Category: Building & Properties

  • Environmental crisis: Tinubu rallies support for small Island nations

    Environmental crisis: Tinubu rallies support for small Island nations

    President Bola Tinubu has said Nigeria stands in solidarity with Small Island Developing States (SIDS), saying the country was committed to contributing to efforts aimed at mitigating climate impacts and promoting sustainable development.

    The president made the pledge at the 4th Nations International Conference on Small Island Developing States with the theme “Charting the Course Toward Resilient Prosperity,” held in Antigua and Barbuda.

    Tinubu, who was represented by the Minister of Environment, Balarabe Lawal at the meeting, noted that Small Island Developing States (SIDS) are at the frontline of a global environmental crisis due to climate change and other factors such as pollution and loss of biodiversity.

    According to the president, despite contributing less than one percent of global greenhouse gas emissions, those nations suffer disproportionately from the impacts of climate change resulting in rising sea levels, increased frequency of extreme weather events, and the degradation of marine ecosystems.

    He noted that these factors posed existential threats to the livelihoods and cultures of millions of people in this region.

    The president therefore said that innovative adaptation strategies as well as robust international support and partnerships are essential to enhance and build resilience in these vulnerable islands.

    Tinubu said: “Nigeria stands in solidarity with SIDS and is committed to contributing to global efforts aimed at mitigating climate impacts and promoting sustainable development. Despite these challenges faced by SIDS, they also have opportunities to move towards a green economy, they possess both unexploited terrestrial and oceanic natural resources such as fish stocks, minerals, potential pharmaceutical products, renewable energy such as wind, sun, ocean, wave, hydro and geothermal.

    Read Also: Tinubu repositioning Nigeria on path of recovery- NDRBDA boss Amgbare

    “If harnessed properly, SIDS have the potential to take a lead in defining models of sustainability and human well-being whilst moving towards a Green Economy.

    “Nigerian government addressed environmental issues such as pollution and flooding in our major island in Lagos state by establishing and empowering Government Ministries and Agencies that are related to the environment to implement robust waste management programmes.”

    Tinubu added: “The challenges faced by small island developing states are a reflection of broader global issues that require collective action. By supporting SIDS, we are also advancing the broader agenda of sustainable development and environmental stewardship.

    “We must collaborate with SIDS and prioritise investments in climate resilience infrastructure which includes building sea defences, developing early warning systems, and implementing sustainable land and water management practices. Collaboration with international financial institutions and the private sector is essential to mobilise the necessary resources.

    “The economic vulnerabilities of SIDS are exacerbated by their heavy reliance on tourism and external markets. Diversifying their economies through the promotion of sustainable industries, such as renewable energy, fisheries, and agriculture, can create more resilient economic structures.

    “Access to concessional financing is critical for SIDS to address their development challenges. We must advocate for tailored financial mechanisms that recognise the unique circumstances of SIDS and provide them with the fiscal space needed to invest in sustainable development and create a more climate-resilient environment. Strengthening regional cooperation among SIDS and fostering partnerships with larger economies can drive innovative solutions and share best practices. Nigeria is committed to working with SIDS and other nations to facilitate knowledge exchange and capacity-building initiatives.

    “Let us reaffirm our commitment to the principles of equity, justice, and shared prosperity. The Lands, Water and Air all belong to humanity and together, we can chart a course toward a more resilient and sustainable environment for our future and generations to come.”

  • Customs challenges auto importers on transparency

    Customs challenges auto importers on transparency

    Nigeria Customs Service, Ports Terminal Multiservices Limited PTML Command has urged importers of vehicles and their agents to imbibe transparency while making declarations for their imported vehicles.

    Comptroller Saidu Yusuf, Customs Area Controller of PTML made the call in Lagos at a stakeholders’ sensitisation meeting on Vehicle Identification Number (VIN).

    Yusuf used the occasion to tell participants that the VIN method has not been cancelled.

    He reiterated an earlier position on the matter issued by the NCS headquarters that the VIN Valuation Process remains fully operational and effective.

    “The VIN numbers are critical in identifying distinct versions or tiers within a specific car model. They delineate varying configurations, features, and levels of associated different models.

    “The VIN of vehicles are not same for all kinds and so declarants should have their transaction values,” Yusuf said.

    He blamed some declarants for not being transparent because they input what they think was the lowest base value.

    The customs boss advised them to apply invoice and transaction values as a way of promoting transparency and building integrity in the trade process of vehicle clearance.

    Yusuf pointed out that Section 24 Nigeria Customs Service Act (NCSA) 2023 provide for advance ruling for stakeholders to submit to the NCS before a transaction and the ruling will be binding on the service and the importer or agent.

    This according to the Controller is a unique trade facilitation method provided for by the new law

    Read Also: Niger coup: Military option will be the last choice for ECOWAS – Tinubu

    Yusuf who described the meeting as being in line with the law also said customs stakeholders partnership was a provision of section 29 NCSA 2023.

    According to him, meetings like this is meant to rub minds, identify challenges and jointly work out solutions on how best to resolve the challenges.

    He added that the meeting was also in tandem with World Customs Organisation (WCO) and World Trade Organisation (WTO) trade facilitation thrusts which encourage consultations.

    He reminded the stakeholders that the use of code 846 for clearing of non standard VIN had been further modified to reduce human contact through what he called e-846, which save time and make trade easier.

    “I must commend the system because the reduction of human contact is very effective and beneficial to all as it saves time. I personally monitor electronically from my office and can confirm that my officers are implementing it diligently.

    “Where ever you are experiencing delay in the process under my command, please draw my attention to it. My doors are open and will be more open to all of you.

    “The help desk headed by the Command’s Public Relations Officer is active and responding to all inquiries online and in real time,” Yusuf said.

    The News Agency of Nigeria (NAN) reports that the NCS on Jan. 18, 2022 introduced the VIN valuation system used for allocating standard values to all vehicles coming into the country.

