Nigeria is so broke yet so rich. If Nigeria leveraged the $900 billion lying fallow in dead capital, it could lift 93 million of its people out of extreme poverty, create jobs and rely less on expensive borrowing, Andrew Nevin, the Chief Economist at PwC has said.
Speaking at BusinessDay’s maiden property investment conference tagged PRINVEST 2022, the PwC’s chief economist revealed that Nigeria holds as much as $900 billion worth of dead capital in residential estate and agricultural land which can add value to Nigeria’s economy and lift more people out of poverty.
“This means if we could unlock $900 billion real estate dead capital and invest, it would make an enormous contribution to the Nigerian economy and solve Nigeria,” Nevin told the audience.
Dead capital are assets that cannot be easily transferred and the uncertainty of ownership decreases the value of the asset, so they cannot be converted to their most valuable social and economic use, and cannot be used as collateral.
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Nevin also cited a report by Nigerian institute of builders report which shows the value of the federal government’s abandoned projects is about N230 billion.
“Some of which include the Nigerian Social Insurance Trust Fund(NSITF), The National Assembly complex at Tafawa Balewa Square, while there are over 60 abandoned properties belonging to the federal government in Lagos state,” Nevin said.
In his welcome remarks, Ogho Okiti, managing director, BusinessDay Media limited said the Nigerian real estate industry has a litany of challenges obstructing the growth and development affecting the sector.
Some of the challenges he listed include the infrastructural deficit, high cost of construction materials due to foreign exchange swings and devaluation among other things.
“Equally there are numerous opportunities in the industry that should be harnessed for growth and i urge panelist to leave no stone unturned in highlighting these issues and proffering solutions, it is our hope that the discussions will provide workable solutions,” Okiti said in his remarks.
