This video is Part 3 of a three-part series about technology impacting and improving the construction industry.

Image Credit: Image by upklyak on Freepik

This video is Part 2 of a three-part series about technology impacting and improving the construction industry.

This video is Part 1 of a three-part series about technology impacting and improving the construction industry.

Image by evening_tao on Freepik

Nigeria has pumped more than US$8 billion into Ajaokuta Steel Company, a project which began more than 40 years ago but has yet to produce one tonne of steel.

Several attempts have been made to bring the plant into production, but without success. It was built to 98% capacity by the Soviet Union’s Tyazpromoexport. But the lack of a rail line around the plant, and changes in political and operational management over the years, stymied completion.

Bilateral discussions in 2019 raised the possibility of Russian funding to resuscitate the steel plant, but the COVID-19 pandemic and the Russia-Ukraine crisis may have stalled any unofficial agreements.

Another problem for the plant is that some of its installed equipment may have been corroded and degraded by now.

Steel corrodes quickly in acidic environments. Consumer-grade steel and other iron-rich metals can develop iron oxide (or rust) after just four or five days of exposure. Corrosion of parts has been reported by a team of Nigerian and Ukrainian experts auditing the plant.

Still, the Nigerian federal government is now having yet another go. It is looking for a core investor that can get it running profitably on a concession basis.

The cost of revamping the steel company was put at $1.4 billion in 2020.

Instead of concessioning, we propose remanufacturing as a way of rescuing the plant. Remanufacturing
is an industrial process whereby used or broken down products or components are restored to useful life.

Based on our research, we argue that remanufacturing’s economic, social and environmental advantages would solve the Ajaokuta Steel Company Limited problem, make it competitive, meet contemporary demands of sustainable manufacturing and get it operational.

Nigerian demand for steel

Ajaokuta Steel was conceived in 1958 to meet Nigeria’s steel demand and launch Nigeria’s and West Africa’s manufacturing sector. The idea of a large-scale national steel production plant was based on the argument that no country could talk about power status or the defence of national interests without its own steel industry.

Nigeria had a fast growing population, with rising demand for manufactured goods. A number of manufacturing industries sprang up in the 1960s and the 1970s. Local demand for steel products was about 3.5 million tonnes a year between 1985 and 1995, the bulk of which could only be met through imports.

The manufacturing industry grew from 9% in 1985 to 19% in 1995, encouraging government’s industrialisation drive.

Challenges of concessioning

As to how to meet that demand, a concessioning agreement for a steel plant presents some key challenges.

Although the concession may put the steel plant into the hands of a competent investor, it is only for 10 years. Then legal challenges may arise. The most recent operator, an Indian company called Global Steel Holdings Limited, had its 10-year concession agreement revoked by the Nigerian government and the matter ended in an out-of-court settlement in 2016.

A concession agreement with foreign operators cannot guarantee the involvement of local human resources, which Nigeria’s manufacturing desperately needs.

Remanufacturing inputs

A major challenge of reviving the Ajaokuta Steel plant is that much of its equipment is in a broken-down state.

We argue that remanufacturing could restore the equipment and get it working. It could also develop the local capacity for remanufacturing among Nigerians.

Remanufacturing is an industrial process of steps that make make a used product as good as new. It is a key circular economy strategy.

Broken-down parts are referred to as “cores”. They are passed through a number of standardised remanufacturing operations – inspection, sorting, disassembly, part reprocessing or refurbishment, reassembly and testing – to ensure they meet product standards.

The resulting output is a product which meets or exceeds the quality and performance standards of a newly manufactured product.

Studies suggest that remanufacturing can save up to 50% of the cost of a newly manufactured product, 60% of the energy, 70% of the material and 80% of the air pollutant emissions.

Remanufacturing is labour intensive, so it can support new jobs and other jobs in the supply chain, such as transporting cores from the original manufacturers or disposal site to the remanufacturer’s site.

The UN Environmental Programme has studied how remanufacturing can retain value, finding that it can reduce new material requirements by between 80% and 98% and increase skilled labour hours by up to 120%.

Nigeria does engage in some remanufacturing, for example remanufacturing of medical devices, but it is largely unorganised and driven by small, independent operators.

What makes remanufacturing ideal for Ajaokuta

For remanufacturing to happen, cores must be available. It must be possible to disassemble the cores. And there must be labour and access to customers.

