The Nation Newspaper

Category: Building & Properties

  • NMRC: One year after, what hope for housing?

    NMRC: One year after, what hope for housing?

    The launch of the Nigerian Mortgage Refinance Company on January 16 last year raised hopes that the 17 million housing gap may soon be bridged. How far has the body fared one year after? MUYIWA LUCAS asks.

    As Far as the housing sector is concerned, the outgoing  administration of President Goodluck Jonathan can be said to have put in place policies and institutions to drive the sector, with the aim of solving the estimated 17 million housing deficit in the country. One of these policies led to the establishment of the Nigerian Mortgage Refinance Company (NMRC).

    While setting up the NMRC on January 16 last year,  Jonathan was convinced that his administration is creating the enabling environment for primary mortgage banks and other financial institutions to offer real mortgage facilities to Nigerians at affordable rates. The NMRC scheme,  set up to bridge the funding gap of residential mortgages and promote availability and affordability of good housing to working Nigerians, is to provide mortgage lending banks with increased access to liquidity and longer term funds in the mortgage market.

    It is designed to be an integral part of the country’s financial system, with special focus on housing finance and, or the mortgage system. Also, it has the mandate to resolve access to affordable housing finance and, more importantly, as a focal point for creating an enabling environment for housing finance by playing a strong developmental role in supporting the improvement of land, legal framework,  housing development and construction.

    Thus, it is the latest hope for low-income earners, who cannot afford the cost of a mortgage loan. Simply put, though the NMRC is government inspired, it is a private sector-led effort to provide affordable housing for Nigerians through loans accessed from mortgage and commercial banks. It is being implemented as a component of the Nigeria Housing Finance Programme, an initiative of the Federal Ministry of Finance in collaboration with the Central Bank of Nigeria (CBN), the Federal Ministry of Lands, Housing and Urban Development (FMLHUD) and the World Bank/International Finance Corporation (IFC).

    As a take-off for the scheme, the World Bank approved a concessional $300 million, 40-year interest free International Development Association (IDA) loan to facilitate the execution of the Housing Finance Programme. About $250 million of the IDA loan will be disbursed in instalments to NMRC as Tier 2 Capital based on key performance indicators–it will be retained on NMRC’s balance sheet to provide credit support for NMRC’s bond issuances. The balance of $50 million will be allocated to other components of the Housing Finance Programme in the following order: $25 million for the establishment of a Mortgage Guarantee Facility for lower income borrowers and $25 million to support the development and piloting of Housing Microfinance Products.

    The Federal Mortgage Bank of Nigeria (FMBN) is to also benefit from a $25 million facility to improve its mass housing programme and empower some of its microfinance partners. This measure is also believed to be a major step that will equally reposition the Federal Housing Authority (FHA). The introduction of NMRC is expected to reduce the cost of mortgage loan by improving market efficiency, lowering cost of funds and allowing for longer repayment tenor period by financial institutions.

    Already, as a boost for the NMRC, it has also attracted foreign or international suitors. For instance, Cantor Fitzgerald, a global investment firm with expertise in asset-backed mortgage securities, recently signed a $1 billion pact with the Federal Government for investment in the mortgage sector. The company also indicated its desire to build 10,000 houses in Kaduna, Lagos, Enugu and Abuja within the next one year. The Managing Director, Debt Capital Markets Division, Cantor Fitzgerald, Mr. Jack Heffernan, also described the NMRC as “exactly the right business model to bring liquidity to Nigeria’s housing sector.”

    This feat has since been lauded by stakeholders in the housing sector and other sectors of the economy. For instance, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, said the entry of such a player into the mortgage sector will boost the prospect of achieving the core vision of the NMRC, which is to get young Nigerians convenient access to means of owning their own homes.

    “Cantor Fitzgerald’s presence in Nigeria shows that our mortgage strategy is attracting the right kind of attention from the right kind of people around the world and this will deepen and diversify and ultimately reduce the cost of mortgage and housing in Nigeria,” she said.

    But, laudable as this seems, 15 months after the set up of the NMRC, it is yet to have the desired effect. The agency launched its first application for 10, 000 housing units middle of last year, but about 66, 402 applications were received. Of this figure, 25,000 applications are said to have been pre-qualified; 9,000 has been given offer letter, while monies have been disbursed to 33 Nigerians to acquire their homes.

    A number of other initiatives are also being worked out with the National Pension Commission (PenCom) to enable workers borrow from their Retirement Savings Account (RSA) to own houses.

    The expectations of Nigerians from the NMRC may be understandable given the difficulty in obtaining mortgage- a nightmare the NMRC has come to reduce, if not eradicate. The company also realises this. For instance, its former Chief Executive Officer, Mr. Sonnie Ayere, said the process of refinancing is not what is done suddenly. He said: “It takes several processes and we are on those processes and by early this year, the company will officially issue its first mortgage refinancing and the whole world will see it.”  He said several months after the establishment of the company, the management had to work on creating an enabling environment for its take-off, so as to have something sustainable, because it is not all just about finance, as there are other issues such as foreclosure, which is also important, that has to be considered.

