Category: Building & Properties

  • Borehole drillers seek speedy passage of water resources bill

    The Borehole Drillers Association of Nigeria has urged the National Assembly to pass the Water Resources Management Bill into law to stimulate effective management of the country’s water resources.

    Its President, Mr Francis Uzoma, made the call in an interview with News Agency of Nigeria (NAN) in Abuja.

    He said the bill, when passed and assented to by President Mohammadu Buhari, would facilitate efforts to prioritise issues in the water resources sector via sound policies and programmes.

    He said that media reports appeared to have neglected the salient provisions of the bill which was particularly aimed at fast-tracking the development, management and efficient use of the nation’s water resources, in line with global best practices.

    Uzoma, however, appealed to all stakeholders and Nigerians to have faith in the bill, saying that was for the good of the nation.

    He said the attention of the association had been drawn to the erroneous and distorted analyses of the National Water Resources Bill, which was before the Senate, as it had been passed by the House of Representatives.

    “The bill will create room for the private sector to come on board; it will also create employment opportunities for the people.

    “The National Water Resources Bill is consistent with the Constitution of the Federal Republic of Nigeria and the Land Use Act, and it should not be politicised.

    “We are appealing to all Nigerians to have faith in the bill, as it was for the good of the nation,’’ he added.

    NAN recalls that the Minister of Water Resources, Mr Suleiman Adamu, once urged Nigerians and lawmakers to stop politicising the water resources bill, saying its benefits were enormous and for the public good.

    He said that the overall objective of the bill was geared toward the efficient management of the water resources sector for the economic development of Nigeria and the wellbeing of its citizens.

    “The existing laws in the sector include the Water Resources Act, Cap W2 LFN 2004, the River Basin Development Authority Act, Cap R9 LFN 2004, the Nigeria Hydrological Services Agency (Establishment) Act, Cap N1100A.LFN, 2004 and National Water Resources Institute Act, Cap N83 LFN 2004.

    “However, these laws are being re-enacted with necessary modifications in the new bill so as to actualise current global trends and best practices in Integrated Water Resources Management (IWRM),’’ he said.

    Adamu noted that the National Water Resources Bill, which was drafted in 2006, had passed through series of consultations among stakeholders up to 2008, adding, however, that since that time, successive administrations had failed to give it priority attention until now.

    NAN reports that the bill provides for professional and efficient management of all surface water and groundwater for the use of all the citizens.

    The Federal Government intends to ensure, through the provisions of the proposed law, that “the water resources of the nation are protected, used, developed, conserved, managed and controlled in a sustainable manner for the benefit of all persons, in accordance with its constitutional mandate’’.

    NAN notes that the bill provides for the creation of an enabling environment for public and private sector investment. It also provides for capacity building processes to foster good governance, while establishing a water use and licensing framework to ensure sustainable finance for the water sector.

  • GEF to maintain GEF-6 funding level for SGP

    Despite adopting the Seventh Replenishment of the GEF Trust Fund (GEF-7)  for $4.1 billion at its recently held 54th meeting in Da Nang, Viet Nam, the Global Environment Facility (GEF) Council will maintain the GEF-6 funding level for its Small Grants Programme (SGP). The sum of $4.43 billion was earmarked to GEF-6.

    This decision was reached in Da Nang, against the backdrop of dwindling funds available for the SGP which, despite its numerous high points, appears to raise some questions.

    Following a proposal by GEF CEO and Chairperson, Naoko Ishii, members agreed to maintain the GEF-6 ceilings and seek closer alignment of projects with the overall GEF-7 targets.

    While taking note of the implementation arrangements, GEF approved the proposed financing structure for the GEF-7 SGP.

    It also requested the Secretariat and the United Nations Development Programme (UNDP) to keep under review the criteria for eligibility to core funds and propose any changes with a view to ensuring an equitable deployment of SGP support over time.

    The UNDP was also asked to prepare a paper for the 55th Council meeting describing the approach and criteria for the retained allocation of core funds to countries, and the results framework for the GEF-7 SGP and associated targets for global environmental benefits aligned with the overall GEF-7 results architecture.

