Category: Property

The increasing number of foreign investors in the real sector is an indication of the success of Federal Government's policies, the MD/CEO of AyHomes, Omogboye Saheed Ayodeji, has stated. 

Ayodeji, who stated this at a recent seminar, shared insights on why investing in real estate in Nigeria is a smart choice. 

He stated that Nigeria's population is rapidly growing, making it the third most populous country in the world by 2050. 

This,he said, presents an immense opportunity for the real estate sector, as there will be a high demand for housing and commercial properties. Investors who invest in the right locations and properties will benefit from this growing demand.

Ayodeji added that the Nigerian government has introduced policies to encourage foreign investment in the real estate sector. These policies include tax incentives and relaxed regulations for foreign investors. As a result, there has been an influx of foreign investors who are taking advantage of the opportunities that the Nigerian real estate sector has to offer.

He further explained that Nigeria's economy is growing at an impressive rate, with the government implementing policies to diversify the economy away from oil and towards other sectors, including real estate. This growth presents a unique opportunity for investors to capitalize on the increasing demand for properties and the potential for high returns on investment.

Ayodeji stated that Nigeria has a large and growing middle class, which is driving the demand for properties. As the middle class continues to grow, there will be an increased demand for affordable housing and commercial properties. Investors who can identify the right properties to invest in will benefit from the growing demand and increasing property values.

He also pointed out that the real estate market in Nigeria is relatively untapped, with a lot of opportunities for growth and development. This presents an opportunity for investors who are willing to take risks and invest in emerging markets. There are plenty of undeveloped areas that have the potential for significant growth and development, particularly in the outskirts of major cities.

Lastly, Ayodeji stated that the real estate market in Nigeria is relatively stable compared to other sectors. Unlike stocks and other investments, real estate values tend to remain relatively stable over time, making it an attractive investment option for those seeking long-term stability and growth.

Ayodeji emphasized that investing in real estate in Nigeria presents a unique opportunity for investors looking to diversify their investment portfolio and take advantage of the growing demand for properties. 

With a growing population, government policies to encourage investment, a rapidly growing economy, a growing middle class, untapped opportunities for growth and development, and relative stability, the Nigerian real estate sector offers attractive returns on investment for those who are willing to invest.

WaterAid Nigeria, an international non-profit organisation, has urged governments to prioritise the provision of clean water and sanitation services to meet the Sustainable Development Goals (SDGs) 2030 target.

In her goodwill message to the World Water Day held at Ojodu, Lagos, the Country Director, Water Aid Nigeria, Evelyn Mere, called on stakeholders to address the plight of people living without access to safe water.

Represented by Executive Director, Humanity Family Foundation for Peace and Development (HUFFPED), Mr. Henry Adenigba, Mere commended the Lagos State Ministry of the Environment and Water Resources for  providing water sanitation and hygiene services.

Speaking on the theme of this year’s Day,  “Accelerating Change”, she called for an end to the water, sanitation and hygiene crises, stressing the need for urgent action to address the global water and sanitation crisis.

With seven years left to achieve the SDG 6  of clean water and sanitation for all, the organisation warned that progress was slow, and more needed to be done to accelerate change.

The Country Director emphasised the urgency of the situation, pointing out that only 10 per cent of Nigerians have access to basic WASH services, while 67 per cent use basic drinking water services.

“Governments must lead the way, and international organisations, communities, donors, and businesses must play their part to accelerate progress towards universal access by 2030,” Mere stressed.

“However, we commend the efforts of the state government under the leadership of Governor Babajide Sanwo-Olu and the Commissioner for Environment and Water Resources, Mr Tunji Bello, for their efforts in providing water, sanitation and hygiene services to Lagosians.

“To stay on track with the 2030 target for the SDG 6; rapid progress happens when WASH policies and programmes have the full backing and leadership of governments.

“Support from development partners and the private sector can accelerate progress even further. To this end, WaterAid reiterates its continuous support to the government and people of Lagos State to realise this goal,” Mere said.

Permanent Secretary, Lagos State Ministry of Drainage Services and Water Resources, Olalekan Sodehinde, emphasised the importance of speeding up efforts towards achieving sustainable water management practices.

He said the state government has partnered  players in the private sector to promote sustainable water management.

Represented by Mrs Helen Taiwo, Director, Water Resources, Shodeinde said water is a vital resource for life on earth and its importance could not be overemphasised.

“Unfortunately, despite its critical role in sustaining life, access to safe and clean water remains a significant challenge worldwide.’’

