The Nation Newspaper

Category: Building & Properties

  • Developer plans N3.8b Green Estate for Calabar

    Efforts to reduce the housing deficit in the country has received a boost as an indigenous firm, Turn – Over Plus Limited, has concluded plans to intervene. The firm, with its Green City Estate, Calabar, project, hopes to change the landscape of housing.

    The Green City Estate is located in Ikot Offfiong, Ambia, said to be the most serene part of Calabar metropolitan city, with a clean, beautiful, well developed infrastructure, hospitable and good safety and security facility.

    The Green City Estate which will be fully flagged off in August, currently houses a number of two to three bedroom apartments spread over three bays, just as duplexes are also been developed.

    Apart from the planned modification of the existing structures to meet the green city codes, the management of the city plans to develop additional 140 future homes within the next 12 months.

    According to the Acting Managing Director of the firm, Dr. Adedayo Felix, the project is conceived out of determination and strong planning, and is set out to offer residents huge avenue of cozy, luxurious and healthy living. He further stated that a stay in the city will guarantee total rejuvenation and access to neighbourhood centres.

    The estate will boast of clean environment, clean energy, sound infrastructure, green areas, neighbourhood parks and guests’ houses for visitors. It will also be all encompassing as it will also be a host to event centres, educational institutions for residents’ children, auto garage, pharmacy, city security, city – wide security fence and future homes to mention but a few.

    Adedayo, therefore, urged investors to take advantage of the opportunity by investing in its facilities like real estate, commercial stores, entertainment centres, hospitality/extended – stay facilities, staff  housing scheme, student hostels and independent rental homes because it is offering the best opportunity to reap huge financial returns from minimum investment

    The minimum investment in the green city housing development opportunities is N5 million which is projected to generate 100 per cent return on investment by the end of five years

  • WTC Abuja: An edifice like no other

    WTC Abuja: An edifice like no other

    The first phase of the ambitious N200 billion World Trade Centre (WTC) in Abuja, is billed for completion in December. It promises to be the tallest skyscraper in Africa, promoting and inspiring Abuja’s promising future. It also has enormous business growth potential, reports Assistant Editor MUYIWA LUCAS.

    The skyline of the Federal Capital Territory is changing. This is because rising from the ashes of the former Bakassi market in the Central Business Area in the City, is a 37-storey WTC towers, a multi-use complex, comprising luxury, high rise office towers, luxury apartments, conference facilities, capital city shopping mall and entertainment facilities.

    The market was demolished in 2003 by the Federal Capital Territory Administration (FCTA). The site was handed to the Abuja Investment Company Limited (AICL) to develop as a befitting world-class shopping mall.

    The project, which started in 2011, is being promoted by First Continental Properties Limited, a subsidiary of Churchgate Group, for over N200 billion. The funding is being raised through private funds as well as local and foreign financial institutions’ support. Now, the first phase, which may become the reference point for distinct address for residential, commercial and office space, is billed for completion in December.

    The project sits on 6,102 hectares on Constitution Avenue in the Central Business Area, making it strategically positioned in the heart of  Abuja, and leads into the city from the airport. It is adjacent to the main Railway Station as well as the Central Business Transport Terminal.

    A ring road is also being constructed at the site, giving it access to the centre of the city.

    sConsultants to the project include Churchgate Construction Company Limited, as the main contractor, while the international consultants include Woods Bagot Limited (Concept Architect) and WSP Consultants (Structural Consultant and MEP Consultant). The local consultants include Messrs Hancock Ogundiya & Partners (MEP & C&S Consultant) and Space Designers Limited (local architectural).

    The Group Managing Director, Churchgate Group, Mr. Vinay Mahtani, explained that the WTC Abuja is an eight-tower complex made up of luxury residences, offices, apartments, a five-star hotel and a 40,000 sq metres Capital City Mall.

    Other are a leisure centre, cinema and convention facility. The project, he said, offers unparallelled luxury and comfort to those seeking a lifestyle above the rest, as each building within the WTC complex has been designed to appeal to global businesses that require premier services, such as meeting space, topnotch security and the highest standard of interior finishes.

    The General Manager, Operations,  Ibukun Adeogun, said the WTC master plan provides for public gatherings, services and amenities and will rank among landmark destinations of the world.

