Tackling current challenges will unlock growth in real estate, hospitality sectors – Akinlade

By Peter Egwuatu

Unlocking growth in Nigeria’s real estate and hospitality sectors begins with tackling today’s challenges, says Haldane McCall Plc’s Group Managing Director, GMD, Dr. Edward Akinlade.

He stated, in an interview with Vanguard, that Nigeria’s real estate sector has significant growth potential, yet it continues to grapple with challenges including rising construction costs, inflationary pressures, restricted access to financing, and inadequate infrastructure.

In this interview, Akinlade shares insights on how the company is adapting to the current business climate, the major issues affecting the industry, emerging opportunities within the market, and the policy interventions the government can adopt to boost housing development and stimulate sustainable sector growth.

While commenting on the Haldane McCall’s financial performance of 2025, he said :
“We delivered a solid performance despite operating in a difficult economic environment. Revenue grew to N2.28 billion, while profit after tax stood at N642.46 million. More importantly, we maintained a strong balance sheet with total assets of N21.83 billion and shareholders’ funds of N17.15 billion. These figures demonstrate the resilience of our business model and our ability to create value despite inflationary and exchange-rate challenges.”

On the major factors behind the company’s performance, he said: “Our performance was driven by disciplined execution of our real estate development strategy, efficient project management and prudent cost control. We also benefited from sustained demand for quality residential properties and hospitality assets. Our focus on off-plan sales continues to provide liquidity while reducing market exposure.

During the listing of Haldane McCall on the Nigerian Exchange two years ago, you announced several business plans. Have you been able to meet those objectives?
Yes, we have made substantial progress. At the time of listing, we outlined plans to strengthen our asset base, improve corporate governance, enhance operational efficiency and position the company for sustainable growth. Since then, we have expanded our property portfolio, maintained profitability, improved shareholders’ equity and achieved ISO 9001:2015 certification. While some initiatives, such as our planned bond issuance, have been delayed due to regulatory and certification requirements, the underlying strategic objectives remain firmly on track.”

Discussing the biggest challenges currently facing the real estate and hospitality sectors in Nigeria, Akinlade said: “The most significant challenges include high inflation, rising construction and operating costs, exchange-rate volatility, inadequate infrastructure, and the high cost of financing. In the hospitality sector, energy costs remain particularly burdensome, while real estate developers also face delays in land acquisition, title documentation, and regulatory approvals. These factors increase project costs and affect affordability for consumers. Despite these challenges, demand for quality housing and hospitality services remains strong, creating opportunities for well-managed operators.”

Commenting on how the government can support the growth of the real estate and hospitality industries, he said : “Government has a critical role to play in creating an enabling environment for investment. This includes improving infrastructure such as roads, power, water supply, and transportation networks. There is also a need to streamline land administration processes, reduce approval timelines, and strengthen property rights. In addition, policies that encourage access to long-term financing and affordable mortgages will stimulate housing demand and accelerate development across the sector. For hospitality, improved security, tourism promotion, and infrastructure development will further support growth.”

Explaining the update on its Porto Novo development projects, he said : “We have completed our Porto Novo projects and fully rented. Our focus is capital growth since the government controls monthly rents.

The Porto Novo projects remain an important part of our development pipeline. We have continued to make progress in line with our phased development strategy. Infrastructure and planning activities have advanced significantly, and we remain focused on ensuring that the projects deliver both commercial viability and long-term value. We are approaching development with careful attention to market realities, infrastructure requirements and customer demand. We remain optimistic about the prospects of the Porto Novo projects and their contribution to future earnings.

Commenting on steps taken to increase shareholder value, he said: “ The Group has grown it shareholders membership from 464 in 2024 to 1,465 by 2026. Our strategy is built around sustainable value creation. We continue to acquire and develop quality assets, optimise returns from existing properties and maintain a disciplined capital allocation framework. Historically, approximately 30 percent of shareholder returns have come from dividends, while the remaining 70 percent has been reinvested into growth opportunities. This balanced approach has enabled us to grow shareholders’ equity consistently while still rewarding investors.”

Discussing how important the real estate sector is to the Company’s growth plans, Akinlade stated: “ Real estate remains our primary growth engine. Nigeria’s housing deficit continues to create significant opportunities for developers with strong execution capabilities. We are focused on strategic locations where demand remains robust. By developing quality residential and mixed-use projects, we are creating assets that appreciate in value while generating strong cash flows.”

While responding to the role the hospitality business plays in the Company’s long-term strategy, he said : “ Hospitality is a complementary pillar of our growth strategy. As business travel, tourism and commercial activities expand, demand for quality hospitality assets is expected to increase. Our approach is to develop and operate hospitality facilities that generate recurring income while enhancing the overall value of our property portfolio.”

