Lagos smart city: Where are the Nigeria’s FM companies? By Mutiu Iyanda

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Editor’s note: Mutiu Iyanda, the NAIJ.com partner blogger, in his latest piece, writes about the proposed Lagos Smart City and its significance to Nigeria's economy.

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By 2020 and 2021, some places in Lagos state are expected to be transformed into smart cities, forming much publicised Lagos smart city –an attempt to establish a strong convergence between technology, economic development and governance.

Eko Atlantic and Lekki cities are to be pronounced as smart cities in 2020 while the Imperial International Business City would emerge a year later.

In these cities, essential facilities such as buildings, water and power would function and be useful to over 400,000 residents when they are connected with smart technologies, processes and people.

Rapid urbanization, high level of financial ferociousness and access and nature of the Information Communication and Technology system are the key drivers of the Lagos Smart City.

The 2017’s projection indicates that the state has over 21 million people with the majority, including Hausa and Igbo living in urban areas. According to the UN World Urbanization Prospects’ 2017 estimates, over 14 million people leave in urban areas.

This is projected to reach 16.1 million, 20 million and 24.2 million by 2020, 2025 and 2030 respectively. From the Mainland to the Island part of the state, private individuals and businesses have access to a range of financial services from institutions and government’s establishments.

Citizens, businesses and governments’ access to the Internet with the high broadband connectivity remains key determinant of forming and enhancing the effectiveness of service delivery and meet residents’ needs in Eko Atlantic, Lekki and Imperial International Business Cities.

In these cities, buildings and other facilities such as water and power wouldn’t need people for functionality and management because sensors would be incorporated with real-time monitoring systems.

In these cities, technology would switch on and switch off electricity at the appropriate time when it is dark and bright. Information would be sourced and analysed from various facilities and residents on the performance of the facilities using sensors.

If all these are anticipated in the cities what is the level of preparedness of Facilities Management companies in Nigeria especially those operating in the state.

How true is the companies’ adoption of technology as a means of growing their businesses as reported by the British Institute of Facilities Management, through its Facilities Management Business Confidence Monitor 2016/2017 has the tendency of integrating the industry with the Lagos Smart City?

Smart and connected Facilities Management companies remain the answer to the workings and functionality of facilities in these cities. We examined existing FM industry ecosystem with the intent of knowing companies that are likely to key into the Lagos Smart City seamlessly considering their present deployment of various technologies in solutions delivery.

The entire industry readiness to key into the smart city imitative was determined through value proposition, revenue streams and technologies that are the primary determinants of smart and connected product business models.

Present value proposition, client segment being addressed and sources of revenue towards sustainability of companies seem to be adequate while adoption of technologies remain stumpy. Over 33% and 31% of the companies are rendering hard and soft solutions to clients in commercial and residential segments at the neglect of industrial.

This creates doubt in the companies’ ability to coherently manage smart and integrated buildings in Lagos Smart City. The current value proposition is not tilted towards integrated facilities management as it is being practiced in Dubai Smart City among others. An indication that companies are deciding to offer FM solutions to the segments based on their competencies.

For their financial sustainability, majority of the companies are deriving revenue from the solutions they are offering most followed by manpower provision and consultancy services. Manpower and consultancy services are being exploited by few companies in the industry. On the technology usage, 71.80% of the companies are on the physical layer.

In this context, most of the companies are using available technologies such as smartphones, computer and Internet-enabled cloud based software in solutions delivery. Majority are yet to adopt sensors and external data sources that enable monitoring of hard solution’s condition, operation and external environment to generate alerts and actionable intelligence.

Besides, connectivity and digitalization of monitoring, controlling and optimization capabilities is at zero level. In other words, companies are not currently connecting one smart device, network with server at their headquarters. Storing, analysing and processing of huge volume of data from the connectivity layer are at bay.

Comparison of 24 companies’ scores within the existing smart and connected FM ecosystem using available sources (official websites and independent reports) placed 7 companies ahead based on their combination of innovative technology with business model.

With the percentile scores ranging from 81 to 100, Alpha Mead Facilities and Management Services (97.92), Filmo (93.75), Broll (81.25), Eliezer (81.25), International Facilities Services (81.25), Total Facilities Management (81.25)and Willco(81.25) would be the early adopters’ smart FM companies.

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Having posed 58.33 score, Fieldco, Global PFI, Green Facilities, Provast International Facilities Management, XL Africa Group would be late majority smart FM companies. In this category, Savvy Capire joined these companies with 43.75 score.

A significant number of the companies would belong to laggards smart FM companies, at different degrees. JLL Africa, Midel Management, Tsebo/Rapid FM and Flexi Marina with their respective 33.33 score would be the best laggards while Vale FMC, Werkmeister Facility Management, Globe Williams International, Brains and Hammers Facility Management and Briscoe Properties fall within the worst laggards having recorded 14.58 score accordingly.

Meanwhile, NAIJ.com had previously reported that the Lagos state government and the city of Dubai entered into a historic partnership that would see Lagos emerge as the first smart city in Africa.

Mutiu is a research and communications professional. He has a special interest in qualitative and quantitative methods of finding solutions to social and communication issues.

He currently works with Enterprations Limited, a management consulting company, which also provides a platform for working class professionals and aspiring entrepreneurs to own their business.

Enterprations offers strategic tools such as business plan, growth plan and turnaround plan among others for established and aspiring businesses.

The views expressed in this article are the author’s own and do not necessarily represent the editorial policy of NAIJ.com.

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