Here in this post, we are going to examine the role of vocational and technical education in Nigeria. We hope you find this article informative.

Vocational and technical education formerly known as “education for work” focuses on inculcating learners with the abilities and knowledge required to take up trades or crafts. It was introduced to help reduce the rate of unemployment in Nigeria as well as granting hands-on skills to Nigerians most especially the Nigerian youth.

Unemployment is one major challenge affecting Nigeria amongst other challenges. Unemployment in Nigeria skyrocketed from 5% in 2010 to 17.5% in 2017.

This however kept on rising as a result of the recent economic recession in Nigeria. This problem of unemployment has led to other issues like a rise in crime rate, suicide rate, etc.

Many employers believe that Nigerian graduates are unemployable because the traditional educational system usually involves so many theories and a lack of practical use of the knowledge acquired.

For example, there are graduates of building technology who know the theoretical approach to the building but cannot apply it in the real world. It was at this point that Vocational and Technical education was introduced.

Vocational and technical education existed a very long time ago in Nigeria but it existed in the form of apprenticeship and handicrafts.

It was formally introduced when foreign merchants and missionaries came into Nigeria. Foreign organizations such as Shell and Chevron utilized this means of education to train many of the indigenous employees to function effectively.

The Nigerian government envisioned the benefit of incorporating Vocational and Technical education formally into the Nigerian technical system and subsequently created bodies like NABTEB to oversee this educational system as well as issue certificates to graduates.

The following are roles which the Vocational and Technical education play in the Nigerian Economy:

1. Vocational and technical education provides employment opportunities that combat the increasing rate of unemployment among Nigerian graduates.

It empowers individuals through with skills that are in demand in the global market. Skills and knowledge are the driving powers behind economic growth and development for any country.

Nations with greater and better levels of skills adjust more effectively to the demands and opportunities of the global labour market. More self-reliant individuals are birthed with this form of education.

2. Vocational and technical education plays a major role in the improvement of the standard of living of the nation.

The standard of living of a country is a measure of the material aspects of an economy. It counts the number of goods and services produced and available for purchase by a person, family, group, or nation (thebalance.com).

More goods and services are been produced thereby making Nigeria more of a producer and an exporter than a consumer.

3. Vocational and technical education allows for the exploitation of the natural and inborn talents in youths.

The talents are properly harnessed and directed towards the right channel. A young Nigerian man once built a car with locally sourced materials.

These talented kinds of individuals, if properly trained in the vocational and technical education system, have a very high probability of manufacturing machines that are usually imported.

4. Vocational and technical education allows the beneficiaries to decide on their career path. It is at the point of practice that they discover things that they are fascinated about and follow through to achieve their dreams.

For example, a teenager who is been trained in the construction field may develop a particular interest in the construction of bridges.

He then narrows down his pursuit of the construction of bridges. He could pick up internships with reputable companies that specialize in bridge construction.

5. Vocational and technical education allows for Economic stability. As employment opportunities arise in the country, there will be a rise in the GDP of the nation and a drastic reduction in crime rate.
6. Vocational and technical education indirectly reduces monopoly. Investopedia defines a monopoly as a kind of structure that exists when one company or supplier produces and sells a product.

In this kind of system, prices are usually high because there is no competition. With the introduction of this kind of education, more technical know-how is introduced into the market, thereby reducing prices and making it affordable to anyone.

7. Vocational and technical education Provides trained manpower in the technology, advanced craft, and technical levels.
8. Vocational and technical education allows youths into fields like Agriculture, car and machine repairs.

In the past jobs like those mentioned have been handled by illiterates and the elderly. It was seen as a dirty job unfit for a university graduate.

With the introduction of this form of education, more youths are introduced into this sector. This directly brings about an increase in the production of food in the country.

9. Vocational and technical education allows for flexibility. The traditional educational system requires a full-time dedication which isn’t favourable to a nursing mother or a part-time worker.

Vocational and technical education resolves this as classes can be fixed for weekends, and on a part-time basis.

10. Vocational and technical education allows easy access to affordable education. The requirement to gain access to traditional education in Nigeria is quite high.

There is a need to have a certain JAMB score, WAEC result and POST UTME score. It is also more expensive.

This is what gives the vocational and technical education advantage over the traditional educational system in Nigeria.

11. Vocational and technical education allows people of like passions to connect and relate together.

Two heads are surely better than one. Individuals in a particular sector can rub minds together to birth incredible inventions.

12. However, there are problems associated with the implementation of vocational and technical education in Nigeria which includes.

Lack of funds, discrimination by the society, a very larger trainee to trainer ratio which makes it cumbersome for the trainer.

Conclusion

Vocational and technical education is a very good choice and should be further incorporated into the Nigerian education system.

Vocational schools give students an opportunity to learn in an extremely career-focused environment with hands-on training and built-in internships with expert trainers.