    The UNDP is one of the 18 agencies through which the GEF channels funds to recipient countries.

    Earlier, a Council Member queried the double-payments when accessing funds through the SGP via an Implementing Agency, while others questioned SGP’s reporting requirements. Another Member requested clarification on the link between UNDP’s Equator Prize and the SGP.

    Several others expressed concern over the 10% ceiling to System for Transparent Allocation of Resources (STAR) country allocations to participate in the SGP, with the Secretariat proposing to remove the percentage cap (of 10%) and keep the absolute cap (of $2 million).

    Nonetheless, several Council Members lauded the SGP for enabling activities at the local level, even as they lamented the decrease in funds available for the SGP.

    The 25-year-old SGP provides small grants of up to $50,000 and has funded more than 21,000 projects since 1992.

  • Group partners Lagos on school gardening

    Helen Keller International, (HKI) Nigeria with funding from Mondelçz International Foundation in partnership with the Lagos State Government has flagged off gardening projects in nine schools in Ikeja and Ojodu Local Government Area, Lagos State.

    The groundbreaking ceremony was held at the school garden sites of Agindigbi Primary school, which had officials from Cadbury Nigeria Plc, a subsidiary of Mondelçz International Foundation, school pupils, teachers, parents, local government officials and LGEA officials, Ministry of Agriculture, Department for Development Partnerships, and community leaders.

    HKI Country Director, Philomena Orji said the groundbreaking ceremony was set to bring the attention of the importance of good food and nutrition as well as physical fitness in government primary schools and communities in Ikeja Local Government Area, Lagos State. The project is expected to run for a period of 3 years from January 2018 to December 2020.

    She said: “The new program is building on our commitment to help communities thrive and improve the well-being of school-age children and their families.”

    She added that the gardening activities will provide a platform for children to participate in school gardening thereby, helping them plant, weed and harvest nutritious crops.

    “A School Gardening and Health Club will be established; thereafter, to help maintain the gardens, promote nutrition and fitness activities and ongoing student participation,” she said.

    She said the Nutrition and Healthy Lifestyle project aims to bring nutrition education, active play and fresh foods to underserved children and their families in Ikeja LGA. The project is part of the Mondelez International Founda-tion’s multi-year $50 million commitment to promote healthy lifestyle and address obesity in 9 countries including Nigeria.

    Orji said HKI would teach over 6,000 children in public primary schools, the importance of proper nutrition, physical activity and gardening through in-school and after-school activities.

    “The project is also expected to have an estimated indirect of about 48000 out of school children and their families over the next three years across the Community Development Areas (CDAs),” she said.

    She continued: “We will track progress against a universal set of metrics that the Mondelez International Foundation will develop in collaboration with its community partners and a public health expert from Yale School of Public Health. Metrics measure improvements in nutrition education, physical activity and access to nutritious foods, including fresh fruits and vegetables.”

    Similarly, the state Lead, Healthy Lifestyle Project, HKI, Olukemi Adeyoju said: “When it comes to preventing malnutrition, we are not afraid to get our hands dirty. We are doing this in Lagos State through the Healthy Lifestyle Project in public primary schools to provide nutrition education, physical exercise through active play, and cultivate gardens for a quality diverse diet.”

    The  Director, Corporate and Government Affairs, Cadbury Nigeria Plc, Bala Yesufu, Director noted that Mondelçz International, a global snacking power house with an unrivaled portfolio of brands, owns 74.99 per cent of shares in Cadbury Nigeria, adding that The Mondelçz International Foundation is the community partnership arm of our company.

  • Australian plastics ban takes effect amid rage by shoppers

    Australia’s biggest supermarket chains are scrambling to combat “bag rage” as frustrated shoppers vent their anger over the removal of single-use plastic bags. One man put his hands around a supermarket worker’s throat, the West Australian newspaper reported, while grocery stores are putting on more staff to help customers get used to the change.

    The removal of single-use plastics is part of a national push to reduce waste.

