In a conversation with Odunayo Ojo, the Chief Executive Officer of UACN Property Development Company Plc, highlighted the anticipated impact of the Dangote refinery on the real estate sector in the Lekki-Epe area of Lagos State. Experts project that the establishment of the refinery will catalyze the growth and development of the real estate market in the region.
Ojo said, “It will have a net positive impact. That is a massive infrastructure. The first thing that is going to happen is that it is going to create an ecosystem of demand. Thousands of workers are going to be working there directly, and hundreds of thousands of workers are going to be working there indirectly. “Someone is going to provide food, uniforms, transportation, security, and cleaning services. Someone is going to provide housing for the people who are going to be working there. There is going to be a multiplier effect. It is going to be a huge driver.
“That is why you have economies all over the world clamoring for companies to come and set up in their countries. I am surprised that many states in the country did not clamor for Dangote to set up in their states and give him free land and incentives because, one way or the other, it would crystalize. If he is in a Free Zone and it does not pay taxes, the people working there will pay, and the person selling water will have to pay. That is the first thing, economies of scale.”
Similarly, Philips Ayotunde, the Treasurer of the Nigerian Institute of Building, expressed his belief in the significant impact of the Dangote refinery. He emphasized that the construction of the refinery has not only brought about positive changes in the immediate vicinity but has also opened up the entire Epe-Ajah axis for development and growth.
He said, “We need more of such development that will be a catalyst to the real estate development in Nigeria.
“Everyone in that area is about to reach a level of prosperity because economic activities will be driven to that area. Land value in that area is going to appreciate.”
Furthermore, he emphasized that the structural dynamics of Lagos’ economic nodes would experience a significant expansion. Previously centered around Victoria Island and Ikeja, the inclusion of the Epe-Ibeju area, facilitated by the presence of the Dangote refinery, would diversify and extend the reach of these economic hubs.
“There is going to be a third node that is going to make sure the city is decentralized. The Epe-Ibeju node is about to really come alive. I believe the effect of the project is a net positive.”
“However, net impact, this country needs facilities like that, even more of things like that,” he continued.
Meanwhile, Toye Eniola, the Executive Secretary of the Association of Housing Corporations of Nigeria, pointed out that the impact of the Dangote refinery would be significant if it successfully reduced or eliminated the need for importing refined oil. This reduction in imports would not only conserve foreign exchange but also contribute to the stabilization of Nigeria’s forex market. The positive effects would be felt in various sectors, including the housing industry.
He added, “If this is achieved, it will drive down inflation and interest rates which will impact positively on the real estate sector. Naturally, this is what is expected to happen. However, in Nigeria, anything can happen, and if the Nigeria factor sets in, we may continue to experience what is currently happening in the sector.”