    That is not all. On completion, Mahtani says immense benefits would accrue to the tenants and occupants of the complex. For instance, the WTC will become a member of the World Trade Centres Association (WTCA) with 330 locations worldwide, thereby, providing a platform for its occupants to connect to the largest global business network of over 750,000 entrepreneurs.

    “As a tenant at World Trade Centre, Abuja, you will automatically become a member of the World Trade Centre Club and can draw on the credibility and brand of the organisation – which can open doors to new market of export. Also, organisations within the WTC network can enter new markets quickly and without excessive investment by making the WTC their ‘outsourced international business department, ” he said.

    Mahtani added that businesses within the WTC network would avoid the pitfalls of country-specific tax and legal regulations through training, advice and business referrals delivered by WTC professionals and members, including providing opportunities of holding meetings abroad in one of the centres of the organisation and participating in WTC conferences, events, and fairs globally.

    Although the WTC project is still developing,  the promoters said many multinational businesses have signified interests in occupying both residential and commercial spaces in the complex. They include are oil firms, international and local blue chip companies. Rents are yet to be fixed, it was learnt.

    Laudable as the project is, it has not been a smooth sail. Though the first phase was  scheduled for completion in 2013, this was not to be. Due to ‘unforeseen circumstances’, it was shifted to its new date.

    Mahtani said certain areas of the project had to be redesigned to achieve the desired level of quality and standard. Also, the contractors of the National and Light Railway project, while integrating the WTC project into their plan, allegedly could not meet the previous date.

    Again, there was the issue of maintenance. Across the country, sights of a once magnificent edifice in decrepit states are common. Mahtani, however, allayed such fears. “Churchgate Group has the credibility of maintaining all its skyline buildings to international standard.The clientele base of Churchgate include numerous multinationals who expect a high level of quality and standard, which we have been able to successfully provide since the inception of our properties.  We pride ourselves on the level of service we are able to offer to our customers,” he assured.

    He added that his firm has built some of Nigeria’s architectural masterpieces, including the Churchgate Tower in Lagos, which is the first building to be constructed from steel and glass, and the Oceanview apartments, Lagos.

    Yet, stakeholders are hopeful of the project. An Abuja resident, with huge interests in real estate, Alhaji Ibrahim Kareem, wants the project be used as a model to implement some upcoming private partnership project in the FCT.

    A former Minister of the FCT, Senator Bala Mohammed, assured that because of the high profile and global scope of the WTC project, the Territory Authority requested the Federal Ministry of Foreign Affairs to process a diplomatic status for it.

    True, the journey to find investors for the project was difficult. This was because attempts by the AICL to get partners failed before the selection of First Continental Properties Limited, a subsidiary of Churchgate Investment Company Limited in 2009.

    “The Churchgate Group emerged as the preferred bidder through an open and keenly contested process. Our company was adjudged credible to develop the WTC project because of our longstanding track record. Already, the project has provided job opportunities for about 600 inhabitants of Abuja and the satellite towns with the figure expected to rise to 1,500 as work progresses,” Mahtani added.

  • FHA Mortgage Bank suspends MD over ‘questionable’ loans, others

    FHA Mortgage Bank suspends MD over ‘questionable’ loans, others

    •MD suspended as board orders forensic audit
    • Court stops MD’s suspension

    The Board of Directors of the Federal Housing Authority Mortgage Bank has appointed an independent firm to audit the bank’s books. It has also suspended the Managing Director, Mr. Roland Igbinoba, pending the outcome of the audit.

    The board’s decision to suspend Igbinoba, according to sources, followed the report of a committee set up by the Management to look into the bank’s operations. The report revealed abuses in the bank, erosion of shareholders’funds, several operational and administrative malpractices, pointing out that these could be a threat to the bank if not properly handled.

    In the build up to Igbinoba’s suspension, the Central Bank of Nigeria (CBN) had placed the FHA Mortgage Bank Limited, a subsidiary of the FHA, on “high risk” rating.

    In its 2014 supervisory report on the mortgage bank, CBN described the bank’s composite risk rating as high and directed that an emergency board meeting be called in four weeks to discuss the issues.

    The report noted that the loan disbursements were without approvals, adding that there were no limits for its various grades of services despite its board’s September 2014 credit recommendations.

    The report also highlighted the granting of staff loans without documentation and non-implementation of effective internal control procedures to safeguard its assets and prevent fraud.