    As of July 1, major retailers in all but two Australian states will be fined if they supply single-use plastic bags.

    National supermarket chain Coles, owned by Wesfarmers , on Sunday, July 1, 2018 removed single-use plastic bags from its stores, shortly after rival Woolworths banned the bags on June 20.

    Consumer complaints forced Woolworths to backflip on charging customers 15 Australian cents (11 U.S. cents) for a reusable plastic bag, with the retailer now offering them free until July 8.

    “They just want a little extra help from us to get through the transition,” said Claire Peters, Woolworths managing director, in an emailed statement.

    After seeing the backlash at its rival, Coles said it would open every checkout lane to reduce queue lengths as staffers explain the changes to customers.

    “We are taking a proactive step,” a Coles spokesperson said in an emailed statement.

    The union that represents Australian shop assistants has launched a public awareness campaign on the issue.

    “While we understand that some customers may be frustrated by this change, there is absolutely no excuse for abusive or violent behaviour towards retail staff,” said Gerard Dwyer.

    Dwyer is the national secretary of the Shop, distributive and Allied Employees’ Association, in a statement on the union website.

    The union conducted a survey earlier this week and of 132 members who responded, 57 said they suffered abuse due to the plastic bag ban.

    More than eight million tonnes of plastic ends up in the world’s oceans each year, according to United Nations Environment Programme figures.

    The U.N. wants to eliminate single-use plastic by 2022 and says more than 60 countries have so far taken steps to ban or reduce plastic consumption.

  • Kogi communities hail Dangote’s road initiative

    The multiplier effect of having in place standard infrastructure, such as roads, was at the weekend espoused by some communities in Kogi State. These communities, located on the 43-kilometre long Obajana-Kabba road in Kogi State under construction, were upbeat at the prospect the road will bring to their settlement upon completion.

    Markets and commercial activities are now springing up and booming along the road as communities can easily transport their produce to consumers.  A yam trader at the Ayegunle  market, located on the reconstructed road, Mr. Muhammad Salihu, expressed satisfaction that the road is almost completed. He revealed that his yam business, which was in comatose before now, is now booming.

    Basking in the euphoria of the commercial activities that have started springing up along the Obajana-Kabba road, traditional and community leaders of the once sleepy towns took turns to eulogise Dangote Group President, Aliko Dangote for bringing “this massive road project in our land.”

    For instance, the Bajana of Obajana Land, Oba Idowu Senibi, revealed that Obajana was like a village before the coming of Dangote Cement Plant. However, with the siting of the palnt in the community, it has grown the community’s population to about 70,000 residents, all eking a living from the activities in the plant. He added that the firm’s operations  have further raised the standard of living in the environment.

    The royal father described the project as “gigantic and the first of its kind” anywhere in the country. “Dangote is our son. We would protect his huge investment and gigantic concrete road. I am happy that this is happening in my lifetime and in my Kingdom. This is a great opportunity for us and many generations to come. Our community will be opened; as you can see, vehicles and commercial activities have started coming up, so it is a boost for our community and economy,” the monarch said.

    Corroborating Oba Senibi, Akpata Land traditional head, Frederick Durojaiye Balogun, said his people are very proud of project, adding that Dangote Cement plant in Obajana has brought honour and respect to their kingdoms. “Dangote’s presence has brought a total turnaround to our lives. Also, permit me to appreciate the Federal Government for this joint effort. We are very grateful,” he said.

    Speaking in the same breath, Okebunku land traditional ruler in Kabba-Bunu Local Government, Timothy Omonile, while commending the company, urged other corporate bodies to emulate what the Group has done as it is the “only way Nigeria can develop its economy and infrastructure.”

    Commuters were also not left out in the praise for the Dangote Group. A commercial driver, Adeniyi Adeniji, said he has been plying the road for several years. According to him, prior to the reconstruction works on the road, it commuters usually spent over two hours to ply the 43 km road, a journey which now takes them less than 45 minutes. This, he said, has improved people’s turnaround time, passengers’ comfort, and reduced vehicles’ wear and tear tremendously.