    The system, according to Customs, automatically determines the value of import duty that an importer is expected to pay on any imported cars immediately after the vehicle is passed through a dedicated scanning machine.

    It is an automated system that would aid the valuation of imported vehicles entering into the country through all Nigeria’s approved entering points.

    The idea behind the development of the VIN is to address the agitation of clearing agents and other port users who have been calling for a standardised valuation system in the country. (NAN)

  • Revisiting Abuja master plan

    Revisiting Abuja master plan

    Experts, among whom is Human Settlement Officer, Anglophone West Africa and Manager Africa Urban, Omoayena Odunbaku, an urban planner, have have the government to initiate action on spatial planning of human settlements, to forestall distortions as in Abuja, and to ensure sustainable development, peace, security, productivity and increased revenue. Assistant Editor OKWY IROEGBU-CHIKEZIE reports

    Abuja is the capital and second most populous city of Nigeria as at 2016, after Lagos. Situated at the centre of the country within the Federal Capital Territory (FCT), it is a planned city built mainly in the 1980s based on a master plan by the International Planning Associates (IPA), a consortium of three American planning and architecture firms. Its Central Business District was designed by Japanese architect Kenzo Tange. It replaced Lagos, the country’s most-populous city, as the capital on December 12, 1991. It is known as a purpose-built capital with a well-defined master plan.

    Though it started as a well-planned city,  over the years, the master plan has gradually been distorted beyond recognition by unregulated developers and developments. Also, many slums have sprung up across the Federal Capital City, ruining its spatial space, planning and aesthetics as many ministers after Nasir el Rufai (1997-2007), failed to enforce adherence to the master plan.

    Throughout el Rufai’s eight-year tenure, he  religiously adhered to the master plan and enforced it. This led him to incur the wrath of the rich and the poor but he was unfazed in his determination to ensure Abuja remained as planned.

    Unfortunately, after he left office, subsequent ministers could not adhere to the master plan, leading to the springing up of unplanned spaces  and influx of people into the city. Thus, the planned city of Abuja as we knew is no more. It has become a shadow of its self, overrun by millions as against its population of 776,298 in 2006.

    Against this backdrop, experts are canvassing the revisiting of the master plan and initiation of a deliberate action on spatial planning on all levels across the country.

    Chief among them is the Human Settlement Officer, Anglophone West Africa and Manager Africa Urban, Omoayena Odunbaku.  She said there was a need for the current administration to initiate action on spatial planning to ensure sustainable development, peace, security, and increased revenue

    Spatial planning, she said analyses various demands, conflicts and opportunities at a certain level in order to identify concepts, solutions and strategies for planning and design implementation.

    Odunbaku further explained that spatial planning deals with the arrangement and development of living, working and environment conditions at all levels. These range from the built environment and residential quarters to the urban district, the city, the region, the state and federal and even the international levels, she said.

    She decried the distortion of the Abuja master plan, canvassing the integration of spatial planning into national development. Odunbaku said it would be very strategic to allow an organic restructure of the space.

    Given the distortion of Abuja and other master plans across the country, she called on the government to review the Urban and Regional Planning Law of 1992 and follow it up with empowering Local Government Planning Authorities to enable them perform their roles.

    “There has to be an aggressive capacity development and capacity building to cater for the deficit of urban planning professionals and also improve on the quality of built environment professionals to be able to identify potentials and integrate the nexus of urban centres,” she stated.

    On how the National Urban Development Policy can be harnessed, Odunbaku said it was tantamount to harnessing urban dividends. She said the policy was  prepared under the umbrella of multiple crises and shocks that have unfolded since 2016, and would likely continue throughout its duration.

    Her words: “All the crises demand their own solutions; but they are all inextricably linked to urbanisation in one way or another. Understanding these linkages will contribute to their solutions.”

    She said from her experience as a human settlements officer at the UN-Habitat, she would recommend fostering strong partnerships with local stakeholders, governments, and international organisations. Strengthening linkages and information flow between UN-Habitat and local partners in Nigeria, Ghana, Liberia, Sierra Leone, and the Gambia was a key aspect of my work.

    Read Also; Bear with, pray for Tinubu, Lam-Adesina urges Nigerians

    Odunbaku stressed that through collaboration, we could develop national and regional urban forums and formulate effective Habitat Country Program Documents (HCPDs) that address the specific needs of different regions.

    On the importance of urbanisation to our economic growth and national development, she said it allows for the concentration of goods and services in a particular area thus, reducing infrastructural development and transaction cost, spurs innovation, attracts investments, provides jobs and livelihood.

    She also stated that it also provides a platform for specialisation of purpose, connects markets and is crucial to reducing poverty if planned and sustainable. She lamented that, however, what we have experienced in most developing countries is unplanned urbanisation which is characterised by chaos, squalor, unpleasing optics, crime, delinquency, overstretched infrastructure, traffic congestion, and housing deficit, among others.

    She stressed that to harness the potential benefits of urbanisation, Nigeria needed to focus on effective urban planning, infrastructure development, and social programmes to improve the quality of life for its citizens and achieve balanced economic growth across the nation.

    Also, urban centres, such as Lagos, Abuja, and Port Harcourt, play critical roles as hubs for commerce, finance, and services. They attract local and foreign investments, driving economic development and contributing to the  GDP, she said.

    Explaining further, she said Lagos accounted for over half of the contribution to the nation’s GDP and revenue. If spatial planning and sustainable urbanisation are integrated into national development, there will be a deliberate effort to redistribute urban centres and reduce the pressure on selected urban centres in Abuja and Lagos.

    On how her office has been driving this cause across West Africa, particularly Nigeria, she said:  “We have facilitated the process of national urban Policies in all anglophone West African countries except the Gambia. There are ongoing projects to design and implement the Aba and Ado Ekiti spatial plans. Previously, UN-Habitat had engaged in several spatial pans in Kogi, Osun and Anambra. Specifically, there is a deliberate departure from previous practices with regards to the collaboration between UN-Habitat and the Federal Government of Nigeria; UN-Habitat has adopted an enhanced focus on project development and implementation, which would offer greater opportunities for achieving the agency’s mandate and the government’s objectives through demonstration of its normative and programming best practices and tools.