We have assessed the challenge with the Ajaokuta Steel Company Limited and concluded that the barriers to remanufacturing can be overcome.

First, the broken-down components in the steel facility form the remanufacturing cores.

Most of these mechanical components (gearboxes, conveyor belts, cranes, blast furnace) can be disassembled and remanufactured.

The steel plant would serve as the original equipment manufacturer (and customer) and a supply route could be created using the road networks around Ajaokuta, where the plant is located. A long term transport system should include a rail line to enable access to coal sites, for instance.

Nigeria has a young population which could provide the unskilled and skilled labour for remanufacturing.

How to revive the steel plant

For effective engineering management, we propose that Tyazpromoexport, the Russian company that first installed the Ajaokuta Steel plant, should work with Nigerian engineers to remanufacture the plant. The same company has successfully installed steel plants in Egypt, Algeria, Pakistan and India.

We recommend the following broad steps:

• audit and assess worn-out and broken-down components
• determine what can be remanufactured and at what cost
• assess supporting stakeholders: independent remanufacturers, local routes, raw materials, facilities and labour
• remanufacture identified parts
• procure parts that can’t be remanufactured
• install remanufactured and newly procured parts.

We understand that Ajaokuta Steel Company Limited faces other challenges. They include the politicisation of the steel project, the Russia and Ukraine crisis and the resulting geopolitical fall-out.

However, with over $8 billion already invested, zero production and the corroding of the facility, there is a need to urgently revive the steel complex.

Remanufacturing presents an excellent opportunity to resuscitate it in a green, efficient and sustainable manner.

Authors: Okechukwu Okorie, Lecturer in Sustainable Manufacturing, University of Exeter and Nnaemeka Vincent Emodi, Research Fellow, The University of Queensland

This article is republished from The Conversation under a Creative Commons license.

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The Use of Technology in the Real Estate Sector

Real Estate is an industry going through a profound computerised change. The utilisation of technology has a strong impact in this cycle: from  Customer Relationship Management (CRM) to virtual organising and advanced exchanges. These technologies make property management more helpful: for clients, specialists, and every other person included—accordingly, headways in technology form how realtors and property holders explore the home selling and buying process.

Real estate professionals depend on complex information to drive choices, evaluate home estimation, and track down ideal purchasers in the present world. Staying aware of the times can be troublesome, yet the technology accessible to specialists is a thrilling and advantageous shift. The following are how technology shapes the real estate business and how specialists can acquire an upper hand by remaining informed on the most recent patterns.

Example Technologies In The Real Estate Sector

Custom-Designed and Specialty QR Codes

QR codes have their uses in virtually every industry. It is especially true of Real Estate because QR codes are a fabulous way to display a house. However, if you post an advertisement for a home in a newspaper or billboard, you’re limited to using that ad space; therefore, you can only show a limited number of pictures and display only a certain amount of content. QR codes allow you to maximise your ad space. By placing a QR code in your ad space, you allow a prospective buyer to scan the code and be brought to more photos, information, or even a video of the home. You can give a virtual tour of a house right on someone’s cell phone!

Artificial Intelligence

How might AI real estate technology and chatbots help you? The technology can improve the realtors’ work. It allows them to focus on core tasks as remote helpers can answer quickly and post pertinent inquiries that will them realise the client’s necessities early. Additionally, organisations are executing AI technology to get reliable market estimates and future home estimation forecasts.

Blockchain Technology

While blockchain real estate technology is still in its infancy, it is gradually advancing into the real estate business. Many home dealers presently tolerate bitcoins as an elective instalment choice for high-value property deals. Blockchain technology has permitted individuals to handle critical monetary exchanges, like real estate deals, without delegates like banks. Blockchain technology can bring security, productivity, and straightforwardness to real estate exchanges if wholly used.

Smartsites

Smartsites real estate technology is crucial in the real estate industry. However, most people already know that websites are necessary. Furthermore, content needs to be fluent; that is to say, that should be immutable in no way, shape, or form. So again, it is true of the real estate industry, where new properties must be constantly added to a website, and homes that have been sold removed quickly.

Cloud Integration

Whether you want to renew a rent with a leaseholder or manage an inside business, tasks are more productive using cloud technology for distant closings, electronic record signatures, and different capacities that used to be done face to face.

