Category: Building & Properties

  • Firm unveils first estate in Lagos

    Firm unveils first estate in Lagos

    Rent Small Small, a property-technology firm, has opened

    Freedom Park, its first residential estate in Awoyaya, Lagos State.

    During a tour of the facility with reporters, the co-founder and Chief Executive Officer (CEO) of Rent Small Small, Tunde Balogun, said: “We are happy that more landlords and developers have trusted us with their properties.This is the first time we are taking on an entire new  estate. With over 100 apartments, we have a space for young professionals looking for a vibrant community where they can express their independence, creativity, and improve their productivity which is why we named the estate Freedom Park.”

    Freedom Park has over 100 one-bedroom apartments for letting for N50, 000 per month. This brings down the price attached to quality living, giving even more people access to decent homes on a budget that they can afford.

    Also, Rent Small Small, as part of its second anniversary, has  re­launched its 2. 0 website and a new app, which is a major improvement on version 1.0 has undergone tweaks and corrections with improved user experience that offers users access to the information they need.

    He said: “It is simple and easy search, quick and easy navigation from page to page, improved mobile experience with  users  now able to  pay and renew rent online from their dashboard.”

     

  • Contract on Paramount Twin Towers devt signed

    Contract on Paramount Twin Towers devt signed

    Palton Morgan, a parent of Grenadines Homes and Oceanna has signed a contract with Trevi Foundation for the  construction of Paramount Twin Towers, at Oniru Waterfront, Victoria Island, Lagos.

    The Group Chief Operating Officer, Palton Morgan, Nidal Turjman, said the company’s vision is to become the preferred real estate group on the continent that is aligned with first-class projects that will meet the expectations of the market.

    The Paramount Twin Towers is planned to take luxury living to a new level of sophistication, offers a unique blend of safe and secure community living that will make its residents feel at home right next to the Atlantic Ocean, he said.

    “To bring these magnificent towers to life, we have carefully selected the best architect, project management team, and contractors to exceed our customers’ expectations,” Turjman added.

    The Director of Projects and Development, Palton Morgan Holdings, Peter Raven, cited the group’s desire to be the best as the motivation for selecting only the best project managers and contracting firms for their projects.

    “Palton Morgan is on a mission to lead the real estate sector in Africa with revolutionary ideas and strategies that will fuel great innovations within the Nigerian property market. We are building sophisticated masterpieces and creating new standards for luxury living,’’ he said.

    The General Manager, Trevi Foundation, Massimo Cagna, expressed delight at another opportunity to work with Palton Morgan on the project. He praised the group for their transparency and professionalism during the selection.

    “I worked with the company on the Oceanna project, and they have great working structure and human resources,” he said.

     

     

  • LASPPPA GM to cut planning permits’ processing time

    LASPPPA GM to cut planning permits’ processing time

    By Okwy Iroegbu-­Chikezie

    The new General Manager, Lagos State Physical Planning Permit Authority (LASPPPA), Kehinde Osinaike, has  promised to improve the agency’s service delivery and reduce the time for processing planning permits.

    The General Manager made this known during his inaugural meeting with management staff and district officers of LASPPPA.

    He said his tenure would be based on a Four-Point Agenda in tandem with the state government’s THEMES agenda.

    Osinaike listed these as  improvement in turnaround time of processing planning permits, bringing in more developers/owners into the net of those applying for building approvals, development of good relationship with stakeholders, and building human capacity.

    He urged the management team to internalise the agenda, adding that the District Officers should be more dutiful.

    He said they are the public image of the agency.

    The GM said he planned more training, encouragement and rewards for hard work.

    He emphasised the need for the Management to be good examples to their subordinates, stating that they should be decisive and firm to get tasks accomplished.

    The General Manager also vowed not to take lightly his primary assignment or trivialise the confidence reposed in him to improve the status of the agency.

    He thanked Governor Babajide Sanwo-Olu for the appointment.

    Osinaike solicited the support of  staff members.

    Head of Physical Intervention Department LASPPPA, Kikelomo Asogbon, pledged the commitment of staff members to make the GM succeed.