    For now, the Prof Charles Inyangette-led NMRC, may not have had any strong physical showing on the mortgage scene, but experts are convinced that the future is bright for the company if its mandate are properly pursued, especially now that the NMRC has received its licence from the CBN.

    The NMRC has the mandate of encouraging financial institutions to increase their mortgage lending by providing them with long-term funds; increase the maturity structure of mortgage loans and assist to reduce mortgage rates. It is also expected to increase the efficiency of mortgage lending by facilitating and standardising mortgage lending practices of financial institutions.

    Yet, the NMRC has not failed to attract criticism from the Nigerian Labour Congress (NLC), which expressed reservations over its setting up. The workers fear that it would make the only secondary mortgage institution in the country, the  FMBN, redundant. The NLC described the project as “pure business for high networth individuals.”

    Labour also feared that the NMRC will not cater for the interest of average Nigerian workers, and instead, urged government to assist the FMBN secure loans that would enable it deliver affordable houses for Nigerians in the low income cadre.

  • Climate change summit: What impact on the environment?

    Climate change summit: What impact on the environment?

    Climate change is still a global challenge. Over the last six years, the government of Lagos State has held summits to tackle the phenomenon. Its seventh edition is scheduled for next week in Lagos. How impactful have these summits been? MUYIWA LUCAS asks.

    WHEN the Governor Babatunde Fashola administration in Lagos State introduced a summit aimed at addressing pressing issues on the climate, not many agreed less that it was a step in the right direction.

    Following six successful editions of the forum that sought to explore the challenges and opportunities of climate change in the state in particular and the world in general, its organisers are now attempting to evaluate its gains with a view to charting a way forward.

    Analysts say the fact that the seventh edition of the summit is coming towards the end of the tenure of the administration of its originator, Fashola, is an indication that the summit has come to stay.

    Partcipants at the previous editions say it has been impactful, especially as it has given room for policy makers to plan for unforseen occurrences.

    For instance, at the maiden edition of the summit in 2009, the governor had lamented that it become difficult to draw a line between the rainy season and dry season, just as farm harvests were no longer predictable and bountiful. Aqua life, he added, had been depleted to the extent that certain species of fish were no longer available on the  table. These, he said, were the effects of climate change.

    Events that unfolded after 2009 seem to have proved him right. For example, on July 10, 2011, for 16 hours non-stop, Lagos experienced a torrential rainfall. This justified the concerns of Lagosians and also served as a wake up call to the reality of climate change and the need for stakeholders to proffer solution to its menace.  To date, that July 10 rainfall remains unprecedented in the history of the state.

    The government has since embarked on proactive measures to combat flooding by developing an all-year construction, maintenance and dredging of canals and drainage channels. This has, for the third year, elicited the commendation of the Nigerian Meteorological Agency (NIMET) as the only state in the federation to come up with a comprehensive drainage/de-flooding programme.

    The maiden summit, attended by over 700 participants drawn from various stakeholder groups in both the public and private sectors, raised public awareness as well as trained the trainers on issues of climate change and the danger it poses to human development.

    The summit also provided a platform for national and international experts to exchange ideas on best practices in mitigation and adaptation measures to address the challenge of climate change, essentially also to agree on joint action by all and sundry.

    At the summit, Fashola  urged the Ministry of the Environment to ensure the continuity the summit as well as the full implementation of all its outcome, particularly the mitigation and adaptation strategies for climate change impacts in the state.  The 2009 Summit had ten Plenary Sessions during which papers were presented and Panel Discussions held on Global Climate Change Overview: Challenges and Prospects; Governance and Climate Change; Climate Change and Public Health; Climate Change, Sea Level Rise and Coastal Adaptation as sub-themes.

    Others include Climate Change and Food Security; Climate Change and Energy; Climate Change and Waste Management; Climate Change and Urban Development; Climate Change and the Imperative of Adaptation, and Partnership in Climate Change Adaptation: Prospects for a German (Bavarian) -Lagos State Collaboration.

     

    Recommendations

    At the end of the summit, the communiqué asked the state to develop a State Climate Change Action Plan with a vision to drive the major changes that would be necessary to combat change in climate; the government should partner with and support the private sector to encourage them to capitalise on the opportunities under climate change mitigation and adaptation options to transit to the low carbon (green) economy.

    Others are that the state’s approach to climate change should integrate closely with national actions and promote progressive and forward-looking, growth-oriented policies tailored to the  state’s specific development needs; all levels of government in the state should be involved in raising awareness that Lagosians can take to combat  the  impact of climate change.