    “Currently, we are supporting the implementation of spatial development strategy for the Sahel (SDSS), a proactive approach to security, facilitation of the endorsement of the NUDP and capacity building/development of relevant staff of the Federal Ministry of Works and Housing, amongst others”.

    On what can militate against the success of urbanisation in Nigeria, if the right plans are not put in place at the national and state level, Odunbaku said urbanisation is a trend.

    Her words: “Urbanisation in Nigeria has been very organic; hence, the skewed development across the six geo-political zones, the government must assume a unique role of the enabler. The national interstate and inter-region transportation and spatial plans need to be based on an analysis of the strengths and weaknesses of the states and regions. Food baskets, industrial hubs, knowledge zones, etc have to be linked deliberately at the national level while the state and local government deal with intricacies.”

    The urban planner pushed for the revisiting the Abuja master plan to restore the city to its former glory. She advocated the enforcement of spatial planning across the continent, particularly Nigeria, stressing that if spatial planning was maintained in Abuja, it would have been one of the best capital city on the continent

    Recently, the Nigerian Institute of Town Planners (NITP) through its President, Luka Bulu Achi, said the implementation of the Abuja master plan had been a major challenge as past administrations allowed it to be distorted.

    According to him: “The barracks are not supposed to be where they are. Those areas were supposed to be buffer zones. Even the dam that should supply water to the city has been blocked. They have changed the entire concept.

    “The area you call Asokoro is not supposed to be there. Everybody wants to live in Maitama or Asokoro. These are the changes that past leaders kept introducing without the review of the master plan. In the 90s, a workshop was held to review what has happened. We did a lot and that was where it ended. Subsequently, El-Rufai came and said look, we need to reverse what has happened, it created another crisis.”

    Achi, who called for the review of the Abuja master plan, pointed out that the FCT  was designed to accommodate about 3.5 million people but that the city now has over 6.5 million inhabitants.

    Many of the experts maintained that Abuja was at its best when El rufai was the minister as he dared the high and mighty and demolished their houses; the poor too suffered the same fate for building in unapproved places as people surged into the Federal Capital Territory for jobs and living.

    It is generally believed that after el Rufai, distortion of the city continued. But it seems city officials have learnt their and are trying to reverse the trend by starting from where el Rufai stopped.

    A few weeks ago, the Federal Capital Territory Administration (FCTA) reclaimed over 500 plots in Gishiri in the Katampe District from people claiming to be owners.

    This was made known by the Deputy Director, Monitoring and Inspection, FCT Department of Development Control, Hassan Ogbole, during the ongoing clean-up operation in Gishiri.

    He claimed that in order to restore normalcy, unlawful buildings and shanties in the region had to be demolished since they distorted affecting the Abuja master plan.

    His words: “This is our third time coming to Gishiri in continuation of the city clean-up exercise to restore the Abuja master plan. Gishiri is a traditional name but the area is Katampe District. We have recovered over 500 plots of land from individuals.

    “We  are concerned with recovering plots taken over illegally by some persons for different purposes, to restore the Abuja master plan”

    “The genuine owners of the plots are to commence work immediately to stop the return of illegal structures. Individuals that are allottees of the plots should take them over immediately to avoid new illegal developments, let the owners come in and start developing”, he added.

    Meanwhile, the Deputy Director, Monitoring and Enforcement (AEPB) Mr. Kaka Bello, said the board was supporting the demolition to sustain mopping up of unauthorised activities,

    “Anything that is contrary to the standard would not be allowed. We will keep the fight against environmental nuisances till the right thing is done”.

    However, the Secretary, Command And Control, FCTA Department of Security, Mr. Peter Olumuji, said the administrationwais concerned with having a secure environment for the residents, and would not allow illegal structures to thrive.

     “Allowing illegal structures to remain, will continue to provide ground for criminals to exist, we can’t leave such structures that will become safe haven for bad eggs. We had such an experience in Gishiri in the past.

    “Removing the illegal structures will make criminals not have a place to hide and carry out their evil activities, especially at night,” Olumiji said.

    The distortion of cities and town is not only in Abuja but in other major cities such as Lagos, Port Harcourt, and Kano, among others.

    The experts all agreed that to ensure the sanctity of master plans spatial planning was inevitable.

  • Developers battle high costs, fuel price hike

    Developers battle high costs, fuel price hike

    Construction is at its lowest during rainy seasons, which should translate to cheaper building materials. Incidentally, the prices of building materials, especially cement, have skyrocketed by over 70 per cent. Buyers are accusing marketers and distributors of hiking prices, in addition to listing other factors responsible for the hikes, reports OKWY IROEGBU-CHIKEZIE

    The price of cement in Nigeria has increased recently due to a combination of factors, especially the fuel subsidy removal and depreciation of the Naira that is in the margin of N800 to a dollar. The International Monetary Fund (IMF), in a statement, lamented that strong dollar was decreasing economic output in the country.

    The built sector’s contribution to Gross Domestic Product (GDP) in Q1 2023 reduced by 7.4 per cent. According to latest data released by the Nigeria Bureau of Statistics, the sector contributed a N8.33 trillion in the quarter compared to the N9 trillion generated in the Q4 2022.

    The NBS attributed the decline to the adverse effects of the cash crunch experienced during the quarter.

    The cash scarcity caused by naira redesign  pushed the GDP growth below the projections of the World Bank, International Monetary Fund and the African Development Bank.

    The decline is slightly below a recent projection by KPMG that the GDP would grow at a relatively slow pace of three per cent in the year due to challenges in the naira redesign and political transition.

    A breakdown analysis showed that the real growth rate of the construction sector reduced by 1.56 per cent points from the rate recorded in the previous year.