  • The panacea to real estate growth is Facility Management says Afriland CEO

    The panacea to real estate growth is Facility Management says Afriland CEO

    By Okwy Iroegbu­Chikezie

    The Managing Director of Afriland Properties Plc, Uzo Oshogwe, has said that efficient facility management is a key enabler for the growth of the Real Estate Industry in Nigeria.

    Speaking in Lagos, Uzo stated that Facility Managers are the heartbeat of corporate real estate. In her words, “Facility Management is one of the most ignored functions in real estate management. In today’s world where you find investors spending huge sums of money on developing prime real estate assets, it is surprising to find that many of these developments have little or no facility management services. This is comparable to buying a very expensive automobile and getting unreliable hands to carry out maintenance. In this instance, there is only one outcome which is not pleasing to the ears and pockets of the owner. It will end in the destruction of the vehicle.”

    READ ALSO: We’re retaining earnings to drive growth, says Afriland

    She continued “Quality facility management service is the difference between defining a real estate investment as an asset or a liability. When managed well, it becomes an asset in the balance sheet because its value keeps appreciating. However, if it consistently drains revenue because of improper management, it becomes a liability, and no investor or developer will want to be saddled with a liability”.

    While encouraging developers and investors to incorporate facility management in their projects in order to ensure the profitability of assets. She said “The only way your facility can remain attractive to clients is if it is consistently optimized to meet their needs over time. The little things matter. You cannot expect renewals or increased rent on your assets if the services you offer are not commensurate with clients’ satisfaction. To drive efficiency and cost-efficient operations, facility managers are a must-have in any corporate real estate development that intends to maximize its potential.”

    It will be recalled that Afriland Properties Plc has diverse properties under its facilities management portfolio including Afriland Towers on Broad Street, Lagos.

  • Experts: path to sustainable buildings

    Experts: path to sustainable buildings

    By Okwy Iroegbu-­Chikezie

    The workshop with  the theme: “Sustainable building services practices: Enhancing performance and user satisfaction” provided experts in the construction industry the opportunity to provide solution to the problems of the sector.

    President, the Nigerian Institute of Building (NIOB), Kunle Awobodu  said the quality in building production, enhanced building performance and habitability were not happenstance, but rather they were  statutory.

    At the virtual mandatory professional development workshop of the institute, the NIOB chief stated that  some systems give headaches to end users of buildings if the designs and installation were not properly done.

    Former Ogun State Governor,  Gbenga Daniel was among the participants. Others included  the former President, the Regulation of Engineering in Nigeria, Ibikunle Ogunbayo;  a Professor of Building Services at the Ahmadu Bello University (ABU), Ikemefuna Mbamali; an expert in construction ergonomics, health and safety from Nelson Mandela University,  South Africa, Prof. John Smallwood; and Prof. Abimbola Windapo from the University of Cape Town, South Africa.

    The Chairman, Council of Registered Builders of Nigeria, who is also Vice-Chancellor of the ABU,  Zaria, Prof. Kabir Bala, commended the NIOB for organising the workshop in a search for solutions to the problem of services in buildings.

    The President, Nigerian Society of Engineers,  Babagana Mohammed, emphasised the necessity of the workshop. He sought increased cooperation and teamwork among the various professionals in the construction industry.  He pledged his support for the growth of sister professions and eradication of quackery in the industry.

    Mbamali explained the building services ecosystem from the design,  equipment and component, selection,  optimisation and spatial coordination and user behaviour.

    Smallwood emphasised the importance of health and safety,  explaining some of the hazards at the construction stage.

    Daniel explained the history of the development of escalators and elevators, standards, their design considerations, construction and installation requirements including operation and maintenance.

    Specifically, he said external elevators could be used in our environment only after consideration of factors such as weather, and power.

    Windapo explained the practices of building services in South Africa and the relevance of regulations, including using certified workers for installation.

    Ogunbayo argued that buildings are more than stuctures, as the performance of their services gives meaning and comfort.

    The Managing Director, Federal Mortgage Bank of Nigeria, Ahmed Dangiwa, challenged builders on materials input for housing development.