    The Nation learnt that the measures were meant to protect the bank, FHA’s investment,  and shield the institution from risks.

    For instance, during the CBN-induced recapitalisation for mortgage banks, the FHA management was said to have handed over to its mortgage bank, assets in excess of N11 billion to facilitate the renewal of its licence by the CBN, and also ensure that it met the recapitalisation towards the issuance of a national license for the institution.

    The assets, in form of landed properties, were developed plots in the following estates: a 40 units FHA Estate at Apo, Abuja; FHA Estate at Gonin Gora, Kaduna Town, Kaduna State; FHA Estate at Odukpani, near Calabar, Cross River State; FHA Estate at Abesan, Lagos State; FHA Estate at Gombe, Gombe State; FHA Estate at Yenagoa, Bayelsa State, and FHA Estate at Osogbo, Osun State.

    However, the bank was unable to sell the assets within the statutory period granted by the CBN for the recapitalisation to get the licence to operate as a national mortgage bank; thereby forcing it to be a fringe operator at a regional level. It was gathered that since the outcome of the recapitalisation, which the bank failed to achieve the parent body’s expectation of being a national operator, the FHA management has written to Igbinoba to return the uncommitted properties in its possession to no avail.

    Yet, another source in the FHA informed The Nation that if at all the houses were sold, the amount realised from the sale could not be traced to any bank account despite Igbinoba’s claims that the money was in an account supervised by the CBN.

    Other areas that has threatened the bank’s liquidity bothers on operational malpractices. This, the FHA Management, the bank’s Board of Directors and recently the CBN 2014 reports noted to include: the inability to ascertain the bank’s liquidity position, a factor being fingered as a probable reason the bank is most times unable to meet customers demand as the deposit liability is more than what is available in the bank; the huge difference between the N226.4million profit declared by the bank in 2014 with the actual cumulative profit of N64.9million as at 31/11/2014; the fears that bank’s shareholders fund of N2,968,188,000 as at December 2013 seems to have been eroded as a result of the huge lending made from the capital of the bank; the drive for deposit mobilisation is not taken seriously by the bank; hence the amount raised through recapitalisation has been loaned out to its customers and most of the loans are non-performing

    The report also alleged that Igbinoba granted loans without the Board’s approval, including a personal loan of N35 million in 2014 at an interest rate of three per cent per year, whereas staff were charged  14 per cent interest per year.

    While our sources said Igbinoba was called to answer queries on the development, his response has remained unsatisfactory. Yet, there are more issues causing serious concerns. For instance, in the build up to the 2014 CBN’s Risk-Rating evaluation, the bank’s interest income accounted for an average of 33 per cent over the past three years; thus allegedly making the principal sources of income highly volatile, hence not acceptable by CBN. Besides, the bank’s deposit for shares if capitalised,sources say, will only bring shareholders funds to N2.399 billion, which is still below the regulatory minimum of N2.5billion.

    Also, worrisome is that the bank exceeds the single obligator limit of five and 20 per cent of its shareholder fund, thereby contravening Section 5.1(k) of the revised guidelines for primary mortgage banks (PMBs) in the country.

    The management noted that the bank did not have an approval limit for the various grades of its services despite the Board’s Credit Committee recommendation of September 2014. It also observed that the loans granted by the MD to himself lacked proper documentation and contravenes section 7.3 (3) of the guidelines.

    Other anomalies allegedly observed include that the bank did not implement some of the recommendations contained in the last examination report, thereby attracting financial penalty as contained in section 7.3 (23) of the guidelines; huge mis-match of deposits and credits in the time-bands of 1 – 30 days, 181 – 360 days and those above 360 days, and a poorly implemented debt recovery effort as only N5.718 million out of N253.183 million was recorded during the period in review.

    “From the foregoing issues, bordering on the bank’s CEO’s operational and administrative inconsistencies with the regulations, as well as his failure to take corrections or implement directives from the Board of Directors despite verbal and written admonitions, it has become imperative to take the necessary step of involving a third party to assess the status of the operations of the bank in order to prove which of the sides is wrong,” the FHA management submitted, adding that this would enable a quick action desperately needed to salvage the bank from risks.

