The Nation Newspaper

Category: Building & Properties

  • Building above the law?

    Building above the law?

    Can a developer build above the specified height for an area? This is the question  in Surulere,  Lagos Mainland.  Considering the seeming power game surrounding the issue, MUYIWA LUCAS reports that the answer to this question will serve as a litmus test for the state’s building regulatory agencies and the government’s development masterplan.

    Town planning, especially in an emerging Mega City such as Lagos, is taken seriously in many climes due to its importance on the society.

    Before and after independence, Lagos State had a well-structured town planning model that ensured a well-laid out society.

    However, following the neglect of this important aspect of societal development, various structures began to spring up, leading to unplanned structures and communities as people built with impunity. This singular act, experts said, led to the birth of shanties and slums, for which the state has over 100.

    The case of the Federal Capital Territory (FCT) is still surprising to many. Experts in town planning have maintained that the rushed movement, rather than phased movement, to the city, of all Federal Government ministries and parastatals by the administration of General Ibrahim Babangida (rtd) shortly after the failed coup attempt of the late Major Gideon Orka in 1990, led to the sorry state of the FCT.

    Experts insist that the FCT was not ready, structurally, for the sudden population explosion it experienced at the time; hence shanties and slums sprang up within the city as the high demand for shelter swelled.

    The cost of returning a distorted city to a well planned city however comes with its implications for both citizens and government. For the citizens, it is that of traumatic pains-emotional and psychological, and monetary loss, while for government, it is that of hatred by the people, huge financial burden to rebuild, among others. This is why contravening the provisions of town planning should be viewed with all seriousness.

    It was therefore instructive when the members of Pilot Crescent Residents Association (PCRA), Surulere, opted to preserve the masterplan of its area, which is presently being threatened by a construction work.

    The Crescent, an estate established by the Federal Government some years back, was planned and developed with a height restriction for buildings in the scheme. It was  pegged at bungalow level. The crescent is a low, densely populated area specifically designed for bungalows.

    That masterplan is now being violated following the reconstruction work now going on on Plot 36 and 34A. In what began as a bungalow redevelopment, residents of Pilot Crescent were surprised to see that the structures were decked and taken to first floor level.

    According to Mr. Wole Oladoye, a resident, and whose house sits just beside the construction site, the residents met with the property owner after her identity was hidden for a while, with the aim of explaining to her why she cannot violate the masterplan. Oladoye identified the owner simply as Mrs. Fadahunsi, whom he said also owns and resides in a flat in the other wing of the estate.

    “That was the first peace move I tried to make. But she insulted me, claiming I had interest in her property. Her basis for acquisition remains frivolous because by law, I know that an individual should not own more than one apartment in any government scheme,” he explained.

    On September 9, last year, the Games Village Community Development Association (CDA), the umberella body for the residents association in the community, wrote a petition to the Lagos State Building Control Agency (LASBCA). Subsequently, the premises were sealed by agencies.

    The Chairman of PCRA, Mr. Ayo Olagunju, however, told The Nation that Mrs. Fadahusi and her representatives, broke the seal few hours after the inspection team from the government left and continued work on site. They do this usually at nights till the early hours of the mornings. By December 22 last year, the PCRA sent another petition to LASBCA, reminding the agency of the situation on ground and the need for its intervention.

    A visit to the site by this reporter showed that the Pilot Crescent showed that while the other construction site (Plot 34 A) still had the seal around it, with no trace of continued work, there were active workmen on the construction site of Plot 36. On this plot, which measures about 300 square meters, is a two-wing, two-floor structure (ground and first floor) being erected.

    Checks on the construction also showed that the mandatory requirements for building have not been adhered to. For instance, given the size of the structure, it occupies more than 60 per cent of the land as against an approved 40 per cent space. Besides, it also exceeded the set back rule approved for houses.

    Francis Onaekan, another resident, lamented that Mrs. Fadahunsi  failed to listen to all appeals to her, and has remained arrogant, boasting that nobody can stop her from completing the building.

    He explained that perhaps, her arrogance drives from her membership of the Presidential Implementation Committee on the Alienation of Federal Government properties. She is also said to be a retired Secretary in the Federal Ministry of Works and Housing.

     

    Terms of C of O for estate

    The PCRA is worried that certain parts of the certificate of occupancy (C of O) given to residents have been violated with the ongoing construction. For instance, item 10 on the C of O agreement specified that “the allottee shall not be permitted to do or use any part of the land, building or appurtenances thereon which shall be noxious, illegal, noisy or offensive or be of any inconvenience or of annoyance to tenants or occupiers of adjourning premises of any other tenant.”

    Item 11 made it clear that owners will conform to all rules from time to time in regrad to location of building and that of town planning regulations.

    In item 12 of the C of O, an allottee shall not “erect, or build or permit to be erected or build on the said premises any building other than those covenanted  to be erected by virtue of this C of O and not make or permit to be made any alteration or addition to the building plans and specification as approved by the president and any other officer.”

     

    Mrs. Fadahunsi’s position

    When The Nation contacted Mrs. Fadahunsi, she said there was nothing she had to say on the matter. Pressed further and asked if she had approval for the construction, she only managed to control her anger. “You journalists don’t know what you are doing. You like to write any rubbish you like. Look, even if the Nigerian President asks me anything on this matter, I will not answer him. I know the people behind all these and they will fail; I bought my property from the Federal Government and nobody can stop me to do what I want to do with it,” she said.

    Asked if she has approval for such structure in the Crescent, her response was not different. “Look, why don’t you go and ask those that sold the property to me if they gave me approval or not. It is Federal Government’s property and (there is) nothing (the) Lagos State can do in this matter. Nobody can stop me,” she boasted.