“We are honoured to have with us here representatives of WaterAid Nigeria, Nigerian Bottling Company, School Environmental Health Club (SEHC) members from primary and secondary schools and Ojodu LCDA, in the spirit of collaboration.

“To accelerate change and secure progress in water, sanitation and Hygiene, the Lagos State government in collaboration with the private sector are working together to promote sustainable water management practices.’’

“This includes investment in infrastructure and technologies that improve access to clean water, reducing water waste while promoting water conservation and efficiency.

“In achieving this, the needs of women and girls, the vulnerable and marginalised communities must be taken into account in order to deliver access to clean water and safe sanitation, he stated”

The event was organised by WaterAid in collaboration with the Lagos State Government with the support of Coca Cola Bottling Company, Kimberly–Clark Foundation and HUFFPED.

The event was attended by officials of the Lagos State officials, students, staffers of the schools within the premises, and members of the civil society.

Pupils of the schools made presentations on water and sanitation to educate the audience.

The real estate sector in the first quarter of the year has been negatively impacted in several ways by ill-timed fiscal and monetary policies. A case is the Central Bank of Nigeria’s (CBN’s) policy on Naira swap. The effect of the policy on Nigerians was tough as they were denied access to money to buy most basic things in life. Investing in real estate was the last on their minds. OKWY IROEGBU-CHIKEZIE reports.

It’s almost five months since the Central Bnak of Nigeria (CBN) introduced the policy that redesigned the N200, N500, N1000 notes, which has had a spiral effect on Nigerians.

Though this is characterised by huge cash crunch, the apex bank maintained that it was meant to checkmate vote buying as well as promote cashless banking.

True, the policy brought with it untold hardship as many people find it difficult to  purchase the basic things of life such as food, accommodation,  school fees and medicals.

Against this background, investment in real estate is the last thing on people’s mind as investible funds remain inaccessible. Still, some real estate operators believe that some good could come out of it in the long run.

They projected that some major factors that might influence the development of the real estate market in 2023 would include inflation, high cost of building materials, the election, soaring housing price and high interest rate environment.

Others are increase in the cost of building materials, poor land acquisition policy and forfeiture orders.

Last year, the sector contributed over N7 trillion to the nation’s Gross Domestic Product (GDP), coupled with the improved investors’ trust in the industry, no thanks to the number of housing schemes initiated in the third and fourth quarters of the same year.

All things being equal, analysts predicted sustained growth in the industry. Financial Derivatives Company (FDC), in its report, said real estate would expand by 5.2 per cent in the year. It added that the contribution of real estate to the GDP would increase to 6.5 per cent as a result of high population and urbanisation growth.

On opportunities in the construction sector, FDC said the sector’s contribution to GDP may hit 9.2 per cent due to increased spending and investment on road infrastructure, noting that the Federal Government had concessioned 12 federal highways, but feared that the projects initiated by the outging administration might be abandoned by their successor.

“Aside the ill-fated CBN cashless policy, there is a possibility that after now, there would be adequate cash in banks that can necessitate banks giving out loans to the sector. If this happens, more people will be interested in housing products as investment forms as the era of keeping cash at home and in the offices  will no longer be attractive,” FDC said.

An estate surveyor & valuer Ikenna Okechukwu Oyedele, said though the monetary and fiscal policy of the Federal Government and the CBN was not well-thought out as it looked more like a political gambit, the expectations in the sector for 2023 were an improved performance over those of last year.

While calling on President Muhammadu Buhari to assent to the National Building Code (NBC), he further canvassed the need for a policy that would bar imported building materials to grow the capacity of indigenous manufacturer.

“The time has come for the reduction of the usage of foreign materials in the building construction in order to reduce cost. We need to reduce the use of cement, especially for walls and paving and we need to standardise our sandcrete blocks and encourage the use of bricks. Our houses are not economically distributed as there are numerous abandoned properties,” he added

Stakeholders and experts, however, outlined some critical areas to be addressed to reposition the housing sector, stressing that adequate financial intervention was needed in the housing sector value chain.

They asserted that the ballooning population in urban cities would contribute to the development of the housing sector in 2023, adding that the challenge had been traced to Nigeria’s population growth, which is at 2.6 per cent per annum and outpacing the provisional housing system.

The Bank of Industry (BoI), in a report on Nigeria’s housing sector, affirmed: “With a growing urban population, increasing construction costs, and declining household income and access to affordable housing is becoming more difficult for millions of citizens.”