Planning a property development project can be an incredibly exciting time for first-time property developers. The prospect of buying a property or lot of land, redeveloping, and selling the finished result for a greater profit holds undeniable appeal for investors looking to fast-track their way to wealth through property, but this strategy doesn’t come without its inherent risks. Whilst property development can be an incredibly rewarding strategy when investors get it right, it can also cost them significantly if they get it wrong. Here are some of the key property development mistakes that can be avoided with proper planning and research.

Choosing the wrong location

As with any property investment venture, the key to succeeding in property development is doing your research beforehand. You can do everything right once you’ve acquired a site, but the project could for be doomed from the start if you haven’t chosen the right location for your development in the first place. The first thing to ask yourself when researching an area for development is whether there is enough demand for property in that location. If there is already an oversupply of properties in the area, this will push property prices down and significantly limit the amount of profit you can expect to make from your development project, potentially leaving you with a vacant property that isn’t attracting attention from buyers.

Targeting the wrong demographic

In addition to choosing the right location for a development site, successful developers will also need to choose the right type of property to build for that location. Demand sells, and not understanding or serving the needs of your target market can be a fatal mistake for even the most seasoned of investors. For example, you wouldn’t develop a villa in a market that is already flooded with vacant villas, as this is a clear indication of lack of demand. Equally, you probably wouldn’t build an apartment in a low socio-economic area where property prices are already low. An apartment in a high socio-economic area, on the other hand, might prove a popular alternative for investors looking to downsize or for buyers seeking a more affordable option in high-demand suburbs. This is where assessing the local market and developing a property that fulfils the demands of your target demographic is key to success and, ultimately, profit.

Not doing due diligence

Successful property development is about identifying a suitable site for your development project, but it’s also about knowing when a site isn’t suitable for development. Failing to notice a problem in the earlier stages of acquisition could cost you significantly in the long run, and could even hinder the feasibility of your project altogether in extreme cases. Unfortunately for some DIY or amateur developers, these problems are often discovered too late. Whilst it may be time-consuming, it’s extremely important as a developer to carry out thorough due diligence of a site before finalising any offers. And this often means looking beyond the surface of the property to uncover any hidden problems. This is something one of our clients discovered all too well in one of our recent development case studies.

Poor financial planning

At the end of the day, the aim of a development project is to make profit. Whilst most investors go into development with the intention of making a quick return on investment, one of the key property development mistakes made by amateur investors is overcapitalising on cost. The last thing you want as an investor is to pay for a project that won’t pay you back in returns, or worse, blow your budget before the development is finished. Before jumping into a development project, it’s extremely important to factor all expenses into your budget, and this includes leaving yourself a buffer in case any unexpected costs come your way. If you’re not left with a significant profit margin once you’ve factored in costs such as approvals, building expenses and taxes (to name just a few), you may need to re-consider your development strategy or find a site that better fits your budget.

Take a deeper look at development

The mistakes above have given a broad insight into the kind of traps aspiring developers can fall into without proper planning and knowledge of the processes involved in property development. If you are thinking about developing a property and would like more insights into how to plan a successful development project, or would like to find out how our team can support you in your goals, get in touch with us for an obligation-free consultation with a member of our development team.

There are many different types of commercial properties. It can be unclear for commercial property investors to understand all the different sectors and what each entails. This blog post will discuss top-performing commercial property types and provide a commercial real estate investing strategy for each type. We will also go over some dos and don’ts of investing in commercial real estate!

What Is Commercial Real Property?

There are two main categories in the real estate industry, commercial real estate and residential real estate. It refers to business, industrial or commercial properties, such as office buildings, warehouses, retail stores, and full-service hotels.

Office, industrial, and retail are the three different types of commercial real estate.

• Office spaces are typically high-rise buildings in urban areas.
• Industrial spaces are large warehouses used for storage or manufacturing.
• Retail properties are shopping centres and strip malls.

The commercial real estate market is highly cyclical and sensitive to economic conditions. When the economy is strong, businesses lease more office and industrial space; when the economy is weak, businesses lease less space.

How To Select A Commercial Real Estate Property For Investment?

While selecting a property, consider the following questions:

• What is the purpose of the property?
• What is the location of the property?
• How much space does the property have?
• What is the condition of the property?
• How old is the property?
• Do you want a lucrative cash flow?
• Do you want a profitable total yield?

Answering these questions will help you understand what type of commercial real estate to buy and where and how.

Knowing what you want will influence your property selection. It will also assist you in structuring a contract that is in your best interests. Do not be in haste to rip. There are different types of commercial real estate to choose from. Do not limit your investigation to, for instance, industrial properties in a single preferred location. Your limited eyesight prevents you from seeing all of the options.