     

    Legal opinion

    This reporter sought the opinion of legal experts on the matter, especially since it is a Federal Government estate. A lawyer, Mr. Anjola Abegunde, explained that Mrs. Fadahunsi’s claims that Lagos State could not do anything in the matter could not be defended. He explained that based on the Land Use Act, the control of land, approval and anything that has to do with with same, has been vested in the Chief Executive Officer of the  state. Therefore, he  said the Lagos State government needed to give approval to the developer.

    He recalled that the inability of the owner of the old Federal Secretariat Complex to make use of the property after buying same from the Federal Government was because the Lagos State government  refused to give the requisite approval to commence work on the property.

     

    LASBCA responds

    In a chat with the General Manager of LASBCA, Dotun Lasoju, he confirmed that the agency has been in talks with the property owner and that there has been correspondences between both parties.

    He said there had been a stop work order on the site, while the owner had been told to reverse the structure to the acceptable and stipulated height size for the area. He said he was sure that there had been a compliance.

    Lasoju’s response was indicative that there was no follow up on the situation given that when this reporter visited the site on Saturday, the workers were working. He however assured that the agency would take decisive steps if there was no compliance.

    “LASBCA has told the woman in question to comply. We have equally told her that if after the new year she does not reverse the building to the acceptable height, then we will have no choice but to demolish it. But the modalities for this I cannot disclose to you for strategic reasons,” Lasoju said.

     

    Is LASBCA weak?

    The PCRA admits that while Lasoju has tried in the matter, it is however surprised that since September, the construction has not stopped, especially given that the owner of the building had the effrontery to break government’s seal. They are surprised that LASBCA, and the  state government, have left her to continue the impunity. This, they claim, sends wrong signal to other law abiding citizens.

    “LASBCA and indeed the state government should know that its integrity is at stake on this matter. Is it when the building is fully completed that they want to act? I hope they are not sending the wrong message to the public,” Olagunju said.

     

    Security risk / privacy invasion

    The association is worried that their privacy is now being compromised owing to the height of the building which makes it possible for easy view of other homes when standing in the building. Besides, residents complained that they are  recording cases of theft which never used to be. They claim that in one of the theft incidents, the suspect was traced to the uncompleted building.

    For now, while the community waits on the state government to act, they claim that they are considering other options to ensure that the impunity is reversed.

  • ‘Don’t expect buoyant real estate business’

    ‘Don’t expect buoyant real estate business’

    Mr. Diran Adetunji, an Abuja estate surveyor and valuer, speaks on the place of the real estate sector in Nigeria’s economy and its prospects this year, among other issues, in this interview with BUKOLA BOLAJOKO.

    How important is the real estate sector to the economy?

    All over the world, real estate is very important and crucial to the economy and to the development of the nation. The importance of real estate sector cannot be over-emphasised. Apart from the fact that it creates and generates enormous employment opportunities, it also assist in ensuring that the citizens are empowered and their living standard is enhanced. When you have a major real estate activity in place for instance, there would be opportunities for plumbers to handle sanitary works. The services of artisans, electricians, civil and mechanical engineers, and even food vendors would also be required. In other words, people would be employed and empowered economically, and when people are gainfully employed, particularly in the real estate sector, it generates some other enormous activities, with a lot of positive trickle down effects for the people.

    How would you describe Nigeria’s real estate in 2016?

    Needless to state that the economy effectively ran into recession, due to the fact that it (the economy) contracted seriously in the fourth quarter of last year. The change in the government, coupled with the worldwide change in virtually every sphere of life, financial, economic, climate and several other areas all combined to define the real estate outlook in 2016. Also, the economic meltdown of the recent past; the effects are yet to completely disappear. Unfortunately, some nations, Nigeria inclusive, were not pragmatic enough to diversify sources of income, and expectedly, they ran into economic booby traps as other mono economy nations, and subsequently cannot withstand the pace at which the developed nations introduced creativity in all spheres of their life. The developed countries are busy devising other sources of energy; hence the wholesome demand for crude oil is no longer fashionable there. When you look at what Nigeria generate from crude oil today, you ask yourself how that paltry sum can effectively finance the budget of Africa’s biggest market and most populous nation

    All these have negative effects on the entire economic outlook, and when you now look at real estate, which is volume driven, you realise that it has a much negative effect on the sector. Even a small project of two-bedroom flat will run into millions of naira, and the mortgage institutions, which are supposed to provide and offer palliative measures for people buying houses or people going into property development are not really developed or strong enough to offer such services. Most primary mortgage institutions you see are practically and fully engaged in the usual banking business. So, you don’t have solid mortgage institutions that can support property development business and enhance it further. The banks don’t want to engage in real estate financing because it is a long-term gestation project, so loans given if at all are for short term runs, and you cannot use a short term loan for a long gestation project. All these create a major crisis in real estate.