    Also, the Managing Director of the Family Home Funds, Femi Adewole,  reiterated the timeliness of the workshop and the target of the Family Home Funds in provision of housing in the next five years.

    The two chief executives enunciated the significant role of builders in property development and the value builders can add to housing developers

    Dr Buhari Manzuma explained the imperatives of testing and the various tests for electrical installations towards improving safety in buildings.

    Professor Myha Stanley explained challenges of traditional building services design coordination, saying in the least a three dimensional presentation of services drawings through the Building Information Modelling platform.

    Aderonke Oyelami, a quantity surveyor, lectured the delegates on  practical challenges in the measurement and costing of building services.

    Graham Teede,  a chartered building practitioner from Australia, gave insights, using real-life examples,  on issues with installation of building services.

    He explained that installation of building services requires due diligence and compliance with standards.

    He further explained the challenges of congestion and tolerances im services installation.

    Dr Dalhatu Abdulsalam emphasised the need for energy management through appropriate techniques for cost effective operation and maintenance of building services.  Dr Emmanuel Nkeleme a post doctoral researcher based in South Africa presented his research output in the development of a predictive controller for optimising energy  consumption and reducing costs in the use of heating,  ventilation and air conditioning system.

    Echoes of problems of services in completed buildings reverberated from the presentations. The well attended workshop ended on a high note with a call on governments and professionals to adopt the national building code with its compliance forms which would enable designers and builders  to attest to their input in the building delivery process thereby blocking unprofessionalism in building services design and installation.

  • Why we  should restore the environment, by UN, others

    Why we should restore the environment, by UN, others

    The United Nations (UN) celebrates June 5 yearly as World Environment Day (WED).The commemoration of the day provides the world with an opportunity to extend the basis for an enlightened opinion and responsible behaviour by individuals, businesses, and societies in preserving and enhancing the environment. This year’s theme: ‘Ecosystem restoration’, focused on resetting relation with nature, writes OKWY IROEGBU­-CHIKEZIE.

    Celebrated on June 5 every year, the World Environment Day (WED) is the United Nations (UN’s) day for promoting awareness and environmental action globally.

    It has become the largest global platform for discussing  environmental issues such as global warming, marine pollution, human overpopulation, wildlife conservation, and sustainable consumption.

    Celebrating the event in Lagos, stakeholders decried the decaying state of the environment due to inadequate awareness and challenges arising from climate change and global warming.

    Lagos State Governor, Babajide Sanwo-Olu called for a proactive action that would protect humanity against the effects of climate change.

    He spoke at opening session of the Eighth Lagos International Climate Change summit with the topic: “Adapting health, energy, agriculture, transportation and waste infrastructure to the long-term impacts of climate change in Lagos.”

    Sanwo-Olu, who launched the state Climate Action Plan (CAP) at the event, called for an action to mitigate the impact of climate change, which, he said, is evident for all to see.

    The world, he said, was at a point where climate change is not only a territorial threat but also a common phenomenon, playing out in our eyes.

    The governor noted that last year was adjudged the worst in  climate change because the world experienced extreme climate event.

    According to him, it was imperative to address climate change because of its pivotal impact on  agriculture, health and sustainable  growth.

    He reiterated that the world faces an environmental emergency, which leads to depravation of food, water and other necessary resources needed for human kind to survive.

    The onus, he said,  was on us to collaborate to save the environment and mitigate the adverse effects of climate change as well as make the climate more livable.

    The governor promised that his government would implement recommendations at the summit to tackle climate change in the state.

    Also, the Minister of Environment, Mr. Mohammad Abubakar, noted the  danger of climate change and its attendant consequences, stressing that its adverse impact is on the rise as well as  threatening human existence globally.

    The minister, who was represented by Federal Controller for Environment, Mrs. Oluwatoyin Agboola, said the Federal Government has through the Federal Ministry of Environment has joined the global communities in tackling the challenges of climate as well as adapting green house solutions and adaptations.

    He noted that the president recently approved the revised national climate change policy and the national climate change programmes for Nigeria to capture ongoing input not reflected in the previous policy.

