Shrinking FDI inflow to Nigeria linked to poor infrastructure maintenance
The deplorable state of Nigeria’s infrastructure due to poor maintenance has been identified as a major reason for the shrinking inflow of foreign direct investment (FDI) into the country’s economy.
Femi Akintunde, the group managing director of Alpha Mead Group, who revealed this at a media interactive session in Lagos, described the country’s attitude to maintaining its infrastructure stock as appalling and disheartening, considering the huge investment made in the 1970’s to build those assets.
“The poor state of infrastructure across key sectors of the economy such as aviation, healthcare, logistics, transportation, and education naturally heightens the risk factor for investors willing to open up new business opportunities in Nigeria and this has direct impact on the economy”, he noted.
He explained that the absence of the requisite infrastructure has continued to hinder the smooth flow of business and commercial activities, thereby dampening investors’ confidence in the economy.
Nigeria’s infrastructure gap has significantly widened in recent time owing to the poor management of existing assets. But Akintunde assures that facilities management companies such as Alpha Mead can readily support the government to address the gap through strategic solutions targeted at maximising the life cycle of these assets at optimal costs.
He noted that the poor state of most public assets such as roads often leaves business owners struggling for alternative means of transporting goods and services within the country. “The negative effect of this trend ranges from stifling business environment to high operational cost, decreasing employment opportunities and reduced earning capacity for the populace”, he emphasized.
Continuing, he noted, “the inability of the government to maintain some of the country’s most priced assets such as the National Theatre and Stadium led to their current dilapidated state – losing their relevance in contributing to the economy and social well-being the populace.
“However, as facilities managers, we have been trained to connect people with the space where they live, work and play by ensuring their real estate assets remain functional, viable and provide them with the necessary support for a pleasurable living experience and smooth flow of business and commercial activities”.
Alpha Mead Facilities currently manages a wide range of real estate assets across every segment of the property market. One of which is the biggest car park in Nigeria, where the company delivers value by effecting global best practices, processes and procedures to ensure optimal utilization and maintenance of the facility.
Akintunde affirmed the high cost of maintaining infrastructure, but stressed that “the value a well maintained asset offers to its users when consistently maintained clearly outweighs the cost of resuscitating such infrastructure when it is completely worn out”.
He pointed out that one of the reasons public assets are not effectively managed was because, often times, the decision makers are not presented with a coherent data on the cost savings and value addition a facilities management company can deliver on such asset.
To him, the government, business owners and leaders must begin to evaluate facilities management from a value addition perspective rather than an expenditure. “Organizations, business entities and government functionaries must begin to appreciate the huge impact of facilities management on their real estate assets and business support services and not see them as cost centres”, he said.