    This is not to cast aspersion or score a political point, prior to the current regime, real estate business and activities were buoyant and dynamic, perhaps due to free money here and there. Crude oil  prices were high, production levels too were sustained, demand for it was stable and consistent, and money was everywhere in all the sectors and the FDIs too were coming. Funds trapped abroad were repatriated, and all these made the difference. These funds found their way into real estate because of the traditional belief that real estate investment is the only one that has an edge against inflation. You will never get it wrong with real estate investment due to its various unique concepts of location advantage, capital growth, and returns on investment, which makes real estate investment worthwhile. But right now, we are in recession fully, and that we operate a mono-economy complicates the problems with the price of crude oil nose diving to an all-time low, high energy cost, weak exchange rate all conspired to impact on productivity and competitiveness across all sectors of nation economic activities. By the time you add this to the unrest in the Niger Delta, militancy and destruction of pipelines, leading to shortfalls in supply, the unfriendly agricultural environment occasioned by the rampaging attacks of Fulani herdsman on the farmers and their farm produce, all have affected the national income, as well as every other sectors of the economy and the real estate has its share of the problem. When you go round the major cities of Nigeria, you find out that many buildings are unoccupied, and nobody is actually requesting for them, meaning that transactions have gone down drastically.

    Should we expect a different outlook in 2017?

    It will be truly magical for real estate to bounce back to vibrancy and buoyancy in 2017. Unless there is a major policy shift in the direction of housing and infrastructure development, I don’t see the real estate sector prospering in 2017. After the World War II, the western nations embarked on the Marhall Plan, which created enormous activities in infrastructure development. This is the sector with the ability to absorb a large chunk of unemployed people. We should look at the present situation as if we are emerging from war with the need for massive infrastructure development and similar activities. The government had introduced the Single Treasury Account; I will suggest that these funds should be administered by a few credible banks for government with the mandate to allocate funds and loans to different sectors of the economy to create vibrant economic dynamics because we cannot afford to be static. I think it is important on the part of the government to look into this aspect and have a rethink, because a few notes of naira that are working are better than millions  lying idle.

    Let me quickly add that real estate sector is a highly specialised area where government must introduce and implement the right policies. The government must engage the professionals in the industry for better results because you must listen to diverse opinions at times such like this. The Nigerian Institution of Estate Surveyors and Valuers is veritably placed to give the government the much-needed advice on how to restore the real estate business into vibrancy, structure the mortgage institutions and increase our housing stocks. Hitherto, the problems have been created by putting in place those who do not know much about real estate sector, hence you realise that most of the property developers are traders, otherwise, the issue of 17 million housing deficiency would not have arisen.

    What do you think should be done to quickly come out of the recession?

    It is a paradox that a nation like Nigeria, one of the leading nations in the comity of nations, finds itself in a recession. It is quite unfortunate. We don’t have to be in this recession in the first place because in terms of human and material resources, we have them in abundance. One would have expected a nation, such as ours to have envisaged and fully prepare for the raining day. If the right things had been done, we would not have been in recession. But to get out of the mess, the government must develop institutions. When you have strong and viable institutions, it will be difficult for people to run government as if it were their private estates and the nation would be better for it. We must begin to build institutions and stop building individuals. If you have strong institutions, funds meant for particular purposes would not disappear into private pockets.

    Another step we must take is to embark on massive investment in the construction and reconstruction of infrastructure. With this, many people will be gainfully employed. We must also diversify the economy as a matter of priority. We must invest in agriculture, this is the only country in the world where I see green grass grow on the rock, yet we spent billions of dollars importing rice from Thailand. This is shameful. Policy inconsistencies have contributed largely to this, and it is about time we harmonise our policies. We had the Operation Feed the Nation and we had the Green Revolution. The government should dust these policies, harmonise and implement them immediately.

    The tax regime should also be looked into. At the moment, it exerts too much pressure on the private sector. Mind you, it is the only sector that is employing now, and the sector must not be stifled to death. A willing horse must not be ridden to death.

    I am also of the view that those given the responsibilities of policy formulation should take proactive steps in creating enabling environment for real estate to drive the economy and ensure that mortgage institutions make cogent contributions to that extent. Granted that the government has set up the Nigeria Mortgage Refinancing Company (NMRC), we expect the mortgage institutions in Nigeria to come up with suggestions on how to revive the moribund sector and make it a driver of property acquisition, real estate and national development.

    What is the state of the Abuja property market?

    Abuja is a peculiar case because if you consider most of the rents and value of properties that are obtainable in Abuja, they do not have any economic justification because this is a civil servant city, take it or leave it. It is different from cities like Lagos, Kano, and Port Harcourt, which are laced with commercial potential and activities. You will find out that there is economic justification for rents and property values in those places. There are no industries here in Abuja; no manufacturing outfits.

    Most properties that you see here are built for opulence. With the seat of the government relocated to Abuja, with embassies relocating their operational headquarters to Abuja, with government and parastatals chief executives here, the classes and configuration of houses were constructed and tailored to meet the taste of these people. So, you realise that when there is a change in economic situation just as we find ourselves now, we are at the mercies of God to navigate through the current storm in the property business. So, basically what I am saying in essence is that coming from that perspective, it has created a big problem for us. We are the hardest hit by this economic recession and the entire change mantra.

    The crisis in Abuja is terrible. If you take a drive round the city, you will see that properties are just there, people and companies are not taking them. I can tell you categorically that some landlords are now telling the agents to reduce rents. It is as bad as that.

     

  • Shape of things to come

    Shape of things to come

    The real estate sector has severally been touted as one with huge potential to contribute to Nigeria’s Gross Domestic Product (GDP). But with the economy in recession, stakeholders are of divergent views on what prospects the sector holds this year? MUYIWA LUCAS reports.

    Kayode Oyedele, an estate Mmanager, was shocked after going through the content of a correspondence he received from tenants in some estates he manages in Lagos and Abuja. After a meeting with representatives of the tenants last November, it was clear that a hard decision had to be taken.

    The tenants unanimously laid down their cards in clear terms before Oyedele: “Reduce your rent or we vacate your estate,” they said emphatically.