The BoI, however, outlined some critical areas to be addressed to reposition the housing sector, stressing that adequate financial intervention in the housing value chain was required to boost development in the sector.

“Increased partnership with the organised private sector is crucial to unlocking opportunities in the real estate market,” the BoI report stated.

Another report by the Federal Mortgage Bank of Nigeria entitled: “Institutional turnaround for the next level,” indicated that last year, although the Federal Government budgeted N470billion for housing, the sector would require trillions to close Nigeria’s housing gap.

The FMBN report estimated 206 million persons in Nigeria, indicating that about 95.1 million lived below the poverty line, and as such, it was difficult for them to have access to their own homes.

The rising cost of housing, particularly, house rent, has eroded the purchasing power of Nigerians, pushing more people below the poverty line.

According to the Executive Secretary, Association of Housing Corporations of Nigeria, Mr. Toye Eniola, poor implementation and mismanagement of economic policies were largely responsible for the upsurge in the rising cost of  living, which has continued to push more people below the poverty line.

He noted that, virtually everything in this country is determined by the price of foreign exchange market rate. This ineptitude of the manager of the country and their inability to stabilise the exchange rate is causing more damage to the economy and people are becoming poorer and poorer without visible hope for the people, especially the youths, he said.

According to him while all these costs had likely impacted rising home prices, a resultant increase in disposable income had not been recorded, making residential real estate unaffordable for the average Nigerian.

Secondly, I will say it is the lack-lustre attitude of regulatory bodies, especially, in Nigeria, because, we have no regulatory bodies, many companies and individuals are just increasing the price as they wish. Regulatory bodies should regulate the price even though there is inflation everywhere. It could be managed in a way that will not affect the people.

“What I will say, which is like a continuation of the second one, is greed. Many people use a rise in exchange rate as an excuse to increase the price of housing, but in the real sense, it may not be affecting them as they portrayed it. For example, everything we use for construction in Nigeria can be sourced locally with very good quality.”

The Managing Partner, Ubosi Eleh & Co, Chudi Ubosi, noted that the issue of the incessant hike could be looked at from a couple of perspectives. He said: “Property development has continued to be an expensive venture from land acquisition to obtaining consent or good title to government approvals and then the actual construction, which involves buying building materials at the current high prices. The result is that, upon conclusion, the developer wants to charge a premium to enable him/her to begin the process of recouping their investment.

“Another perspective is that real estate is an investment like any other investment. Investors sweat their investments to ensure they are getting maximum dividends from them at any time.”

A highrise building fell in 2021, killing 42 people on the scene. Prior to that, residents of a well-known estate created and managed by a top leading Real Estate company walked around with placards on social media complaining about the estate’s lack of competent management and uncontrolled flooding by the estate management despite the excessive service charge required.
This post is not intended to talk down on any Real Estate company but to guide prospective buyers on a more informed approach when buying a property in Lagos to avoid falling prey to any of these scandals.

These fatal mistakes will not only save you the stress and trauma that comes as a result but save you hundreds of millions in buying mistakes.
Below are the 3 Fatal mistakes you must Avoid when Buying a Property in Lagos Nigeria.

1. Buying a Property without a Building Plan Approval:
   What is a Building Plan Approval?
   A building plan is a formal consent by an official authority to show approval for the implementation of the information contained in a building plan.
   A building plan is an infamous but very critical factor in the buying process.
   Penalty for not Having a Building Plan Approval:
   Random demolishing of the property without compensation and permission by the owner.
   Payment of undue and unsolicited fees to crook officials posing to represent the government.
   
2. Incomplete / Failure to Conduct a thorough Due Diligence:
   Residents of a well-known estate were recently evacuated from their homes after fully paying and moving into the houses with their families.
   It was discovered that the developer had given out the entire houses in the estate to serve as collateral to service a bank loan.
   You could imagine how that must have been, after heavily spending hundreds of millions to buy a home.
   According to a famous title verification expert, 70% of the C of Os in Lagos are fake!
   Just like the process of buying any precious material, buying a property involves a systematic process of comparing facts with evidence by an expert.
   No form of urgency should ever compel you to buy a property without a thorough due title and ownership verification.
   Several people have lost hundreds of millions buying a property only to realise every piece of information the property claimed to have was merely a facade.
   Penalties for Buying a Property without a formal or incomplete verification
   Total loss of ownership of the property
   Paying twice for the property.
   Stress and Trauma from unwarranted court cases
   
3. Poor Structural Assessment without an Expert.
   Beyond aesthetics, every buyer should never lose sight of the structural condition of the property.
   Events like sudden collapse, cracks, and molds could pose a serious health threat and future disaster if not looked keenly into.
   Get our free guide for practical steps on how to buy legitimate properties in Lagos without getting scammed.