    Ayegunle Igun Bunu Kabba Local Government youth leader, Albert Monday, expressed his group’s satisfaction  with the road, especially as accidents’and criminalities’ rate has reduced on the axis drastically.

    Another resident, a Septuagenarian and retired Police officer, Mathew Robinson, could not hide his joy with the work done on the road. Pa Robinson, who resides at Kilometer 29 end of the road in Ayegunle Igun Bunu Kabba Local Government, expressed optimism that when the road is completed, kidnapping and armed robbery incidences will be completely wiped out in the region. “Even unborn babies are very happy and proud of this road now,” he added.

    The Project Director, AG-Dangote Construction Company Limited, the firm handling the project, Olatunbosun Kalejaiye, explained that 29km of the road has so far been completed. He said the road project was part of the Corporate Social Responsibility (CRS) of Dangote Cement Plc.,  adding that the road will be delivered by December this year.

    The Project Manager, Akhimienho Emmanuel, said when completed, the road can last for more than 50 years.

    It would be recalled that Dangote had expressed concerns over the huge sum of money used in road repairs, hence, the decision to revolutionise Nigerian roads with rigid concrete pavement (concrete roads). He said once the concrete road revolution is in place, resources used in road repairs and maintenance would be channeled to other more important needs of the nation.

    “We are going to be building concrete roads in the country so that anytime we build a road, we do not have to go back to repair after the third raining season, but move on and use the resources to address other pressing needs of Nigeria,” Dangote had said.

  • ‘We aim to reduce housing deficit with Fairmont’

    A Lagos real estate firm, Propertymart, has said its decision to focus on land sale in Lekki-Epe axis is not just to contribute to reducing the housing deficit in the country, but to avail upwardly mobile middle class Nigerians the opportunity to own homes and live in serene environment.

    Its Managing Director, Deji Fasuwon, revealed that the initiative, which focuses on land sale with staggered payment option, offers easy access to credible real estate investments for the young and upwardly mobile Nigerians, while also availing them the opportunity to scale their building projects to their taste and cost ability.

    According to him, his firm’s decision to sell land below the going market price at the corridor, is a deliberate effort to encourage home ownership by the public than profit consideration.

    He said his company was aggressively pursuing its current housing strategy in the Lekki area, which is believed to be a zone for the rich and upper middle class, Fasuwon said: “Generally, when people think of affordable housing, people think about  urban slums with run-down, cheap houses and apartments. But for us at PropertyMart, affordable housing means having access to innovative real estate products which offers value for money while delivering a well-planned, secure and descent housing, where living standard is not only enhanced, but real estate investment speedily appreciates.”

    He further explained that Lekki corridor is reputed to be the fastest growing corridor in Africa, especially as it will soon be home to the biggest port, the biggest refinery, one of the most beautiful and eco-friendly airports in Africa and a free trade zone. These have made the axis already oversubscribed by future-oriented local and global businesses.

    Fasuwon revealed that this is why there has been concerted efforts by the state government to provide road infrastructure around the corridor, given that it is already a high traffic route, one that holds a significant economic benefit and potential to accommodate mass influx.

    He revealed that beyond all these, the projected vision for the Fairmont Estate is a private living community for those, who cherish serenity, splendor, space and security. The estate, he further disclosed, is planned to avail residents a romance with nature with a large estate park that has lavish lush greens and sizeable large walk-ways. Subscribers, he said, will also get the chance to live in customised homes with open frontage such as seen in other highbrow estate within the Lekki area.

    Propertymart, through the offer, according to Fasunwon, has encouraged upwardly mobile Nigerians to participate in the special price being offered for the land sale. He said the unprecedented response received for the offer and the need to get more Nigerians interested in owning properties on the Lekki corridor to the Fairmont platform have been very encouraging. The special offer is set to close on July 13, 2018.

    Aside the one-off payment of N12.8 million for those with the financial capacity, the firm said prospective investors in the estate have the opportunity of paying the same amount within a five-year duration. The initial payment for this is N640,000, while the remaining is spread across five years. He said though the discounted offer window will be closed, the land will continue to be sold at its normal market price of 16.8 million naira.