    Faced with this stark reality, Oyedele had no choice but to convince the property owners to take a 30 per cent cut in rent if they desired to still have the buildings occupied. He is concerned that the trend last year, which saw rents frozen while some tenants asked for reduction, needs to be carefully handled this year to curb a recurrence. Besides, he is sad that the situation, which led to many tenants defaulting in rent payments last year, may continue this year. Many houses remain vacant for very long time, especially in high rental areas of Ikoyi, Victoria Island and Lekki, as well as Abuja.

    This is why opinions are strongly divided on the outlook of this year in the real estate sector. While some built environment specialists do not see the light at the end of the tunnel yet, others are cautiously optimistic about the prospects the sector holds in the current fiscal year.

    However, the major thing going for the sector is the fact that the need for real estate across strata remains extremely strong; hence, opportunities will, continue to exist. Although the challenging times may pose difficulties for operators, yet they present opportunities for innovations which will ultimately benefit the sector.

    The Head, Property Management, SFS Capital Limited, Victoria Island, Lagos, Mr. Bolarinwa Odeyingbo, said the expectations for the property market this year will be dwarfed by the same problem of investors’ confidence experienced in the sector last year. “The biggest challenges in 2016 were investors’ confidence – local and international. It does not look like there will be increased confidence in 2017. If that remains, we will most likely witness an economy that will remain stagnated as in 2016 and may possibly perform worse,” Odeyingbo warned.

    He regretted that the property market recently suffered an unprecedented glut as thousands of properties across the country remain unsold, abandoned and uncompleted. The problems, he said, could be traced to the era of cumulative bad governance, endemic corruption, disruption in the oil industry, and the absence of any revolutionary economic blueprint. This is why mass homelessness is now a common feature in all metropolitan areas, and infrastructure problems continue to escalate.

    “This year  may even pose a worse outlook in that regard.  Although, it is believed that since a large chunk of allocation has been given to the Power, Works and Housing and Urban Development sector in the budget, this quantum of money, in real terms, amounts to little when you factor in inflation and devaluation of the naira. I foresee a situation where a lot of the dollar denominated commercial rents for the new ‘A’ Class developments will be further reduced by as much as 30 to 40 per cent as tenants with ability to pay for such will further shrink,” he said.

    Stakeholders in the industry, however, warned that efforts must be made to ensure that the real estate market does not crash further on the heels of the theory that Real Estate in the country is an industry built on price fixing and fraud.

    Likely hot properties

    Odeyingbo is optimistic that the retail sector will most likely drive the sector, including the mass medium income category on the Mainland part of Lagos State. He observed that areas such as Yaba and its environs, Surulere, Maryland, Magodo Phase 2 (Shangisha/ Ketu Ikosi axis), Gbagada, and some other central areas on the Lagos mainland, will experience a boost. In Abuja, Phase 3, comprising Galadimawa, Kabusa, Lokogoma down to Apo resettlement will experience a boost. Another segment with a glimmer of hope is the development of the malls, though may be at reduced rate and possibly undertaken in phases.

    Greater investment opportunities

    The rise in Nigeria’s middle class has been over-hyped in recent years; but it is still a genuine phenomenon that is generating huge commercial and political opportunities. It has been estimated that the Nigerian middle class has tripled in size over the past 14 years – and the boom is gathering speed. This is one reason why the country is one of the biggest economies in Africa, accounting for about half of sub-Saharan Africa’s population and GDP.

    These factors will ensure that Nigeria remains a strong haven for housing investment. A researcher on housing provision and the economy, Mr. Mayowa Sodipo, cautioned that there was a study that concluded that earlier estimates of the middle class were much exaggerated. He, however, said  there is still dramatic growth in the bracket from about 4.6 million households in 2000 to almost 15 million households today if the middle class and lower-middle-class categories are both included.  He, therefore, said, it was assumed that over the next 15 years, the growth will continue to gain momentum, and a further 25 million households will become middle class and lower-middle-class households.

    Also Nigeria is by far the biggest source of the new middle class in Africa, with a forecast that by 2030, there will be 12 million middle-class households in Nigeria alone. Sodipo said it was given that the medium income Real Estate investment would fare better.

    Prospect of rent-to-own scheme

    Stakeholders are optimistic that the Rent-To-Own schemes will do well this year, considering that the scheme has come to bridge the gap between the lack of supply and the demand for affordable housing.

    For instance, Natanel Folrens, whose forte is in the rent-to-own scheme, has started identifying existing properties or landowners willing to pledge their property title deeds to a trust created and managed by UBA Trustees Limited and Union Trustees Limited. The company has already launched the scheme in several estates in Lagos and expected to step up its game this year as it enters the second phase of the scheme. The rent-to-own did fairly well toward the Second half of last year, even as the Lagos State government stepped up its involvement in the scheme, as we saw a lot of subscribers, and it is likely to do better this year.

    Cost of building material

    The high cost of building materials in real estate construction for large/multiple buildings is one of the 15 major factors responsible for project delays and cost escalation in Nigeria as noted by a study of the Nigerian Construction Industry.

    The survey revealed price fluctuation of building materials as the most severe cause of project cost escalation, which is attributed to the limitation in exchange rate which in turn affects construction material prices and general price level. This is not likely to change this year, especially if the local currency continues to freely fall against other international currencies.

     Between Abuja and Lagos markets

    In order to fully harness the opportunities prevalent in these markets, it is better to classify them into segments. Odeyingbo explained that if focusing on the residential segment in the two cities, there is a need for classification, using price and location as parameters. This has given rise to different market categories: Upper Market (N100m above); Middle–Upper Market (N50m-100m); Middle Market (N20m-50m); Low–Middle Market (N5m-20m) and Low Market (N5m below).

