Kinsleaf Limited, a real estate investment company which started in Ibadan, is set to democratise land ownership in Nigeria through its Smart Ownership Scheme.
According to the company, the initiative aims to solve the land ownership problems prevalent in Nigeria.
The newly introduced Smart Ownership Scheme is an initiative of Kinsleaf Limited, with the aim of providing easy access to home ownership in Nigeria by removing the huge deposit barrier of entry for low and middle income earners, through its super convenient payment model for properties all over Nigeria.
In a statement, CEO of Kinsleaf Limited, Mike Babatunde said, “a property is not truly affordable, if the lowest earning class of the society cannot afford to pay the initial deposit for it without breaking a sweat. Through our smart ownership scheme, Nigerians can now own land in any part of Nigeria by paying in convenient bits of installment from their monthly income”.
Sharing more insight on the initiative, Mike Babatunde stated “Over our extended years of experience in the Nigerian real estate market, one major bottleneck to home ownership for low and middle income earners remains access to habitable and yet affordable land and that was why we decided to embrace this scheme”.
“We have set the standard for real estate investment in Nigeria and through this scheme, we hope to meet the housing needs of many more Nigerians. To do this we put into consideration all Nigerians, irrespective of their social and economic class. We know that most affordable housing projects are not truly affordable, meanwhile, affordable housing ought not to be a privilege for a select few, but an opportunity for all, and that is why we as an organization are focused on making the Smart Ownership Scheme benefit all people” Babatunde elaborated.
Kinsleaf Limited is a global investment company with a mission to empower people through strategic opportunities in real estate and various viable ventures (VVV).
The company has over the years, empowered hundreds of subscribers and a large network of brokers with life changing investment opportunities for wealth creation, wealth multiplication and retention. And with the Smart Ownership Scheme, they hope to do even much more.
Godleads Omokhagbor Adams is an Environmental Practitioner with over 10 years of industry experience. He has worked in the Contaminant Land Management sector with a focus on pollution studies and ecotoxicology. He has written several papers on the remediation of crude oil impact and related topics. He provides mentorship and academic support to Postgraduate students studying in Nigeria.
He spoke to Omolola Afolabi about his work, challenges and the prospects of the industry on the environmental remediation in Nigeria. Excerpts:
Why did you decide to pursue a career in environmental management?
Having completed my first degree in microbiology, I discovered microorganisms could be employed in nature-based technologies for reducing complex hydrocarbons to simpler easily assimilable biomass, or to be used in degrading complex pollutants, or even be processed as food sources as in Single Cell Proteins for human consumption
I became fascinated by the possibilities of microorganisms long associated with spoilage, diseases, and infections to help the environment positively. There were few practitioners in this discipline and their stories of how bad the environmental pollution from crude oil in the Niger Delta forged my resolve to contribute to finding solutions that will improve the industry in Nigeria.
Godleads Adams Omokhagor
So, has the solution been found?
If I have found the solution, I will not be here today (laughs). However, it is important to first understand what the problems are and to determine what part of the value chain requires the most focus before we discuss the role we have played. Now in Nigeria, there is enormous contamination all over the Niger Delta. This is no news but it certainly requires attention. There are spill episodes that have contaminated expanses of more than the size of 20 football pitches combined. We are talking hectares of land covered with crude, farmlands, rivers, and swamp locations stained with crude oil. The devastation to plants and animals and vegetation cannot be overstated. When you consider that humans live near these areas and obtain their food and livelihood from there, then the picture becomes clearer.
So how exactly did we get here?
It starts from the pre-development of oil facilities and their engineering designs, locations, pipeline routes, and the environment they crisscross. At the conceptualization stage, environmental managers are relevant in determining the baseline conditions of the environment before installations even commence. The baseline compared to the allowable contaminant limits in regulations help document the environment’s status and serves as a reference for assessing the impact when the production commences.
Upon commencement of utilisation of the facilities, it is important to ensure asset integrity including pipelines, storage facilities, pressure valves, and others. Ideally, frequent environmental assessments or monitoring is required to ensure no significant environmental impact has occurred owing to contamination. Importantly, surveillance of the facilities and the routes, remote monitoring for pipeline pressure, and other spill detection measures.