    It was also recommended that the state government should establish and fund mechanisms for research and studies on climate change and its impacts on all sectors of the state’s economy in order to provide required data and knowledge to drive intervention strategies. Such shall include partnering with private sector and research institutions as appropriate; the state government should embark on upgrading existing, and installation of up-to-date real-time weather monitoring, prediction instruments and early warning systems for the state.

    It also asked the government to institutionalise a comprehensive assessment of the impact of climate change on its development activities, adding that  the government should build capacity to take advantage of the opportunities provided in climate change mitigation and adaptation, particularly in the energy, service, building and transportation sectors, financial services and water sector. The state government, it was also recommended, should initiate steps to incorporate climate change issues in schools curricula at all levels particularly for children and adolescence and should collaborate with international partners for technology transfer on climate change, mitigation  and adaptive strategies.

    The forum also urged the state to develop and implement an energy policy in which a substantial part of electricity is from renewable sources, especially solar, wind and biogas from waste

    Furthermore, it was recommended that the BRT system should be expanded to cope with increased demand and promote further emission reduction; intensify eco-friendly and “green” waste management technological approach and support the private sector for similar initiatives. Appropriate  policies should also be put in place to drive these initiatives and to move towards zero waste, among others.

    The fifth edition of the forum had Vulnerability and adaptability to climate change in Nigeria: Lagos State transportation, housing and infrastructure in Focus as its theme.

    Fashola said the only way to fight and win the war against climate change and global warming was through adaptation and a change in lifestyle.

    Participants focused on measures that would aid adaptation and mitigation, and recommended that the Federal Government should create the enabling environment for the private sector to aggressively tackle climate change through mitigation and adaptation initiatives in the interest of green development. The participants, drawn from different sectors of the economy, charged governments at all levels to properly mainstream climate change into their infrastructural development agenda for sustainability.

    In a communiqué at the end of the 2013 summit, participants recommended that the state should ensure a multi-disciplinary approach to the planning, design, construction and management of urban infrastructure.

    “To make our urban infrastructure climate-resilient, the Lagos State government should continue to pursue the development and implementation of a long-term strategic and inclusive vision that is embedded into the current planning, especially land use allocation, and promote infrastructure with integrated design solutions,” the communique read in part.

    It also encouraged the government to “further strengthen the capacity of its electricity board to pursue its energy conservation initiative; governments at all levels should promote climate-smart agriculture and strengthen capacity of small-holder farmers to mainstream climate change impacts into their activities for the attainment of national food security.”

    Fashola assured that the state government was putting policies and strategies in place to mitigate the effects of climate change in the areas of transportation, housing and infrastructure, and urged everyone to adopt clean development mechanisms.

    The Commissioner for the Environment, Mr. Tunji Bello, said the objectives of the summit was to promote and sustain an infrastructural system that was environmentally friendly and geared towards reduction in carbon emission.

    It was also aimed at analysing policy instruments for easy adaptation to climate change and mitigation of greenhouse gases’ emissions as they affected transportation and the housing sectors.

     

    Talking shop?

    With the seventh edition in the series kicking off, has the forum become a mere talking shop for policy makers? How well has the state keyed into the benefits of previous editions? What impact have they had on the environment and the citizens? How has the forum immuned the state from the imminent effects of climate change?

    Bello said the achievements in the past six editions of the summit are many.

    He said they include the Draft Lagos State Climate Change Policy Document and Action Plan, Lagos State Adaptation Strategy Documents produced to reinforce actions to address the challenges of climate change; the heightened collaboration with various non-governmental organisations (NGOs), Vulnerability Study on Coastal Areas to Climate Change in the state in conjunction with the United Nations International Development Organisation (UNIDO), the Eko Atlantic Project, Shoreline Protection of the Bar Beach and Rehabilitation of the Drainage Infrastructures in Lagos.

    Others, he observed, include the introduction of Mass Transportation Systems, including Bus-Rapid Transit (BRT) and Light Rail Project, School Advocacy Programme, Yearly School Exchange Programme to Germany (where students from Lagos State public schools, are sponsored to join their counterpart abroad), as well as participation of various government officials at international climate change conferences and events. Additional achievements of the summit include the establishment of waste-to-wealth programmes (such as Nylon Buy-back, Waste-to-Compost and Waste-to-Energy), Annual Tree Planting Campaign, Car Horn-free Campaign, the Greening Programme, and passing of laws to protect the environment.

    “For example, it is now an offence to fell a tree in Lagos, as doing so attracts a fine and the planting of five trees for every fallen tree. Amid the enactment of fresh laws (such as on noise pollution), environmental laws are likewise being harmonised, even as the Kick Against Indiscipline (KAI) has been elevated to the status of an Agency to enforce environmental laws,” Bello said, adding that  the previous summits have clearly shown that the state’s commitment to the development and evolvement of a climate change conscious society so as to lay the foundations necessary to counteract the global threat.