    Majority of the upper market and middle market–upper, in Lagos falls within the island axis. Nevertheless, the mainland axis also possesses some strong contenders that easily price well in the upper and middle – upper markets. In Abuja, majority of the upper market and middle markets are Maitama, Asokoro, Jabi and a few other areas – while other areas such as Lugbe, Phase 3, Lokogoma, Galadimawa, Kabusa and Apo areas can be tagged within the middle upper market.

    Odeyingbo explained that in Lagos, a property bought for N35 million on the Island will earn N2.2 million averagely on rent, translating to about 6.8 per cent yield annually, while a property bought in Phase 3, Abuja for N10 million can earn N800,000 on rent, which is about eight per cent its annual yield.

    He, therefore, said from these illustrations, the Abuja market guaranteed better earnings on property annually, and also gives better appreciative value.

    But one common denominator among stakeholders is that the present glut will remain, especially in places such as the Lagos Island (Ikoyi, V.I and Lekki axis) and Abuja; even after the recession begins to clear out.

  • Stakeholders seek adoption of alternative dispute resolution

    The real estate industry has grown to become one of the most vibrant sectors of the nation’s economy, including that of Lagos State.

    This is why the infrastructural renewal policy of the government, including an increased public spending on capital projects has made Lagos State a destination of choice for both commercial and residential developers.

    However, owing to this high market demand and the potentials the sector holds, activities in the real estate sector has become susceptible to abuse by individuals who engage in nefarious and unconventional activities. This has often times led to conflict within the industry.

    But, this trend may soon be reversed. Last week, the Estate Agents Practitioners Association of Nigeria (EAPAN), in collaboration with the Lagos State Real Estate Transaction Department, (LASRETRAD), took steps to ensure an end to such happenings is put in place.

    At an annual Stakeholders’ Forum organised by LASRETRAD, themed: “Arbitration: A Better option To Dispute Resolution in Real Estate Practice,” Governor Akinwunmi Ambode, represented at the forum by his Special Adviser on Housing, Mrs. Aramide Giwanson, regretted that the number of court cases that the state’s Ministry of Housing has instituted as a result of issues arising from real estate transactions in recent times has not only become unprecedented, but also become a thorny issue. The forum aimed at proffering solutions to some anomalies in tenancy transactions in the state, the bulk of whose blame has been heaped on estate agents.

    “Therefore, the need to expeditiously dispose cases in order to sanitise and build confidence in the sector for the benefit of all stakeholders cannot be over-emphasised,” Ambode said.

    Addressing the forum, which held at the Adeyemi Bero Auditorium, Lagos State government Secretariat, Alausa, the state’s Commissioner for Housing, Gbolahan Lawal, said that in view of the importance of sector and its significant contribution to the gross domestic product (GDP) of the country, it is imperative that activities in such a sector is adequately and properly regulated to enable it deliver at its optimum for the overall benefit of both practitioners and the entire citizenry. “In any human endeavour, conflict, misunderstanding and professional misconduct cannot be completely eliminated. This is more so in the course of real estate transactions,” he said, adding that the present administration’s desire for quick conflict resolution led to the pursuit of alternative dispute resolution in the current judicial system.

    The Guest Speaker, Mr. Juwon Adenuga, who is also an Estate Surveyor and Valuer, contended that with the understanding of disputes and resolution options, it could be taken for granted that the option of arbitration is better suited to resolve disputes than litigation. This is because it saves a lot of time and resources than going through the litigation process.

    He noted that intending and existing investors in the sector need the guidance of surveyors to make feasible and valuable decision before investing and even afterwards. This, according to Adenuga, is because investments in real estate are capital intensive and by implication, if proper discernment is not made, it can lead to huge losses on investments.

    “It’s important that incidents capable of resulting in financial losses are minimised. That is why disputes, being one of such incidents need to be resolved as efficiently as possible and it is in this regard one would see that arbitration is far better than litigation. It saves time, money and quickly restores healthy relationship among the contending parties,” Lawal noted.

    Adenuga also identified the various services provided in real estate practice to include valuation, feasibility and viability appraisal, projectproperty development, and noted that in the course of rendering these services, relationships are created, most of which are contractual and commercial in nature.

    The issue of estate agents and their role drew the greatest attention at the forum as a result of the several tenancy-related problems which has become a regular occurrence in urban cities.

    The President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Dr. Bolarinde Patunola-Ajayi, while speaking at the forum, urged estate agents to flush out the bad eggs in their midst so as to save their profession. “Estate agency is more than business; it’s a profession and I urge the practitioners to see it as such. It’s our role as practitioners to collaborate with government to weed out fraudsters and quacks from the system. Let us uphold the code of conduct of our profession and sanitise it,” Patuola-Ajayi admonished.

    On his part, the President, Real Estate Agents in Nigeria, Mr. Kunle Adedeji, urged government to set up a monitoring team that will comprise of government officials and representative of various estate agent associations to serve as checks on activities of the operators in the sector. “I will implore government to ensure that tenancy law in Lagos is fully implemented and that can only be possible with collaboration of all stakeholders in the sector,” he said.

  • Real estate group to honour ‘drivers of growth’

    The International Real Estate Federation (FIABCI), Nigerian chapter, plans to honour individuals and institutions that are ‘’drivers of growth”

    in the sector.

    The plan, an integral part of FIABCI Annual Award and Business Dinner in the new year, will help motivate the domestic real estate space, and help to drive excellence, encourage creativity and promote good business environment.

