﻿Abuja, Nigeria Abuja, the capital
of Nigeria lies in the central part of Nigeria, in the Federal Capital
Territory (FCT). The city is approximately 480 km northeast of Lagos, the former capital.
During the 1980s the new capital city was built and developed on the grass-covered Chukuku Hills.
The site was chosen for Nigeria’s new capital because of its central location,
easy accessibility, salubrious climate,
and low population density and the availability of land for future expansion.
It was the first planned city to be built in Nigeria. The city’s Central Area contains
the city hall, national cultural institutes, and other government-related offices. It also
contains the Three Arms Zone, which is home to the presidential palace, the National Assembly,
the Supreme Court, the National Arboretum, the National Christian Centre, the National Mosque,
and Millennium Park, the largest park in Abuja; the National Children’s Park and Zoo is nearby.
Other areas provide housing, shopping facilities, and other urban amenities.
The National Stadium, a large multisport arena, is located on the western edge of the Central Area.
Abuja has an international airport, and expressways connect the federal capital with
other cities. Power lines and underground cables conduct electricity to the city.
Abuja is Nigeria's administrative and political capital. It is also a key capital on the African
continent due to Nigeria's geo-political influence in regional affairs. So the question stands
why invest in Abuja instead of all the numerous states in Nigeria and which sectors to invest in.
Here are some valid reasons and great sectors to invest in.
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Centenary City
One of the largest real estate projects in the country is Centenary City,
located in Abuja. The $180.6bn smart city project envisions the creation of an
integrated urban centre combining a business district, financial centre, arts centres,
residential areas, sports facilities, business and technology parks, and tourism services.
The project is a punlic private partnership drawing the majority of its financing and
development from the private sphere. Over the lifetime of the project the authorities expect
to create over 50,000 construction jobs and 5000 permanent well-paid jobs. In addition,
the complex is expected to house 100,000 residents with the capacity to host 500,000 daily visitors.
Real estate Real estate is a major
driver of the Abuja economy. This correlates with the considerable growth and investment the
city has seen as it has developed. The sources of this investment have been both foreign and local.
The real estate sector continues to have a positive impact on the city, as it is a major
avenue for employment. As Nigeria is increasingly becoming a dangerous place to live and Coronavirus
is raging across Europe, many of the middle class and elites have chosen Abuja as a place to reside.
When it comes to investing in real estate in Nigeria, Abuja is arguably the best place to do
so for various reasons; Abuja is Nigeria’s capital city, It is rapidly developing,
It offers a great quality of life and There is plenty of vacant land available.
Land is a particularly attractive investment due to it being a relatively “hands-off” way
of making money. When you fully comprehend these facts you will understand that Abuja
is the place to be and accordingly is the best place to buy land in Nigeria.
Transport
Abuja’s transportation network is well developed and expanding,
although rapid urbanisation has put pressure on the existing network. Built in accordance
with the city master plan the metropolitan road network is extensive, although satellite towns
remain underserved. The city connects to the north-east through the A234 Federal Highway,
and to Niger State via a direct highway link which is still under construction. In addition, Abuja is
intersected by the A2 Expressway, with connects it with Kaduna in the north and Lokoja in the south.
The FCTA’s proposed budget for 2018 earmarks N8bn ($25.9m) of capital expenditure for the expansion
and extension of major road links in and around Abuja. This includes the expansion and extension
of the Outer Southern Expressway and Inner Southern Expressway, along with the construction
of the Southern Parkway and a new carriageway. The territory has also experienced improvements
in rail connectivity, becoming the first city in West Africa to inaugurate a rapid transit system,
the Abuja light railway. The first stage of this project connects 12 stations across the
metropolitan area and opened in July 2018. The new network connects the city centre with Idu,
an industrial neighbourhood, and Nnamdi Azikiwe International Airport (NAIA), with
five additional phases set to extend its coverage to 290 km. Furthermore, the city’s national rail
system connects to the Lagos-Kano standard-gauge railway. The most recently completed section of
the network is the Abuja-Kaduna rail line, which opened in December 2014. The $876m
project was undertaken by the China Civil and Engineering Construction Company and spans 186 km.
The aviation segment is served by NAIA, which offers domestic and international flights. NAIA
is the second-largest airport in the country in terms of passenger footfall. Following the 2017
renovation work, the airport has made considerable improvements to its domestic standing,
being voted the international airport that had achieved the greatest improvements in the Nigeria
Aviation Awards. Operations at NAIA are set to improve further with the opening of a N61.2bn
($198m) new terminal. Every great city needs an amazing transport system and Abuja definitely
has that and is working towards better making it a great place for investment.
Construction
A wide range of new and ongoing projects in Abuja and its surrounding settlements are
expected to provide a major boost to the territory’s construction sector. Although
the industry is smaller than that of Lagos, with fewer companies and projects under way,
FCT construction growth is set to accelerate in the coming years as the FCDA and private sector
move forward with a host of new infrastructure and real estate projects. Nevertheless, construction
companies do face a series of challenges in the territory. So with all these construction projects
going on and those in the foreseeable future investing in Abuja isn't such a bad idea.
Minerals & Agriculture
In addition to its importance as an administrative and commercial centre, the FCT also plays host
to significant mineral deposits and a solid agricultural sector. According to the NBS,
the territory accounted for the third-highest volume of mineral production in Nigeria in 2017,
with an output of 4.46m tonnes, or 9.75% of total production. Of this total, the territory produced
3.52m tonnes of granite, 721,000 tonnes of granite dust, 204,000 tonnes of laterite,
16,700 tonnes of clay, 2970 tonnes of limestone, 250 tonnes of tin ore and smaller quantities of
lead and zinc. The territory also possesses a sizeable agricultural base, which includes yams,
millet, maize, sorghum and beans. However, in a study published by the development NGO ANE
Osiobe International Foundation, researchers found that the FCT’s fast-growing population
had placed pressure on both local and regional food supply networks. The report identified
two crops – cassava and groundnut – as holding significant growth potential for the territory.
In particular, increased cassava production could help local farmers tap into the nascent
biofuel industry as the FCT seeks to expand energy production while also reducing carbon emissions.
Renewable energy will help the country fulfil its commitments made at the COP21
UN Conference on Climate Change, while making a positive impact on the lives and livelihood
of communities through the guarantee of stable power supply. Equally, Biofuel projects will
also help the government free up its budget for environmental waste management and health care.”
Industry
The territory’s robust infrastructure and significant mineral deposits provide a
solid basis for expanded industrial investment. Abuja’s role as the administrative capital and
financial centre has crowded out investment in the manufacturing sector. However, in an
effort to overcome this challenge in 2010 the FCT announced the creation of Abuja Industrial Park.
The $1.8bn project, which is being developed by the Turkey-based Zeberced Group,
covers over 135 hectares and is expected to provide a cluster for 117 industries.
Upon completion the site is also expected to be independent in electricity generation,
serviced with its own railway and water treatment plant, and equipped with banks, shopping centres,
hotels and restaurants. Work on the project broke ground in 2013 and the first phase is expected
to reach completion in 2018. So investing in the industrial sector now will yeild great returns.
With high and resilient economic growth, an important role as the country’s
administrative centre and significant mineral deposits, the future looks bright. However,
rapid urbanisation presents serious challenges. The ongoing prioritisation of transport and
infrastructure spending, coupled with efforts to increase private sector investment in real
estate go some way towards addressing these issues. However, more remains to be done to
further increase private sector involvement in large-scale infrastructure projects
and to leverage the territory’s manufacturing potential. The time to in vest in Abuja is now!
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