    Since the creation of the subsidiary in 1997, the FHA, being the sole shareholder of the mortgage bank, has been supporting it technically and financially.The most recent landmark support was in 2013 when the CBN demanded that  all PMBs must recapitalise to a minimum of N2.5 billion for state licence and N5 billion for national licence. Then, the FHA Mortgage Bank had its share capital in negative position of N269million. Therefore, the FHA had to intervene by giving the bank landed properties worth N11 billion and also injected cash of N500 million to enable the bank meet up with the CBN’s requirement.

    Meanwhile, as the National Industrial Court in Abuja has restrained the board, from suspending Igbinoba. Justice M. N. Esowe issued the restraining order, following a motion ex-parte filed by his lawyer, Chike Okafor, in suit number NICN/ABJ/194/2015.  The FHA, FHA Homes Limited and Chairman of the board, Prof. Mohammed Al-Amin are co-defedants.

    The Board claims to have it has appealed the verdict.

  • ‘Why housing corporations are not performing’

    Political interference and lack of independence have been identified as the bane of housing agencies.

    President,  Association of Housing Corporations of Nigeria (AHCN), Dr. Ifenna E. Chukwujekwu, said at the association’s forum in Lagos that these factors, among others are hindering the sorporations from performing.

    With Nigeria’s homeownership rate put at about 25 per cent, compared to 90 per cent in Singapore, 70 per cent in the United States, 74 per cent in Brazil, 63 per cent in Columbia, 56 per cent in South Africa and 41 per cent in Libya, Chukwujekwu regretted that the situation did not give much hope of improving because most of the state housing agencies were underutilised and have been rendered redundant, thereby making them be in a position in which they are unable to effectively discharge their primary responsibility as stated in the laws setting them up.

    He hinged the corporations’ failure on the usurpation of their  roles by the states’ ministry, adding that the latter are supposed to formulate policies and monitor its parastatals to ensure compliance.

    Besides, Chukwujekwu noted inadequate finance to state housing corporations on project execution as a limiting factor ins the industry.

    According to the AHCN chief, inadequate moral support and backing in terms of loan guarantee for state housing corporations when seeking housing loans and politicking with such funds, has rendered some corporations unable to meet up with servicing their loans.

    The non-availability of Primary Mortgage Institutions (PMIs) to assist some state housing corporations in disposing some of their housing units, he insisted, has  been a problem.

    “The problems of housing delivery are rooted in the lack of finance, escalating cost of building materials and infrastructural development cost; these three problems have also constrained the performance of housing agencies,” Chukwujekwu said.

    He listed other problems to include lack of government’s support in the provision of infrastructural facilities in most housing estates, inadequate funding of research on local building materials; withdrawal of some state governments from the National Housing Fund (NHF) contribution, the establishment of politically motivated parallel housing organisations in some state, thereby duplicating the duties of the corporations.

    But all hope is not lost. Chukwujekwe said the corporations could still deliver on their mandate if they are shielded from political interference.

    To do this, he said the corporations shoud be commercialised to make them more productive.

    Also, the corporations should be restructured to make them vibrant.

    AHCN was established in 1964 to make available homes and mass produce houses in their states.

  • ‘Fed Govt needs N69tr for housing’

    For the Federal Government to tackle the housing deficit in the country, about 820,000 housing units worth about N69 trillion will be required yearly, the Managing Director of Home Lottery Limited, Mr. Kelvin Otung, has said.

    He spoke at his firm’s presentation to a winner of a three-bedroom house in its home lottery scheme.

    He explained that the motivation for the lottery was borne out of the fact that Nigeria has a huge  housing need.

    Otung explained that though the firm was not assuring on having the capacity to resolve the housing deficit through the home lottery, his company plans to contribute about 1, 000 housing units yearly, and build a very good bridge between the government and the people by bringing housing closer to the people, especially people who cannot  own a house with ease.

    Furthermore, he explained that the idea behind the lottery is to offer Nigerians the opportunity to own a home through a credible, sustainable and logically transparent lottery scheme

    His conviction of achieving this feat may have been buoyed by the participation level in the first draw in the first week of the firm’s outing.

    According to Otung, in the first draw which produced the first winner, 2,000 people played in the lottery- an impressive figure considering that it just started operating. Subsequently, draws for homes are to hold weekly, and ultimately, multiple draws daily, until the 1, 000 housing units are achieved.

    The winner of the home,from Delta State, Mr. Elue Gabriel Mokogwu, said it was his first time to play a lottery because he had always considered lottery as a fraud.

