The Nation Newspaper

Category: Building & Properties

  • Lagos to sanitise estate agency

    Lagos to sanitise estate agency

    The government of Lagos State has started moves to regulate the practice of estate agency to protect tenants and prospective tenants. But how far can this effort pay off? Muyiwa Lucas reports.

    They all defiled the downpour last Thursday. And by 11 a.m, the Adeyemi-Bero Auditorium at the Alausa Secretariat, Ikeja was filled, spilling over to where canopies had been provided outside. It was not a political rally but an event organised to seek and end to the unregulated and unprofessional state of affairs in the estate agency sub-sector.

    To the ordinary man on the street of Lagos, estate agents pose the biggest challenge to their ability to rent a decent accommodation. This is because of the outrageous agency fees they are charged for their services. A participant  told this reporter of his experience. “The apartment cost N500, 000, but the agent insisted on collecting N200, 000 as agency fee, which I find ridiculous,” he lamented.

    It is for this reason and more that the state government organised a  workshop with the theme: “Real Estate Agency Fees in Lagos State”  under the auspices of the Lagos State Real Estate Transaction Department (LASRETRAD), a unit in the Ministry of Housing. The functions of this body include sensitising the public about estate agency and attendant rules, risks and benefits; keeping a register of egistered qualified estate agency practitioners; protecting citizens from illegal operators; creating a forum for affected members of the society to lodge complaints against unscrupulous agents; monitoring compliance with the state tenancy law and other legislations on land transaction; and prosecuting agents who violated the laws.

    The Permanent Secretary, Ministry of Housing, Mr. Tunji Odunlami, set the tone of the day when he said  public concerns on the outrageous commission being charged by estate agents had become worrisome. He blamed the situation on the shortage of housing units, which has created an opportunity that agents latch on to exploit would-be tenants.

    Similarly, the Special Adviser to the governor on Housing, Jimoh Ajao, noted that the government  realised that estate agents charged varying percentages as agency fees, some as ridiculous as 75 per cent of rent for low-end properties. This, he explained, influenced the decision to bring all stakeholders together to deliberate and agree on a fixed rate.

    He said LASRETRAD  would tackle quackery in the industry.

    In his paper titled: ‘Agency fees and its Related Issues’, the Attorney-General of Lagos State, Mr. Ade Ipaye, represented by the Senior Special Adviser to the governor on Justice, Mr. Olanrewaju Akinsola, noted that agency fee is a contractual agreement which is subject to negotiation.

    Drawing a comparison between Nigeria and other countries, he said Nigeria’s agency fees are the highest. For instance, in Ghana, agency fee is five per cent; in Kenya it is 1.25 per cent and in South Africa, it ranges from four to eight per cent. He said agency fees in these countries are either paid by property owners or shared by owner and buyer/tenant. but in Nigeria, estate agency fees range from 10 per cent to as high as 75 per cent.

    Though a communique is yet to be released on the forum, Ajao told The Nation that all the participants have agreed that they have set a standard for them to operate. Ubani Onyekachi, of Ubani and Co, property consultants, agreed that is “very good we regulate our fees and even the practice generally to eliminate the quacks and fraudsters in the industry”.

    He regretted that a lot of quacks have invaded the industry and given it a bad name. For him, there must be an industry standard which must be in black and white. He, however, said there must be a way for a tenant and the agent on how much to be paid as agency fee. This, he said, must be left open so that both parties can agree on what to take. However, he explained, in the absence of such an agreement, there must be an industry standard which must not be exceeded. This, he reckoned, makes for transparency, efficiency and regularity.

    “I think what the state government is doing is what the agents should have done internally, by organising themselves and have themselves recognised and give some measure of transparency in their transaction and then suggest fees chargeable, then come and liaise with the government. But since they were unable to do that, the government is calling them into a stakeholders’meeting for them to agree. Such action by the Lagos State government is highly commendable. At the end of it all, it will pay everyone – tenants, landlords, and practitioners in the industry that there is a proper documentation and transparency in the entire industry. If we don’t do this then we are not doing this industry any good,” Ubani said.

    The Chief Operating Officer, Property Communications, Boye Ajayi, said the sector had been in a chaotic situation in the sense that most citizens don’t even know what to pay as estate agents charge indiscriminately. He said for someone to rent a room apartment, such a person must be economically handicapped, asking: why would an estate agent charge such a person huge amount as agency fee?