    Fashola takes delight in these feats, saying that the input of the state government in environmental regeneration and infrastructural development are in furtherance of sustainable environment.

    “In  Lagos, we  have continued to landscape and beautify hitherto open spaces and loops that were then hideouts for miscreants. We have also modernised parks and gardens, as well as established an agency named the Lagos State Parks and Gardens (LASPARK) whose major role is to oversee the parks and gardens in the state and to continue the greening initiatives in order to assure modern town planners that the state is methodically planned with all its resources for an enviable regional national development,” he explained.

    Ths year’s conference has Seven years of Climate Change Governance in Lagos State: Celebrating Success Stories, Reviewing Challenges and Setting Future Agenda as its theme. It holds between April 21 and 24 at the Eko Hotel & Suites, Victoria Island, Lagos.

    The summit has, so far, addressed various measures of combating climate effects through various mitigation and adaptation actions, shared best practices across boundaries, and explored inherent business opportunities.

    Also, the vulnerability and adaptability of climate change in major facets of life have been focused upon.

  • Indigenous, American firms partner to boost real estate

    Indigenous, American firms partner to boost real estate

    Opportunities for Nigerians to invest in a foreign real estate market has received a boost as 3INVEST,  a real estate firm,  partners an American firm, Houston EB5, to raise capital for Marlowe, a real estate project in Houston.

    Houston EB5, a real estate investment company and promoter of the project, is offering not only the prospect of a good return on investment on the project, but also a chance for a prospective investor to qualify for permanent residency in the United States through the EB-5 programme.

    The project, Marlowe, is planned as a 20-storey, 100 residence contemporary tower, with one, two, and three-bedroom floor plans, and is located in the heart of downtown Houston.

    It provides exquisite living experience within the Houston environment, including sports venues, parks, shopping centres, and restaurants, all situated within less than 200 metres.

    Randall Davis, a Houston Luxury Condominium Developer and his partner in Houston EB5, Mexico City native and Houston entrepreneur Roberto Contreras, who are  involved in a similar construction project, Astoria, are upbeat about Marlowe, insisting that given its ideal location, it will provide the very best living experience.

    The deal with 3INVEST may not have come as a surprise. This is because foreign investors have to, a large extent, influenced similar projects. For instance, in 2010, Houston EB5 embarked on a programme targeting wealthy foreigners to fund their real estate projects – a $70 million residential tower in Houston Galleria area called “Astoria” and also a $48 million, eight-story, 240-unit apartment building in the heart of Downtown Houston called Block 384. The raise for Astoria was completed with $30million from EB5 investors and the raise for Block 384 with $12million.

    “Astoria was really made possible, thanks to the help of foreign investors, and we are steadfast on continuing to build and strengthen our relationships with investors abroad,” said Contreras, adding that the firm’s continued accomplishments overseas are a testament to the opportunities the EB5 programme provides. He further said that expanding their investor reach in Nigeria as well as other African countries if a priority for the firm.

    The Managing Director of Houston EB5 Regional Centre, Acho Azuike, said the firm plans to attract more investors from Nigeria for its future projects because of the huge involvement of Nigerians in EB5’s past development projects. “Nigerians are familiar with the Houston area already and we now have a track record of success because of our Astoria and Block 384 projects,” Azuike explained.

    He assured investors in the Houston EB5’s Marlowe project of a more reliable and timely return on their investment, given that real estate investments remain much safer in nature than typical business investments, a trend buoyed by Houston’s strong economic environment. And like previous Houston EB5 projects, Marlowe has received great support from the City of Houston. A “TEA” designation has been assigned to the project, lowering the minimum investment amount to $500,000 as opposed to $1 million.

    The EB5 investment programme is administered by the U.S. Citizenship and Immigration Services under the Department of Homeland Security. It allows investors who make a qualified investment to fast track permanent legal residency in the US for themselves and their immediate family without the usual roadblocks or red tape associated with the immigration process.

  • Eko Atlantic City: The Azuri Allure beckons

    Eko Atlantic City: The Azuri Allure beckons

    In the Marina District of Eko Atlantic City, a new world class development is evolving, aimed at giving luxury and urban lifestyle a new definition. It has been described as a premier residential destination, offering opportunities for living, working and leisure.

    Known as Azuri Peninsula, the development is being promoted by Eko Development Nigeria Limited – a real estate development company. The project sits on a combined land area measuring 127, 507 square metres to be built and delivered in three phases.

    The first phase, with a 36-month completion plan, has 13,000 square metres  gross buildable area (GBA) and 130 square metres built up area where 120 luxury apartments, 12 super-luxury simplexes, two superb villas and  seven town-house apartments would be nestled.

    Chief Responsibility Officer, Eko Development, Ihiene Ogolo,    said: “Azuri Peninsula offers a unique and luxury urban lifestyle by the delightful marina-front of the Marina District in the vibrant new Eko Atlantic City.”