    The action plan, he said, is expected to run through 2021-2030.

    He implored Nigerians to do everything possible to use the carbon footprints and adopt sustainable for the sake of generation yet unborn.

    Earlier, Lagos State Commissioner of the Environment and Water Resources, Mr. Tunji Bello said the Lagos International Climate Change Summit since inception in 2009 had become a meteting place for researchers, investors, academicians and stakeholders in the environment and economic sectors where notable decisions and actions are taken

    With the return to the summit, he said the state was reviewing an adaptation of some previous themes  of their importance to the government’s THEMES’ agenda.

    He noted that climate change is one of the defining challenges of our time.

    According to him, receding forests, biodiversity loss, changing rainfall patterns, drought, increase in dust storms, increase in temperatures and rising seal levels are grossly increasing economic, political an humanitarian stresses, as well as affecting human development in all parts of the world.

    A don from the University of Lagos Linkage Centre for Environmental Human Resources Development, Prof. Babajide Alo, said Nigeria’s environment was still confronted by deforestation, poor management of biodiversity and climate change impacts. He listed others as drought and desertification, flooding, soil and coastal erosion, water and crude oil pollution, industrial contamination of air and water bodies, urban decay and poor municipal waste management.

    He attributed some of the environmental problems causing security breaches in the country to herdsmen’s migration to the South in search of fodder for their cattle.

    He charged government at all levels, the private sector and other stakeholders to use the WED’s message to consider restoring degraded environment and impoverished populace.

    “They should take steps to implement strategies in the National Policy on Environment, sectoral policies and action plans on different environmental issues and embark on enforcement of desirable environmental laws,” he said.

    Director, Health of Mother Earth Foundation, HOMEF, Nnimmo Bassey, stressed that the violence in the country had direct negative impact on the environment, adding: “Some citizens and corporate bodies have used the prevailing situation to wreak havoc on ecosystems at dramatic levels.

    “There is an ongoing plunder of forest resources and ecosystems through illegal logging for export. This is happening in daylight and the systems of government that ought to protect the forests and communities appear to be either comatose or complicit.”

    Bassey advised Nigerians to stop environmental recklessness, saying: “This can be done by ensuring the teaching of environmental responsibility and health at all educational levels.”

    Also, Director of the Centre for Climate Change and Development, Alex Ekwueme Federal University, Ndufu-Alike, Prof. Chukwumerije Okereke, said Nigeria is not on track to achieving Nationally Determined Contributions (NDCs) target.

  • Nigeria’s furniture export rises as Cyrus Doors enters Alaro City

    Nigeria’s furniture export rises as Cyrus Doors enters Alaro City

    By Okwy Iroegbu­-Chikezie

    Nigeria’s furniture export profile has received a boost with the move by Cyrus Doors and Joinery, a leading manufacturer and installer of furniture and joinery products, to Alaro City, the new mixed-use city in the Lekki Free Zone, Lagos.

    Cyrus plans to expand into the Sub-Saharan Africa’s construction scene and will use its new factory in the Alaro City to manufacture furniture and enhance training of local artisans.

    The Chief Executive Officer of Cyrus Doors and Joinery, Alero Imo, said: “The new facility will enhance our ability to produce doors, wardrobes, and kitchens of international standards.

    “In seeking the perfect place to host this new facility; the choice of Alaro City was an easy one. It is not only a city with international standards, but also also a free trade zone. For us, that is important as we now position ourselves to export to the world proudly-produced Nigerian doors and furniture.”

    Launched in January 2019, Alaro City is planned as a 2,000-hectare mixed-income, city-scale development with industrial and logistics locations, complemented by offices, homes, schools, healthcare facilities, hotels, entertainment and 150 hectares (370 acres) of parks and open spaces.

    The city is a partnership between Rendeavour, Africa’s largest new city builder and Lagos State.

    Over 3.5km of initial road networks and a modular 50MVA power plant are under construction. So far, about 40 firms are operational or in various stages of building their facilities in the city.