    “This is an annual event through which we provide insights on real estate and contribute to national economic space,” explained Joseph Akhigbe, president, FIABCI Nigeria, at a forum in Lagos.

    He said the theme of this year’s award and dinner is ‘Real estate: It is all about the economy’. He listed the five categories of awards as Finance (Most Effective Real Estate Financier), Architecture and Design, Public Private Partnership, Real Estate Journalist, and Developer/Urban Planning.

    “FIABCI is the most representative organisation of the real estate industry in the world and holds special consultative status with the Economic and Social Council (ECOSCOC) of the United Nations”, Akhigbe said, assuring that the forth-coming yearly dinner would provoke thoughts on the economy and the real estate sector.

    Minister for Power, Works and Housing, Babatunde Fashola, is expected at the dinner as the special guest of honour while Doyin Salami, a lecturer at the Lagos Business School and a member of the Monetary Policy Committee of the Central Bank of Nigeria (CBN) will be the guest speaker.

    The federation’s Africa president, Chudi Ubosi, recalled that the body launched a campaign on moderately-priced or affordable housing for which it sought private sector interests to partner with in order to proffer solution to the problems associated with the delivery of such houses.

    “Our goal in this campaign  is to find various ways to reduce, as quickly as possible, the imbalance between the low supply and huge demand for moderately-priced housing units,” Ubosi said, assuring that through the campaign, FIABCI plans, among other measures, to identify beneficial financing formula that will encourage investors and developers to embrace the campaign and play an active role in planning tomorrow’s cities equipped with affordable housing.

  • Section one of Lagos-Ibadan expressway ‘almost ready’

    Section one of Lagos-Ibadan expressway ‘almost ready’

    The Federal Controller of Works, Lagos, Mr Godwin Eke, has said the rehabilitation of section one of the Lagos-Ibadan expressway has reached 40 per cent completion. Section one of the road spans from Lagos to Sagamu interchange and is being handled by Julius Berger, while section two spans from Sagamu Interchange to Ibadan, and is handled by Reynolds Construction Company. Eke made the revelation while on an inspection tour of the road during the festive period.

    “This action to monitor the flow of traffic was necessitated by the insistence of the Minister for Power, Works and Housing, Mr Babatunde Fashola, who insisted that since there is some improvements on the road, there is a need to monitor and caution motorists who might be tempted to over speed, because there is usually temptation to over speed when driving on a smooth road like this,” he said.

    In  a similar vein, the Federal Roads Safety Corps Unit Commander, Ogunmakin, Ogun State, Mr David Ogunjana, expressed worry at the speed of vehicles on the reconstructed portion of the highway. While he appreciated the Federal Government for its efforts on the road, especially for being free of obstruction and low crashes compared to previous times, he advised road users to apply caution on their speed now that the road is smooth and free. “No obstruction, no gridlock, the only thing we are afraid of is over speeding; motorists should use speed limiting devices to monitor their speed,” he said.

    Motorists who plied the road during the yuletide also expressed satisfaction with the smoothness of the road and the free flow of traffic. For instance, a lawyer, who identified himself as Mr Femi Adeyemo, claimed to have been plying the road since 1980, praised the current facelift. He likened it to the “early years” of the road. He said though initially when construction work started, it was very difficult travelling on the road, but there has been a lot of improvement, particularly on the Lagos axis of the road.

    A truck driver, Mr Kola Adeyemi, also attested to the state of the road. “The road is okay now compared to a few months ago, it is smooth and no traffic, we thank government for the work,” he said.

    Another commercial bus driver who plies the Lagos-Ibadan route, Mr Musiliu Adewale, commended the free flow of traffic, but appealed for more warning signs to avoid accidents. “Our movement is free now; before, we spend more than two hours from Berger (Lagos) to Sagamu Interchange, but now it is just about 30 minutes,” he said.Adewale appealed for increased surveillance by traffic management agencies to regulate speed on the highway.

  • Obasanjo, others seek joint efforts to tackle global warming

    Obasanjo, others seek joint efforts to tackle global warming

    Former President, Chief Olusegun Obasanjo, has called for joint efforts to reverse the negative effects of climate change and environmental degradation in the country.

    He stated this at the showing and discussion of a film on climate change produced by the Shehu Musa Yar’Ardua Foundation.

    The film, titled: Nowhere to Run, was shown in the multi-purpose hall of Bells University of Technology (BELLSTECH), Ota, Ogun State.

    In  his keynote address, Obasanjo identified with the theme of the film, noting that environmental degradation was of great concern to the nation. He enjoined everyone to make efforts to reverse its negative effects.

    The film, which was spearheaded by the foundation’s Director-General, Mrs Jacqueline Farris and Director, Mr Amara Nwankpa, was aimed at sensitising the public on the negative effects of global warming.

    BELLSTECH Vice Chancellor, Prof Jeremiah Ojediran said the film project has lived up to the ideals of the late Mallam Shehu Yar’Ardua who was committed to national unity, good governance and a democratic society for all Nigerians.

    He noted that the university, which has all its courses, including those offered by the Post-Graduate College, accredited by the National Universities Commission (NUC) has a master plan that takes environmental protection seriously.

    Ojediran explained the dangers of environmental degradation, as it affects the national spectrum, from the North across the Middle Belt region down to the south, as portrayed by the film.

    He said: “Instructively, it also links the devastating effects of climate change with the Boko Haram insurgency in the Northeast geo-political axis and the resurgent militancy in the oil-rich Niger Delta region.

    “With the pressures of rising population, shifting weather conditions, made worse by man’s deliberate destruction of the environment through deforestation, all adversely affect food security.”