    According to Ogolo, Azuri combines the African word ‘Zuri’ meaning, beautiful, while Azure suggests a radiant sea. He said the location of the Peninsula in the Marina District, considered the most exclusive in Eko Atlantic City, explains the developer’s choice of a brand name that resonates uncommon luxury and lifestyle.

    The Peninsula will be delivered as two and four-bedroom luxury apartments, six-bedroom duplexes and seven-bedroom villas, arranged across marina town-house apartments and three outstanding residential towers known as ‘Zuna’ (meaning abundance), ‘Orun’ (meaning heaven) and ‘Oban’ (meaning king), each rising 26 floors.

    “This development is taking into consideration lifestyle and ambience. The lifestyle is created by its location. The location is between the Atlantic Ocean and the Lagos channel; we are also creating a marina and so you have three water bodies that create a lifestyle and ambience,” Ogolo said.

    For the ultimate comfort of the prospective residents of this Peninsula, which has already recorded about 80 percent buyer-interest, there will be a five-star marina and yacht club with an attractive promenade, high-end shops, cafes and a wealth of amenities.

    Eko Atlantic, a city frequently touted as Africa’s Dubai, is a layout of 10 districts of which the Marina is one and the Business District is another. Though Eko Peninsula is planned as a mix-use development that will be 92 per cent residential and eight per cent retail, its closeness to the Business District complements its concept as a live, work and play destination.

    In line with the highest standards of contemporary living, all apartments in the Peninsula will be fully-fitted with state-of-the-art kitchens and luxury bathrooms, air conditioning and broadband terraces and balconies. The ‘Orun’ and ‘Oban’ Towers will promises to offer the ultimate in luxury living and these  include a private gym and swimming pool as well as stunning, panoramic views of the environment.

    The  Peninsula also promises residents access to 24-hour concierge service, a gym, two squash courts, and a café. These come in addition to a relaxing sauna, games, screening rooms and a children’s playroom. Outside, residents will have access to a private outdoor swimming pool, children’s playground, garden-piazzas and valet parking.

    In the Marina District, there will be high-end retail outlets, international standard restaurants and an abundant range of amenities, all of which will establish Azuri Peninsula as a premier residential destination.

    Eko Atlantic’s high-standard infrastructure, which includes managed and maintained utilities, will guarantee an exceptionally comfortable lifestyle. A well-planned road system, up-to-date ferry service and helicopter service linking the city to Lagos, will ensure that Eko Atlantic is the best-connected city in West Africa.

  • Lagos alerts on more floods

    Lagos alerts on more floods

    •Praises flood control measures

    The Lagos State Commissioner for the Environment, Mr Tunji Bello, has expressed satisfaction with the efforts  to combat flooding in the state.

    The Commissioner noted that it is gratifying that while several states  were submerged by flood in the last few years, Lagos, through the relentless efforts of its engineers, has received several commendations for its proactive measures at containing flooding.

    Bello said the state has equally benefitted from its strategic planning on flood control measures, which according to him, were effective enough to contain attendant storm water. This has earned the state commendations from the Nigeria Meteorological service as the only state that has a deliberate and concerted deflooding programme.

    The commissioner however cautioned residents to be prepared for heavy downpour this year. His warning is based on the 2015 Seasonal Rainfall Prediction (SRP) for the state, which indicated that there will be 260 days of rainfall in the state this year.

    “It has been predicted that Lagos State will experience a rainy season of between 245 and 260 days, with the maximum annual rainfall predicted to be around 1,824mm. The maximum rainfall will be experienced around the Marina area of Lagos Island. In general, this year’s rainfall has been predicted to have a delay onset of about two to 13 days, with Lagos, Ondo, Ogun and some other states expected to have more pronounced delay by eight to 13 days,” Bello said.

    The prediction, which was corroborated by NIMET, also said an early cessation of rainfall is predicted for most part of the country. However, Abeokuta, Ibadan, Ondo, Akure, among others, will have later than normal cessation as they will experience more growing season.

    Bello said with high temperature and humidity being favourable conditions for the growth of pest, vectors and spreading of diseases, coupled with the fact that the higher the temperature and humidity, the more rapid the life cycles of mosquitoes and frequencies in mosquito bites, the state will be affected by mosquitoes. “Lagos State is expected to be moderately affected by mosquitoes. It is of utmost importance that Lagosians keep their environment clean to minimise the effects of mosquitoes,” he warned, adding that Lagosians should avoid indiscriminate dumping of refuse, and blockage of drainage.

    Bello also warned that due to climate change, while other states in the federation will enjoy a short break in rainfall between July 15 and August 31 this year, Lagos is not likely to have this break as it will rain throughout the year unlike other years.

    “It is going to rain throughout the year; there is no “August break” for Lagos State. There will be days without rain, but there won’t be any long interval of break,” he warned.