My name is Salome Bassey, lead consultant at Real Estate with Sally
Our Subsidiary agencies include:
Hussledad.com
247shortlet.com
Website: www.realestatewithsally.com

• •Ibese Plant donates solar-powered borehole

No fewer than 30 youths from communities around Ibese in Ogun State have benefited from a training organised by Dangote Cement Plc Ibese Plant, to empower  the youths.

The youths, who were trained on domestic electrical installation, wiring and maintenance, received start-up packs.

The plant also inaugurated a solar-powered borehole in Abule Oke in Yewa North Local Government, Ogun State in fulfillment of its promise to the communities during their Community Day last December.

Ibese Plant Director, Dangote Cement, Mr. Azad Nawabuddin, said the initiative was in tandem with the company’s commitment to the development of the host communities in line with the Community Development Agreement they signed last year.

The company’s social development strategy, he added, “does not support giving people fish to eat but focuses on teaching people how to fish. Rather, we empower them to be self-sufficient and self-reliant”.

Nawabuddin listed past empowerment initiatives of the plant to include training in catering and event management, tailoring and fashion design and acutherapy for 275 indigent youths.

He praised the beneficiaries for their determination to learn new skills to better their lives, and urged them to apply the knowledge garnered during the training in building sustainable businesses.

Deputy Area Manager, Industrial Training Fund (ITF), Abeokuta Area Office, Mrs. Funmi Coker, commended Dangote Cement Ibese Plant for developing the youth to make them useful.

She appreciated the company’s collaboration to achieve the  nation’s objectives, urging  other firms to emulate Dangote Cement.

 Vice Chairman, Community Joint Consultative Committee,  Dayo Ogunyinka   also praised the company’s empowerment initiative. He urged the beneficiaries to see the gesture as an opportunity to take them to the pinnacle of success and ensured that the starter packs received were properly used.

A beneficiary, Ms. Elegbede Ganiyat, appreciated Dangote Cement for the gesture.

She noted that the beneficiaries had been well-prepared for electrical services market.

Meanwhile, the cement company has handed over a multi-million naira solar-powered borehole to Abule-Oke.

During the hand-over, Nawabuddin emphasised the importance of water to  humans and advised the community to make good use of the borehole and put up a framework to ensure its sustenability.

The Olu of Imasayi commended Dangote Cement for the donation, and for acknowledging its commitment to improve the standard of living of people in its host communities.

He charged the people to ensure that the  facility is maintained.

March 13, 2023 marked the fourth year of the collapse of the five-storey building at 63, Massey Street, Ita Faaji, Lagos. It housed Ohen Nursery and Primary School and other tenants before it went down. Nineteen people reportedly died in the incident, while many others suffered injuries. During a visit to the site on March 14, 2019, Governor Babajide Sanwo-Olu promised to provide succour for the parents of deceased pupils and survivors. But. four years later, nothing has been done government has not taken over the site of the collapsed building. OKWY IROEGBU-CHIKEZIE reports

It was a solemn ceremony: the fourth anniversary of the collapsed five-storey at 63, Massey Street, Itafiaji, Lagos. It  held on March 14. The venue was the site of the building collapse.

  At the event were parents of the deceased children. They gathered for two objectives: to mourn their children who died in the incident and remind the Lagos State Government of its promise to compensate relatives of the dead and survivors.

  During a visit on March 14, 2019, to the collapsed building site, Governor Babajide Sanwo-Olu, who had just won the governorship election then, promised to provide succour to parents of the bereaved and the injured. 

He was there with his deputy, Mr. Obafemi Hamzat.

Painfully, four years after, the  affected parents were yet to get any help from the government. They, therefore, appealed to the governor to redeem his promises.

However, more than the parents’ demand, the anniversary provided experts an opportunity to reflect on a major issue in the sector: the government’s expected hammer on the land on which the building stood and prosecution of the owner.

Though its acquisition by the government is legal as it is in tandem with Chapter 59 Section 74 of the Urban and Regional Planning and Development Law of Lagos State 2010, signed by former Governor Raji Fashola, it would appear that this tough step had been overlooked by the government.

The law states that “in the event of the collapse of any property or structure due to negligence on the part of the owner, or the developer, such property shall be forfeited to the state government after due investigation and/or publication in the gazette.”