    In a discussion session, an expert on environmental matters, Dr Fatima Akilu, said: “Farmers have less arable land to cultivate their crops. There is reduced production of grains. Pastoralists have less areas for grazing. Fulani herdsmen move southwards. Ultimately, communal clashes ensue; as shown in the film by the killing of 57 people in a rural setting somewhere in Benue State. Yet, all these could have been prevented.”

    Citing scenarios from the film, she lamented that without jobs, mass migration of people in the Northeast take place towards Maiduguri town, but they soon realise that their dreams can hardly find the light of day. The resultant effect of this is that many of the idle hands fall preys to terrorists who  lured them with no-interest loans and be converted to religious extremists.

    For the effects on the Niger Delta region, she noted that the film captures what it calls, “Fire in the sky” with the uncontrolled emission of gases from oil companies, described as the largest in the entire African continent.

    Akilu lamented that 45 million tons of such gases are emitted in Nigeria daily.

    “This is equivalent to crude oil production in Brazil. The effects on human health are damning. Increased inhalation of gaseous chemicals such as sulphur and nitrogen dioxide lead to incidents of acid brain, cancer and breathing constraints,” she said.

    Other discussants lamented the dangers of oil spillage.

    “For instance, oil spillage recorded in the film as highest in Bayelsa State has turned what ordinarily should have been the nation’s food basket into a marshy death trap. Sometimes such oil spills could cover as large as 80 per cent of affected land. Fishermen cannot fish and farmers cannot cultivate the land. Made worse is the discovery that some contractors actually sponsor such spillage, only to turn round to demand for government contracts to reconstruct the affected areas,” they said.

    Discussants called attention to the United Nations Environmental Programme’s intervention, which states that 25 years were required for the clean- up of affected areas, adding that until recently, less work had been done.

    The varsity’s Deputy Vice Chancellor, Prof Olusegun Areola called on Nigerians to find lasting solutions to the ‘’environmental disaster’’.

    He suggested that the film be made available to all Nigerians to spur patriotism and better care for the environment.

    The Dean, College of Natural and Applied Sciences, Prof G. J. Osemeobo, said activities such as tree felling, over cultivation and bush burning come out of extreme poverty, which needs to be addressed.

    “No effort should therefore, be spared by various governments, their related Agencies, the private sector and concerned individuals to enlighten the public and more so, put in motion pragmatic measures to mitigate the scourge of climate change on man. A stitch in time would save nine,” he concluded.

  • ‘Rent-to-own scheme houses reasonably priced’

    The Commissioner for Housing in Lagos State, Prince Gbolahan Lawal has said the houses under the Rent-to-Own and the Rental Housing scheme are well priced, especially if the prevailing economic downturn is considered.

    Lawal spoke at the kick off of the scheme last weekend in Lagos. He  said the houses, once allocated, could not be transfered.

    At the event, Lawal, who was represented by the Deputy General Manager, Lagos State Mortgage Board, Mr. Bayowa Foresythe, noted that it was difficult for Lagosians to get a decent and affordable accommodation,  particularly in the Lagos metropolis.

    He said it was for this reason that the scheme was launched to ensure that all Lagosians, irrespective of their status, have access to decent shelter to improve the quality of life.

    He assured Lagosians of a transparent allocation, adding that they need not know anyone in the government to to apply.

    Similarly, Governor, Akinwunmi Ambode, represented by his Special Adviser on Commerce, Industry and Cooperatives, Mr. Benjamen Olabinjo, noted that the launch was a milestone in public housing. He said it was the outcome of innovation, hard work and the desire of the governmnet to improve lives.

    “The Rent-To-Own and the Rental Housing policies being launched today are my administration’s initiatives aimed at ensuring that all Lagosians irrespective of status, income and affiliations have access to decent shelter to improve quality of life,” he said.

    Ambode explained that under the  arrangement, individuals were required to pay only five per cent of the value of the unit as commitment fee and the balance is spread over 10 years. ‘’This programme allows the tenant to live on the property while paying towards ownership at a fixed rent within 10 years.

    ‘’The Rental Housing policy also allows the tenants to occupy government housing units paying monthly rent after an initial one month deposit. This policy is targeted at persons with regular source of income who may not want to participate in Rent-To-Own programme.

    To this end, the government has dedicated a total of 12 housing estates spread over the three Senatorial Districts of Lagos for the implementation of the Rent-To-Own and Rental Housing policies. The estates are as follows: Sir Michael Otedola Estate, Odoragunshin, Epe, 336 units; CHOIS City, Agbowa, 400 units; Alhaja Adetoun Mustapha Estate, Ojokoro, 32 units; Hon. Olaitan Mustapha Estate, Ojokoro, 48 units; Oba Adeboruwa Estate, Igbogbo, Ikorodu 256 units; Egan-Igando Housing Estate, Alimosho, 684 units; Igando Gardens, Igando, Alimosho 492 units; Igbogbo IIB Housing Estate, Igbogbo, Ikorodu, 360 units; Odo-Onosa, Agbowa, 661 units;  Iponri  Estate,  Iponri, Surulere, 132 units;                Sangotedo Estate, Sangotedo, Eti-Osa 594 units and Ajara Estate, Badagry, 360 units. This brings to total 4, 355 housing units available.’’

    Ambode, however, explained that the programme would commence in five of the estates. They are Sir Michael Otedola Housing Estate, Odoragunshin, Epe; CHOIS City, Agbowa; Oba Adeboruwa Estate, Igbogbo, Ikorodu; Alhaja Adetoun Mustapha Estate, Ojokoro and Hon. Olaitan Mustapha Estate, Ojokoro.

