Ibadan will shortly experience the opening of yet another mega shopping mall. PAUL OMOROGBE examines the prospects and potential challenges that the development poses to the people of the city.
NOT long ago, Ibadan witnessed something it had not seen in a long while. It was a rebirth of some sort; the rebirth of a phenomenon last seen in the eighties. It was the grand opening of the two malls, the Cocoa and Heritage Malls located in the premises of the famous 24-storey Cocoa House located in Dugbe, the central business district of Ibadan. Since the event took place, thousands of residents in the city have thronged the malls, and they have become a Mecca of sorts. Over the last one year, it is hard to find an Ibadan resident who has not gone shopping at the malls, and the idea of having a one-stop shopping centre for all one’s shopping needs has gradually settled into the mentality of several residents. Former Group Managing Director/Chief Executive Officer, Odu’a Investment Company Limited, Mr Adebayo Jimoh, disclosed that the demands of high net-worth individuals in the South West who travelled to Lagos at weekends for shopping culminated in the idea of constructing two shopping malls in Ibadan, which he spearheaded. The then chairman, Odu’a Investment Company Limited, Chief Sharafadeen Alli, said putting up the malls in Ibadan was the vision of the company at improving the quality of life in Ibadan, the neighbouring states and Nigeria at large. He added that the two malls had redefined the commercial activities of Ibadan, “particularly the central business district of Dugbe area in Ibadan that has come alive with economic activities around the vicinity.” He noted that “the property re-development project has given people a feel of shopping under a very conducive atmosphere.”
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Looking at the current situation, some residents have made a shift in their shopping patterns. For Mrs Remi Onaeko, an entrepreneur and mother of three, “I no longer buy meat in the open market as I used to before Shoprite came. I can’t stand someone coughing and sneezing over the food I want to eat. Its far more convenient for me to go to a place that’s neat and orderly, and the produce are hygienically packaged.” Indeed, the South African shopping chain has been able to attract attention across the city and it recently announced that it would open its largest store in Nigeria in Ibadan, this month. A staff of Shoprite at the Cocoa Mall, Ibadan, confirmed that the company indeed had plans to open more branches in the city. The staff, who pleaded anonymity said if there was going to be any effect on the existing branch, it would be minimal. When told that some other shops in the mall had complained of low patronage, he said, “We have not had a better yesterday. Perhaps those shops have not really looked at what the customer needs. We have listened to our customers’ complaints and we have adjusted accordingly, even if that meant deviating slightly from our initial mode of operation. We do what is necessary for the customer to walk out of our doors happier. If they do, they will keep coming back.”
Reacting to the ongoing developments in the Ibadan property landscape, a renowned estate surveyor in the city, Elder Biodun Odeleye of Biodun Odeleye and Co., had this to say, “I think this is an indication of the revamping that is taking place in the economy. And I am sure that it is getting more obvious that the economies of scale due to the proximity of Ibadan to Lagos are coming to play. By the time the (Lagos-Ibadan) expressway is completed it will shorten travel time and within an hour one should be able to cover the distance. There is going to be a spillover effect of the population explosion and growth from Lagos. I am sure some people would, by then, not mind coming from outside to do their shopping in Ibadan. Already people don’t mind coming from places like Oyo, Ogbomosho, Oshogbo, Ekiti to Ibadan to shop.
He noted that the hospitality business was also enjoying a boost. “Where infrastructural development is taking place, it results in a boost in economic trade. I foresee that apart from shopping malls, there will be holiday resorts springing up also, so that people can take advantage of the peaceful and serene environment that Ibadan offers. Elder Odeleye added that “the real estate industry in Nigeria in general and Ibadan in particular is enjoying a boost. House rents are going up and people are taking up the houses. The effective demand is there if not people will not be willing to pay.” What will be the lot of the existing shops and businesses in the vicinity when behemoth-sized malls are nearby and seem to be drawing all the crowds in the city? The Biodun Odeleye and Co. founder said, “Stores like Shoprite are for the elite. It is not an all-comers affair. Because of this, the lower class will still make use of the shops around. Like they say, ‘water will always find its level’ and for this reason, the local shops will still have their clientele.
Speaking on the sustainability of the occupancy of the units in the malls, Elder Odeleye, who has invested decades in the property business in Ibadan said that, “I know there are places in Ibadan where a shop goes for N120,000 rent and people will not take it, and there are places where a shop cost N300,000 and people are taking it.” He explained that there were different locations and different price ranges for different classes of people, buttressing his point that water indeed found its level in the industry. Findings by Nigerian Tribune showed that rent for shops at the new Palms Shopping Mall would cost about N9 million for 61-square metre floor space, and a 120-square metre floor space shop would go for about N15 million per annum. The estate surveyor did not leave without mentioning the role that government had played in the ongoing happenings in the retail market and property landscape. According to him, “the incumbent government is helping the situation. With the expansion of roads across the city, places are opening up, mobility and accessibility is increasing and properties are gaining value.”