    “On May 30, 2015, I bought two lottery tickets at N250 each of Home lottery Limited. When I got a call that I had won, I couldn’t believe it because I had never played any kind of lotto before now; I am so happy,” he explained.

    The house may likely serve as a good source of income for the Asaba-based businessman since he has no plan of relocating to Lagos. However, he said he was yet to decide what to do with the house.

  • ‘Boost access to water, sanitation’

    The Head of Governance, WaterAid Nigeria, Tolani Busari, has called on governments at all levels to put policies in place that will enable all Nigerians access Water, Sanitation and Hygiene (WASH).

    She  said  in Abuja   that it was  necessary to close the inequality gap between the rich and the poor to enable Nigerians access water and sanitation.

    She stressed the need for Nigeria to put policies in place for implementing the incoming Sustainable Development Goals (SDGs), which would become effective from September.

    “Nigeria was yet to address the problem of poor sanitation; the new government needs to put policies in place to address this challenge.

    “Inequality gaps to accessing water and sanitation is wide, this is because the difference between the rich and the poor is also very wide.

    “It is, however, necessary for all stakeholders to address this issue, to enable all Nigerians live productive lives,” he said.

    Busari said it was worthy to note that no fewer than 100 million people lack access to basic sanitation, adding that 16 million of them also lack access to water.

    She explained that this was the cause of nearly 100,000 children under five deaths, from preventable causes, such as diarrhoea, cholera among others.

    She expressed concerns over how government was handling sanitation, arguing that the nation’s poor handling of sanitation issues is not just restricted to hygiene.

    “Without a private toilet, women and girls are vulnerable to violence, intimidation and indignity.

    “Women and girls living in Nigeria without toilet facilities spend about 3.1 billion hours each year finding a place to go to toilet in the open.

    “Sanitation has always been the most neglected and off-track of the MDGs, with little funding, resources or political will to address the crisis.”

    The head of governance said little progress has been recorded towards the agreed target of allocating 0.5 per cent of GDP to sanitation.

    She said all stakeholders must begin to see access to sanitation and water as fundamental human rights, saying that it was possible for everyone to own a toilet and a means of hygiene.

    Busari said it was also for all stakeholders to address the underlying causes of inequality, adding that this would go a long way to make Nigeria an inclusive society.

    She also urged community members to take ownership of their hygiene, saying sanitation starts with the individual before reflecting in the society.

    On WaterAid’s activities, Busari said the group was working with the government to scale up access to water, sanitation and hygiene in all parts of the country.

     

  • Experts seek alternative construction solution

    For the country to achieve a speedy progress in the quest to solving its estimated 17 million housing deficit, there is a need to consider alternative sources and techniques in building construction. One of the techniques being propagated is dry construction.

    The technology, also known as pre-fabricated construction, involves the use of factory-built building parts which are later assembled on-site to build houses, offices, and other apartments. The building parts are usually manufactured off-site in advance, in standard sections that can be easily transported and assembled on-site.

    It was, therefore, instructive when, last week, roofing and building solutions provider, Nigerite Limited, launched into the local building and construction market the Kalsi building solution.

    Stakeholders in the built environment reckon that the introduction of the Kalsi product is a major technological accomplishment for Nigeria. This is because, it simply puts Nigeria in a comfortable position as a reckoning force in the committee of developed and developing countries in the world by promoting a product that is at the peak of innovative building trend in America, Europe and some part of Asia.

    According to Nigerite’s Managing Director, Mr. Frank Le Bris, his firmowes it a duty to the industry and the country in general to champion economic and technological innovations that obtains in the developed world and bring same to Nigeria.

    Le Bris explained that while the introduction of the Kalsi building solution technology has cost the company huge amount of money in terms of investment in new factory lines and equipment as well as additional personnel, yet he sees it as “just one of the few things we can do to contribute to the economic and technological upgrade of Nigeria.”

    Furthermore, he explained, with dry construction gaining the ground globally, the Kalsi dry construction system now comes in handy as one of the fasted means of bridging the housing deficit gap in the country since it takes few weeks to construct from start to finish.

    Other benefits of using the kalsi building solution, Le Bris listed to include reducing cost of construction significantly over the use of brick and mortar system in the long run; it is all encompassing as it offers products cutting across all parts of a building except the roofing; it ensures cleaner environment at construction sites; it is easy to move and construct; absolutely safe in its applications and use.