    “It is unimaginable for an agent to charge agency fees of same amount as the rent. The government is only trying to sanitise the industry. By doing this, these nefarious activities will come to an end. There must be a regulated fee so that somebody who wants to buy or rent a house will know what he has to pay,” Ajayi said.

    Ajayi is right about estate agents nefarious activities. It would be recalled that last year, an estate agent, Michael Olabameji was sentenced to 15 years’ imprisonment by an Ikeja High Court for defrauding 100 accommodation seekers of N29.8 million.

    In the verdict, Justice Adeniyi Onigbanjo observed that the convict inflicted untold hardships on the victims, depriving them of their money under the pretence of getting accommodation for them.

    The LASRETRAD initiative is coming on the heels of an earlier move by the Nigerian Institution of Estate Surveyors and Valuers (NIESV) to regulate the sub sector of the industry. At its 20th yearly John Ekpenyong Memorial Lecture in Lagos last March, with the theme: ‘Estate agency: Have we lost it? Mr. O. J. A. Idudu, a while presenting his paper, observed that the way quacks operate in the estate agency sub-sector of the industry called for serious concern.

    “They are proud; they are unfriendly, impolite, insulting because they believe we are in competition. They are not trained, not disciplined and some of them can be fraudulent, but the estate agent who is regulated by NIESV cannot do that,” Idudu said.

    Estate agency, Idudu continued, came into being through Decree 24 of 1975; and is an aspect of the profession under the supervision and regulation of NIESV. Therefore, he said, to practise as an estate agent, such a person is expected to register with the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), or he is treated as a practitioner is portrayed as a quack. But that is at the federal level, since the body is being regulated by the Federal Ministry of Lands and Housing.

    Laudable as this initiative is, it still appears to be a long walk to actualisation considering the pockets of discontents expressed at the workshop. This is a challenge for LASRETRAD, an expert said.

  • Lagos to build Ikoyi, Lekki link roads

    THE Lagos State government has approved the construction of Ijeh road leading to Dolphin Estate, Ikoyi and Igbokusu Road in Lekki.

    The Commissioner for Works and Infrastructure, Dr. Kadri Obafemi Hamzat, said the  measure would ensure that the roads are made passable before they are accommodated in the state’s budget.

    He added that  it would involve the use of materials that would still be useful during the major road construction. While the Ijeh road is about 735 metres, Igbokusu road is about 2.1km, adding that it would be constructed in phases.

    Hamzat explained that the reason  the state government was focusing on the inner roads was because they help to discharge water from the major roads, adding that construction is not just about building the road but about the fallout where the water will be discharged to.

    “We cannot construct all the roads at the same time. It is just not feasible. We don’t have the resources; we don’t have the capacity of contractors to even do that even if we have the money. Let us even assume that we have all the contractors in the world that can do these roads and we have the money, the truth is we won’t do it because it means we will then paralyse the state,” he said.

    Hamzat warned residents to  stop blocking drainages with refuse to avoid their blocking them. He lamented some people block the drains, which subsequently affect the roads.

    He said:  “Lagos is a coastal city, it’s a flat terrain while most areas are below sea level. The most important thing is how to move water because it may eventually destroy the road if not properly channelled. The need to move water is a critical consideration in what road we undertake.”

    The commissioner said the Ministry of the Environment has also awarded the contract for the replacement of the damaged culvert on the road to ensure free flow of the water and ensure the road is useable.

    As a temporary measure, a wooding bridge constructed by AAA RESCUE has been put in place, while the State government has provided alternative route for the residents pending the completion to compliment the temporary bridge constructed.

  • ‘Why we are partnering Lagos on enterprise development’

    The need to encourage skills acquisition has been identified as the reason Nigerite Limited, a building solutions company, is partnering with the Lagos State government on enterprise development.

    The Marketing Director the firm, Mr. Toyin Gbede, made this known at the second Lagos State Enterprise day in Lagos.

    He said realising that the future of the country cannot be separated from the existence of the company, Nigerite believes that such partnership has become increasing important for the benefit of all.

    Besides, Gbede contends that in view of the fact that no nation can be considered developed without having a strong enterprise state,  and with the way the changing world, it has become imperative that youths and made to develop strong entrepreneurial spirit, otherwise, employment will become more difficult.