    The NBS, however, noted that the sector contributed 11.79 per cent to nominal GDP in the first quarter of the year, higher than the 9.68 per cent it contributed a year earlier and higher than the 10.16 per cent contributed in the fourth quarter of 2022. Though NBS projections recorded a decline in the sector, cement a major factor in construction rose to all-time high.

    In Lagos, parts of Ogun and Rivers and indeed many states in the Southeast, a 50-kilogramme of cement, which price initially hovered around N4,800 and N5,000, depending on the region now sells for N6,000. As at last April, the average cost of a bag of cement ranged between N4,300 and N4,500, unlike this rainy season when the cost of cement and other products for building should have dropped significantly.

    Read Also: Cash surge into economy forces interest rate hike

    A civil engineer, Afolabi Adedeji, who runs consulting and training courses in Facilities Management and Business Support Services on Victoria Island, Lagos, said the wet season usually witnessed a lull in construction and a drop in the demand for cement and other materials. He wondered how prices have remained high or, in some cases, have increased since May, from when the season normally witnessed low activities.

    He listed factors that may have led to the increase in prices of materials as the Naira/Dollar Parity Ratio or Exchange Rate, which rose to N850 to a dollar, almost all components of manufacturing are imported.

    He said: “Transportation costs for getting cement to the market and end users have gone up. Some catalysts that are mixed with limestone, which is heated in the furnace to produce cement, are imported. As at today, it is N850 to $1. Unfortunately, that is what our currency has depreciated to. We should also not forget that expatriate staff at Lafarge – Wapco, Dangote Cement, Calabar Cement, Bua and others, are partly paid in dollar. Hence, the apparent disequilibrium in the price of cement and departure from what seasonal price trends suggest.”

    He also stated that rising energy cost, transportation expenses, and electricity cost which is synonymous with cement manufacturing are some of the reasons for the high cost of cement, and not necessarily the weather condition.

    Past President, Nigerian Institute of Quantity Surveyors (NIQS), Mr. Femi Onashile, in an earlier interview, attributed the increase in the cost of cement to the turnover in construction industry.

    Although we are in the rainy season when construction ought to be at the lowest ebb, Mr. Onashile explained that the high cost of materials could also be attributed to factors inhibiting the manufacturing sector such as high cost of electricity, transportation and bad roads. 

    Earlier, former Dean, Faculty of Environmental Sciences, Akanu Ibiam Federal Polytechnic, Unwana Afikpo in Ebonyi State, Mr. Sam  Onwusonye, identified four factors responsible for the soaring prices of materials.

    According to him, “we have failed to look inwards to develop companies that would have helped in mass producing building materials. We have continued to depend on the importation of the products, and so long as that is the case, prices will continue to go up.”

    Onwusonye further blamed the ugly trend on what he called “the government’s policy somersault”. He regretted that instead of giving a level playing ground to interested businessmen to bring in cement and other essential building materials, the government has succeeded in a creating a near monopoly where only a few favoured companies are given licenses to import them.

    Noting that cement constitutes about 40 per cent of materials needed in a building, the don regretted that it was unaffordable to majority of Nigerians who desire to have a roof over their heads.

    On reinforcements, Onwusonye, a construction cost economist, decried the lack of continuity in government policies and programmes.

    He observed that it was inconsistency in policies that led to the non-take-off of the steel rolling mill at Ajaokuta because new technology has overtaken the old one.

    Onwusonye  identified another factor as the low value of the naira against other foreign currencies.

    “You are required to buy at the price of the seller,” he said.

    As a panacea to the soaring cost of building materials, Onwusonye suggested the development of local alternatives.

    “We are blessed with all the necessary ingredients for the production of cement.”

    He also blamed the government for not doing enough to stem the escalating costs of cement and others.

     He noted that the high cost of materials would further compound the woes of the masses as they would be saddled with paying more for their accommodation while those engaged in building their own houses may be forced to abandon them.

    Noting that cement constituted about 40 per cent of materials needed in a building, the don regretted that it is unaffordable to the majority of Nigerians who desire to have a roof over their heads.

  • How to invest safely in real estate, by expert

    How to invest safely in real estate, by expert

    Real estate business has become an all- comers’ affair with prospective players burning their fingers.

    The Executive Director (Sales and Marketing) in Property World Africa Network (PWAN), Ambassador Julius Oyedemi, a realtor, said though the real estate market in Nigeria was fast growing with estate developing companies, buyers should be cautious while engaging the services of any of the organisations.

    “First thing to do is to know their office location and identify the members of management staff. Another thing is to find out if the firm is duly registered with the Corporate Affairs Commission and other regulatory bodies. Do they have verifiable and corporate account details? And do not forget; do an environmental scan on their pedigree,” he advised

    Property transactions may become nightmarish if certain major checks are not carried out. Listing some nuggets or trade secrets, he explained that to buy land or a house in Nigeria, a prospective buyer must take a site tour of the property he or she wants to buy, Oyedemi said.

    Read Also; Atiku, PDP confused, President tells tribunal

     “Site inspection is a very important experience because it gives a property buyer the chance to see the nature of the property being put on sale and to ask meaningful questions,” he added.

    Oyedemi, also the Managing Director of PWAN Plus, owners of Cedarwood Luxury brands, recommended that property buyers should do a search report with a registered land surveyor.

    His words: “This enables you to know the status of the property you are buying, the title position, and other factors surrounding the property. A registered surveyor must give you a professional report.”

    He advised prospective property buyers to engage a property lawyer to ensure a seamless transaction is achieved, pointing out that not all lawyers are property lawyers. A lawyer will help you look at the legal framework of the transaction, and other legal-related matters. If their report is positive then you go to the next step.

    “The next necessary step is to demand any other pre-contract information, rules, policy binding the transaction such as statutory charges, etc. Pre-contract information is what we call Facts and Questions (FAQ).”

