The Nigerian Region was inaugurated in 2015 to cater for the FM industry in Nigeria. This report was prepared in conjunction with estate intel Limited, using data that we collected through surveys and interviews from over 200 facility managers and space occupiers.
The growth of the facility management industry within a region typically points back to the emergence of institutionally owned assets that require careful management. Aside the residential assets developed by HNIs, the very first of such assets were owned by Educational Institutions, Hospitals, Corporates within the Banking, FMCG and Energy sectors. These properties were managed by internal teams or collectives of building technicians and engineers who grew into facility management roles. Significant progress was noted in the period following year 2000, driven by the completion of prime assets within the office, residential and retail spaces and the stringent asset management requirements of the institutional investors who developed them. This was accompanied by the entrance of world class players as well as the establishment of key indigenous firms.
The consensus on pricing trends is the expectation of an increase. Though the aggressive cost push inflation noted during 2016 and 2017 has since stabilised, most market participants still expect pricing for items to trend upwards.
It must be noted that power and energy cost is deliberately excluded from the survey because it is a well-established fact that it generally accounts for up to 40 percent of Facilities Management costs.
Other operational costs analysed in this report do not also take into consideration executive man-hour costs and cost of breakdown arising from operational inefficiencies. In the real sense, these costs could well account for up to 25% of total Facilities Management cost.