    Among the pioneering firms in Alaro City is Starium FZE, a subsidiary of BUA Group. Others include Mantrac Caterpillar, Ariel Foods FZE, the largest and most technically advanced ready-to-eat therapeutic foods producer in Africa, and HMD.

    Chairman of Alaro City, Ayo Gbeleyi, said the growth of the country’s export is critical to development and commended the the state government for playing a pivotal role in this by building and sustaining such vital partnerships with the private sector as that which gave birth to Alaro City.

    He added: “It is heart-warming to see that Nigerian furniture will be exported as Cyrus Doors and Joinery join an elite group of businesses in Alaro City that are making history in diversifying Nigeria’s economy and boosting the nation’s manufacturing and export profile.

    From composite gas cylinders to doors, Nigeria is emerging as an export powerhouse and we thank the Lagos State Government and Rendeavour for making Alaro City irresistible to forward-thinking innovators and builders.”

     

     

  • How design experts can sustain cities’ livability

    How design experts can sustain cities’ livability

    The population of Lagos State is said to have risen to 22 million, with many coming daily with no intention of leaving. Faced with rising population, stakeholders in the built environment have stressed the role of space design in sustaining the future. At a forum organised by the Nigeria Institute of Architects (NIA), Lagos State Chapter, themed: “The City of Lagos: The next 25 years”, participants said space for building was vital as the city is experiencing hyper-urbanisation. OKWY IROEGBU-­CHIKEZIE reports.

    Stakeholders in the built environment have stressed the role of designing for space in sustaining the future of cities like Lagos. They noted the increasing population, which is expected to hit the 50 million mark by 2050.

    Leading the call at the Lagos Architects Forum (LAF) 2021, Governor Babajide Sanwo-Olu said the future belonged to the cities, hence, planning for space for 22 million  was not easy.

    He noted that Lagos constituted 0.36 per cent of world population in land mass, stressing that the state had developed a 2050 master plan and only proper planning could ensure that the plan was scalable to drive the vision of 2050.

    He said his administration had adopted the THEMES Agenda to address the challenges of transportation, traffic, health, environment, education, security and good governance. The Lagos of their dream cannot be achieved without good governance, Sanwo-Olu said.

    Earlier, Chairman, Lagos chapter of the Nigerian Institute of Architects, David Majekodunmi, said LAF had become a refreshing, professional and networking yearly event where architects discuss current issues that affect the practise of the profession and solutions proffered.

    “We have also benefited so much from the products and services displayed and the support given by the various manufacturers, building materials suppliers and financial institutions, he stated.

    He said the forum examined critical contemporary issues, live case studies of successful business models and projects.

    “I hope that we would have succeeded in achieving our advocacy  role in sensitising  the various stakeholders in the  built environment  on steps and implementation strategies in achieving not just a mega city, but a sustainable, resilient, eco-friendly,  and  liveable mega-city that is also an international cultural metropolis. Furthermore, I hope that the need to step up in our commitment and involvement levels in activities to achieve the above will not need to be stated. Let us build on the inspiration from where the Ocean meets the Land.  It has become a tradition; the students of Architecture in Lagos State are not left out in the numerous activities lined up,” Majekodunmi said.

    The students are the hope of the future of our profession, and they will be at the forefront of the construction industry in the next 25 years; hence this is a good reason to chart a vision  for the future of the Lagos built environment, he added.

    Also, the Oniru of Iruland, Oba Abdulwasiu Omogbolahan Lawal, Abisogun 11, who spoke on “From Space to Place – Making  Our City Work for all its Inhabitants”, said the world was undergoing massive urbanisation, at unprecedented rate, and Africa was not exempted.

    Lagos, he said, is one of the few in the world undergoing hyper urbanisation, with its attendant problems such as micro and macro slum developments, crippling traffic congestion, poor waste collection and management.

    He said one of the things that had become clear, particularly after the global health crisis, was the role of public awareness in urban communities. According to him, it has become clearer that safer infrastructure and more open space are essential.

    Oba Lawal said a city was all about connection, and fostering connectivity was not only about transportation and communication. At the heart of it, he said, is access, how people are connected to their immediate environment, to green spaces and public spaces that enable cultural and civic engagements.