    The commissioner also warned of strong wind that may accompany rains, which he said will herald the onset and cessation of rains in the state. Therefore, he advised farmers to plant drought resistant crops; dams managers in areas with prospect of above normal rainfall such as Ogun-Oshun River Basin, should prepare for high water inflow due to run-off.  He also warned pilots to take extra care during landing and take-off to avoid weather hazards caused by wind shear, slippery runways and reduced visibility expected at different periods in the year. Also to be affected are communication firms. This is due to the expected warmer than normal temperature and the expected intense rainstorms and strong winds which are expected to affect communication signals.

    Bello assured that within the available resources to government, the Ministry of Environment proactively shall continue to undertake measures to ensure that it  copes with the rains.

  • Sambo hails private partnership in housing delivery

    The Vice President, Mohammed Sambo, has inaugurated the Federal Mortgage Bank of Nigeria’s (FMBN) Sky Diamond Estate in Kaduna.

    At the event, he said the administration was pleased to note that the Federal Ministry of Lands, Housing & Urban Development (FMLHUD) and the FMBN were working hard at actualising one of the focal points of the President Goodluck Jonathan Administration Transformation Agenda in housing.

    He explained that the crucial role housing plays in the socio-economic development and political stability of a nation made the administration to take determined measures to revamp the sector and unleash its huge inherent economic potentialities for national development.

    According to Sambo, the FMBN/Sky Diamond Housing Estate, which consists of 200 units of residential houses will not only add to the housing stock of Kaduna, Kaduna State, but will go a long way in reducing the current estimated deficit in the housing sector. It is also a testimony to the concerted efforts to provide decent housing for the people of this country, which is driven by a National Policy on Housing that places the private sector in the driving seat for housing development.

    The estate commissioning, he said, is a statement in support of the fact that the policies, strategies and mechanisms for reducing the national housing deficit in every nook and cranny of the country are yielding results.

    Sambo reiterated government’s support for initiatives of this nature and its intention to improve the capacity of FMBN by re-capitalising the institution as part of the wider plans of overhauling housing financing institutions in Nigeria. “This is the exemplary form of synergy envisaged by the National Policy on Housing, which encapsulates a private sector-led housing delivery strategy hinged on governments at both national and sub-national levels, creating a conducive environment,” he said. He commended the apex mortgage institution and the developer – Sky Diamond Logistics Limited, for the successful delivery of the housing estate.

    He also charged the private and publicly-owned development firms, Primary Mortgage Banks and other stakeholders in the housing sector to redouble  efforts in tackling the huge housing deficit, which remains a challenge that must be overcome for the benefit of Nigerians.

    Sambo also assured that the government will not relent in moving the Nigerian housing sector to the next level of sustainable development so as to establish a lasting legacy of affordable home ownership and a thriving culture of mortgage lending for the gain of future generations.

    “Undoubtedly, the provision of housing represents the satisfaction of the basic human need for shelter. Beyond this however, it is widely acknowledged that the role housing plays is vital to the socio-economic construct of any society. Housing not only adds considerable aesthetic value to our living spaces, but also contributes significantly to the commonwealth and the national economy,” Sambo said.

  • ‘How infrastructure concessions are killed’

    ‘How infrastructure concessions are killed’

    The renewed drive by the government and private sector in bolstering Public-Private Partnership (PPP) for the delivery of infrastructure is gaining prominence.

    But, sustaining the process has given rise to partnerships many of which have run into trouble.

    To overcome the problem, the Chief Executive Officer of Alpha Mead Facilities & Management Services Limited, (AM Facilities), Femi Akintunde, is urging government and private sector operators to close ranks.

    Akintunde, who spoke at the fourth edition of the Infrastructure Asset Summit Africa in Lagos, said for any infrastructure project to be sustained, it must be viable, acceptable and environmentally responsible to the stakeholders.

    According to him, most concessioned infrastructure projects in the country are witnessing setbacks and losing their essence because there is no consideration for sustainability factors, such as, stakeholders’engagement, facilities management and asset maintenance were relegated to the background from inception.

    Speaking on Achieving sustainability in the development and management of public infrastructure through PPP concessioning arrangement: Case study of Lekki Toll Road, Akintunde submitted that the Lekki-Epe master plan is on course, but the sustainability of the project may be at risk.

    “As with most other PPP projects in Nigeria, there are some challenges with the Lekki-Epe Express project which is threatening the sustainability of the master plan. For example, there is only one road access to that axis; how would people be evacuated in cases of emergencies? For an area projected to accommodate a resident population of about four million, the road is not economically sustainable because it is prone to quicker wear and tear due to the heavy traffic it carries.”

    He regretted that people were resisting the tolling even when travel time on the road had reduced because the government and the private sector were yet to show the people the economics of the project.

    He argued that while the government had bought the project off the private company, it is important to consider the situation from the point of view of future investors in PPP projects because no private investor would want to put his money in ventures that the people might resist.

