Despite Nigeria emerging as the largest economy in Africa post rebasing,the contribution of real estate, mortgage and construction industry to the country’s gross domestic product (GDP) lags behind those of its peers, BusinessDay investigations show.
South Africa, the United Arab Emirates (Dubai) and Austria, which will be in the same GDP size range with Nigeria (post rebasing), are far ahead in both GDP growth and contribution to their economies, it was further learnt. While real estate contributes 2.20 percent in Nigeria, the contribution in the UAE is 9.10 percent; Austria, 6.90 percent, and South Africa, 2.50 percent.
Analysts say poor land policy and administration, a fledgling mortgage system, among others, are responsible for Nigeria’s distant position behind its peers.
Expectations from Nigeria’s GDP rebasing, expected by the end of this month as announced by the National Bureau of Statistics (NBS), are high, with experts saying it may increase the size of the nation’s economy by up to 60 percent, which will see the country’s estimated economic size increase from $262 billion to about $405 billion.
Kingsley Moghalu, deputy governor, financial systems stability, Central Bank of Nigeria (CBN), believes that when the GDP is rebased, it would become so huge, adding, however, that “it doesn’t mean […]