As the Nigerian economy continues to crawl deep into her biggest recession in recent decades, small businesses and large corporations are looking for ways to trim expenses and foster future sustainability. Because of this, business owners are slowly but surely reinvesting in their businesses, while maintaining the “saving for a rainy day” mentality.
In a bid to avert this financial turbulence while maximizing possible opportunities, many businesses in Lagos, Nigeria, are now uprooting from their existing locations and moving to more “business friendly” areas within the state.
Apapa, located to the west of Lagos Island, popularly known for harboring the major’s ports in Lagos State seem to be one of the places some businesses interested in profitability and long-term sustainability have deemed worthy and here are 5 reasons why:
Lower cost of real estate
Some may argue this point but, a good reason to consider a move to Apapa is the lower cost of real estate. Compared to areas like Victoria Island and Ikoyi, the rent in Apapa is a lot less. A move could increase the average company’s profit margins, saving it a lot of money as costs are cheaper, and there are more tax incentives.
Competitive environment
Apapa is home to numerous companies; you can seek a competitive price for most services or products where you might not in other places. A business that moves to the area will be among those that directly benefits from this competitive environment.
Access to a better and larger market
It may not seem like it, but Apapa actually has a larger target audience for most businesses. You, however, need to do some in-depth research into markets, to ensure the move is a comfortable compromise between rent prices, talent pool access, and proximity to your target audience. If getting more customers and making a profit are the major goals for your business, then relocating your business to Apapa may just be what your business needs now.
Labor and workforce
The desire to get a suitable workforce can be enough to relocate your business to Apapa as the area offers easier access to human capital and talent. Many businesses find that local talent is diminishing and want to align themselves with better people. As is the case with Apapa, certain areas in Lagos have better talent pools than others.
Access to better amenities
Apapa can seem rowdy with a lot of traffic, however, there a number of great amenities in the area which could be of great benefit to a business struggling in this current economy. For instance, a business currently located in Ojodu, Berger may move to Apapa to reduce the overall cost of exporting goods to international markets.