    The former Housing commissioner stressed that, as designers, more effort should be put into making places for people beyond their homes and work.

    According to him, in the next two decades, the urban population of sub-Saharan Africa is expected to double. A report by Gensler puts this in perspective. By 2050, we would need to build a city the size of London every month, for the next 400 months, to accommodate the increasing global urban population growth.

    “There is sufficient evidence to support the fact that increased connectivity reduces the tensions between groups in communities, establishes a sense of belonging and makes communities more dynamic  and vibrant.  Not to mention designing healthy communities is to pretend that the pandemic did not expose some of the shortcomings in the design of the built environment, across the world,” the Oniru said.

    “Public health and the design of cities are inseparably interwoven, the way we build  our communities  has a profound effect on our physical  and mental health.  Healthy communities ensure residents benefit from access to education, housing, jobs, the ability to live without fear of violence, freedom from environmental hazards and a meaningful built environment,”he added.

    He said cities have to inspire. In the world’s most livable cities, arts and culture blend with business, retail, entertainment and residential districts to create desirable places to live, work and play. These cities inspire and connect inhabitants and promote the healthy lifestyles that make them places where people enjoy spending time and achieving prosperity, Lagos is a magnet city.

    He said since he became the Oniru of Iru Kingdom, he had developed  what he called a LeGit vision  which literally means: Let’s Grow Iru Together, which seeks to evolve Iru to a sustainable city, with a truly resilient people.

    Speaking on “The City of Lagos: The Next Twenty-Five Years”, the keynote speaker, President, Nigeria Institute of Town Planners, Toyin Ayinde, said there was an urgent need for stakeholders to discuss the future of Lagos and other cities as well as communities.

    Ayinde lamented that the present plan was insufficient to cater for the city of Lagos that had gone beyond being a mega city to a meta city, a term coined in 2006 by the UN-Habitat when the term megacity designated as cities of over 10 million people became inadequate.

    He said Lagos in the next 25 years would probably host about 40 million.

    Ayinde asked: “On which land would the 40 million people reside? Where would they work? What sort of transportation systems would connect people and places? Would every millimeter square be occupied with bungalow and low rise buildings or would we need to go high rise only so that we can make more land available for landscaping and open spaces? What would be the cultural disposition to such phenomenal changes required to make the city functional?

    The former commissioner of Physical Planning and Urban Development said he was aware that professionals were operating under very adverse conditions in our nation, but added that with more advocacy and persuasion, the situation would improve.

    To tackle the numerous challenges, Ayinde argued that there was an urgent need for stakeholders to meet to discuss the future of the City of Lagos as well as many other cities and communities.

    ‘‘We are in for a long haul of regeneration and the conversation must begin now. Let’s quit the jokes of housing estates and plots of land that promise incentives of rams and holiday trips. Whoever is accommodating these concepts cannot be thinking of Lagos, and indeed the whole of Nigeria, in the next 25 years,” he added.

    Others, who spoke at event, included the President of  NIA, Mr. Soony Echono, who was represented by the First Vice-President, Enyi- Ben Eboh, and the President of Architects  Council Registration of Nigeria (ARCON), Dipo Ajayi.

     

  • Academy moves to modernise engineering curriculum

    Academy moves to modernise engineering curriculum

    By Okwy Iroegbu­-Chikezie

    The Nigerian Academy of Engineering (NAEng) has stressed the need for the modernisation of the country’s engineering academic curriculum for the profession to take its place of pride in the society. Its President, Alex Ogedegbe, made this submission during the academy’s first public lecture with the theme: “Strategic role of engineering in containing COVID-19 Pandemic.”

    He said the academy was passionate about the modernisation of the curriculum and was reaching out to the Council for the Regulation of Engineering in Nigeria (COREN) to look into the matter. He said the academy was poised to produce thought leadership papers for the development of engineering, promote innovation in industries and tertiary institutions, thorough research, design and fabrication, as well as competitions across broad areas of the country’s engineering needs, including linking such innovations with industry needs.