Consider the state of the broader financial world – the economy, interest rates, and stock market prices—and how these affect investment property prices. In the end, these factors impact the general investment climate, even though real estate values are not crazily volatile over the long term, and their rebound from downturns is often quick. Real estate has always seemed to come out on top.

What Are The Different Types Of Commercial Property?

Now that we have answered the question, “What is commercial real estate?” Let’s dive into the different types of commercial real estate!

• Office spaces
• Industrial spaces
• Retail spaces

Each commercial property type has its characteristics, risks, and rewards. It is essential to understand these before investing.

Office Space

These are typically high-rise buildings in urban areas. Businesses usually lease them for white-collar work. The two leading commercial real estate office spaces are Class A and Class B office buildings.

Class A office space is newer, typically located in central business districts, and rents higher. Class B buildings are older, often located on the town’s outskirts, and have lower rents.

The office sector is particularly appealing because it caters to many investors, from investing in small shopfront offices to building multi-storey city office towers.

One intriguing recent development is the emergence of a whole new field of smaller strata-titled office buildings, with entry prices as low as $100000 and net yields of between 6.00 and 6.25 per cent per year and funding for up to 70% of the value.

Commercial real estate investment strategy: Office space is suitable for real estate investors who want a lucrative cash flow. The vacancy rate for Class A office space is around 12%, which gives landlords the ability to raise rents. In addition, suburban office buildings are often easier to finance than other types of commercial real estate.

industrial Space

Industrial properties are large warehouses used for storage or manufacturing. You can find such rental properties in rural and urban areas.

In recent years, the expansion of small service businesses has raised the demand for small factories and showrooms, especially in places near large regional centres.

Factories require little maintenance, have affordable operating expenses, and could be suitable for passive investors if they find the right tenant.

While investing in small industrial buildings, commercial real estate investors should ensure that the tenants’ businesses have adequate room to expand wherever possible; you don’t want to hinder the expansion of successful anchor tenants due to space constraints. It’s preferable to have more room at the start than to have a tenant working in confined conditions while waiting for the lease to end so they may move to a more prominent location.

Commercial Real Estate Investment strategy: These commercial properties are a good investment for investors who want a profitable total yield. The vacancy rate for industrial spaces is around 14%. This high vacancy rate means that there is room for rent growth. In addition, many industrial buildings offer tax breaks, such as depreciation and amortisation deductions.

Tips For Investing In Different Types Of Commercial Properties

Do not venture too far away in the early stages of creating a property portfolio to manage your property successfully. Keep yourself within your ‘purchasing radius,’ which is typically fifteen to twenty minutes from your house or business. It indicates that you are putting money into a specific sector. Office parks appeal to a wide range of people and allow you to keep a closer eye on your investment. In the beginning, this can be beneficial, as there will still be a wide selection of options to choose from.

Stick to properties in your immediate area until you have a sizable portfolio and more experience. At this point, you may want to hire a professional property manager or feel more comfortable investing further away.

Before you buy, figure out what you want to achieve, look at the leading investment sectors – retail, industrial, and office – to locate the best fit. Check out these top buying criteria to create a simple matrix that will make it easy for you to grade any possible purchase.

Benefits Of Investing In Commercial Properties

Below are some of the benefits of investing in commercial real estate of different types –

Increased Cash Flow

Commercial properties typically have higher occupancy rates and longer lease terms than residential real estate, which leads to a more consistent cash flow.

Tax Breaks

Commercial investors can take advantage of depreciation and other tax breaks not available for residential real estate investments.

Diversification

It is easy to diversify your portfolio and reduce risk with this investment.

Appreciation Potential

Over time, property values of commercial buildings tend to appreciate at a rate greater than inflation.

Leverage

You can control a significant asset with a small down payment. It increases the return on your investment while also taking less capital out of your pocket.

How To Buy Commercial Properties?

Below are some steps that briefly describes the complete process of buying commercial properties.

Step 1 – Prepare A Plan For Commercial Property Investment

As an individual investor, you must determine what your primary objectives are.

• Is it to generate a positive cash flow?
• To generate a profit in the long run? It’s worth noting that a high initial yield often translates to a small capital gain. The total yield is a combination of both income and capital gain.
• To be able to save money on taxes?
• To protect yourself against inflation?

You may want to accomplish all four of them, though one or two of them will likely be more significant than the others. Make sure that property is the best way to increase your wealth.

Two of your primary concerns will be to

1. safeguard your first investment.
2. reap a valuable, long-term benefit from it.

If these are your primary concerns, the investment options available to you are likely to be limited. That is why making a plan and sticking to it is so important.