    Eighty per cent of the units in the five estates have been earmarked for Rent-to-Own, while the others are dedicated to the rental housing scheme.

  • ‘People like to cut corners’

    ‘People like to cut corners’

    Nigerian Institution of Surveyors President Mr. Akinleye Oyegbola, in this interview with Muyiwa Lucas, says cutting corners is a challenge that must be eliminated in the real estate sector. 

    What are the challenges facing surveying and how do you wish to tackle them?

    From the fall-out of the profession not promoting itself, you have to talk a lot and the society loses. The Geographic Informatics System (GIS) gives us the opportunity to manage our information for the benefit of the society. But, it is a tool. You have companies peddling the GIS. Because of the level of enlightenment of leaders, they try to think of what they can gain and not the problems. When problems arise, they will now call in the surveyor to clear the mess. The state governors want to know the amount of money to be made. It is the surveyor they will now call to solve the problems. Leaders should have surveyors as consultants. The Survey Departments in federal and state governments should ensure that this is adhered to.

    In the area of Certificate of Occupancy (C of O), I do not blame the governors for giving out the C of Os. But they should not do it to the detriment of the surveying profession. The surveyor has toiled to render services. Chief executives of states should realise this. The government of a state cannot employ auditors to audit firms. The government’s quantity surveyors cannot do everything. You must have both the private and public. They should ensure that all sides are happy and we will still achieve the assured goal. Most of the work we do involve the lands. That is why we have problems. If you want to construct a tunnel, you could construct the tunnel by digging from both ends and you meet somewhere. The quacks are there and are digging from both ends without proper direction and they make mistakes as they cannot meet. Then you call in the surveyor to correct the mistakes. You should have brought in the surveyor from the start so that you get your direction from the beginning. When you make mistakes, you spend more time and money to correct them. A lot is meant for the surveyors in the developing countries, even in dam construction. The surveyor plans maps for navigation for the aircraft ans the ships. But people do not know.

    To what extent are the federal and state governments patronising local surveyors?

    I have visited states’ chief executives, deputy governors and commissioners. I used the opportunity to hammer on the issues we are facing. At every state I get into, I talk to them on how we can come in to help in their drive for revenue generation. The success has been very tremendous and wonderful. We are also talking to sectoral groups. We belong to the Environmental group of the APBN and we use the platform to tackle some of our challenges.

    Could you explain how the trend of collapsed structures or buildings in cities and road failures be tackled?

    The issue of collapses of structures is what President Muhammadu Buhari is trying to tackle, which is corruption. Nigerians are not short of ideas. We are enlightened. But, it is the will to maintain propriety. There is no building that is being put in place that you do not have the list of professionals involved in the job. But, they do not use them. People like to cut corners. Even public officers are part of it. We have robust structures we do not use. We have agencies which concentrate in making money instead of ensuring that something is done properly. Corruption is in several ways.

  • Lafarge inaugurates N260m projects in two communities

    To improve the well-being of its host communities, Lafarge Africa has committed N260 million to community  projects in Ewekoro and Shagamu.

    Speaking at the inauguration of the projects, the Country CEO, Lafarge Africa PLC, who was represented by the Communication and Public Affairs Director, Mrs. Folashade Ambrose-Medebem, explained that the firm’s investments in corporate social responsibility (CSR) was aimed at developing its host communities.

    She said Lafarge Africa’s CSR investments were strategic, reiterating the company’s commitment to making positive impact in its host communities.

    Such CSR, she explained, was also borne out of its sustainability strategy with its four main pillars – climate, circular economy, water and nature.

    “Lafarge Africa’s CSR investments are strategic and needs-based. Our commitment to the development of our local communities is unwavering because we recognise host communities as strategic partners to our business,” she stressed.

    Some of the projects in Ewekoro  are a modern police station in Itori; a town hall in Olujobi and a block of classrooms at Lapeleke.

    No fewer than 119 indigenes have benefited from the firm’s Youth Empowerment Scheme while bursaries were given to 204 undergraduate students of the Ewekoro community.

    Other initiatives are farmers’ support programme, which  impacted 127 indigenes and elderly care support programme whose beneficiaries were about 128 senior citizens.

    In Shagamu, the firm said it has invested up to N100 million on community development projects. They include blocks of classrooms in some public schools, boreholes and a health clinic. Educational support materials as well as empowerment tools were also handed to beneficiaries from the various communities in Sagamu.

    The the cement giant offered bursary awards to 100 indigent students of institutions of higher learning and donated 150 dual lockers to public primary schools in Sagamu.

    Ogun State Commissioner for Community Development, Mr. Gbenga Ademosun, said Lafarge Africa has continued to project itself as a partner of the ‘’Gateway State’’ with its people-oriented CSR initiatives.

    He urged the host communities to continue to partner with the company to engender improved performance that would, in turn, make life better for the people of Sagamu, especially considering the economic challenges being faced by businesses.

    He urged the traditional rulers and the people of the communities to put to good use, the infrastructure and equipment received from Lafarge by developing a good maintenance culture.

    Elepe of Epe, Oba Adewale Osiberu, gave royal blessings to Lafarge Africa, for its good neighbourliness, assuring it of continued backing from the good people of Remo, while seeking unceasing   cooperation from the company.

    Also, the Olu of Itori, Oba Abdulfatai Akorede Akamo, prayed for the continued growth of the company, adding that the construction of a modern police station in the headquarters of Ewekoro Local Government would help to meet the security needs of the host community.