    He lamented that many customers fall victim to all manner of abuse because they don’t understand the rudiments of the sector and the charges thereof such as a statutory fee which is  also known as development fees like fees for deeds, surveys, and other things.

    “A prospective property buyer must not overlook the necessity to request for an estate layout; because after a buyer must have gone through the pre-contract, the next thing is to request for an estate layout.

    “This will enable a buyer to know the estate or property he or she buying, how it is designed, planned, and to make an input if the buyer has any,” Oyedemi added.

    Another factor that amounts to a pain point arises when a buyer feels that development in the estate, he or she has bought, is not happening as expected. To that effect, it behooves the buyer to request a development plan even before buying a property.

    “Somebody will pay for land now, two years later nothing is happening, he goes to social media. Ideally, a buyer needs to have pre-information about how long it will take to develop the property. It helps to know how long it will take to develop the property and other facilities.

    “If the response is positive, then one can proceed to sign the legal contract. The essence of the transaction, you cannot just pay. You need to sign the contract first. This is a legal document containing transaction processes and information about the contract binding you and the vendor or developer. It’s also important to ask for a property allocation date. After payment, it is the customer’s right to know when to be allocated,” Oyedemi said.

        He regretted that some prospective customer’s unfortunately refrain from asking questions even when they have paid. Usually, such people after may be a year or two will rush to the social media to rubbish the particular property company without appraising their conduct from the start.

        Oyedemi advised; pointing out that real estate is a professional business that involves all professional stakeholders such as a registered land surveyor, quantity surveyor, town planner, structural engineer, architect, estate valuer and surveyor, builder and finally a lawyer and not for illiterates and quacks who don’t even understand the rudiments of the sector.

  • Estate surveyors canvass asset valuation as tool to fight corruption

    Estate surveyors canvass asset valuation as tool to fight corruption

    The economic prosperity of any nation is dependent on the availability of infrastructure and services that make up the various assets owned and operated by public and private entities. These assets comprise services with economic values. Against this backdrop, speakers at the just-concluded 53rd annual conference of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) in Ilorin, the Kwara State capital, stressed the need for the effective use of asset valuation and declaration in eliminating corruption in Nigeria, OKWY IROEGBU-CHIKEZIE reports.

    Asset valuation can be used to fight corrupt practices such as misappropriation of funds. Asset recovery is a powerful tool in the fight against corruption. It is noteworthy that globally, corruption costs about $1 trillion yearly. Hence, asset recovery is an overlooked means of returning money to countries and people from whom it was stolen. It can be used to provide development funds in impoverished countries like Nigeria and among nations most impacted by corruption.

    Corruption has been generating concerns in the nation as assets worth millions of naira are disposed as scraps and sold for peanuts. Professionals in the real estate sector say asset valuation borders on the best ways of resolving the problems impacting on the economy.

    These were the focus of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) 53rd annual conference held in Ilorin, the Kwara State capital, last week.

    In a keynote address at the conference, a former President of Ghana, John Dramani Mahama, identified asset declaration by public officers as a potent tool for tackling corruption in the public sector.

    He said corruption was a global challenge that hinders economic development, diverts investments from infrastructure, institutions, and social services, and undermines efforts to achieve other country-specific development goals and targets.

    Mahama added: “The international community has embarked on a global anti-corruption fight across several sectors, including real estate.

    “Real estate asset and property valuation are a critical factor in asset investment decision-making and a vital tool for the global fight against corruption.

    “Considering the enormity of the consequences of perversely attributed values to assets, asset valuation deservedly demands and requires increased attention from critical actors such as the Nigerian Institution of Estate Surveyors and Valuers.

    “Our fragile financial intermediation systems’ security and growth face the significant risks from poorly-done asset valuation. To remain relevant in pursuing economic and social progress and distributive justice and equity, you as professionals must rise to the occasion and create a more-responsive regime to aid Africa’s renaissance and growth.

    He urged estate surveyors and valuers to work to build Africa as a centre of excellence in the asset valuation space.

    NIESV First Vice President Mallam Bature Ali Muhammad said his paper entitled “Asset Valuation As Anti-Corruption Tool: The Nigerian Experience”,  was aimed at examining the concept of asset-based valuation from economic views, to determine its potency as an anti-corruption tool.

    He said: “The integration of economic and accounting principles of valuation to asset management is primarily focussed on estimating the true value of assets based on either historic cost or open market value using appropriate methods.

    “Asset management aims directly at improving values envisaged to be derived from potential services provided by an asset though it is challenged by emerging issues of corruption which are mostly social, economic, and political in nature.

    “This disturbing pattern of corruption has generated concerns bordering on the best possible ways to resolve the daunting problems impacting negatively on the economy as a result of the misappropriation of public funds. The entrenchment of asset valuation in both the public and private sector will, without doubt, prove its potency as an anti-corruption tool,” he stressed.

    On how to arrive at appropriate consideration of asset, Muhammad said the financial position of any operational business is arrived at through appropriate consideration of the monetary value of tangible or intangible resources listed in the balance sheet.

    Assets, he stated, are recognised by numerous attributes which make them unique from other things, some of the features include the ability for economic benefit to accrue, the possibility of ownership and control by an entity, and assets as an outcome of transactions.

    On classification of assets, he said: “The economic worth of an asset is ascertained by considering the nature of the use to which it is put. Estimation of value depends essentially on the form in which an asset exists and the class to which they belong. Apparently, different asset commands different value when placed side by side in comparison.”

    Stressing the importance of asset valuation in achieving a corruption-free or minimal corruption in the polity and also achieving economic growth, the NIESV boss said the aggregation of certain potential services, which represent economic elements common to assets makes them worthy of being desired.

    He also noted  that it is evident that all assets contain services that contribute to the creation of value. According to him, the control of an asset is such that requires an entity to exercise a certain degree of rights to its services because the value placed on an asset is generally perceived in terms of the monetary equivalent of its service potential.