    “For the world to survive the level of unemployment around the world today, which is more prevalent in sub Saharan Africa, youths must be developed into being entrepreneurs, that is, business creators as against job seekers. It is for this reason that Nigerite has collaborated with the Lagos State government on Enterprise Day,” he said.

    The Nigerite boss advised states and federal government to create entrepreneur units in all ministries. For instance, he said the Ministry of Works should take it upon is shoulder to see to how bricklayers, carpenters and other artisans can develop their skills into becoming entrepreneurs, while the Ministry of Commerce and Industry can see to how market women and the petty traders can harness what they have to become entrepreneurs. This, he says, will ensure that the country is developing a society of entrepreneurs.

    The Governor of Lagos State, Mr. Babatunde Raji Fashola (SAN), who was represented by the Deputy Governor, Mrs. Adejoke Orelope- Adefulire, said the occasion presented another opportunity for the government to demonstrate its renewed commitment to revamp Technical and Vocational education in Lagos State.

    “This initiative of our government has been properly articulated to foster enterprise education among technical college students, encouraging them to embrace entrepreneurial activities and developing the right attitude towards entrepreneurship activities and self-employment,” Mrs. Orelope-Adefulire said.

  • Six years after, Tejuosho Phase 1 ready for use

    After about six years of construction, the new Tejuosho Main Market, Phase 1, has been completed and ready for use.

    The market, burnt in December 2007, was reconstructed through a public-private partnership (PPP) by Stormberg Engineering Limited, an indigenous firm. The PPP is for 25 years.

    Stormberg’s Project Director, Mr. Abiodun Oshodi, said all is set for the take-off of business in the new complex. He explained that the complex was built to cater for both the high end owners and petty traders.

    The lock-up shops, basically for the high end buyers, are 80 per cent sold out, while the K clamp stalls have been sold out. He explained that the facility is equipped with state-of-the-art facilities. For instance, the control of fire incident has been adequately taken care with the provision of 500, 000 litres of water at the basement.

    Also, permanent fire men have been stationed in the building while a device has been put in place to alert the nearest fire station, in the event of an outbreak of fire.

    For conveniences, 240 toilets were built, while there is a police post and private security; 537 cars will be accommodated at the basement.

    Maintenance of the facility has been contracted to two facility management companies – a South African firm and a Nigerian firm.

    The Executive Directive, Corporate Banking, FirstBank of Nigeria, Mr. Tokunbo Abiru, who’s bank is providing mortgage finance for the project, explained that there are two types of financing undertaken by his bank in the project- the construction finance and the mortgage finance.

    The construction finance was to Stormberg Engineering towards the building of the market, while the mortgage financing was to the  public. Abirun, however, declined to disclose the amount involved in the construction financing to Stormberg.

    He, however, explained that for the mortgage finance, prospective beneficiaries are to contribute a certain percentage as equity while the bank would finance the remaining; repayment period is over a period of eight years.

    Other concessions given for the mortgage include a no collateral regime – as the shop purchased is used as the collateral, and ease of accessibility to the loan.

    “This is the type of banking service FirstBank will give to any developmental project. We are committed to PPP to move the economy forward,” Abiru said.

  • Mega water supply for a mega city

    Mega water supply for a mega city

    WATER is central to human existence.A populous city cannot do without this all-important commodity. To ensure free-flow of water in the mega city, the Lagos State Government has unveiled first phase of the Adiyan Water Works, with a capacity for 70million gallon of water.

    Work on the second phase which also has a capacity for 70million gallon of water delay begun. Other water works in Eti-Osa, has to expand among others, have a combined capacity of 593million gallons of water by 2020 when the Lagos population suspected the hit 29million.

    If met, the target would give a surplus of 12 million gallons of water.

    Lagos State Water Corporation (LASWC) Group Managing Director Mr. Shayo Holloway, said  the plan was aimed at meeting the water needs of the emerging mega-city, especially the first phase, which  has 15 additional mini-water works, with only five yet to be inaugurated.

    According to Holloway, the expansion is influenced by population.

    “For example, the water needs in Lagos is 500 million gallons per day, whereas, we are able to provide above 200 million gallons, thus with almost 45 per cent deficit. However, this deficit is already being addressed with the construction of the additional water works, the provision of independent power project that was completed late last year.”

    He said the shortage in Lagos Island was as a result of collapse of transmission trunk under Carter Bridge in 2005.

