Akwa Ibom Bets On Lagos Property Market To Diversify Revenue With 18-Storey Ibom Tower

By IFIOK UDOM

A State-Owned Asset With a Commercial Ambition

AKWA Ibom State is seeking to deepen its revenue base beyond crude oil by developing an 18-storey commercial property in one of Nigeria’s most valuable real estate markets.

The Ibom Tower, located on Abayode Cole Crescent in Victoria Island, Lagos, is being positioned by the administration of Governor Umo Eno as a long-term investment capable of generating recurring income for the state.

The governor reaffirmed the commercial objective of the project during an unscheduled inspection of the construction site in Lagos, where he assessed the progress of the development and received briefings from contractors and consultants.

According to Eno, the building is primarily intended for commercial use and is expected to increase the state’s internally generated revenue.

The strategy reflects a broader question facing oil-producing states across Nigeria: how can public finances remain sustainable when governments can no longer depend indefinitely on petroleum revenues?

For Akwa Ibom, the answer being pursued includes the conversion of government assets into productive investments.

From Oil Dependence to Asset-Based Revenue

Akwa Ibom has historically benefited substantially from federal allocations linked to oil production. But the state’s investment in commercial real estate outside its geographical boundaries suggests an attempt to build alternative sources of income.

Lagos and Abuja remain major centres of commercial activity, finance and real estate investment. Eno therefore argued that Akwa Ibom should participate in these markets rather than restrict its economic investments to its home territory.

“The building is mainly for commercial use and Akwa Ibom wants to participate in the property market in this country,” the governor said, linking the project directly to the state’s revenue diversification strategy.

The project consequently represents more than a construction exercise. Its ultimate test will be whether the completed property can generate sufficient and sustainable returns to justify the capital invested in it.

Construction Delays & Engineering Challenges

The development has not progressed without difficulties.

Project consultants explained that the early stages were slowed by difficult soil conditions and the need to protect surrounding properties in the densely built Victoria Island environment.

Structural Engineering Consultant, Engr. Murray Ekong, said the site presented significant technical challenges because of its poor soil conditions.

More than 100 piles were installed to provide the foundation required for the high-rise structure.

The construction team also had to install retaining structures because of the depth of excavation required for the basement. The precautions were necessary to prevent excavation from destabilising neighbouring buildings.

These engineering requirements contributed to the project’s initially slow appearance, according to the consultants.

The project team now says those major obstacles have largely been overcome.

Contractors Promise Faster Progress

Managing Director of Western Legacy Construction, Kunle Adedigba, said the contractor intends to accelerate construction from the ground-floor stage.

He said the target is to complete approximately one floor every three weeks, with the project’s timeline scheduled for another review in December.

The contractor also assured the governor that quality and safety would remain priorities despite the pressure to accelerate delivery.

The governor, while expressing satisfaction with the progress, urged the contractors to sustain the momentum and meet the projected construction schedule.

Employment Beyond Akwa Ibom

The project’s economic impact is not limited to its anticipated rental and commercial returns.

Officials involved in the development said the construction has created employment opportunities for Akwa Ibom indigenes, including professionals occupying managerial, architectural, engineering and technical positions.

The Lead Architectural Consultant, Arc. Victor Akpan, said several Akwa Ibom people had been engaged despite the project being located outside the state.

Eno said the State Statistician General would assess the number of jobs created and other measurable economic benefits associated with the development.

That assessment could provide a more objective picture of the project’s wider economic contribution.

The Real Test Comes After Construction

The most consequential stage of the Ibom Tower project will begin when construction ends.

A completed high-rise does not automatically constitute a successful investment. Its economic value will ultimately depend on occupancy, rental income, maintenance costs, operating expenses, market demand and the quality of its management.

The project must therefore transition from a construction programme into a commercially viable asset.

That distinction is critical for a government seeking sustainable revenue.

If successfully managed, the tower could provide Akwa Ibom with a recurring income stream while strengthening its presence in Lagos’s commercial property market.

If poorly managed, however, the building could become another expensive public asset requiring continuous government expenditure.

A Broader Fiscal Experiment

The Ibom Tower offers a useful window into the changing economic calculations of subnational governments in Nigeria.

As states confront rising expenditure obligations and uncertainty over federally distributed revenues, the pressure to develop independent income-generating assets is increasing.

For Akwa Ibom, the Lagos tower represents one such experiment.

Its significance therefore extends beyond its 18 floors.

The real question is whether public investment in commercial property can be transformed into reliable revenue, employment and long-term fiscal resilience.

Governor Eno’s administration is betting that it can.