    On the rationale for asset valuation, he said the optimal management of an asset is best when the value of services provided is accurately estimated using quantitative models rooted in the principles of accounting and valuation. The specification of value by an organisation must be efficiently determined using the best methods and procedures in the management of assets to obtain optimum value in total, Muhammad said.

    He argued that the application of valuation techniques in asset management is of great importance considering the service value of an asset and the need to quantify their economic worth in monetary terms. The valuation of an asset is undertaken in the bid to serve a specific purpose or multiple purposes at a given period. The valuation of assets owned by an entity aids the management in having a true value of their asset as the valuation of a company’s asset extends to the point where consideration is taken for depreciation and also an appreciation of the subject asset in question.

    The execution of the valuation is driven towards the determination of value which serves as a decision-making tool for a pre-determined purpose, he stated.

    However, Muhammad lamented that corruption, despite being a worldwide phenomenon, is predominant in Third World countries, notably in Africa and particularly Nigeria where corruption is endemic and has resulted in an upsurge of service value, and assets under the control of public entities have been frequently misappropriated by the unlawful acts of fraud, embezzlement, and other related crimes.

    Also, Kwara State Governor AbdulRahman AbdulRazaq said the theme of the conference was apt as it keyed into the main focus of the All Progressives Congress(APC)-led administration in fighting corruption, an endemic problem confronting the nation.

    “The theme of this year’s conference, “Asset Valuation as Global Anti-Corruption Tool: The Nigerian Experience”, is apt as it keys into the main focus of the APC-led administration in fighting corruption which is an endemic problem confronting our corporate existence as a nation. It is also a testament to the commitment of NIESV as a worthy partner of the Federal Government in the quest to enthrone a corrupt-free society through active citizen’s participation and engagement.

    “Estate surveyors and valuers are experts, professionals/consultants helping citizens of a particular country understand what space there is and how it can be best developed in order that all people can live happy and productive lives.

    “Specifically, the mode in which land is held, utilised, and managed in any society influences considerably the development of the society. Hence, estate surveying and valuation as a discipline or a profession is concerned with the judicious use and administration of the real estate as well as the value associated with land and the appurtenances.”

    The governor, who was represented by his deputy, Mr. Kayode Alabi, said: “Since its formation about six decades ago, members of NIESV have been involved in the valuation of assets for varying purposes across the country. As such, the profession is eminently qualified to stimulate national discourse on issues involving real estate assets and the consequences for the fight against graft.

    “Determination of declared values of assets is the professional responsibility of estate surveyors and valuers. It is pertinent, therefore, that estate surveyors and valuers are key players in the quest to rid Nigeria of corruption.

    “As a sub-national government, the Kwara State Government under my leadership has zero tolerance for corruption. Hence, our activities in the last four years have been geared towards eliminating wastages and profligacy in governance as well as curtailing corrupt practices within our realities.

    “We shall continue to partner with NIESV in the area of asset valuation, including the management of government-owned land properties in a bid to fully exploit the full potential of the membership of the profession and enjoy their professional expertise and value-adding capabilities,” AbdulRazaq  added.

    Earlier in his opening remarks, NIESV  President and Chairman of Council Johnbull Amayaevbo said the theme of the conference   was carefully chosen.

    He stated that governments alone cannot succeed in preventing and fighting corruption and corrupt practices without the cooperation of the private sector.

    He noted: “The importance of this year’s conference has to do with its theme.  This theme is, particularly, relevant as the world continues to confront the phenomenon, which distorts policy decisions, weakens economic growth, deters investment, undermines human development, derails a country’s progress, runs counter to the basic interests and needs of the society, poses a frightening threat to economic development and social stability, with Nigeria as a perfect example.”

  • Firm seeks government partnership on housing

    Firm seeks government partnership on housing

    AS Wonder Homes and Properties has urged government to support its resolve to address the housing deficit and make home ownership more accessible. 

    It made this call during the launch of its new office at Lekki, Lagos. 

    The company, which began operations in 2016, said it was willing to partner with goveenment and key stakeholders to make housing affordable 

    The MD/CEO of AS Wonder Homes and Properties, Dr. Agbi Steven Omobamidele said: “We understand what Nigerians are facing, the housing deficit in Nigeria and how it increases over the years.

    “Individually we have been providing affordable housing and affordable land to our customers and investors in Nigerians. We have some plans that allow people to pay N50,000 every month. These are done individually but with the help of the current government now, we are going to come up with something better. 

    “As I said, it will be like a private-public partnership. At least we have been approved for 3000 housing units, and Mortgage is there to work for us and provide at least 1000 in Lagos, 1000 in Abuja, and 1000 in Maiduguri for now.

    Read Also: Excitement as firm unveils smart housing in Asaba

    “The government can help us in real estate in the area of the tax we should pay. High tax, high price; low tax, low price. Then we are good to go.”

    The company’s spokesperson, Mr. Olarenrewaju Desmond, said the firm plans to expand operations, increase workforce and tackle various housing issues. 

    He emphasised the company’s commitment to collaborating with the government, especially in resolving problems like flooding to ensure safe environments.

  • Why Fed Govt should retool Ecological Fund

    Why Fed Govt should retool Ecological Fund

    The rainy season is here again with one of its destructive effects – flooding – and other ecological problems in various parts of the country. Sometimes, the damage is beyond what the states can handle. But even when the Federal Government intervenes through the Ecological Fund, the states and some agencies do not deploy the funds in dealing with the problems. In this report, OKWY IROEGBU-CHIKEZIE x-rays the management of the fund which has not lived up to expectation.

    The Ecological Fund, created in 1985 by the Federation Account Act of 1981, is under the office of the Secretary to the Federal Government of the Federation.

    The objective of the office is to “have a pool of funds that would be solely devoted to the funding of ecological projects to mitigate serious ecological problems”. It includes the “one per cent of the Federation Account known as Derivation and Ecology Fund”.

