In spite of the huge opportunities in the parking space business in Lagos— Nigeria’s commercial nerve centre—investors still find that segment of economic activities unattractive and unprofitable for investment.
As a commercial and large industrial city, Lagos does not have standard and well developed parking lots where car owners could leave their cars and collect same for a fee at the end of the day’s business.
The situation is such that even Lagos Island which is the city’s central business district (CBD) is lacking in a standard parking space and, according to authorities of the state, plans by the government to develop malls, leisure parks and other recreational facilities as part of the Lagos Island redevelopment master plan presents immense opportunities for private sector investment in that part of the city.
An investment analyst with a private equity investment firm however, explained to BusinessDay that investment in parking space in Lagos is not viable for a number of reasons which he listed as land scarcity, exorbitant land charges and low investment yield from such a venture.
According to the analyst, who did not want to be named, explained that land is scarce because any investor taking up that venture must look for central locations at the city centre, noting that such locations are not only hard to find but also very expensive.
“When eventually you find one and calculate all the land charges you have to pay to the state government, the investment won’t make sense any longer”, he said, adding, “return on investment is another story altogether because it is not worth the hassle”.
Francisco Bolaji Abosede, former Lagos Commissioner for Physical Planning and Urban Development, had at a forum in Lagos disclosed that, as part of its model city planning scheme aimed to realise the mega city dream, the state government has a grand design for the development of the Marina corridor into a city of its own, adding that the aim is to develop the corridor into an attractive city with shopping malls, parking lots and leisure centres.
The Marina corridor which encompasses the long and expansive stretch of land from the UTC Trading Stores to the Governor’s Lodge on Lagos Island has been a source of concern to city development watchers.
The corridor which lies centrally between Marina Street and the Eko Bridge, is a prime location on the Island and has, all these years, served mainly as parking lots for bank workers and sundry businesses within the Central Business District (CBD).
Abosede affirmed that land is scarce in the state, hence government’s efforts at maximizing land use for the benefit of the people. “With a total land area of 3,577 square kilometers, a growing population of over 18 million people, a population density of 4,193 persons per kilometer, a growth rate of 6-8 percent and annual population growth of 600,000, Lagos has 20 communities and 37 local council development authorities and remains a destination for all ethnic nationalities”, he said.
Chuka Uroko
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