Lekki: Emerging commercial hub

The city of Lagos is undoubtedly the commercial nerve centre of Nigeria.  Consequently, this status has enabled the city to attract quite a number of institutions toits key Business Districts over the years. These major districts are largely divided into two main areas: Greater Lagos Mainland and Greater Lagos Island. However, the Greater Lagos Island which comprises of the Marina (old CBD), Victoria Island or VI, Ikoyi, and most recently Lekki areas, has attracted a significant portion of new business entrants.

The Greater Lagos Island commercial hubs have gone through different phases of transformation over the years. This transformation has been characterizedby thesupply and demand dynamics,company image, rental cost as well as the availability of sustainable public infrastructure to supportthe growth of these commercial hubs. For instance, Marina, home to the Nigerian Stock Exchange, was the first major CBD and attracted the banking and financial institutions – both local and international. Banks such as Union Bank, First Bank, UBA (United Bank for Africa) as well as several other organizations still house their head-quarters in that area. Over time however, Marina lost its lustre and attractiveness. Traffic congestion, poor infrastructure and the lack of available parking greatly impacted the Marina district and led to the migration of businesses to VI and ikoyi areas. Consequently, this pushed VI and Ikoyi rental prices up due to the high demand for office spaces that historically were quite limited in supply. For small businesses who could not afford VI and Ikoyi due to the high rental rates, the most viable option becamethe Lekki area leading to the slow emergence of Lekki as a new commercialhub.As such over the last few years, the influx of small commercial and retail tenants to Lekki has been quite dramatic.

Apart from the attractiveness of lower rental costs, noticeably majority of the business owners in Lekki also reside within the Lekki Phase 1 axis. This unique blend of residential-commercial mix makes Lekki environs auniquely attractive location considering the advantage of having a good work-life balance in the hustle and bustle of Lagos, where the benefit of getting to work within 5-15mins commute is considered a luxury.

The emergence of Lekki as a commercial hub also presents significant opportunities for ancillary services like retail banks, filling stations and supermarkets. Major Banks who have previously viewed Lekki as a residential hubs are now beginning to make in-roads into key streets in the Lekki area. Stanbic, Diamond, FCMB, Union Bank and UBA just to name a few, now line up branches/ATMs along the popular Admiral T road in Lekki. Also, filling stations have followed suit, albeit controversially due to the traffic back-log and health/safety hazards they represent. Retail has also made a major head-way into the Lekki area. From pharmaceutical branches such as Health Plus, to grocery stores such as Daytona or Ebano (which burnt down a few months ago and is being rebuilt), retail is clearly expanding in the Lekki area. In addition, mini malls or marts such as Centro mall have sprung up in various locations in Lekki.  Entertainment spots and indoors and outdoors restaurants are also popular locations in Lekki. Sailours, Bukka Hut, Beehive and Angle Villa just to name a few are some of the known destinations in the area.

The rise of these commercial spaces however has begun to have an impact on the residential components of the Lekki area. As Lekki Phase 1 in particular has become a more attractive commercial hub for business owners, the competition for commercial spaces has become quite intense. The traffic (“leg” and “motor”) on Admiral T for instance or the renowned Fola Oshibo street, has led to landlords favouring commercial leases over residential ones.  The result of this is the conversion of residential buildings into offices or retails spaces, in order to meet the ever growing demand of the commercial sector. Unfortunately, potential tenants looking for residential accommodation are being priced out of the market in certain parts as landlords are inclined to admit commercial tenants who can pay more on a long lease period.

Without government planning and intervention, competition between the residential and commercial interests could have an adverse effect on the lekki community. In order to maintain a communal balance, it’s important that each neighbourhood attract and maintain an equilibrium between the residential and commercial components. Schools, churches, mosques, as well as offices and residences are all key aspects of the work/play or work/life balance that is highly sought after in Lagos. For this symmetry to continue to exist in Lekki, it will be important for that planning and zoning rules be established and enforced.

Chinwe Ajene-Sagna