    Among various intervention initiatives in July 2021 was the aprproval of N16.04 billion by the Federal Executive Council (FEC) for projects in 12 states and the federal capital territory (FCT) covering soil erosion/flood and pollution control.

    Last year, the House of Representatives Committee on Ecology begun investigation of the cash released to states and agencies under the Ecological Fund, after its visit to some states ravaged by floods.

    At its inaugural investigative hearing in Abuja, the committee queried the National Agricultural Land Development Authority (NALDA) for improperly spending the ecological funds it received.

    Its Director-General Paul Ikonne, making a presentation to the committee, however, detailed the funds the body received since last year.

    Ikonne said: “We made submission already as requested by your committee, Mr. Chairman. From June 2020 till the day of requesting for this submission to be made, which is March 2022, NALDA has received a total of N9,642,557,654.91. Till date, NALDA has received N12,740,506,664.”

    Still, the committee Chairman, Ibrahim Isiaka, expressed dissatisfaction with the presentation. He said: “NALDA, we have received your submission and having gone through it, the committee members have so many queries and questions. Before we put you on the spot, you still wait a bit so that we go through the rest.”

    The committee also summoned the management of the National Emergency Management Agency (NEMA). 

    These seemed an iceberg as several agencies and state governments have been found wanting in the use of the fund.

    Isiaka had said: “Those who refused to cause appearance here, or refused to respond to our letters, anyone willing to test the capacity of this committee will not be disappointed. It is very obvious that people are just paying lip service in this country and being frivolous about the clamour for devolution of powers, such that the urge to always go cap-in-hand to the centre by states persists.”

    The lawmakers said they observed that the agencies had deviated from the mandate of the Ecological Fund.

    As a result, the House of Representatives had asked the Federal Ministry of Finance and the Office of Accountant-General of the Federation to halt the allocation of funds from Ecological Fund to some agencies until investigations into past allocations to them were concluded.

    The affected agencies apart from NEMA, were the National Agency for the Great Green Wall, the North-East Development Commission (NEDC) and the National Agricultural Land Development Authority.

    The House also directed its Committee on Ecological Fund to probe the release and utilisation  of the funds in the past three years.

    In his submission, Isiaka said the four agencies had derailed.

    He further explained that NEMA draws 20 per cent from the fund, while National Agency for the Great Green Wall (NAGGW) and NEDC, gets 15 per cent and 18 per cent.

    He said:  “Efforts aimed at making the agencies accountable for their shared funds in the last few years have not yielded any positive result.” However, he assured that the committee would not rest on its oars until the outstandings were collected.

    Earlier, human rights activist, Femi Falana (SAN), urged the Federal Government to probe the management of the fund.

    He spoke at the convocation at Augustine University, Ilara, Epe, Lagos. During the event’s lecture, Falana expressed concern over the impact of recent flooding across communities, adding that it was wrong for the Federal Government to ask citizens to hold state governments accountable when a national disaster occured.

    “During the COVID-19 pandemic, the Federal Government did not ask the citizens to hold the state governments to account for funds meant for building and equipping hospitals.

    “Instead of inciting citizens to demand an explanation, which will be ignored by state governments, the Federal Government should submit a petition to the Economic and Financial Crimes Commission (EFCC) for the investigation of the mismanagement of the Ecological Fund, which is a crime against humanity.

    “The mismanagement of Ecological Fund is a crime against humanity because it is responsible for the loss of many lives, displacement of millions of people, and destruction of properties worth trillions of Naira.

    “Before the proposed probe by the EFCC, the Federal Government should come to the aid of affected state governments. However, the EFCC should probe the involvement of officials of the Federal Government and state governments.

    “In particular, the Federal Government has failed to release money from the Ecological Fund to the affected states. On their part, the various state governments have equally failed to provide relief materials for victims,” he said.

    Falana also faulted the immediate past Minister of Water Resources, Suleiman Adamu, for saying the floods were an “act of God”. He  urged the government to ensure that measures to mitigate flooding became a priority.

    “The Federal Government should release funds to the affected states to provide relief materials and compensation to the victims. In order to protect the environment, the Federal Government should ban further flaring of gas in the Niger Delta region as soon as possible.

    “The Federal Government should address the crisis of perennial flooding in rivers Niger and Benue basins as well as the Lagdo dam in Cameroon.

    “In view of the reality of climate change, governments at all levels should prioritise safety measures for people living in low lands in the implementation of environment policies. It’s been noted that the most-affected areas in the southern part of Nigeria are Anambra, Imo, Abia, Enugu, Ebonyi and Cross River states,’’ he added.

    In April, last year, gully erosion destroyed over 70 per cent of Anambra land, its immediate past Commissioner for the Environment, Felix Odumegwu, an engineer, said the state government expressed concern that gully erosion had eaten up over 70 per cent of the landmass while also threatening lives and properties of people in affected areas.

    He stated this at the opening ceremony of the Nigeria Erosion Watershed Management Project (NEWMAP)-Implementation Completion and Result Report Mission (ICRM).

    Odumegwu, who described the situation as precarious, further said the former Commissioner of works, Marcel Ifejiofor, an engineer, put erosion sites in the state at over 1,000.

    Odumegwu said: “Anambra State is faced with an existential threat from the scourge of erosion; we are the state with the second highest population density in Nigeria and, alongside that, we have the most active number of erosion sites.

    “It has been reported that 70 per  cent of the land in Anambra State is at risk of gully erosion. This is the precarious state we are in, with less than three per cent of our erosion menace under control; we not only ask for more, but wish to charge NEWMAP and her funding partners to declare a state of emergency on Anambra’s erosion menace. We want to devote more time to pre-erosion management by nipping in the bud erosion before it occurs.”

    The President-General, Ebem Ohafia Development Union in Ohafia Local Government Area of Abia State, Emeka Mba, in an interview, said several homes in the community were under threat of gully erosion.