    “We are doing this because, we at Propertymart, believe that affordable housing that actually benefits a community is not cheap housing.. It’s housing that a person could pay for within their price range without going bankrupt and feel safe and satisfied with. We believe that an affordable house can be a dream villa and should be a place where you and your family can comfortably live happily and grow – hence our aggressive pursuit with Fairmont Lekki land sale,” Fasuwon said, adding that the offer, which ends next Friday, will see the land revert to its market value of N16.8 million.

  • Plastics pollution heightens concerns over clean oceans

    Leaders and stakeholders have celebrated the World Ocean Day. The event drew concerns over the state of water bodies in the country, as they relate to pollution, especially of plastics. Nigeria is on the United Nations’ list of top 10 biggest plastic polluters. The day was a wake-up call for all to ensure the continued safety of the environment, reports MUYIWA LUCAS.

    IN this decade, more campaigns have been held on how to  make planet earth safe.

    Organisations, local and international, have more than ever galvanised support for the environment, especially in the wake of climate change.

    The World Oceans Day, which was celebrated last Friday, was a day nations made further commitment to healthy, thriving oceans and seas free from plastic pollution under the aegis of Clean Seas Campaign.

    The campaign, an initiative of the United Nations (UN) Environment, is considered the largest global compact for combatting marine litter, with commitments from 51 nations, covering 62 per cent of the world’s coastlines. No fewer than eight new countries joined the campaign.

    India – which also joined on June 5, the World Environment Day – promised to address plastic pollution upstream by banning single-use plastics by 2022. The country pledged to address the problem downstream, with its  coastal audit, developed in partnership with the campaign.

    Other countries, who pledged to step up their protection of the ocean and their coastlines include Argentina, Cote d’Ivoire, United Arab Emirates, Honduras, Guyana and Vanuatu.

    At a meeting with Minister of State for the Environment, Ibrahim Jibril, in Abuja, the Executive Director of the UN Environment, Erik Solheim, Nigeria officially joined the campaign.

    “There is now more momentum than ever before to beat plastic pollution and protect the oceans that we all share from the tide of disposable plastic,” Solheim said.

    He added that seeing so many countries joining the campaign meant that we were moving towards having many pollution-free oceans.

     

    Recycling plants

    According to Jubril, as part of Nigeria’s commitment to the campaign, the country is developing a national plastic waste recycling programme, as well as establishing plastic waste recycling plants across the country in partnership with state governments. At present, a total of eight plants have been completed and handed over to the states while 18 others are at various stages of completion.

    The Federal Government is also collaborating with state governments to establish plastic waste recycling plants under the community-based waste management programme in the ministry.

    “Two plants have been completed in Ilorin, Kwara State, one in Lokoja, Kogi State, while work on another is ongoing in Karu Local Government Area of Nasarawa State. The plants are located at Bola Jari in Gombe State and Leda Jari in Kano State. The establishment of the plants would assist to turn waste to wealth and ensure the sustainability of the environment,” he explained.

    Solheim disclosed that the UN Environment would support Nigeria’s waste management initiatives aimed at reducing, reusing and recycling plastics. He expressed happiness over the way the private sector in the waste management sector organised itself to provide technical solutions for effective collection and recycling of bottles in the country.

     

    Ogoni land clean up

    The UN Environment boss, as part of initiatives of protecting the environment, urged the Federal Government to fast-track the clean-up of oil spill in Ogoni land. Solheim recalled that the UNEP report on Ogoni clean-up was launched by former President Olusegun Obasanjo-led administration, noting that people were interested to see physical development in the land. He regretted that had Nigeria showed commitment by contributing its own quota, the $1 billion counterpart fund set aside by the UN would have addressed the clean-up project.

    Jubril, however, noted that the Federal Government, oil companies and other relevant stakeholders in the oil sector had opened explorer account for the Ogoni clean-up project, assuring that from this week, the account would begin to get funded. He revealed that out of 400 contractors that bided for the project, 150 were pre-qualified.