    Le Bris, however, noted thatthe Kalsi building solution is not a replacement for the wet construction system, but rather an alternative to it as it provides quicker, effective and cheaper means of renovation.

    An estate developer, Mr. Adeyeye Ogunnusi, corroborated the cost-saving advantage of the Kalsi building solution. He explained that having used the solution in some of his building projects before the formal introduction, he was able to save up to 40 per cent on cost of construction.

    Marketing Manager, Nigerite, Mr. Abayomi Lawal, said with the introduction of the Kalsi, Nigerians and prospective home owners were guaranteed quality and affordable products for their dry construction building systems.

    He expressed optimism about the quality and standard of all products on Nigerite’s stable, noting that the new dry construction solutions would showcase another system to the built professionals and contractors as a worthwhile alternative to the conventional method of building with bricks, blocks and concrete.

    This method can also be used to complement structures built with the conventional system where there is need for renovations and face-lifts.

    Developer, Northern Foreshore Estate, Yemi Idowu, contends that it was time the country moved from building houses to manufacturing houses, adding that the dry construction technology is a ready avenue to achieving this.

    “So if we seeasolution that makes this easy, we should support it,” Ogunniran said. More support for the Kalsi dry construction solution came from the President, Mortgage Bank Association of Nigeria (MBAN), Mr. Femi Johnson, who assured that if developers can potential house owners, then MBAN will be willing to finance the project.

    Kalsi building boards come in sizes of 1.22m x 2.44m and 1.22m x 3.00m and thicknesses from 6mm to 20mm. The 6mm is for application in interior/exterior ceilings; 8mm and 10mm for application in internal partitions; 8mm for sidings cladding (with a wood textured finish); 12mm for application in cladding and exterior walls, and 20mm for application in suspended floor framed base.

  • Govt urges Nigerians to plant trees

    The Permanent Secretary, Federal Ministry of Environment, Mrs Nana Mede,  has  urged Nigerians to imbibe the culture of tree planting, to ensure soil protection and food security.

    He made the call in Bwari, Abuja  while addressing participants in the tree planting campaign organised by the ministry to commemorate the World Desertification Day (WDD).

    The day is celebrated on June 17, every year.

    The theme for this year’s celebration is “Attainment of food security for all through sustainable systems” with the slogan “No such thing as free lunch, invest in healthy soils’’.

    She said since Nigeria was a party to the UN Convention to Combat Desertification, it was imperative for the people to plant trees and establish orchards, to avoid land degradation.

    She, therefore, enjoined the participants to adopt tree planting as a habit, while assuring them of the ministry’s commitment to ensure soil protection for food security and sustainable environment.

    “Desertification stares us in the face; about 33 per cent of our land mass is affected by degradation; we are left with 57 per cent for sustainable living and development.

    “About 20, 000 women suffer annually from respiratory diseases as a result of smoke they inhale from cooking with fire wood.

    “There is a need for us to take urgent steps to arrest this situation and the way forward is by tree planting.

    “We must adopt the habit of planting trees in our homes, farms, schools and places of work, to ensure the soil is enriched and protected for food security and sustainable environmental governance.

    “If we must cut down a tree, then we plant five trees as replacement.

    “As a way forward, the ministry will continue to provide the enabling environment for people to play their respective roles to ensure our that our environment continues to fulfil development objectives.”

    She said the establishment of plantation in Bwari was to showcase the seriousness the ministry attached to restoring communities and regions affected by land degradation.

    She further assured that the ministry would partner the Bwari community to sustain the tree planting campaign to combat land degradation.

    The Supervisory Councillor for Environment, Bwari Area Council, Mrs Fidelia Onyechalom, said bush burning by farmers was affecting tree planting as well as a major cause of land degradation in Bwari.

    Onyechalom, however, commended the ministry for choosing Bwari as a venue to mark this year’s WDD, adding that it would promote the much needed awareness on the importance of tree planting.

    She expressed delight that the council was chosen to host the programme.

    “We were faced with the problem of planting more trees because of the lack of orientation on the part of farmers who often practice bush burning to cultivate their farms.

    “We promise to take good care of the trees that will be planted today, to ensure they survive and that everyone benefit from them to mitigate harsh weather.”

    The high point of the event was tree planting by stakeholders, including military and para-military agencies and staff of the council.

