Firm Urges Nigerians to Invest in Canadian Real Estate Sector

Kasim Sumaina in Abuja 

A Canadian-based real estate firm, Golden Gate Intercontinental, is urging Nigerians to consider investing in Canada’s real estate sector, citing attractive opportunities for high returns.

It urged Nigerians to diversify their portfolios and explore opportunities in more stable markets in order to protect their wealth and achieve long-term financial success.

Speaking at the firm’s investment summit in Abuja, Chief Executive Officer and Founder, Andrew Enofe, highlighted the challenges facing investors in the country including double-digit inflation and a weak naira, which he said are eroding the real value of returns on investments.

He explained that many high-yield opportunities in Nigeria, including real estate, fail to deliver positive real gains when inflation and currency depreciation are taken into account. 

He contrasted the situation with Canada, where inflation is around 2%, and investments are considered to carry much lower solvency and political risk compared to Nigeria.

Enofe advised Nigerian investors to diversify their funds, warning that relying solely on domestic investments could lead to significant losses. 

According to him, “Some people say, ‘Oh, I get 40% return when I invest my money in Nigeria. Great, but let’s look at the reality. With inflation at around 18% in Nigeria and the naira losing value against the dollar, the real return on Nigerian investments is often negative.”

He maintained that despite headline rates that may appear attractive to investors, many high-yield opportunities, including real estate, fail to deliver positive real gains once inflation and currency depreciation are factored in.

The Golden Gate boss emphasized that Nigeria’s investment climate is full of opportunities for long-term players who understand the market. 

However, he also cautioned that challenges in the Nigerian real estate market, such as infrastructure deficits and regulatory issues, must be carefully considered.

“Challenges are opportunities, there are a lot of challenges in the Nigerian market. We don’t see it as challenges; we see it as opportunity, room to grow. But, Nigerian investors need to be cautious and strategic in their investment decisions, considering both the risks and opportunities presented by the country’s challenging economic environment.”

Enofe added that while nominal returns may appear strong, the combined effect of price increases and currency losses can result in actual losses, saying: “What looks like a profit could actually be a loss in real terms.”

The firm, however believes that with careful planning and diversification, investors can achieve positive real gains and secure their financial future.