     

    Groups take the lead

    To celebrate the day, an environmental group, “Let’s Do It Campaign” and the Junior Chamber International (JCI) Lagos Metropolitan, took to the initiative to clean up Elegushi beach, Lagos.

    Let’s Do It Nigeria Campaign Manager Mr Gafar Odubote, said the clean-up would cover plastic pollution in the waterways.

    “In collaboration with our partners, we are taking a stand against plastic pollution with a massive clean-up project at the Elegushi beach to commemorate the World Oceans Day. The Day is an opportunity to further emphasise the need to bring people’s attention to the increasing rate of plastic pollution in Nigeria both on the lands and beaches,’’ Odubote said.

    The Elegushi Beach Clean-up, he  said, was inspired by concerned members of the society who wanted to take action to reduce the amount of trash and plastic that enters the ocean. With 51 volunteers, Odubote explained, they were able to bag 107 wastes sorted into plastic bottles, glass bottles, rubber slippers, polythene nylons and food wastes.

    “There are many things we can do as individuals to reduce our plastic consumption. Individuals must control their consumption pattern, stop patronising single-use plastics and develop a positive attitude towards waste disposal,’’ he said. He called on the Federal Government to enact and enforce policies and regulations to quell plastic pollution in the waterways.

    Similarly, JCI Lagos Metropolitan President, Adeyanju Adeonipekun, said the cleanup was aimed at enlightening the people on the risks of an unclean ocean.

    “This Beach cleanup project at Elegushi is to enlighten the people on the risks of unclean oceans and its hazards to health. The World Oceans Day is a wakeup call for everyone in Nigeria to ensure their environment is clean and healthy. Our planet is dying gradually of wastes and as active citizens, the responsibility is on us to act fast to save the planet,’’ Adeonipekun told News Agency of Nigeria (NAN).

     

    Protection of marine lives

    Also, the Nigerian Institute for Oceanography and Marine Research (NIOMR) called on Ngerians to do more to ensure safety of marine lives.

    Its Assistant Director, Dr Mabel Yarhere, who spoke at the institute’s clean up of the Alfa Beach and Up Cycle Training as aprt of activities to mark the day, said  there was the need to save aquatic lives because they were source of food for humans. The event was organised in partnership with the United Nations Information Centre (UNIC), Lagos, and FABE International Foundation.

    “Plastic prevents the dissolved oxygen that is supposed to penetrate the ocean and marine resources are affected. Plastic also affects our fisheries; when plastics enter the tracks of fishes, they die. The endangered species in our water, especially the turtles, are killed by plastics, and they are supposed to produce minerals into the ocean for fishes to reproduce. Plastics also affect the navigation of vessels in oceans and prevent the productivity of the oceans,” she said.

    Yarhere noted that the Sustainable Development Goal 14 is aimed at making marine productive. This, she said, would make the world to feed well and have oceans devoid of plastics that cause casinogene in the body.

     

    Global unity

    UN Secretary-General António Guterres said everybody should bd involved in the campaign and that they could contribute “from carrying your own water bottle, to volunteering for a local clean-up”.

    The UN chief reminded everyone of the major role the oceans have in their lives, as the lungs of the planet, providing most of the oxygen that we breathe.

    “The oceans make our blue planet unique in our solar system – and not just visually,” he said.

    He added that they help regulate “the global climate and are the ultimate source of the water that sustains all life on earth, from coral reefs to snow-covered mountains, from tropical rain forests to mighty rivers, and even deserts’’.

    “However, the ability of the oceans to provide their essential services is being threatened by climate change, pollution and unsustainable use,” he stressed.

    Plastic pollution alone is wreaking tremendous havoc on the marine resources of the world, he said, highlighting the problem of plastic pollution in particular.

    About 80 per cent of all pollution in the sea comes from land, including some eight million tonnes of plastic waste yearly.

    This has cost the lives of one million seabirds and 100,000 marine mammals, while it causes eight billion dollars in damage annually to marine ecosystems.