    He lamented that other infrastructure projects such as the airports that were also concessioned are becoming unsustainable because the maintenance of such projects were taken for granted.

    “My fear is that if this poor maintenance culture of our public infrastructure continues unabated, what we will be getting back at the end of the concessioning period will be a mere carcass that might be worse than what was concessioned,’’ Akintunde warned.

    He, however, advised that for stakeholders to benefit from the immense gains of PPP, each of them must be willing to play roles.

    Rather than getting entangled with maintenance and operations, the government should focus on its key role, which is regulatory.

    Besides, he said to get value on the country’s public infrastructure, the government must request that private sector operators to include facilities management and maintenance components in their concessioning deals. Then they must ensure strict adherence and enforcement of procedure for maintenance of the infrastructure.

    Akintunde said the people must be ready to own the infrastructure that the government and private sector have provided for them. Citing Festac Town, Lagos where infrastructure is in a sorry state because the residents relied on the government, he averred that people must also be socially responsible to their government and instil good maintenance culture in the younger generation.

  • Housing minister excited over completed Ogun estate

    Housing minister excited over completed Ogun estate

    The Minister of Housing, Lands and Urban Development, Mrs. Akon Eyakenyi, has expressed delight at the completion of the Mortgage Bank of Nigeria (FMBN) RockView Estate in Abeokuta, the Ogun State Capital.

    She spoke at the inauguration of the project.

    The mortagage delivery, she said, confirmed the President Goodluck Jonathan administration’s commitment  to tackling the challenges of delivering affordable housing to Nigerians.

    Despite this achievement, she said there is still a deficit of between 17 and 20 million units, which require a yearly delivery rate of a minimum of 720,000 units.

    According to Mrs Eyakenyi, the fact that the “we are witnessing the commissioning of a second estate within the last two weeks lends credence that notwithstanding the challenges, visible and substantive progress is being achieved in the various geopolitical zones to address the issue of affordable housing.”

    She said Ogun’s proximity to Lagos State is affected by the spillover effects of overpopulation, resulting in high demand for housing.

    The minister noted that  succour had been provided with the delivery of an additional stock of 196 housing units financed by the Federal FMBN, for the benefit of contributors to the National Housing Fund (NHF) Scheme who may be interested in taking ownership of these houses.

    The 196 housing units adds to the total of about 3,000 housing units delivered through the NHF Scheme in Ogun State in 17 residential housing estates the government developed with public and private estate developers.

    Mrs Eyakenyi said it is imperative for workers in Ogun to avail themselves the opportunities presented by the NHF Scheme, which is fully subscribed to by 30 states and the FCT.

    “It is on record that Ogun State has benefitted immensely by way of the investments of the FMBN in terms of estate development loans as well as the very pocket-friendly NHF mortgage loans. While home acquisition remains a highly capital-intensive endeavour, Nigerians of all income brackets can find confidence in the fact that contributing just 2.5 per cent of their monthly income opens access to a mortgage facility of a maximum of N15 million for a 30 year tenor that attracts just six per cent interest rate,” Mrs Eyakenyi said.

    She added that the NHF Scheme is designed for low and medium income earners, adding that it has been expanded to integrate the informal sector through cooperative societies.

    To sustain the NHF scheme, the Ministry said it had taken some steps to overcome the hindrances to increasing housing.This include the adoption of the National Policy on Housing and National Policies of Urban Development, which prescribes a private sector-driven framework for housing delivery.

    Under this policy, the government provides the enabling environment to facilitate entrepreneurial participation for transformational housing delivery.

    “I therefore, implore Nigerians yet to join in participating in the NHF Scheme to begin soonest in order to own their own homes in the best possible means which the NHF provides,” Mrs Eyakenyi said.

  • Italian firm promises lower construction cost

    Italian construction company, Gagliadi, has promised to help reduce the cost of road and building construction in Nigeria.

    Its Chairman in Nigeria, Mr. Koye Shogbola, who spoke with reporters during the firm’s first interactive session in Lagos, said: “With the dwindling revenue from oil and the need to develop new infrastructure and maintain existing ones, Gagliadi’s experience in road construction and building infrastructure at modest cost will surely be greatly beneficial to Nigeria.”

    Shogbola also said Gagliadi’s financial model for construction of low income houses would bring smiles to the faces of millions of Nigerians who dream of owning a house but cannot get support from firms and financial institutions.

    “In many parts of Europe and North Africa, Gagliadi’s financial model for low income houses has made it possible for many to become home owners. The model will also help millions of Nigerians especially civil servants, other classes of paid workers, small scale business people and even blue collar workers,’’ he said.

    Shogbola said unlike most foreign multi-nationals, Gagliadi relies on local workers for most of its workforce and enriches workers with new skills and techniques. The company also uses local materials and improves their quality.