    “But as a remedial measure then, what we did was the laying of two 600 mm pipes to serve the affected area. As a final measure, the corporation has embarked on the laying of 1200 mm pipe that can effectively serve the affected consumers in Lagos Island, “ Holloway explained.

    He further said the award of engineering design of Odomola Water Scheme that had also received the approval of the Governor “is the ultimate goal”.

    The scheme, when completed is to provide 210 million gallons daily and would serve Ikoyi, Lekki corridor, Epe and Ibeju axis, including the Export Process Zone (EPZ) on the Epe-Maroko Expressway.

    “In essence, when this project is completed, Adiyan would be divested from serving several areas, but would solely concentrate in serving only one senatorial district. While Odomola scheme would be serving mostly Lagos East Senatorial District, Adiyan would be serving the west, while the conglomeration of majority of the existing water works would be serving the central.”

    The corporation, however, urged consumers to tap into its mains instead of patronising water vendors. “Although we realised that there are some areas that are yet to be connected, by the end of 2015, when we must have fully completed the water mains expansion project, most of the areas that are yet to be connected would have the opportunity,” Holloway added.

    Governor Babatunde Fashola, during the inspection of the project, said his administration has planned steady water supply for residents till 2020.

    Fashola said the water projects, which the administration was implementing, would take the state to the level of sustainable and efficient water supply.

    “Currently, there are reticulation contracts that have been issued, including pipe networks and pipelines being laid across the state to receive the supply of water when it is done. The planned expansion at Adiyan, which has been on the drawing board since the 1970s, is expected to give the state 70 million gallons of water per day which is the combined capacity of all the mini water works and micro water works,” the governor said, adding that the Adiyan expansion would help the government to serve areas, such as Iju, Agege, Mushin and Ilupeju.

    Besides, the governor hoped that the project would help relieve pressure from Iju Waterworks and Adiyan Phase One by implementing the expansion which was planned almost three decades ago and bring water to people in those areas.

    “It will also increase our capacity therefore to sustain life, prevent disease, provide healthy living at affordable cost, reduce the dependency that our people currently have in purchasing water, some of which is of questionable integrity,” the governor said, assuring that efforts were on to tackle lack of potable water in some areas.

  • Ogun advises industrialists on physical development

    The Ogun State Government has called on industrialists and other business owners in the state to support government policies and programmes, especially in physical development to ensure a healthy and conducive development.

    The state’s Commissioner for Urban and Physical Planning, Mr. Gbenga Otenuga spoke during a visit to the ministry’s Ilaro zonal planning office in Yewa.

    He also visited the Dangote Cement factory in the Ibese to assess their compliance with specifications in their construction in the company.

    He said the monitoring was also to ensure that the well-being and security of the people were taken into consideration during construction, enjoining them to comply with the urban and physical laws of the state.

    “Operators of the industries should see the government as a working partner to make life better for the people of state as the contribution of these industries to the economic status  of the people are enormous and both partners should give them a better and friendly environment,” he said.

    He advised industrialists to  consult the appropriate government’s agency before embarking on development, adding that this would afford the government the opportunity to  update their data bank for development of a workable master plan for the state.

  • Road to a mega city

    Road to a mega city

    Lagos State ranks among the top 30 leading cosmopolitan cities in the world. Since its designation as a mega city, the government has left nothing to chance in preparing the master plan for transforming the metropolis in 30 years. MUYIWA LUCAS writes.

    Plans have reached an advanced stage in getting Lagos State ready for its rightful position as a mega city.

    Last week, officials of the state government presented to the public its plans for the turnaround of the landscape of the littoral state, which  ranks 24 on the world’s top 30 cities under the mega city classification. A revised Ikoyi-Victoria Island model city plan (MCP) was unveiled. Other MCPs were presented earlier in the year.

    An initiative of the state government to be executed by the Ministry of Physical Planning and Urban Development, the Ikoyi-Victoria Island Masterplan 2013-2033 seeks to reposition the area in anticipation of the surge in growth. The growth in population is said to be due to urban migration, commercialisation and globalisation, which led to an exponential increase in the land area of the state from 390 hectares in 1866 to 357,790 hectares last year, and is still expanding.