    The WDD was declared by the UN General Assembly in December 1994, to create awareness and exchange information on ways to combat land degradation

     

  • Land Use Act, others inhibiting ‘housing for all’

    Land Use Act, others inhibiting ‘housing for all’

     Housing is one of the three basic necessities of life. Over the years, successive governments have paid lip service to affordable housing for all. It is estimated that over 17million deficit exists in the housing sector. Experts say the gap can be bridged if President Muhammadu Buhari prevails on the National Assembly to repeal the obnoxious Land Use Act and other artificial barriers, reports MUYIWA LUCAS.

    The rising cost of building, land titling and other associated requirements for housing development have been identified by various stakeholders as reasons for the huge housing deficit in the country. If these can be effectively tackled, it is believed that improvement will come to the sector,  plagued by 17 million deficit.

    To this end, a leading player in the built environment, and Vice President, International Real Estate Federation (FIABCI), Africa Chapter, Chief Kola Akomolede, has urged the Federal Government to look into the numerous problems in housing, if the President Muhammadu Buhari administration hopes to achieve shelter for Nigerians.

    To do this, Akomolede said, the president must confront the high cost of acquiring land, building materials and finance.

    The first step to achieve this, he explained, is to launch the War Against High Cost of Land (WAHCOL). This is by proposing a bill to first repeal the Land Use Act from the constitution and make it amenable to necessary amendments, warning that without this, the common man will continue to have little or no access to land.

    Indeed, the Land Use Act is also a disservice to the Federal Government because even if it wants to provide houses for the masses, it has to beg the states to give it land and if any state refuses, there is nothing it can do about it.

    Besides, he noted, the problem of Governors’ Consent, which had been an albatross  against the transfer and perfection of title to land, should be  addressed, because easy access to land is the first step towards enshrining affordable housing for the masses.

    The high cost of building materials has also remained a huge problem for building construction. At the present price of major building materials, experts contend that there is no way affordable housing can be provided. Cement, which is a major component in building construction sells for about N2, 000 per 50kg bag.They argue that the government must look for ways to bring down the cost of cement and all other building materials.

    To achieve this, Akomolede suggests that grants or very low interest rate loan could be given to cement manufacturers to expand their production capacities. He also said the removal of import duties on cement manufacturing equipment as was done for telecoms equipment and removal of excise duties on cement manufactured in the country would salvage the situation.

    He said as an interim measure, the government should allow the importation of cement at duty free for the next two years to crash the price, after which it should be stopped as soon as the local manufacturers of the commodity have completed their expansion projects. The same measure should be applied to all other building materials in the country.

    The role of finance in building construction cannot be overemphasised. Therefore, there is a reason to explore cheaper means of financing housing projects. To experts, tackling this menace to achieve effective housing delivery should be on two fronts. Firstly, government,  must find a way to make finance available at affordable rates of interest as it is obtained in developed countries to both property developers and individuals who want mortgage to buy own a home.

    In most developed economies, interest rates on mortgage is between three and five per cent, compared to between 18 and 24 per cent in the country. Sadly, by the time property developers add this to their cost of building houses, the houses cannot be affordable to the common man, thereby making it difficult for potential house buyers to meet the monthly or yearly repayment even on a long time basis.

    “For example, the monthly interest alone for a loan of N5million at 18 per cent per year is N75,000.  This does not include capital repayment.  How many people can afford this in a country where the minimum wage is N18,000 per month? Yet, you can hardly get a house that will cost less than N5million” Akomolede said.

    Importantly, stakeholders and experts in the building and finance agreed that there is an urgent need for government to set in motion the necessary machinery to re-examine the National Housing Fund (NHF). The NHF is believed to be a veritable vehicle for collection of money for mortgage but it has not been harnessed fully. To make the NHF work efficiently, it is advisable that experts in building, finance and law must be assembled to re-examine the law and remove areas of conflict in it and recommend how it can be implemented for the benefit of all.

    “If government is asking workers to contribute two and a half per cent of their monthly income to the NHF, why can’t government itself (at the federal, state and local levels) show good example by contributing two and a half per cent of its revenue to the fund?

    “It can then compel all companies to contribute two and a half per cent of their annual profits before tax to the fund.  In this way the fund will grow from year to year and will provide sufficient fund for the mortgage institutions for on-lending to both property developers and individuals who want mortgage to build or buy a house,” the FIABCI Vice president argued.