The Persianas Group, led by its chairman, Mr Tayo Amusan, presents an unusual optimistic perspective of Nigeria as a country, which possibly gives insight into the company’s motivation for the Ibadan shopping mall investment. According to a statement on the company’s website, “A large and growing population, well-educated middle class, increasing rate of urbanisation and good economic prospects for the country as a whole combine to create a very positive outlook for Nigeria’s retail, residential and commercial development sectors. Nigeria’s growing middle class accounts for approximately 23 per cent of the population and is estimated to have a combined buying power in excess of US$28 billion.”
Coming to the specifics of real estate and retail market, the Group’s position is that, “The Nigerian real estate sector is expected to produce high growth in the medium term. “A comparatively healthy economy, sustained growth in sectors such as commerce, construction and telecoms, and a recovery in the financial services sector all lead to growing demand for real estate products. However, the market is under-supplied and there is a dearth of quality stock. “Retail, in particular, remains under-supplied. There is high demand from internationally branded food, home products and luxury goods retailers looking to grow their businesses in Nigeria. Branded fashion retailers are also entering the marketplace following the lifting of the textile ban.” The real estate arm of the group, Persianas Properties Limited, is responsible for the Palms Shopping Mall located at Lekki in Lagos, Enugu and Ilorin. The Ibadan centre is where Shoprite plans to open its largest store in Nigeria.
Chief Tokunbo Omisore, the CEO of Topservices Limited, developers of Cocoa and Heritage malls, however, took a pragmatic stance on how new malls would fare. He said, “There are people who will throng these places just because they want to be seen there because it’s the latest thing in Ibadan. They may be expensive and classy and there are people that just want to associate with that. However, the more economically conscious, both buyers and sellers, will be more concerned about the bottom line.
“Ibadan, like most big cities, can take at least four to five shopping malls, preferably neighborhood convenience centres /malls to support growth.” He added that, “As an individual l believe our mall developments process should be one to grow the local retail industry that is presently epileptic. “My advice as I will continue to say is to provide affordable mall developments for sustainability. Malls are to provide conveniences within accessible distances. Let’s all find a solution that will develop our local retailers and assist in multiplying in more neighborhood convenience centres/malls thereby creating more employment.” It is also expected that the job market in the city will benefit from having more malls on ground. Oyo State Governor Abiola Ajimobi was quoted as saying that the Cocoa and Heritage malls in Ibadan, built by the Odu’a Investment Company Limited, would create over 2,000 jobs. The new Shoprite Mall is also expected to provide, on its opening, 200 direct jobs and 100 indirect jobs.
The proposed opening of the newest Shoprite mall on Ring Road, however, has made some residents in the capital city of Oyo State a bit apprehensive. Some residents around Ring Road, Oluyole Estate and environs who spoke to the Nigerian Tribune claimed that apart from bringing more development to the already thriving area, they were worried by the location of the huge complex and that it was only a matter of time before a gridlock traffic situation emerges at the Mobil-Federal High Court Complex road.
They complained that the main entrance of the complex, which, at the moment, faces the round-about between Mobil and Federal High Court road, would cause a dangerous traffic situation if more exits were not created out of the complex to other routes. According to Tope Odanye, who lives in Oluyole Estate, the location of the main gate would cause major impediment to the free flow of traffic because there were no other exit roads from and to the complex at the moment. “The Ring Road expressway where the new Shoprite is located may cause traffic problems if new exits from the complex are not created. This is because, already, there is heavy traffic on that road and many times, there are obstructions that cause long hold-ups especially when a car or lorry breaks down on the road. For a road that is that busy, the main exit from the new mall which faces the round-about will cause long queues on that road. The only other by-pass from Mobil junction which passes the Federal High Court entrance is bad and needs attention. Unless the road is quickly repaired, we are in for a tedious traffic situation along that route,” he said. When the Nigerian Tribune visited the said road, it was observed that indeed, the major entrance and exit faced the express road and a round-about. The by-pass route also needs repair if smooth and free flow of traffic is to be achieved after the new mall opens.
Another person who spoke to Nigerian Tribune, Claire Nwosu, said that the security arrangement around the area where the new mall is located should be beefed up. This, according to her was required because of the fears about the crowd that would throng the mall when it is opened. She said that the authorities concerned should allocate more security personnel around the mall to discourage mischievous elements from taking advantage of the crowd to rob and infiltrate the surrounding areas.
Another respondent who craved anonymity encouraged the Oyo State government and the corporate organisations around Mobil junction to, as a matter of urgency, do what is necessary to repair the road that serves as a bye-pass to the Ring Road expressway so as to decongest the riotous traffic situation to be occasioned by the opening of the new mall.
