Building from Afar: A Guide for Nigerians in Diaspora

Nigerians are scattered worldwide, contributing positively and supporting their families. Many are open to returning to Nigeria to make an impact, while others prefer to invest in the country. Real estate is a popular choice for investment, whether it's for building a future home for themselves or their families, or as a financial investment.

Undoubtedly, Nigerians living abroad are the primary investors in Nigeria's real estate sector. According to a survey reported by Businessday newspaper,

70% of real estate investment in Nigeria Comes from Nigerians in the Diaspora while the remaining 30% comes from Nigerians at home.

The arrangement is beneficial for everyone involved – the economy, the contractor, and the sponsor. However, there have been numerous instances of scams that have significantly impeded progress in home construction. Some individuals have been deceived by the family members they entrusted to oversee the construction, while many contractors have also betrayed them. These deceitful actions pose a serious threat to the advantages associated with getting real estate investment in Nigeria. I had a conversation with a man in the UK who planned to start a farm in Nigeria after spending decades in the UK. Someone recommended me to him. Despite the recommendation, he expressed concerns about trusting Nigerians with his investment, likely based on past experiences.

That's why we have developed several ways for Nigerians in the Diaspora to secure their construction investments in Nigeria without the fear of scams, compromised quality, or lack of optimum value.

We have to put this document together and here is the reason…

Construction projects are capital-intensive and may require funding for 8 to 24 months. How can you ensure that you are receiving value for your investment?

5 Effective Strategies for Diaspora Investors to Secure Your Real Estate Investment

1. Solar-Optimized Smart CCTV Installation On-site: This is the first step towards optimum security. The fear factor of people around the property knowing that eyes are watching is a good step in the right direction.

Theft on a construction site can not only come from the people you trusted to do the right thing but also from almost anyone who enters your site, even down to the gateman. But the CCTV is a good way to reduce it.

It also gives you a real-time view of what exactly you are spending your money on. I strongly recommend that you install a self-sustaining CCTV on your site today.

2. ‘Clerk of Work’ Service: Consider adding an extra layer of supervision to complement CCTV installation by having a construction-savvy representative present on-site throughout the building process.

This individual's primary objective is to ensure that both quality and cost-effectiveness are maintained. This serves as a valuable supplement to CCTV, as cameras are unable to assess the quality and quantity of work.

The necessity of this additional oversight depends on the nature of the project; while some may only require CCTV, others may benefit from a more comprehensive approach. If you are confused about the one to adopt, I will be glad to put you through any time you reach out.

3. Project Manager: When you hire a project manager or a project management company, you are essentially entrusting the entire project to this person or team. This is particularly important for large-scale projects.

Project management doesn't require the manager to be a construction professional; rather, their expertise lies in managing the project, professionals, costs, and resources. The simpler word is that they make sure everything going on are well planned, everyone is carried along, and no one is spending more than what was budgeted.

If you choose this option, it's essential to involve them from the early stages of the project, right from the initial idea. 

4. Building Consultant: The basic concept of a building consultant involves having two sets of the same professionals working on a project. One set works on-site while the other oversees and approves their work. For instance, if there are two engineers on a site, one actively works while the other regularly inspects the work to ensure it is being done.

The advantage of this system is that you can be assured that someone is continually monitoring your project, and that person is well-equipped to handle any issues. I recall a story from one of my lecturers about when he served as a consultant for a project where his friend was the contractor. At one point, he had to inform the client that the contractor shouldn't continue because he was concerned his friend (the contractor) wasn't doing the right thing. Some might view this as betrayal, but he did it because doing otherwise would risk losing his license just to avoid betraying an unprofessional friend. However, the situation ended favourably.

The point is that consultants have your best interests and their licenses at stake. Therefore, they are compelled to do at least the bare minimum.

In this era of rampant building collapses in Nigeria, this approach seems particularly valid, in my opinion. However, using this approach hugely depends on the type and size of the project.

5. Due diligence pack: Just because I know that not all diaspora clients are interested in building or buying a property, some may only want to buy empty lands. For this reason, I have added this option. Buying a piece of land involves a lot of research and documentation. I have written about this several years ago, and the information is still valid today. You can find it in my newsletter or contact me directly using the contact option.

It is important for anyone wishing to buy a landed property to engage a property lawyer or a trusted and experienced property agent to conduct due diligence on their behalf. Additionally, you will need an attorney to make decisions and sign documents on your behalf, as you may not be able to be there physically.

Finally

I believe that everyone who has worked outside of their comfort zone, away from their family, friends, and country, deserves the best return on their investment in their home country. Just like a military person, such individuals deserve the respect of their fellow citizens.

When you visit Nigeria, or when you receive reports about your investments in Nigeria, you should feel a sense of fulfilment that says, "Finally, it was all worth it at the end of the day."

If this is what you desire, I strongly recommend that you explore any of the options above and show your appreciation by sharing this with friends who might benefit from it.

Engage MNO today!

By the way, we provide all of these services. So if you want to learn more about our services or need assistance, we are happy to help. At MNO, we deliver value from the moment you contact us. We have had clients who have hired us to create drawings and provide building services for them after just engaging with us on Instagram and WhatsApp, without meeting us in person. We prioritize building trust by offering significant value upfront before expecting anything in return.

Mail: [email protected]

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