Gradually but steadily, a New Lagos is emerging on the Mile 2-Badagry corridor as Governor Babajide Sanwo-Olu creates economic hubs defined by world class transport infrastructures that offer opportunities for investment.
This corridor is home to the 60.2-kilometre, 10-lane Lagos-Badagry Expressway (LBE) which a light rail track in-between. The expressway on which construction work started in 2009 stretches from Eric More or Doyin in Surulere to Badagry in Badagry Local Government Area of the state.
Though it took so long to build this piece of infrastructure, the good news is that both the road and rail track are functioning with commercial buses, Bus Rapid Transit (BRT) and the Lagos Blue Line rail system all working seamlessly on the expressway.
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These have been a major attraction to sundry investors, especially real estate investors, many of whom have taken position, buying and development properties for both residential and commercial purposes.
Before now, investment interest in that corridor was very low, made so by the spate of property demolitions for the expansion of the expressway to 10 lanes from its former four lanes and also to create its right of way (RoW).
But now, with the expressway largely done up to Okokomaiko which marks the end of the second phase of construction also known as Lot 2, opportunities are beckoning at such locations as Abule-Ado and Alakija which, according to Amos Uduma, an estate consultant, are good for event centres, eateries and the hospitality sector in general.
Uduma told BusinessDay that Agboju to Maza-Maza axis are hot spots for heavy duty truck dealers, adding however that the unavailability of large parcels of land for largescale residential estate along the expressway is discouraging large scale developers from coming to invest.
A developer, who pleaded not to be mentioned, noted that unlike before when real estate developers like MIDC, the developers of Teju Royal Garden Estate, preferred to go further down to invest in areas such as Ketu-Ijanikin and Agbara areas, there are opportunities now to invest in moderate estates, schools, community shopping malls in those areas.
The state government has turned this corridor into a huge construction site which is following from the success story of the governments two transport system—the BRT and Blue Line rail. Whereas the BRT operations have been extended up to Okokomaiko, construction work is upbeat on the extension of the rail track up to the same location.
Three more train stations are being built at Agboju, Alakija and Iyan-Iba. This has caused a huge influx of Lagos residents from the city centre to places like Abule Ado, Alakija, Agric, Ojo Alaba, Okokomaiko, Iyan-Isash and even beyond, up to Ijanikin and Agbara.
All these areas have seen significant rise in demand for land, residential and commercial buildings, leading to an upswing in house rents.
Rents for two-bedroom apartments have jumped from N700,000 to N1.2 million for old tenants and up to N1.5 million for new tenants in some areas, representing about 140 percent increase. Rents for one-bedroom and three-bedroom apartments have also increased in the same direction.
Further down, along the expressway, the story is not any different. At Agric, where Toyin Iluyomade, a trader at the popular ASPAMDA market lives, the rent for a three-bedroom bungalow has moved from N500,000 and N650,000 per annum to between N700,000 and N850,000 in one year.
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Coming along with this increase in property value are opportunities for investment in businesses like furniture making, building materials, shopping centres, estate agency services, mechanic workshops and other businesses that cater to household needs.
Besides the opportunities already created by the expressway and promoted by the light rail track, the state government is also building a major transport interchange hub that is expected to be a game-changer in passenger traffic in that corridor.
A couple of months ago, the Lagos Metropolitan Area Transport Authority (LAMATA), in partnership with Agence Française de Développement (AFD), broke ground for the construction of the interchange designed to be a central nexus for various modes of transportation at Mile 2.
With this, LAMATA which is the state government’s agency responsible for coordinating public transportation, aims to implement and maintain a sustainable and efficient public transport system, ensuring improved mobility for all Lagos residents.
Abimbola Akinajo, managing director of LAMATA, explained that the interchange hub would integrate multiple modes of transport, including buses, BRT, and rail services, facilitating smooth and efficient transit for commuters. He noted that the hub will be equipped with modern amenities, offering convenience and comfort, and ensuring a superior travel experience.
Expectation is that this is going to be a huge business hub that offers opportunities for investment in restaurants, eateries, hotels for lodging and accommodation, telecom services, sundry real estate assets such as short-let apartments, conveniences, and others.
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However, there are concerns being expressed by potential investors who doubt if safety of investment in that corridor can be guaranteed by the authorities of the state government. “I have interest in setting up a business that can offer services at the interchange but how do you manage the agberos and area boys who are all over the place?” Emmanuel Eze, a businessman at ASPAMDA market, queried.
Eze believes that the only way to attract big business interests in that corridor is for the state government to guarantee safety of investment by dealing with environmental issues, particularly destitution and agberos/area boys whose activities make the whole of that axis unattractive and unsafe.
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