    Going by the plan, buildings in the Ikoyi and on Victoria Island would  have restrictions. Also, some areas will be designated as residential while others commercial. This initiative will address the situation whereby 70 per cent of buildings on Victoria Island are commercial, while 30 per cent are residential. In Ikoyi, 40 per cent is commercial, while 60 per cent is residential. Also, a height restriction is to be placed on buildings in certain areas. These would range from 15 metres to 50 metres, if approved. Also, a restriction on the number of buildings per hectare is to be put in place.

    For example, areas, such as Banana Island, Bourdillon, Gerrard, Alexandria, and Ikoyi Crescent, which will be designated as high density areas, would be allowed 100 housing units per hectare. Medium residential density zone would have 80 housing units per hectare while Oyinkan Abayomi, Osborne and other zones designated as low density would have 40 housing units per hectare. Also, the Saka Tinubu area will be designated as “telecoms district” because it is an emerging telecoms area.

    When this is done, it is the belief of the Commissioner for Physical Planning and Urban Development, Olutoyin Ayinde, that a stronger “central business district”, would have been established in the state.

    Permanent Secretary, Ministry of Housing, Tunji Olubami, observed that since Lagos city is an ever- growing concern, it behoves the government and town planners to be responsive to the demands of development. Therefore, in line with this and to achieve the model city area dream of the administration, a three-concept combination – twin cities, compact cities, and growth management models – are to be merged.  The  government believes that such combination would give the best to the areas.

    Also, the MCP would also address the problem of parking in the areas, which has become a nightmare. Ayinde observed that the present situation is a major source of concern to the government.

    “The parking constraint should be a concern to town planners, hence, buildings should have basement parking. The government can no longer take the people for granted, hence, the continuous development being put in place,” Ayinde said.

    To ease the parking problem on the Island, it is the government’s plan that shuttle services would be provided in the hope that it would encourage people to leave their cars at home or in designated areas off the Island vicinity.

    But, much as these ideas seem lofty, stakeholders have their reservations. Prof Leke Oduwaye of the University of Lagos (UNILAG) is one of them. Though he praised the government for the effort, he, however, faulted the various projections. He warned that giving the cost of properties in the area, the height restrictions would be a great disservice to investors and their investments in terms of returns. “The projections in this presentations have underestimated the capacity of this city. The projections are too low and it will be unattractive to investors; we are underestimating the potential of this investment,” Oduwaye warned.

    Ladipo Lewis, chairman, Lagos chapter, Nigerian Institute of Archiotects (NIA), agrees. “The height restrictions should be reviewed. The 30-metre height on Ozumba Mbadiwe, for instance, is unrealistic. Lagos is a littoral state, so there should be vertical development,” he advised, adding that it is unrealistic to build high-rise car parks.

    Oduwaye challenged the Ministry of Physical Planning and Urban Development to jack up its technical competence and rise to the challenge of modern construction.

    The development of the MCP, experts say, is phenomenal given that up to 1950, only about eight cities in the world had a population in excess of five million. The United Nations has projected that in 2015, Lagos State’s population will increase to about 25 million, thereby making it the largest city in sub-saharan Africa and the third largest in the world.

    To address the population explosion, the state government had in 1980 prepared a regional masterplan, which expired in 2000 and was revised in 2002. The  masterplan also identified 35 urban districts, including Surulere, Ikeja, Obalende, Ikorodu, Ipaja and Alimosho. However, these urban cities were not properly planned and implemented, leading to the administration of Bola Tinubu initiating policies aimed at rebuilding the mega city through re-planning and rebranding same as model cities

    The Ikoyi/Victoria Island MCP represents the first effort of the  government in 10 years to tackle anti-social behaviours and build the mega city, as well as to guide development planning documents, and to provide facilities and services that are either inadequate or unavailable.

    Besides, Ayinde noted that to address physical planning disparity in the approval order of the federal and state government- owned schemes, the area had to be reviewed.

    It is not, however, only the highbrow Ikoyi and Victoria Island that would benefit from the redevelopment plans. Last May, the Agege-Ifako-Ijaiye Model City Plan was presented to the public.

    It was the eighth of such plans after Ikoyi-Victoria Island, Alimosho, and Lagos Island, among others, that would be executed by the MPP&UD.

    The proposed Agege Ifako-Ijaiye runs from 2013 to 2033, with focus on transforming the transportation system, activities centre and infrastructure provision. Included in the plan is a proposed outer ring road, pedestrian bridges to be constructed at places, such as Kola area in Agbado Oke Odo, Abule Egba, Ile-Epo and Iyana Ipaja, Dopemu, and Cement.

