are encountering a degree of stability and correction in its recent inflation.