    Lagos State Governor  Babajide Sanwo-Olu, who was the special guest of honour at the event, observed that the COVID-19 pandemic has brought to the fore, the relevance of biomedical engineers, computer and technology engineers, internet facility, adding that the state government has seen strong collaboration between the government and engineers in development of the state.

    “We have been able to increase our infrastructure capacity, building three brand new hospitals and International Infectious Disease Centre, to be able to respond to outbreak of diseases. The government is developing interest in the application of block chain technology in healthcare management,” Sanwo-Olu said.

    The guest lecturer, Prof  Babatunde Ogunnaike, from the University of Delaware, United States, emphasised that engineering profession was dedicated to translating scientific knowledge into useful solution to practice problems, adding that engineering must keep the society functioning at steady state as well as rise to the occasion to tackle novel problems when necessary.

    He listed engineering contributions to COVID-19 global response to include, understanding the pandemic through data acquisition, modeling, analysis and clarification, insisting that the profession also played a prominent role in slowing down the spread of the virus, testing and diagnostics and was unprecedented in rapid vaccine development, manufacture and distribution.

    Ogunnaike said good science and engineering was a necessary and indispensable component in any society but hasn’t been sufficient. He called for effective engagement with public policy makers and government at all levels, effective public information campaigns, clearer communication and better education about risk and uncertainty.

    According to him, effective engineering in the 21st Century must include tripartite components of technical feasibility, financial viability and societal desirability.

  • Attaining housing sufficiency through price control

    Attaining housing sufficiency through price control

    The dream of attaining housing for all may remain an illusion as long as prices of building materials remain high. This is why eggheads in the sector are calling for the institutionalisation of a price control mechanism, which if established and implemented, will drive down cost of housing. OKWY IROEGBU-CHIKEZIE writes that stakeholders are also challenging the Federal Government to encourage further local investment in cement production as a means of crashing the product’s rising cost.

    In Abraham Maslow’s hierarchy of needs, shelter is an important requirement to be met for a man’s self-actualisation to be met. This is why the place of housing cannot be overemphasised in a society.

    With the country’s housing requirement put at 21 million, the need to bridge the gap becomes imperative. Sadly, it is becoming a challenge to provide housing yearly on sustainable level, thus making the deficit gap to widen regularly.

    Stakeholders have blamed the rising cost of building materials for the failure of developers foraying into housing development. For instance, they are quick to point at the cost of cement – a commodity that accounts for about 35 percent cost in a building project. Last week, a bag of cement rose from N3,200 to N4, 000.

    Experts are, however, worried about this development, especially when it is considered that the country’s cement production capacity is more than double that of its demand.This translates that the nation should satisfy its needs and then export the surplus and still have some left in reserve. Yet, somehow this isn’t happening.

    Besides, with Nigeria an import dependent nation, the crashing local currency against international currencies have not helped matters in the building sector as most of the materials needed are mainly imported and paid for in foreign exchange.

    Experts in economics and finance, however blamed the government for its lack of deliberate policies that would stimulate the building sector. For instance, they mulled the idea of a price control mechanism that would  keep in check the galloping cost of building materials. Also, they canvassed special waivers  on customs duty on building materials, for operators in the sector.

    •Adeyemi

    In an interview, the Chief Executive Officer (CEO) of an estate development firm, Sterling Homes, Dr Kunle Adeyemi, lamented the rising price of cement, which he put at N3,800 from a previous N3,450.

    According to him, at the current price, it means that the price of cement within the first quarter of this year has moved over 70 percent.  According to him, there are dealers who are hoarding because they are sure that the price will still go up before the end of the week, as one of them predicted a rise to N5, 000 per bag.

    He frowned that the dream of an average Nigerian to own a home is very slim. He said: “For us as developers, it is a huge challenge because we already have the prices of houses that are still being built, but we cannot deliver at the old price as cement alone is N4,000. The price of rod and steel has gone up also. This is a major challenge as these are important building components you cannot do without.”