    However, government has not failed to make it clear that investment in housing is primarily the responsibility of the private sector. Government said the private sector should drive the process, while it only provides the enabling environment.

    However, Akomolede disagrees, insisting that the Federal Government must accept housing as its social responsibility, especially to the middle and low income cadre. He averred that government must make budgetary allocations to the sector the way it does for education, health, agriculture, works, aviation, sports, and others. He insisted that housing is as important as all the sectors to which government makes huge allocations every year.

    He said the private sector should be encouraged to provide housing for the public but regrets that experience over the years has shown that the private sector cannot provide housing for the low and middle income, which are the largest group in the society. This, he reckons, is because the private sector is in business to make profit and provision of housing for the low income is not a profitable venture. This, he said, makes it unattractive for the private investors to venture into. He argued that government cannot afford to leave housing for the common man entirely in the hands of the private sector as such an action will be laying the foundation for a housing crisis.

    Akomolede warned the government against heeding the advice of the World Bank and International Monetary Fund (IMF) that housing should be left to the private sector, while the government concentrate only on creating the enabling environment for them to supply the housing needs by the society, because this has always been their position, which regrettably, has brought about the huge deficit in the country.

    He said: “There has always been this argument that houses built by government are always more expensive because of the corruption usually associated with the award of contracts for the houses. The question we should ask is: Does this affect housing alone?  Is there no corruption in the award of contracts for roads, schools, hospitals, airports, and others? If the answer is no, then should government also stop the construction of roads, schools, hospitals and airports and leave them for the private sectors only?”

    Akomolede added that the belief that houses built by governments are more expensive cannot be substantiated, because private developer houses are much more expensive given that they will factor in, the cost of finance and their profits, making the houses to be priced in several millions and not affordable to the masses.

    Therefore, he said, governments cannot leave affordable housing for the low and middle income to the private sector only, because doing so would mean the government is abdicating its responsibility of providing decent accommodation for its citizens.

    ‘If the government is asking workers to contribute two and a half per cent of their monthly income to the NHF, why can’t government itself (at the federal, state and local levels) show good example by contributing two and a half per cent of its revenue to the fund? It can then compel all companies to contribute two and a half per cent of their annual profits before tax to the fund.  In this way the fund will grow from year to year and will provide sufficient fund for the mortgage institutions for on-lending to both property developers and individuals who want mortgage to build or buy a house’

     

  • Guide to securing mortgage

    Primary Mortgage Institutions (PMIs) are now better empowered to grant mortgages to qualified Nigerians seeking to own their personal houses. This has been buoyed by the establishment of the Nigerian Mortgage Refinance Company (NMRC), and the recapitalisation exercise by the PMIs.

    But notwithstanding, securing a mortgage is not a bread and butter affair, as the process can be tasking and in some cases, frustrating. By following a simple guide, your chances of securing a mortgage facility can be enhanced. Some of this includes:

     

    Equity Contribution

    This is usually between 10 to 30 per cent of the total property value. It is also a function of the amount being sought as loan and your PMIs policy on such credit facility. It is imperative that a prospective mortgage seeker have this amount ready to deposit before applying for a mortgage, otherwise the application may be declined.

     

     Tax Clearance Certificate

    This is issued by the Federal Inland Revenue Service, or in some cases, the State Inland revenue service, while the intended mortgage is to be used, or in some cases, both. A tax clearance is a document issued to an individual, clearing him or her of tax indebtedness to the government. When applying for a mortgage loan, this document is required by your PMI, it is compulsory, and non provision of this can hinder an applicant’s chances.

     

    Evidence of Employment/Income Inflow

    This is one of the most important documents you have to present when applying  for a mortgage loan facility. This is what enables a PMI to determine if an applicant can repay the loan or not. Most PMI’s will require evidence of income inflow using your pay slip or bank account statement. It also helps them to assist you in structuring your payment options so as not to affect your living.

     

    Offer Letter

    You need an offer letter from the seller of the property you wish to purchase. This letter expressly states the seller’s intention to sell the property to you and clearly indicating how much he wants to sell the property. This document also helps a PMI to carry out a valuation of the property you intend to buy and helps in giving you a proper advise as to the real worth of the property, and whether it is worth the investment or not.

     

    Title Documents

    The title documents of the property to be purchased are of extreme importance. It not only serves as a collateral, it is also important to help your PMI determine the authenticity of the property and the owner.