Despite the clarity of the law, the government has done nothing, for which experts accused the state government of lacking the political will to take over sites of collapsed buildings,  although the law empowered it to do so.

It is the same attitude government officials display in enforcing the regulation on distressed buildings. It would be recalled that when the five-storey building collapsed, a resident who identified herself simply as Shekinah, reportedly said she never knew there was a school in the building and that it had been  marked several times for demolition.

“The government has marked it several times, but they’ll only patch it and put tiles after bribing the officials,” another woman who declined to say her name, added.

Worse still, another building of same design as the collapsed one is sprouting on 63, Massey Street, Lagos Island without any approval from any building agency, according to the Building Collapse Prevention Guild, (BCPG), a pressure group of the seven built-environment professionals in the construction sector.

So far, The Nation cannot confirm if any collapsed building site has been confiscated by the government or not.

However, enquiries by The Nation found out that the law of forfeiture of collapsed building sites may be conditional. It was learnt that an owner could only forfeit the land if there were casualties.

A government source said: “It is not every collapse site that the government could take over except there are casualties.The owner must be found on the wrong side of the law and based on thorough investigation conducted on the collapse site, the government could take over the site.’’

This position is based on the fact that the derelict collapsed building on 63 Massey Street has been allegedly and illegally taken over by an unknown developer.

The parents lamented that no succour had come to them from the government. Beside the pupils of Ohen Nursery and Primary School, the building also accommodated tenants, witnesses said.

Ohen Nursery and Primary School occupied the first and second floors of the collapsed building while residents lived on the ground floor.

Upon the collapse of the building, many men in the neighbourhood rushed to the scene and were able to rescue few pupils before the arrival of Lagos State Emergency Management Agency (LASEMA) officials and other rescue teams.

It was learnt that a pregnant woman, the proprietor of the nursery/Primary school and 19 others, including no fewer than 12 pupils, died in the collapsed building, witnesses and hospital sources said.

While commiserating with families who lost their loved ones then, Governor Akinwunmi Ambode described the incident as quite unfortunate,   he said there were “two floors buried in the ground.”

He said the primary school was illegally occupying the building as it is registered as a residential building.

According to Ambode, the nursery and primary school had been operating illegally in a residential building. He stated that many buildings in the area were certified “distressed” and had been marked for demolition, but that landlords resisted the government.

The governor had said: “The first observation is that the foundation of this building is an old one. Like what you have seen, two floors have gone under the ground. It is only the pent house and the other floor that children have been rescued.

“So far, what we have been briefed is that they have rescued about 35 pupils, some already dead. But we were earlier informed it was a school.

“It is not technically a school but a residential building that is actually accommodating an illegal school so to speak.

“All we are trying to do is to continue this operation. Our response team is already here. We have got another crane to go deeper down and rescue more children.”

Observers believe that the absence of enforcement agents, especially on building control, seems to have worsened the incidence of building collapse, loss of lives and properties in recent times in Lagos.

In the last few years, Lagos has witnessed a resurgence of the menace yearly, the biggest being the Fourscore Homes owned by a billionaire developer, Femi Osibona, in the upscale area of Ikoyi, who lost his life in the ill-fated building with many others.

 Also, quacks at both pre- and post-construction stages and others, are significantly part of the factor.

But of more concern to stakeholders is the  inertia of the government and its regulatory building control agencies.

Lagos has the unenviable position of topping the list in collapsed buildings.  Though the Lagos State Building Control Agency (LASBCA) conducted integrity test on buildings in the area and certified 150 buildings structurally defective, not much has been done. Thus, it seems that government agencies saddled with that responsibility are sympathetic to people who look the other way and so the law doesn’t serve as a deterrent to anyone. But, experts said the government should be assertive and protect the citizenry.

Overtime, the government pronouncement to take over sites of collapsed building in Idi-Araba, Yaba, Ikeja,  Ebutte Meta  and upscale areas  of Lekki, Victoria Island, Ikoyi  and other places, has remained a publicity stunt as no punishment had been meted out to culprits.

A case that readily comes to mind is that of a building where several people  died when it came down.

Since then, the developer had continued to build houses in upscale areas of Lagos without restraint.

 A Lagos State tribunal of inquiry report on building collapse in 2015 found that there were at least 135 cases of building collapse from 2007 to 2013. In 2016, it was reported that more than six fatal cases of building collapse were recorded in Lagos. While there were also cases of collapses at almost every area of the metropolis.

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