    Similarly, the President, Nigeria Institute of Building (NIOB), Kunle Awobodu, decried the increase and added that it had a lot of consequences. He recalled that his company had to discontinue a particular project in Port Harcourt, the Rivers State capital, when the price rose to N4, 000, from a little over N2, 000 two days earlier.

    Awobodu said the rise in cost of building materials affects the sector, which he noted, to include compromise in the use of the materials where some people disregard the original cement, sand and water mix ratio.

    Canvassing the need for the government to intervene on this, he said in the long run, it might lead to building failure. “The construction sector is a huge employer and anything that will upset it should be avoided. This rise in price can lead to building failure as some may compromise on the cement ratio in order to complete a particular project as a result of cost. When the youth are not engaged, they become a willing tool for violence and the construction sector is a good sector that absorbs youths.” According to him, the rise in cost is unexplainable as nothing supports the wide margin of increase.

    To check unbridled price increases, Adeyemi advised government to come up with price control policy on essential materials in the construction industry such as cement and reinforcement. Furthermore, he advised that if all the raw materials needed in the manufacture of important components in the building and construction industry are not available locally, the manufacturers should be allowed to import them to make the final products cheaper.

    He said: “I know that there is some bureaucracy around the mining industry making it difficult for those extracting those materials to do their work easily. The government should relax it or totally eliminate these bureaucracies to make it easy for these miners to do their business. It is a lot cheaper to source the limestone locally than importing them because of the exchange rate and import duty problems. I believe that if the materials are sourced locally and government comes up with price control policy, reduction in the price of cement can be achieved.”

    But how can price control possibly work in a free enterprise economy? Adeyemi explained: ‘’The country has no choice but to look at price control and regulation to ensure that people are adequately housed.”

    Addressing the issue of monopoly in the cement sector, he regretted that the government failed in its duty by allowing monopoly in the sector. He canvassed the need for the government to be deliberate about breaking this monopoly.

    ‘’The price of this important commodity should not be dictated by just a few individuals. The government succeeded in doing this in the textile industry. That success story should be replicated in the cement industry,’’ he stated.

    On the challenges ahead in the midst of incessant price increases, Adeyemi commended the government, who he said, to a large extent, succeeded in regulating the quality of building materials. However, he stressed that all things being equal, it might lead to doom as some developers may be forced to compromise on quality and standards  of housing they put on the market.

    “They may go for sub-standard materials in a bid to meet up with supply. This is because inflation and rising costs have eaten up the profit margin. So, they will think that the only way they can hedge inflation is to subscribe to substandard materials,” he said.

    He argued that in construction, one thing that is not subject of debate is safety that is guaranteed by the quality materials and adherence to standard practice. According to him, if these two are compromised, it can lead to loss of lives. If the government does not move into action swiftly and begins to regulate price of essential materials like cement and rods, some developers may be forced to compromise on quality. This will lead to building collapse and construction failures. Because of the drive for profit maximisation which is essential for business survival, developers may be tempted to go for substandard materials, he added.

    He continued: “I foresee doom, more so when the agency that is responsible for regulation is docile. The Standards Organisation of Nigeria (SON) is not living up to its name as a result compromise by its officials, corruption and bureaucracy. There are several materials in the market that are not of standard quality, the quality of rods, for instance, has been compromised.This is why we recommend that such materials should be subjected to laboratory test.You will be shocked that some of these materials with SON certification seal cannot pass this test. These are the materials that have flooded the market and there is a body set up by the government to check the influx of substandard materials into the country.”

    On the way out, he said it is for developers to be creative, innovative, play with designs and also reconsider their construction methodology while building to suit their target audience.

    “My advice is that if we are to address the issue of housing deficit, which is about 20 million units, developers have to be deliberate about their designs. You cannot deliver mass housing with imported foreign components and design.Just as one can build a three-bedroom house with N10 million, the same number of rooms can be built with N500 million. The difference is in the design and the finishing. So, the developer has to be deliberate about design. Again, our construction method has to change because it encourages waste. We need to curb waste in our construction through a deliberate design. On the part of the government, it has to liaise with developers because housing for all will remain a day dream until some of the problems in the housing industry are addressed. And the deficit is on the increase in the country,” he said.