On the Company’s recently achieved ISO 9001:2015 certification, he noted : “
The certification is a major milestone because it validates our commitment to quality management, operational excellence and continuous improvement. It strengthens investor confidence, improves our internal processes and positions us favourably for future growth initiatives, including access to institutional funding and capital market opportunities.”

Responding to how access to financing remains a major issue, he said : “ Sustainable growth in both sectors requires access to affordable, long-term capital. Developers and hospitality operators need financing structures that align with the long-term nature of their investments. The government can support this by strengthening mortgage institutions, encouraging pension fund participation in housing finance, and deepening the debt capital market. Lower interest rates and innovative financing solutions will enable more projects to be delivered while making housing and hospitality services more accessible to consumers.

Investors are interested in your debt capital market plans.”
Commenting on the current position of the Company in terms of long term strategy,
Akinlade said : “ Our long-term strategy includes accessing the debt capital market to support expansion. Although the proposed bond issuance was deferred, the decision was strategic rather than operational. We wanted to ensure all regulatory, certification and credit-rating requirements were fully addressed. We are actively working on these prerequisites and will approach the market when conditions are optimal.”

On the major challenges facing real estate operators in Nigeria, and the way forward, Haldane McCall’s boss said : “The real estate sector remains one of the most promising sectors of the Nigerian economy, but operators face several challenges. These include high inflation, rising construction costs, exchange-rate volatility, inadequate infrastructure, high borrowing costs, difficulties in accessing long-term financing and delays in obtaining land titles and development approvals.

Another challenge is the affordability gap. While housing demand remains high, many prospective homeowners struggle with limited access to mortgage financing.
The way forward requires stronger collaboration between the public and private sectors. We need policies that encourage affordable housing development, improve access to long-term financing, streamline land administration processes and expand infrastructure in emerging urban areas. Lower financing costs and improved mortgage penetration will also help unlock greater demand and support industry growth.”
Giving his advice to the government he said : “ Addressing Nigeria’s housing deficit requires a comprehensive and sustained approach.

In the short term, the government should focus on improving access to affordable mortgage financing, reducing approval bottlenecks and providing targeted incentives for developers involved in affordable housing projects.

In the medium term, there should be significant investment in infrastructure such as roads, power and water supply in new growth corridors. This will reduce development costs and encourage private-sector participation in housing delivery.

In the long term, Nigeria needs a comprehensive national housing framework that integrates urban planning, housing finance, land reforms and population growth projections. The Land Use Act and land administration processes should be reviewed to improve efficiency and facilitate faster property transactions. Sustainable housing development can only be achieved through a combination of policy consistency, infrastructure development and strong public-private partnerships.”

Commenting on how the Company is managing inflation and exchange-rate volatility, he noted : “These challenges affect virtually every business in Nigeria. Our response has been to improve operational efficiency, strengthen procurement processes, optimise project timelines and focus on assets that preserve value. We also maintain a disciplined approach to cash flow management and capital deployment. These measures have helped us remain profitable despite the macroeconomic pressures.”
While stating the opportunities in the next three to five years for the industry, he said : “
We see significant opportunities in residential housing, hospitality development and strategic land banking. Urbanisation, population growth and increasing demand for quality accommodation continue to create strong market fundamentals. We are positioning the company to capture these opportunities while maintaining prudent risk management.

We are also exploring opportunities to leverage technology, strategic partnerships and innovative financing structures to accelerate growth and improve customer experience.”

Commentimg on the policies that would help address Nigeria’s housing deficit while supporting industry growth, Akinlade said: “Addressing the housing deficit requires a coordinated national strategy. The government should provide incentives for affordable housing development, expand mortgage accessibility, and encourage public-private partnerships. Land reforms that simplify title registration and property transactions are
also essential. At the same time, infrastructure investment in emerging urban corridors will reduce development costs and encourage private-sector participation. These measures will help increase housing supply while making homeownership more attainable for millions of Nigerians.”

Commenting on the message to its shareholders and potential investors, he said : “ My message is one of confidence and commitment. We have built a strong foundation, demonstrated resilience during challenging economic conditions and maintained a clear growth strategy. Our asset base is expanding, our governance standards continue to improve and our development pipeline remains strong.

We are committed to creating sustainable long-term value through disciplined execution, responsible capital allocation and continuous innovation. We believe the future of Haldane McCall is bright, and we remain focused on delivering attractive returns to our shareholders while positioning the company for its next phase of growth.”

Looking forward, Akinlade said
We remain optimistic. Nigeria’s growing population, rapid urbanisation, expanding middle class, and increasing demand for quality accommodation provide strong long-term fundamentals. The hospitality sector is also expected to benefit from increased business travel, tourism, and commercial activities. With the right policy support, improved infrastructure, and greater access to financing, both sectors can become major drivers of economic growth, job creation, and wealth generation. The opportunities are substantial, and stakeholders must work together to unlock their full potential.”

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