Real Estate Development Digital Technologies

For completeness, the following are examples of digital technologies for use during property development planning, design, construction, operation and maintenance.

• Building Information Modelling (BIM).
• Maps/Streetview via the internet.
• Geographic Information Systems (GIS) – to review detailed information about the environment.
• 3D inserts on plans to show more complex details, such as service connections and utility interfaces.
• 4D CAD design –detect workspace congestion to identify potential on-site safety hazards
• Drones/unmanned aerial vehicles.
• Augmented and Virtual reality – simulate construction, maintenance and operation activities in a risk-free and realistic environment (digital rehearsals)

Nigerian Real Estate Sector – A Case Study

The Nigerian Real Estate sector grew 1.77% in Q1 2021 from 2.81% in Q4 2020 and -4.75% in Q1 2020 (National Bureau Of Statistics).

The Nigerian real estate industry is one of the most thriving industries, attracting many investments in funding and technological developments. The industry’s tech integration is growing at a pace similar to that of the early Fintech industry, and with this integration comes a new era of real estate management. Technology in real estate is popularly referred to as  ‘Proptech’ or ‘Realtech’, i.e. Property technology or Real estate technology, respectively.

Proptech refers to all the software, tools, websites, apps, and other digital solutions used by real estate professionals to optimise buying, selling, researching, marketing, financing, and other real estate activities (Forbes). Proptech uses modern digital innovation to address the needs of stakeholders-developers, investors, buyers, rentals, and property management companies in the property industry. It also covers smart building technology, space management, and architecture, similar to those discussed above.

Artificial intelligence (AI), virtual reality, big data, and analytics are just a few developments transforming the proptech market to make buying, selling, renting, or managing properties easier. For example;

• Virtual reality and inspection drones allow property owners, purchasers, and investors to see and evaluate a property without physically entering it. It facilitates remote transactions and digital contracting, making the client experience more convenient and efficient.
• Artificial intelligence, through networks of smart devices and sensors (IoT), helps to power the marketing and investment processes
• Data Analytics helps collect information on used and unused properties for better decision-making.

Digital technology in real estate has brought about new opportunities and startups, proffering solutions to some of the industry’s age-long problems in Nigeria. It’s not surprising that you can now buy a four-bedroom terrace building on Jiji.ng (an eCommerce general marketplace). Companies such as ‘Spleet’, ‘Rent small small’, ‘Hutbay’, ‘Fiber’, ‘Mypadi.ng’ and ‘Tolet.com.ng’ are some of the companies in the proptech space. These startups are revolutionising the process of renting, selling and managing landed properties all over Nigeria. Users can now register on online platforms to search for new apartments, rent a short let or service apartment, buy a fully furnished house or landed property and even make financial evaluations of one’s property.

Challenges in the Nigeria Real Estate Sector

With growth similar to that of the Fintech industries, this fast-developing space has challenges, including some.

• Property owners not finding it reasonable or attractive to list their properties on online platforms
• The general notion that procuring or renting properties online is more expensive and non-negotiable.
• The lapses of being unable to properly inspect what you are renting or procuring virtually are proposed to be resolved with drone inspections. Or perhaps virtual reality?
• Tech companies only work fine in urban areas leaving the rural areas out of the market pool.
• Disparity between property owners and online platform owners on the financial evaluation of properties.
• Income, affordability and access to mortgages
• Regulation and enforcement to address construction malpractices that have led to some buildings’ collapse.

Final Words

Research from Agusto & Co shows that in 2020, the GDP of the Nigerian real estate industry was around ₦3.96 trillion, a 9.4% decline compared to the previous year’s ₦4.37 trillion; this was reported to be a residual effect of the pandemic. Furthermore, Nigeria is the most populous country in Africa, with a population growth rate that is not expected to slow shortly, expected to reach 263 million by 2030. Therefore, there is a continuously increasing demand for real estate and infrastructure products and services. It is estimated that Nigeria has a housing deficit of about 20 million housing units as of October 2021.

Given the demand for properties, further growth is anticipated in the sector; therefore a good sector for technological investment and development to solve the housing problems. Tech enthusiasts and operators in this sector are encouraged to explore the example technologies presented in this article, where they are not currently in use, to improve transparency and trust and encourage public participation to advance the Nigeria real estate sector.

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