    Guterres said pollution “chokes waterways, harms communities that depend on fishing and tourism, kills turtles and birds, whales and dolphins, and finds its way to the most remote areas of the planet and throughout the food chain on which we ultimately rely”.

     

     

  • NSE demands govt framework on housing delivery

    The Nigerian Society of Engineers (NSE) President, Mr Kunle Mokuolu, has called on the Federal Government to provide proper framework that would ensure better housing delivery for Nigerians.

    To achieve this, Mokuolu wants the Federal Government to create the enabling environment for private sector initiative and to engage more private sector participants in its mass housing drive. He noted that housing delivery in developed countries fared better because they are run by the private sector.

    The NSE boss, who expressed reservations about government’s disposition so far to the housing sector, argued that housing should be off the hands of government, be completely privatised, while government should provide the policy and laws that would back housing delivery.

    Mokuolu urged government to concern itself with social housing for those who cannot pay rent because they were either out of job or had other financial handicap. He advised that social housing should be restricted to the local government level and that when such economically disadvantaged citizens found their financial footing, they could start to pay rent or buy homes.

    “Federal Government is to provide the framework to ease the delivery of housing. I am not really satisfied with the housing delivery, some things must be in place to achieve this.

    “We must begin to produce our steel ourselves and that is why Ajaokuta Steel Rolling Mill is too important. Whatever it takes to produce steel in this country, government should just do it,” he said, adding that the steel component was important in developing high rise buildings, especially now that the nation’s population was growing geometrically. This will help to accommodate more people in less spaces or land.

    He expressed confidence that Ajaokuta Steel Rolling Mill could “substantially” reduce the housing deficit in the country given that steel accounted for about 25 per cent of the cost of construction of houses.

     

  • Building wealth from real estate investment

    In the last two decades, Forbes has listed 22 persons as richest men in the world, a feat they attained through their investment in real estate. To enable Nigerians join that club, an indigenous real estate investment firm, Beyond Building, says it is offering them the opportunity of building wealth through investing in the sector, reports MUYIWA LUCAS.

    Owning a house is perhaps the best security for any man, going by Nigerian standards. This is why the race for house ownership is intense among young and upwardly mobile people. For some, home ownership represents asset and investment for the future.

    But recent developments in the real estate industry has placed a question mark on the security of properties as a ready solution to urgent financial needs in times of trouble. This argument has been further accentuated by the prevalence of unoccupied buildings that dot the landscape of highbrow areas like Banana Island, Lekki, Victoria Island, Ikoyi, Abuja, et al.

    A look around these areas makes one to come to terms with the reality of the day. Across these desolate and unoccupied buildings and properties, are several billions of naira in investments, wasting away.  To benefit more from investment in properties, experts have said the venture should be seen more as a business for creating wealth, than a dormant asset. This is the position of the Chief Executive Officer (CEO) Beyond Building, Mr. Lanre Howell.

    He said the industry has gone beyond just owning buildings, as there are several untapped opportunities in the sector.  He blamed this on the inability of developers to make informed decision by investors in the sector.

    He said in the last two centuries, over 90 per cent of millionaires who were thrown up, made money from keying into the business opportunities available in the sector. “A man who feels he needs to build a house before tapping the business opportunities in real estate business, is delaying himself,” he contended.

    Beyond Building Investment Limited, Howell said, is a diverse commercial real estate investment firm, which provides a range of services to the Capital market, including acquisition, asset and property management, leasing, construction management, investment, advisory services, as well as development and disposition.

    Howell, while explaining why potential investors fail to make money from the inherent business opportunities in the industry, noted that the “landlord syndrome” is a major factor, blaming the syndrome on the peculiar environment we live in, which in his opinion, does not encourage a person to put his money in real estate business to grow. Rather, he said such a person would wait and save until he has all the money to build his house.

     

    Why invest in real estate

    Howell said between 2010 and 2015, the sector has grown rapidly at an average rate of 11.4 per cent, contributing 3.9 per cent to the country’s gross domestic product (GDP). Presently, the real estate sector is forecast to grow at 5.39 per cent between 2017 and 2020.