    “In Ebem,  the menace is affecting our community; that’s the danger we are facing. Apart from that, we also have some short-distance erosion here and there, so our problem is that the erosion is trying to encircle our community,’’ he said. He also said there are deep gully erosions that have cut off some parts of the Ebem Ohafia community; that is Eziukwu and Mbaga and another one around the police station, where there are government facilities.

    On the factors responsible, he said they were several. According to him, Abia State is usually faced with heavy rain during the rainy season, including the poor drainage system in the community. He lamented that a lot of houses had been swept away.

    “Unfortunately, the affected families have been forced to abandon their homes. At present, we have the palace of our traditional ruler, Ukoha Ukoha, under serious threat. That’s one of the many houses that are seriously under threat. At the end of this year’s rainy season, more houses would have gone down,” he stated.

    On the number of families affected, he said he couldn’t quantify it, but only was aware that a lot of people had been forced to leave their ancestral homes for make-shift apartments where they were even paying rent. They are in their hundreds if you start counting the many years the erosion has been there.

    He also stated that in every rainy season, the community encountered deaths as a result of the flood with bodies recovered from gullies after many days. “There used to be a community search when someone is swept away,’’ he lamented.

    Director-General, Nigeria Conservation Foundation (NCF), Dr. Joseph Daniel Onoja, told The Nation that,  the funds had not been used to address  ecological issues in the nation. According to him, if it has been used well, there would have been more investment in environmental conservation its primary area. 

    He said: “Unfortunately, some governors erroneously use it as part of their security vote. The fund is usually used for different purposes apart from the ecological situation in states as we have them. It has not been deployed in addressing real ecological issues.

    “I must say that it’s unfortunate that we have not really used it the way it should have been used, if we had been more circumspect we would have seen more investment in areas of environmental conservation and much more in states such as Anambra where you have gully erosion or in Lagos, where you have coastal erosion.’’

    According to him, other states are struggling with serious deforestation and land degradation, yet money meant to tackle the environmental challenges facing the states is being wasted.

    Onoja said the Ecological Fund  had trillions of Naira, but that it was not used for the purpose it was created. Rather, it was treated like Governors’ Security Vote that is not captured or accounted for. “Conflicts between herdsmen and farmers would have long been taken care of if our leaders were circumspect in using the fund,’’ he added.

    He stated that the nation had many challenges as far as the environment was concerned.

    According to him, many states were struggling with serious deforestation and land degradation, yet the money meant for tackling challenges in the states was not used for the purpose.

     Onoja said: “Ecological issues that should have been taken care of by all levels of government and what we don’t understand is that ecological issues have social and economic impact. Have we wondered why there are  conflicts between farmers and herders?”

    Onoja canvassed the need for policy makers and political leaders to come up with measures on how the country’s resources could be better managed and avoid conflicts that usually occur over competing interests.

    He stressed that the country has lots of environmental challenges and that the Ecological Fund administration needed to be rejigged.

  • Prices of building materials skyrocketing, says dealer

    Prices of building materials skyrocketing, says dealer

    By Lydia Raji

    The prices of building materials are hitting the rooftop despite that the rainy season usually marks a lull in construction sector.

    Almost all building materials have had their prices upped as a result of inflation and not an increase in the level of construction.

    Speaking at Good News Plank Market in Olojojo, Oworoshoki, Lagos, Mukalia Olorun Toyin, a trader, said every day there’s an increase in most building materials.

    He said the challenge was that the  products don’t have fixed prices unlike years ago when you could come back after about six months to buy a particular material at the same price you bought it earlier.

    While calling on the government to intervene, especially with the manufacture of local building products as against imported ones which are easily affected by international prices.

    Futhermore, he said this year had been most challenging for him and his colleague, especially with the Central Bank of Nigeria (CBN) Cashless Policy, which almost crumbled their businesses.

  • Ariston recommits to energy efficiency for households

    Ariston recommits to energy efficiency for households

    Ariston, one of the leaders in the thermal comfort industry, has reaffirmed its commitment to promoting energy efficiency in households or homes by providing quality and energy-efficient products or solutions.

    Its Managing Director, Central Africa, Solomon Umoh, stated this during the Country Manager Forum with reporters.

    At the event which has “We are Champion, Ariston goes Renewable with Water Heaters, saves Double-Digit Energy Cost” as theme, Umoh stressed that the company is committed to the cause of energy efficiency as enunciated in its sustainable growth strategy.

    He noted that renewable/high-efficiency products and solutions were designed to reduce energy consumption, without sacrificing comfort.

    He said the health crisis due to the COVID-19 pandemic brought to the fore the significance of “comfort” on safety and security.

    According to him, the company is committed to delivering comfort, when and where needed, with its portfolio’s wide range of water heating and other products.

    He advised Nigerians to bathe more with warm water, to significantly boost their health.

    “Hot showers and baths can inflame the skin, causing redness, itching, and even peeling — similar to sunburn. They also can disrupt the skin’s natural moisture balance, robbing you of natural oils, fats, and proteins that keep skin healthy,” he said.

    Also, the Head of Marketing, Central Africa, Ariston Group, Habeeb Somoye, said the Group had since 2010 embarked on a significant growth journey that had seen it expand its footprint in Nigeria and other emerging markets.

    He noted that the company’s investment in research and development had continued to yield results, as can be seen from the multiple advanced products in its portfolio.

    He noted that Ariston had been at the forefront of innovation by designing and offering solutions that are unique, reliable, and of good quality.

    He said energy efficiency and the development of renewable energy-based technologies remained the critical drivers of growth for the company in Nigeria and globally.

    “At Ariston, our quality culture starts from the ability to design and manufacture products that meet the highest quality standards and the needs of our customers all over the world — and then involves all business processes, from supplier management to support services, to improve the experience of those relying on our solutions continuously. Our value proposition is focused on satisfying consumers, seeking to exceed their expectations,” he said.

    With over 93 years of history, Ariston, company has established itself as a global player with a unique proposition of renewable and high-efficiency hot water and heating solutions and services, growing organically and inorganically.