Wealthy Nigerians embracing smart homes despite increasing cost

High- net- worth individuals are equipping their houses with innovative technologies and buying smart homes, despite its numerous challenges such as high cost, lack of good internet infrastructure, and epileptic electricity supply. With the nation’s huge population, experts believe the future is bright for smart homes in the country, writes VICTOR GBONEGUN.

MANY wealthy homeowners and developers are adopting smart home technology, also known as home automation in their property to ensure security convenience and energy efficiency.

The trend is being embraced by High- networth individuals ( HNWIS) in major cities such as Lagos, Port Harcourt, Abuja, Anambra, Ibadan and other cities. Critical offerings by smart home solutions include home entertainment, comfort and lighting, security, control and connectivity, smart appliances, as well as efficient energy management. Some are also incorporating renewable energy solutions to ensure eco- friendly and self- sufficient energy.

Essentially, technologically advanced residences are equipped with integrated systems that allow homeowners to control various aspects of their living environment through the use of smartphones or other connected devices, voice commands in temperature control and other appliance control. Smart homes are designed to be energy- efficient, helping homeowners reduce their energy consumption and lower their utility bills.

Automation systems can also control lighting, heating, and cooling, ensuring that energy is used only when needed. Integration of Artificial Intelligence ( AI) in smart homes is also expected to revolutionise interactions in living spaces. With technological advancement, the invention of the latest smart gadgets including Internet of Things ( IOT) devices is on the rise. These smart gadgets include smart TVS, Closed Circuit Television cameras, fridges, window blinds, plumbing, coffee machines, which are built into the walls, and smart devices to control homes.

The smart home market in Nigeria is rapidly growing, driven by increasing demand for home automation and energy efficiency solutions. The market is estimated to reach $ 247.1m by 2024, while the Compound Yearly Growth Rate ( CAGR 2024- 2028) of 12.00 per cent is anticipated, with a projected market volume of $ 388.8m by 2028.

According to Statista Market Insights, household penetration, which currently stands at 5.3 per cent in 2024, is projected to increase to 9.5 per cent by 2028. The development indicates a growing interest among Nigerian households in embracing smart home solutions and demonstrates the potential for generating revenue from each smart home market installation.

Residential estates with reliable home fibre Internet connections assure their potential clients of highspeed, reliable connections to ensure the full- time functioning of smart devices, thereby enabling property developers to prioritise smart home designs in their offering to the market.

However, industry experts say smart homes are still being embraced more by the elites than any other segment of society due to their high costs. Besides, another challenge to its mass adoption by Nigerian households is the issue of inefficiency and high cost of electricity. The Nigerian Electricity Regulatory Commission ( NERC) recently increased the electricity tariff of Band

A customers from N70 to 234 for every Kilowatt per hour.

The Managing Director, Mausi Realty Lagos, Mr Mausi Bababunmi, said smart homes are now the future of homes as every aspect of living has become electronic. He said the reality of the world today is that at home and away, everything is fully automated.

"In Lagos Island, especially in Ikota Villa Estate, we now have a lot of property that can be described as smart homes and it is the way forward because it is more convenient and makes life easier. You can connect home appliances via the phone, your television, your house gate, electronic speakers, house lighting systems and others. The unique features consist of everything in your comfort in the living room. You control the air condition, television, even window blind," Bababunmi said.

He said the only challenge occurs when there are glitches and applications not working well but instances are few when the installations are carried out by professionals. "When applications like AC, elevators are not functional, it can be frustrating, but top builders of smart homes take into consideration issues of glitches during installation. That is the area we can improve on.

“Smart homes are not for the average income earners meaning that it is luxury and expensive because they consume a lot of electricity. Solar and inverter are, however, synchronised in case there is no electric power. Solar power, there are certain gadgets it can power in the house such as ACS and Television," he added.

The Chief Operating Officer, Oaks Homes, Kehinde Osileye, said a significant number of Nigerians are embracing smart homes or intelligent homes. She said in the long run, what smart homes do for owners is save a lot of energy through energy efficiency, security and safety.

"It correlates with health and wellness because when you reduce the usage of carbon emissions from generators, you will have a cleaner environment and less pollution. Once your smartphone detects that there is no warmth in a particular area, it shuts off the cooling, light, and power generally in that area. The convenience of monitoring your home wherever you are is part of the features of smart homes," she said.

In terms of the cost, Osileye told The Guardian that a three- bedroom smart home is equivalent to $ 600,000 in highbrow locations like Ikoyi. In terrace and villa houses, she said smart homes command a higher price of about N360 million for three- bedroom luxury apartments- partially automated.

According to her, the future of smart home development will keep getting better because smart homes keep evolving even with features, including sanitary wares in bathrooms; showers, toilets and water closets are being automated.

She said: "There is also improvement in the area of security, which grants people access to your house, while you are not home. A lot of automation are being developed to make people smarter and your home as private as possible."

Also, a smart home consultant, Mr Tosin Afolayan, said the major drawback to smart home adoption is its high cost. He noted the concept of smart homes cannot exist without a good Internet, adding that internet service is still a challenge in the country, and affecting the growth of smart homes. According to him, the issue of security of the equipment is also a concern as most of them are imported. He said because of the foreign exchange rate some people may import cheap equipment whose security can be compromised, adding that once a third party can hack into a home system, invasion is possible.