    Like that of the Ikoyi-Victoria Island, it is also categorised into high, medium, and upper medium residential densitiess.

    Others are commercial areas, industrial areas, areas for institutions, mix use areas, open space/recreational areas, gorge/canal and rail, cemetery and special projects known as airport projects. Road construction would include the proposed and the existing arterial roads’ expansion and upgrade of existing ones where necessary.

    One important feature in the scheme for this area is the consideration for Bus Rapid Transit (BRT), which incorporated BRT routes in eight areas — Iju-Oshodi, Iyana-Ipaja-Ayobo, Iyana-Ipaja-Moshalashi, Iyana-Ipaja-Oshodi, Maryland-Iyana Ipaja and Ota – Maryland.

    Ayinde sees the presentation of the final draft of the plan as another “milestone  and commitment to ensure a better planned livable, healthy business and human environment through innovative and sustainable physical planning and balanced urban development in Lagos State”.

    “The frightening demography arising the rapid urbanisation has made Lagos wear a mega city status with a population of 22 million at eight per cent growth rate translating to emerging challenges of congestion in housing, overstressed infrastructure, security/crime control, transportation system, and urban management to mention a few,” he noted, adding that the implementation of the key proposals of the plans will facilitate improved housing, transportation, employment, commerce and recreation in addition to infrastructure upgrade.

  • FMBN boosts housing delivery in Enugu

    FMBN boosts housing delivery in Enugu

    The desire to tackle headlong, the challenge of an estimated 17 million housing deficit currently facing the country appears to be the new driving force behind the renewed vigour of mortgage institutions, federal and state governments across the country. From the LagosHOMS scheme, a housing initiative of the Lagos State government, to the Home Charter initiative of the Ogun State government and several others across the country, the frenzy has assumed a higher pitch.

    For instance, the initiative of the Federal Government to set up the Nigerian Mortgage Refinance Commission (NMRC) has brought brighter hope of more housing opportunities for Nigerians. The Minister of Finance, Dr Ngozi Okonjo-Iweala, at a stakeholders meeting in Abuja earlier in the year, said 10,000 Nigerians would own houses in the year through the NMRC. This optimism is buoyed by the World Bank’s $25 million (N4.1 billion) support for this mass housing initiative.

    But even as Nigerians patiently await the commencement of the NMRC initiative meant to have taken off on June 30, the country’s primary mortgage financial institution, the Federal Mortgage Bank of Nigeria (FMBN), is leaving no stone unturned in ensuring that mass housing for all is achieved. The recent inauguration of a 324-housing unit in Elm estate, Enugu, is a further testimony to this. The Elim Estate project, though developed by NBP Projects Limited, a firm of private property developers, it was fully financed by the FMBN through a construction loan it granted the developer. The FMBN gets its funding through the contributions generated from the National Housing Fund (NHF) scheme, which comprises mainly  2.5 per cent contributions from the monthly income of workers.

    Elim estate comprises 128 units of one bedroom terrace units, and sells for N3.5 million each; 32 units of two-bedroom terrace units at the cost of N4.5million each; 89 units of two-bedroom blocks at the cost of N5.8million each; and 75 units of three bedroom bungalows costing N10million each. All the units are said to be delivered with good quality finishing, in addition to accompanying infrastructures of a good road network, electricity, sewage and other facilities to guarantee a comfortable and decent environment for its prospective occupant. The Estate equally has perimeter fencing, police post, tarred access roads, dedicated 500 KVA transformer, water reticulation, indoor sporting facilities and a shopping centre.

    Vice President Namadi Sambo, at the inauguration of the Elim Estate, which is the latest effort of the FMBN, reiterated govern-ment’s commitment to the housing sector. He noted that the housing sector is vital to the socio economic development of any nation because it constitutes an important element of job and wealth creation. Sambo, obviously impressed by the composition of houses in the estate, praised the FMBN and the developer for ensuring that the scheme catered for affordability issues of individuals with its offering of one bedroom, two bedroom, three bedroom units, and at affordable prices to both low and medium income earners.

    “This inauguration signifies the usefulness of synergy and corporation between government and the private sector. It underscores the effectiveness of the NHF as a veritable source of long term funding and justifies the need to strengthen the scheme through the recapitalisation of FMBN,” Sambo said, even as he expressed confidence that the NMRC which was launched last year, will bridge the cost of residential mortgages, stimulate availability of good houses to Nigerians and reduce affordability and gaps to finance.