    “The coming of Gagliadi will positively impact our economy. Many of our young graduates, who are highly qualified but are roaming the streets, will be gainfully employed. As the company had done in Libya, Tunisia and even Morocco, Gagliadi believes in employing  local talents and also making use of local raw materials, thus helping the local economy,’’ he said.

    Shogbola looks forward to a mutually beneficial relationship between Gagliadi and the government and Nigerians.

    With over five decades experience in road construction and building of low cost houses in Italy, Spain and Portugal, Gagliadi has done expansive work in North African countries, such as Tunisia, Morocco and Libya before opening shop in Lagos.

  • Enahoro Estate: From slum to ‘paradise’

    Enahoro Estate: From slum to ‘paradise’

    •Lagos honours Pa Anthony

    The gathering was devoid of much funfair, perhaps in consonance with the moderate lifestyle led by the late elderstatesman, Pa Anthony Enahoro, whom the vast estate is named after. It was the commissioning of Shogunro Estate, Ogba, Lagos, which was renamed “Pa Anothony Enahoro” Estate.

    In renaming the estate, Lagos State Governor, Babatunde Fashola, recalled the sterling qualities of the late Enahoro, which made him worthy of the honour. Besides, it served as the administration’s little way of immortalising the elderstatesman, especially for his gallantry in enshrining democracy in the country.

    According to Fashola, the commissioning of the estate is a promise kept between the administration and Lagosians. It also signposts the efforts of the government at eradicating slums in the state. This position is true given the deplorable condition of the area before government’s intervention  to bring it to its present state.

    For the Commissioner for Housing, Mr. Bosun Jeje, the journey to create a new face of accommodation for Lagosians and especially the people of Shogunro, Ogba, commenced in 2013, by the directives of the governor. He said the scheme is yet another milestone in the provision of decent accommodation for the people of the state.

    The late Pa Anthony Enahoro Estate, Jeje reiterated, is an example of how a well-structured public private partnership (PPP) can work. Besides, it also underscores the invaluable role of the private sector in providing solution to the housing deficit not only in the state, but in the country at large.

    “As we celebrate this achievement, I am sure this will boost the confidence of investors from the private sector to actively participate in the Lagos State Public Private Partnership (PPP) in reducing the housing deficit  in the state. We are determined more than ever before, to collaborate and work with genuine investors within and beyond the state to ensure that affordable housing is delivered to the people of Lagos State through LagosHOMS mortgage, a rent to own policy,” Jeje said.

    With strong input coming from the Lagos State Development and Property Corporation (LSDPC), especially under its urban renewal drive, the Enahoro Estate is a delight to behold. The Estate, which comprises 20 blocks of 240 units of one, two and three bedroom flats, in phases one and two, is provided with vital infrastructure to make it functional and self sustaining. These include very well tarred road network, ample parking space for cars, drainage, external and internal electrification, perimeter fencing and gate house, well landscaped environment, and adequate security. Jeje explained that adequate maintenance structure has been put in place for the estate not lose its aesthetics and ambience.  The cost of ownership is N8 million for one-bedroom, N10 million for two bedroom and N13 million for three bedroom.

    Fashola takes pride in the jobs created as a result of the construction of the estate. During the construction works, the governor disclosed that 5,000 jobs were created with the multiplier effect along the value chain. He said 13 construction firms, 30 engineers and 120 suppliers benefitted from the estate.

    Prince Mike Enahoro, the immediate younger brother of the late Enahoro, was full of praises for the honour done his late brother. “It is indeed, a great honour for your excellency and your state to dedicate this estate to the memory of my late brother, Anthony. It is simply out of this world,” an elated Enahoro said.

    In a similar vein, the chairman of the Anothony Enahoro residents association, Scheme 1, Adam Adedimeji, a lawyer, sees the development of the estate and subsequent commissioning as “the reinvention of decent life in Lagos” as obtainable in the first world countries such as United Kingdom (UK) and America, where it is absolutely possible to get bank loans to buy houses by merely presenting letters of employment to the banks.

    Adedimeji’s submission is based on the modalities for home ownership in the scheme, which he confirmed is based on the down payment of 30 per cent of the total cost of the house and the payment of the remaining 70 per cent over a 10-year period.

    “Before the advent of Governor Fashola, it would have been a mirage for middle income earners like us to enjoy this kind of gesture in which apartments of these structures and sizes are given out to Lagos residents, spreading payments on mortgage terms to 10 years and at a convenient single digit interest rate; it is like renting to own,” Adedimeji said.

    For the Lagos State government, the successful completion and hand over of the Enahoro Estate will not only increase the available housing stock for Lagos Home Owners Mortgage Scheme (LagosHOMS), but it also demonstrates the determination of the present administration to provide decent and affordable housing for Lagosians. This is evident in the fact that construction of such houses in 26 other sites across the state simultaneously.