Broll Property: Consumers in Nigeria & Ghana see spike in food expenditure

A recent survey conducted by Broll Property has revealed a significant spike in food expenditure for consumers in Nigeria and Ghana, with 87% of consumers in Nigeria and 92% in Ghana reporting an increase. The impact of the COVID-19 pandemic on economies has been highlighted as the main driving force behind this phenomenon. Amaka Ajaegbu, Research Manager at Broll Property, shed light on the findings of the survey in a recent interview with CNBC Africa. The survey aimed to assess the impact of the pandemic on tenant preferences, particularly in the office sectors of Ghana and Nigeria. The report unveiled key insights into how companies and consumers are adapting to the changing landscape. In Nigeria, 36% of management and executives indicated a reduction in office space requirements, while the number was even higher in Ghana, with over 50% of respondents reporting a decrease in space needs. Looking ahead, expectations for future office requirements were also examined. In Ghana, there was less certainty about the future of physical full-time work, with many respondents expressing plans to downsize office space in the coming months. The survey also delved into employees' willingness to return to work, revealing a mixed sentiment among respondents. In Nigeria, the sample was evenly split between those willing to return to work and those preferring to work from home, while in Ghana, 50% of respondents expressed readiness to return to the office. With uncertainty still lingering due to the ongoing pandemic, the findings have significant implications for the real estate sector, particularly in the office segment. The shift towards remote work and the potential for a hybrid model in the future could lead to unused office spaces and the need for creative solutions from landlords. Many landlords are grappling with negative cash flows as a result of reduced demand and the challenge of rent payments. To address this, the sector is exploring flexible leasing options and service office models to cater to evolving needs. Looking ahead, the future workspace scenario remains uncertain, with possibilities of a blend of co-working spaces and flexible leases. The co-working market in Nigeria is currently thriving, offering standardized operations and pricing. Landlords and service providers are engaging in dialogue to find mutually beneficial solutions to navigate the changing landscape. As the demand for flexible workspace grows, innovation and collaboration between stakeholders will be essential in reshaping the office sector in Ghana and Nigeria.