    The Beyond Building boss, revealed that by 2019, there would be a 100 per cent guaranteed capital gain once some projects, like the Dangote Refinery and Petrochemical Industry, Lekki Free Trade Zone, Lekki Deep Seaport, Dangote Fertiliser Plant, International Cargo Airport; Lekki International Golf Course, among others, are completed.

    He listed some of the firm’s investment initiative to include the King’s Point Estate; Marvella Court; Varden Farms and Resort. It also runs the Rent Masters Realtors, saying investments with the firm  gives a 20 per cent return.

     

    Choosing estate investment

    According to Howell, Beyond Building presents investors with viable plans to ensure good return on their investment. This is achieved through building a trading platform for investment in real estate. With this, an average person can own stakes in the industry without necessarily building or owing a house. For instance, one of the firm’s range of investment products, is trading. According to him, this is good for starters in the real estate investment and for people, who are seeking to grow financial strength with weak low risk involved.

    The time frame for this is one to two years. “Our trading portfolio offers absolute returns and at the sametime ensuring that your capital is insured against loss and never tied down. It also has an easy cash pout plan at any time you may want to pull out. Your profit is annualised, but payable quarterly, with an option of  convertibility of investment into land or unit ownership at the end of an investment period when offered,” he explained.

    Other form of investment platforms offered by the firm include private equity partnership with a time frame of two to five years. This kind of fund, he said, allows high networth individuals to invest in equity property assets. These can range from new development and land holdings to complete redevelopment of existing properties or cash flow injections into already existing projects. Profit sharing here is based on a percentage of an individual’s investment to the total value of the cost of the project. “It is a high profit sharing deal and the stakes as an investor is high. This is for experienced professional investors or people seeking to risk more for maximum returns,” Howell said.

    With respect to its Asset goal, ranging from five years upward, this investment portfolio is for investors looking to build their investment through acquisition of properties, either to sell or keep as assets for themselves. This class of investment is aimed at growing wealth. “We researched and identified bottom-up investment opportunities within asset classes. We then blend these in multi-asset class portfolios, according to the client’s required long-term return,” he submitted.

     

    Vicious cycle

    Howells regreted that the 17 million housing deficit has not decreased several years since the figure was identified. He blamed this on the wrong attitude to building, which he said is due to the lack of understanding of the market. “We are building, but the deficit is not reducing. We need to build what the sector needs like shops, malls, and practical houses, not ones with over-bloated prices,” he said.

     

    Options

    He urged investors to also invest in farm house estates, among others.

     

     

  • NSE demands govt framework on housing delivery

    The Nigerian Society of Engineers (NSE) President, Mr Kunle Mokuolu, has called on the Federal Government to provide proper framework that would ensure better housing delivery for Nigerians.

    To achieve this, Mokuolu wants the Federal Government to create the enabling environment for private sector initiative and to engage more private sector participants in its mass housing drive. He noted that housing delivery in developed countries fared better because they are run by the private sector.

    The NSE boss, who expressed reservations about government’s disposition so far to the housing sector, argued that housing should be off the hands of government, be completely privatised, while government should provide the policy and laws that would back housing delivery.

    Mokuolu urged government to concern itself with social housing for those who cannot pay rent because they were either out of job or had other financial handicap. He advised that social housing should be restricted to the local government level and that when such economically disadvantaged citizens found their financial footing, they could start to pay rent or buy homes.

    “Federal Government is to provide the framework to ease the delivery of housing. I am not really satisfied with the housing delivery, some things must be in place to achieve this.

    “We must begin to produce our steel ourselves and that is why Ajaokuta Steel Rolling Mill is too important. Whatever it takes to produce steel in this country, government should just do it,” he said, adding that the steel component was important in developing high rise buildings, especially now that the nation’s population was growing geometrically. This will help to accommodate more people in less spaces or land.

    He expressed confidence that Ajaokuta Steel Rolling Mill could “substantially” reduce the housing deficit in the country given that steel accounted for about 25 per cent of the cost of construction of houses.