    The Managing Director of FMBN, Gimba Ya’u Kumo, also used the occasion to assure Nigerians of a better tomorrow concerning their housing needs. He said that the FMBN, in line with its mandate to provide affordable housing to Nigerians, has started the process of ensuring that participants on the NHF scheme had access to mortgage loans across the country.

    Specifically, he said NHF participants and applicants to the scheme in Enugu are to be supported to buy houses in the Elim Estate scheme and others that would be developed.

    He assured that low and medium income earners who qualify to own houses based on being regular contributors to the NHF scheme will benefit from a six per cent interest mortgage loan, which is repayable over a 30-year period. This is in line with the mandate of the FMBN which includes ensuring that Nigerians have access to cheap funding to owning their own houses.

  • Rainbow Town phase 1 ready next year

    The sprawling Port Harcourt Housing Estate, otherwise known as “Rainbow Town”, has been described as Nigeria’s flagship urban renewal project and the largest construction site in sub-Saharan Africa.

    Property developer and architect,  Chima Ucheya, who is also the managing director and chief executive officer of Rainbow Town Development Limited, noted that the bourgeoning estate has many unique  attributes and remains a synergy of public policy, urban renewal, housing and economic development.

    Located near the Trans-Amadi business-industrial area of Port Harcourt, the project was conceived with many good quality 1,181 residential units with terraces, detached homes and 25 high-rise  towers. The units address various lifestyles and family sizes with two and three bedroom condos, four-bedroom terraces and five-bedroom detached duplexes, all en-suite and with domestic aid quarters.

    Ucheya said construction of the first phase, which commenced in 2009 with an estimated budget of N82 billion, is scheduled for completion in the third quarter of next year.

    FirstBank Nigeria Plc, partners to the project, has a dedicated mortgage for access by investors and purchasers.

    “Rainbow Town is creatively designed to offer a total well-being experience. The master plan reflects some of the live-work-play ideals of new urbanism communities worldwide,” he explained, adding that the project was designed to offer a well-being experience comprising a medical clinic, primary school, outdoor recreational facilities, clubhouse, security post, fire station, and shopping arcade.

    Besides, its iconic tower presents a good commercial hub of office space, movie theatres, conference facilities, shops, restaurants and helipad. The township is serviced from the eco-centre, a supply hub for power, water and sewer plants, broad-band wireless internet connectivity and data service.

    Ucheya said the success of the  project execution is grounded by the exemplary corporate governance policies and ethical standards established by a Board of accomplished professionals in finance, construction and law.

    Up from the ashes of a township constructed in 1964 by the former Eastern Housing Corporation, Rainbow Town is today, according to Ucheya, “an ambitious upscale transformation of a blighted infrastructural challenged commu-nity, through a bold land-use programme and visionary design lifestyle programme of an avant-garde, mixed-use development of residential, recreational, business, educational, healthcare and retail facilities”.

    Beyond its appealing aesthetics and tectonics, the economic development objectives of Rainbow Town are achievable through construction and allied trades and business job creation; and by tenement, property and business taxes.

    At present, Rainbow Town site is a beehive of construction activities, as it now provides employment opportunities for  people in the state, who either work as labour on site, or as artisans.

    With construction at about 60 per cent, and feeder and arterial road improvements, neighbourhood properties are already witnessing rebounds and upsurge in values.

    Experts said infrastructure and mega real estate developments, such as Rainbow Town, will drive Nigeria from its position as the largest economy in Africa into the noble target of one of 20 largest economies in the world by 2020.

  • Living in fear

    Living in fear

    Trouble is brewing in Amu, Mushin, a Lagos community over the blockage of a canal by a developer, reports MUYIWA LUCAS.

    Residents of Akingbola, Amu, Cash, C.A.C, Adedokun and Oduduwa streets in Mushin, a popular Lagos subsurb, are living in fear of flooding. They are worried over a fence and culvert constructed on the path of a canal that runs through the area. The development is threatening peace in the area.

    From Agege Motor Road, the canal runs through Akingbola Street to connect the Oke-Afa canal in Isolo. Therefore, any obstruction to the flow of the canal would have a backlash on communities on its axis.

    When The Nation visited the area last week, bricklayers were seen constructing the fence, leaving no space between the canal’s edge and the fence.

