Migrants from North push up demand for shops at ITF complex

Businessmen and women fleeing from continuing terrorist activities in the Northern part of Nigeria to Lagos and other safer places outside the region have pushed up both rental and capital values of property in those areas.

A recent survey conducted by BusinessDay reveals that values have gone up by more than 100 percent in organised markets like International Trade Fair Complex in Lagos, where shop owners are demanding N45,000 per month, up from N20,000 per month 12 months ago.

The survey reveals further that each shop in the over 320 shops that make up a cluster in the market, which cost an average of N280,000 to build, now sells for as much as N10 million for strategically located clusters such as Plateau Cluster, while others in relatively less densely populated Enugu, Abia and Imo clusters sell for as much as N8 million.

The Northern part of Nigeria has, recently, become a war zone following the activities of terrorists suspected to be members of Boko Haram. Apart from the destruction of lives and property, these terrorist activities have also paralysed business activities in the region.

Most individuals and institutions that have their businesses up there are relocating in droves, and this is reason for the surge in demand for shop spaces and also for residential property in Lagos, where there is relative peace and security.

Sydney Okpala, general secretary, Balogun Business Association, who spoke with our correspondent, however attributed the hike in shop prices to some other reasons.

According to him, the availability of major infrastructure such as parking lots for shop owners and their customers, well constructed and paved roads network and efficient security system are some of the facilities available in the market.

He also added the relocation by some members of the business association from Lagos Island, as another major factor for the recent increase in the shop prices.

Investigation also shows that in the last five years, shop rent at the very busy ends of the market attract N45,000 monthly, while other clusters such as Akwa-Ibom go for N20,000 for the same period of time. However, other less populated clusters go for as low as N5,000 monthly.

Okpala also cited the effective management of physical structures in the complex by the association’s officials as another reason, noting that the safety of goods was always guaranteed.

Okwudili Anunobi, a shop owner in the complex, also noted that the current demolition along the Badagry Expressway by the Lagos State government had contributed to the hike in shop rent and sales prices.

To him, the boom in sales at the complex has also played a key role in enticing more people to the market.

ODINAKA MBONU