Step 2 – Your Investment Approach

The second stage is to figure out your method of investing. Typically, investors fall into one of the three categories below:

1. The first type is the investor who enjoys telling tales of ‘gambling the lot,’ knowing that he will either lose or gain a fortune. It’s entertaining to listen to such folks, but it’s dangerous to emulate them. Remember, if you go all-in on your investment strategy, you’ll almost certainly end up broke.
2. The second category is the armchair investor, who never fails to make a clever remark. These investors may attend several seminars and answer most technical questions about real estate and the economy. Still, they never have the bravery to put their money where their mouth is. They would rather have the security of a bank account than the risks of investing in real estate.
3. On the other hand, the somewhat aggressive investor raises the size of his portfolio only when he has sufficient funds in reserve. This group of investors can finance the most reasonable costs associated with a new purchase without jeopardising their existing assets. These cautious but slightly more daring investors have the best chance of succeeding.

Step 3 – Creating The Right Mind-Set

The first step is to create a statement of position, which is a breakdown of all your assets (such as your home, car, stocks, and other investments) and liabilities (loans, credit cards, and other debts) that tells you exactly how much money you have.

For example, if you want to invest $200 000, you might think to yourself, “Wow, that’s a lot of money.” However, create a statement of position. You may discover that you are genuinely worth $1 million (after accounting for your home, weekender, automobiles, boat, furnishings and artwork, several sorts of insurance coverage, and cash).

The majority of people are more valuable than they realise. As a result, $200 000 is merely a fifth of your total net worth. Even if you lost everything, it would not destroy you (not that this is even likely). The point is that you need the right mindset to get the most out of property investment, and to do so, you must analyse your entire financial situation, not just the acquisition you’re considering.

Recommended Reading – 11 step guide to buy a commercial property – Get into commercial real estate

How To Prepare Your Profile As An Investor?

In the real estate sector, those of us tend to think of someone looking to invest less than $1 million as an “amateur investor.” These individuals may have the financial means, but they are unlikely to know about real estate to make sound decisions. After $1 million, you’re usually talking about folks who either trade real estate or invest for the long term; they usually have another source of income from a corporate position.

Typically, cash funds of around $100,000 place investors in the residential real estate category. For the same money, you can discover some fascinating office premises (sometimes with a three-year rental income guarantee) where the tenant pays your outgoings.

Anyone with a budget of less than $500 000 has stiff competition in the commercial sector. However, as you might think, once investors have moreover $1 million, their possibilities expand significantly.

Risks To Avoid

You must understand that all investments come with risks. The following are the three most common real estate pitfalls:

1. Excessive borrowing—that is, borrowing beyond your means.
2. A skewed view of the market
3. Purchasing a home with a shaky renter.

You must check the industry insider’s guide of managing different types of risks in property development. 

There are eleven good rules for avoiding dangers.

As you’ll see, you must keep slightly below your ‘threshold of insomnia,’ as we’ve fondly dubbed it. It is the point at which you begin to lose sleep—perhaps due to excessive borrowing or poor market judgement.

Step 4 – Master The Dos And Don’ts Of Commercial Properties Investing

Here are some “dos and don’ts” that have survived the test of time:

1. Keep enough cash on hand to cover several months’ worth of mortgage payments if you lose a tenant or if the tenant is late in paying. Having enough cash to satisfy any due or unplanned obligations cures investment sleeplessness faster than anything else. Keep an eye on more minor expenses as well, such as equipment and maintenance bills, as they may quickly mount up.
2. Make an investing plan that you are comfortable with and stick to it—set attainable goals and work toward them. More goals have gone unachieved due to a lack of planning than a plan’s failure.
3. Invest in a solid financial calculator or software application and learn how to use it correctly.
4. Continue your quest for education by following real estate news and laws, attending seminars, and keeping up with current trends. Knowledge can help you reduce your risks while increasing your income.
5. Hire a top property consultant and a capable property lawyer, and hire means to pay for their services. To get back what you pay them, they should get you better deals than they charge you.
6. If feasible, avoid personal liability on mortgages by making the property your sole security.
7. Only put a modest portion of your money into speculative ventures. On the way in, they may appear dazzling, but on the way out, they are frequently painful.
8. Never make a contract based on a handshake; instead, put your agreements in writing.
9. Consult with your retained advisers before entering into joint ventures or partnerships.
10. Avoid mortgages where there is an influence of factors outside your control on the payments. Don’t take out all of your mortgages at the same time. At the very least, have a 50/50 split of fixed-rate and variable-rate mortgages.
11. Don’t invest in commercial real estate properties with significant negative cash flows (i.e., where your expenses far outnumber your income).

Finally, keep in mind that living within your means and reinvesting your income is always a good idea. Being inconspicuously wealthy is preferable to being ostentatiously destitute.

Final Words

Whether you are a first-time investor or have experience in the market, staying up-to-date on the latest trends is essential. By understanding the different types of commercial property and their respective strategies, you can make more informed investment decisions that will suc