    Apostle Timothy Ogungbesan, chairman, Amu Community Development Association (CDA), told The Nation that the community has  complainted to the local government. Some members of the community, he said, have also gone to the Lagos State Building Control Agency (LSBCA) whose officials  have stopped  work on the  site. He said the owner defaced the “stop work” inscription placed on the site.

    “We wrote the local government (Mushin) to intimate them of the havoc the construction will wreck on this community if it is allowe to remain. Allowing this structure will be tantamount to allowing flood to destroy our lives and properties in this communities because whenever it rains, that channel is where the flood flows through. But the structure has now disrupted flood such that it now flows into the adjacent streets,” Ogungbesan explained.

    Though the community leaders claim to be in the dark over what would be built on the large expanse of land, they are resolute in their demand that the government should stop the construction on the canal because of its dire consequences to lives and properties. They alleged that Mr. Bayo Abdul, the property owner, broke part of the canal  during the construction.

    The Nation’s findings showed that Abdul incurred the communities’ ire when he decided to extend the  fence by 18 feet, bringing it close to the canal with less than two inches.

    Chief Jimoh Apena, a 74-year-old  community leader and chairman of Cash Street CDA, said Abdul bought the land about five years ago.

    “Bayo (Abdul) came to meet us that he wanted to demolish the original fence that was built in 1958; he said he wanted to use the 18-ft set back and we explained to him that the space was left because of the canal in case it was to be evacuated. Besides, there is a mandatory setback which the government expects from any land development. Two companies have used that land before he bought it and they didn’t lay claim to the setback, so why him?” he asked rhetorically, appealing that the government should come to the aid of the community before a major disaster happens.

    “On June 26, this year, a new twist was introduced into the matter when policemen from Zone D, Isolo, visited the community. At the end of their visit, 13 people, including Pa Apena and his daughter, were arrested and whisked away to the Zone D Area Command. The police were allegedly brought by Abdul.

    “When I came out to intervene, he (Abdul) told the police to arrest me too. I was arrested and taken to Zone D, Isolo Road, in my knickers. I was arrested with my daughter; but released on bail with my daughter on the same day, but the others were put in cell till the next day,” Pa Apena said.

    He said the Zone D Area Commander appealed to the parties to embrace peace and since it is not within the command’s jurisdiction to intervene in land matters, he directed them to the Lands Bureau to solve the problem.

    But Abdul debunked the allega-tions, saying he only recovered his “property from trespassers”.

    “There is nothing wrong in what we have done. Trespassers broke the fence over two months ago and we are only trying to rebuild it. I have papers (documents) for everything we are doing on that land, and it is approved by the government. I have permission from LSDPC, Ilupeju to do what I am doing,” he said in a telephone interview.

    He said the disputed setback was used by artisans in the community as a mechanic workshop, adding that this not only constituted a nuisance, but made a mess of his property, turning it into a dumping ground for rubbish, including faeces.

    Abdul said he had an understanding with the government which stipulated that whenever the need arose for the setback, he would hand it over to the government for use.

    Explaining his role in the arrest of the residents, Abdul said  Pa Apena was only invited by the police. He said the community leader and his daughter were  released immediately. “I see the Apena as my uncle. I respect them a lot in the community and I love them. But the old man threatened my life and I reported to the police,” Abdul added.

    Pa Apena denied threatening Abdul, alleging that  Abdul used the police to harass  people in the neighbourhood.

    At the Lagos State Ministry of Physical Planning and Urban Development (MPP & UD), Alausa, Ikeja, officials declined to comment because as “civil servants, we are not authorised to speak to the press”. A top source in the ministry told this reporter that the ministry would never approve such a development near a canal.

    According to the source, the state, determined to forestall future building collapse and protect the environment, is enforcing the 2010 law on building.

    “At the site you are talking about, did you see any project board there? If you didn’t, then it is illegal construction going on there,” the top source explained. He further added that the ministry is the only government agency vested with the authority to give approval to buildings or any construction in the state. Setbacks, the source emphasised, is mandatory and the government would not compromise on it for any reason.

    The same scenario played out at the Lagos State Ministry of Environment, Alausa. This reporter was informed by a senior official, who pleaded anonymity, that construction along waterways or canals is illegal. Besides, the state government is said to be intolerant of acts that  endanger the lives of the people, hence, it is “not possible for approval to be given for construction in places that constitute potential disaster.”