A new report has revealed that the long-term effects of the COVID-19 pandemic and a decade of macro-economic underperformance have reshaped occupier behaviour in Nigeria’s office market, driving businesses toward asset-light and flexible operating models.

The report, titled “Nigeria Managed Office Report” by Fortren & Company, shows that managed offices are becoming increasingly attractive to firms seeking affordability, operational flexibility, and reduced real estate exposure amid economic uncertainty.

According to the report, Nigeria’s managed office supply is heavily concentrated in Lagos and dominated by local operators converting lower-grade office buildings and residential properties into flexible workspaces.

The study notes that the shift reflects a broader move away from traditional leasing models toward “space-as-a-service” arrangements.

“With traditional offices remaining tenant-led, managed offices are poised for counter-cyclical growth,” the report stated.

Multinationals Also Occupy Flexible Spaces

Despite being dominated by SMEs, the report shows that several multinational and global brands also occupy managed office spaces in Nigeria.

These include:

• Canon

• Universal Music Group

• Spotify

• British Council

• Mauritius Commercial Bank

• Warner Music Group

This highlights the growing acceptance of flexible office models across different business sizes and industries.

Lagos Dominates Managed Office Supply

The report found that Lagos accounts for 69% of Nigeria’s managed office supply, driven by corporate demand, skilled labour availability, and capital concentration.

Within Lagos, key hubs include:

• Lekki Phase 1 (18% of total supply)

• Victoria Island

• Ikeja

• Yaba

• Ikoyi

Lekki’s growth is linked to rising residential development, lower operating costs, startup activity, and strong lifestyle infrastructure supporting the live-work-play model.

Abuja and Regional Trends

In the Federal Capital Territory, Abuja, about 40% of managed office supply is concentrated in Wuse, followed by Maitama, the Central Business District, and Gwarimpa.

Regionally, demand remains spread across Nigeria, although Port Harcourt shows higher concentration, with over 60% of demand clustered in the Greater Port Harcourt area.

Shift Away From Premium Office Stock

The report highlights that Nigeria is not lacking premium office developments, but demand is shifting away from Grade A and A+ buildings.

Despite increased supply, high rental costs and economic pressure have left many premium offices underutilised.

Occupiers are instead moving toward:

• Older office buildings

• Lower-grade assets

• Residential-to-office conversions

These options allow operators to offer more affordable pricing structures.

“In Nigeria’s managed office sector, value comes from repositioning what already exists, not building new,” the report stated.

SMEs Drive Demand, but Corporates Are Increasing

The study shows that SMEs remain the dominant users of managed offices, but demand from corporate clients is increasing.

About 48% of operators now focus on B2B services, up from 45% in 2023, reflecting growing enterprise adoption.

Key demand sectors include:

• Financial services

• Information technology

• Non-profit organisations

Indigenous Operators Dominate Market

The report notes that indigenous operators control about 91% of Nigeria’s managed office supply market, highlighting strong local participation in the flexible workspace sector.

Economic Pressures Reshape Office Demand

According to Research Director at Fortren & Company, Martin Uche, Nigeria’s office market was initially shaped by optimism in the early 2010s, driven by expectations of foreign direct investment and multinational expansion.

However, slower growth, inflation, currency devaluation, and remote work trends have significantly altered demand patterns.

He noted that oversupply in prime office segments has led to high vacancy rates, forcing landlords to offer concessions and flexible lease terms.

“Corporates are now prioritising flexibility, speed to occupancy, and balance sheet efficiency,” Uche said.

Outlook: Growth of Space-as-a-Service Model

The report projects continued growth in the managed office sector as flexibility becomes a strategic requirement for modern businesses.

It advises landlords and investors to:

• Reposition existing assets

• Improve operational standards

• Strengthen partnerships

• Adopt flexible leasing models

The study concludes that Nigeria’s managed office market is evolving into a more structured alternative to traditional leasing, driven by cost pressures and changing workplace needs.

The post Nigeria’s Office Market Shifts Toward Flexible Workspaces as Managed Offices Gain Ground appeared first on Housing TV Africa.

The Abuja Chamber of Commerce and Industry (ACCI) has urged the Federal Government to suspend penalties on late tax filings for one to two years, allowing business owners time to adapt to Nigeria’s new tax laws and digital filing systems.

Chairman of the National Policy Advocacy Centre (NPAC) under ACCI, Dr Aliyu Hong, made the call in an interview with the News Agency of Nigeria (NAN) in Abuja.

Hong said many business owners are still struggling to understand the new tax framework and online submission platforms, stressing that enforcement of penalties at this stage could further strain the private sector.

He recommended a grace period of between one and two years to enable taxpayers to adjust properly to compliance requirements.

According to him, online tax filing systems should be fully tested, stable and widely understood before strict penalties are enforced.

“Online tax submission platforms should be properly tested and widely understood before enforcement of penalties for non-compliance,” he said.

Hong added that government should prioritise building reliable digital tax infrastructure and ensuring smooth adoption before full enforcement begins.

He also noted that the ACCI recently organised a tax roundtable aimed at educating business owners on the new tax laws, implementation process and compliance obligations.

The initiative, he said, is designed to simplify the reforms and improve understanding among stakeholders across different sectors.

Hong further explained that many Nigerians still lack adequate knowledge of the new tax policies and their practical implications, while implementation structures are yet to be fully stabilised.

He urged the government to adopt a gradual rollout approach, warning that abrupt enforcement could negatively affect small and medium-scale enterprises already facing high operational costs.

According to him, taxation should not focus only on revenue generation but must also support economic stability, job creation and national development.

He said businesses in Nigeria already operate under difficult conditions, including the need to provide their own electricity, water and security.

Hong also warned that unrestricted importation, combined with weak infrastructure, continues to undermine local industries and competitiveness.

He called for stronger policy support to improve the business environment, reduce production costs and encourage domestic enterprise growth.

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