In 2018, when Facebook sought to establish its first office in Nigeria, Yaba seemed like the obvious location. The area had become a key hub for tech innovation, home to notable startups such as Andela and the accelerator CCHub. During Mark Zuckerberg’s visit to Nigeria in 2015, Yaba was a highlight, with Zuckerberg praising its vibrant tech ecosystem.
However, as Yaba’s tech scene expanded, its infrastructure and limited office space became increasingly problematic. This led to companies looking for alternatives that offered modern amenities and better opportunities for growth.
Much like how Silicon Valley moved from congested areas to expansive campuses like those in Menlo Park and Mountain View, tech companies in Lagos began shifting their focus to Ikoyi, a prestigious area known for its spacious office buildings and top-tier infrastructure.
Ikoyi is now home to several high-end office buildings, such as the 14-storey King’s Tower, Heritage Place, and Famfa Tower. These spaces, costing $600 to $800 per square meter annually, offer essential features like security, parking, and high environmental standards.
In 2021, Meta relocated its Nigerian office to King’s Tower, followed by other industry leaders like Flutterwave and Microsoft. Google took up space at Heritage Place, and Amazon set up in Victoria Island. Most recently, in August 2024, payment infrastructure provider Fincra opened its new headquarters in Ikoyi, occupying the former residence of Lord Lugard, a colonial administrator.
Ikoyi has quickly become the ideal location for international companies looking to establish a strong presence in Nigeria.
Why Ikoyi is Now the Go-To Location
The shift to Ikoyi was not unexpected, says Remi Dada, CEO of Spacefinish and Campus HQ, a company responsible for designing offices for several major tech firms, including Andela, Flutterwave, and Meta.
“We saw a growing need for international companies to operate in an environment that aligned with global standards,” Dada explained. Unlike areas like Yaba or Marina, Ikoyi offers buildings that are properly maintained, a crucial factor for multinational corporations.
William Aimakhu, CEO of commercial real estate company PWAN Perfection, highlighted the strategic significance of having an office in Ikoyi: “Having an Ikoyi address is more than just prestigious—it adds significant value. Its visibility alone can boost client interest, which is critical in today’s competitive business landscape.”
Tailored Spaces for Global Giants
In addition to global tech companies, some organizations like BetKing (now KingMakers) and Canon have opted to build bespoke offices designed to meet their specific needs. For instance, BetKing wanted a campus with recreational areas, dining options, and studios, prompting Spacefinish to create a 5,000-square-meter space just for them.
Multinational companies standardize their office environments globally, ensuring employees in Lagos experience the same quality as those in the U.S. Designing offices for Meta, Flutterwave, and Google in Ikoyi took Spacefinish six to nine months for each project. Even with Meta reducing its office space in mid-2024, there remains a high demand for premium office spaces, with Ikoyi seeing an 80% occupancy rate across Lagos and Abuja.
Ikoyi’s appeal isn’t limited to tech companies. Financial and consulting firms are also flocking to the area for its high-quality spaces. Verod Capital, a venture capital firm, shares Heritage Place with several oil and gas companies.
Challenges and Opportunities in Ikoyi’s Office Market
Despite Ikoyi’s rising popularity, the high cost of office leases, particularly those priced in dollars, remains a challenge for many local startups and SMEs. The instability of Nigeria’s currency adds another layer of complexity, making it difficult for smaller companies to secure space in the area.
However, Amazon’s recent move to Number One, formerly IMB Plaza, in Victoria Island indicates that while Ikoyi is a leading destination, other areas like Victoria Island and Eko Atlantic are gaining traction as well, thanks to their adherence to international standards. With major new developments like Dangote House underway, Ikoyi’s office space market is expected to grow significantly, adding over 100,000 square meters of premium office space for both local and international businesses.
“Investors are keeping an eye on the broader economic landscape and market demand,” said Dada. “They want to ensure their developments will be occupied, and that’s a major consideration when shaping the office landscape.”