These are necessary to avoid spills in the first place but also to report them and act as quickly as possible. Finally, there is environmental intervention and clean-up when spills occur to try to restore the environment to previous conditions. The problem in Nigeria is a result of the failure of one or more of these barriers multiple times too. Although most spills are attributed to sabotage, it is not rare to find some due to operational failure and then a failure to immediately respond to the spills.
Groundwater Oil Interphase Testing
So, which of these value chains do you work in and why is it important?
I studied as an Environment Manager with a focus on pollution studies and ecotoxicology. So, it is the environmental clean-up and remediation value chain. My doctorate research focused on finding sustainable nature-based solutions for environmental remediation. When I say nature-based, I mean readily available nutrient sources that will help promote microbial growth and consequently, the utilisation of crude oil as an energy source leading to their breakdown into simpler constituents.
I have been lucky to work in the industry where I have tested these agents with various degrees of success. I will highlight this briefly. If you have read the UNEP report and the recommendations for environmental clean-up, it encouraged improving the remediation processes currently being deployed and also expanding the suite of available techniques in the country. This was an immediate opportunity for me. Firstly, I led a Company that commissioned research into the existing remediation products in the Country and the current practice in the industry. This comparative study was to help understand or vet whatever approach was being used in the industry and to propose better solutions.
The report indicated that whereas the companies were using techniques like land farming, bioremediation, physical clean-up, and processes that looked simple, they were indeed effective. But importantly, it showed that other options tested could be implemented to achieve a higher level of decontamination at a relatively cheaper price. Because the options were nature-based and readily available, they could be categorized as sustainable solutions and will provide economic opportunities for practitioners in that space almost forever.
Pilot Phase Testing During Comparative Trials of Remediation Products Available for Use in Nigeria
You talked about the UNEP report, can you talk about other recommendations made and where we are currently?
I would like not to be specific on the extent of the clean-up or the success of the process and the implementation of the report properly. However, I can talk about the recommendations and what is publicly available.
There was a recommendation not to commence clean-up until all pollution sources were discontinued. This alludes to my initial comment on avoiding pollution as a first step. There was a recommendation for the environmental restoration of swamp areas. I will expand on this briefly.
You know, whenever there is a major clean-up exercise on land and swamp locations, the implementation of the civil works in Nigeria always leads to the clearance of a large expanse of land and then difficulty for the environment to regenerate. It takes years to have shrubs and foliage and more years to have trees established.
One of the projects I worked on, studied the restoration of contaminated sites post-environmental remediation works. This study was necessary to help to understand the biology behind restoration following contamination, assuming residual impact remains and how much damage the actual clean-up does to the environment. The intention was to see if the industry practice can be modified from an ecological risk perspective to limit the intrusiveness of remediation efforts.
Assuming an expanse of contaminated land is not posing an immediate risk to the environment, aquatic life, or humans, the efforts can be limited to clean-up and prevent tree felling and large clearance. Now, the discussion will culminate in influencing regulation in Nigeria by leveraging such studies. As you may be aware, it is not easy to change regulations especially when there is no immediate incentive to do this.
The last update to the Environmental Guidelines and Standards in the Petroleum Industry in Nigeria was in 2018 and before then, the version was in 2002. This version in itself was largely modelled around the Dutch standards done in the 90s. So, to find opportunities to influence a change in the Regulations requires rigorous science and stakeholder buy-in.
This sounds like a lot. What else was recommended?
I see this interests you. I will talk about the recommendation for an integrated management approach for contaminant land management. This recognizes that no one approach is sufficient across all environment types. It means the industry can study and adapt more efficient tailor-made solutions specific to each site. We did work on comparing products and techniques for use in the country and really, that study can help us understand the requirements for each site, the shortcoming of each technique, and the opportunities for improvement.
Hopefully, another UNEP recommendation to set up a centre of excellence can provide opportunities for science-based research into the practice. Incidentally, I have been involved in some work within a centre of excellence promoted by a company I worked for that truly supported research. That centre was equipped to support research and students were properly trained.
There was a project on the fixation of contaminated soils as a way of utilizing highly carbonated soils for blockmaking. This received regulatory approval as a technique for managing pollution. Similar studies I participated in were the testing of absorbents used in oil spill clean-up, which supported the change of suppliers to better products for the Company, and the testing of treated soils for their abilities to support plant growth so that when soils are treated, they could be used for cultivation of plants which would lead to further breakdown of whatever residual contaminants exist. This is assuming all health risks around the bioaccumulation of contaminants are isolated. And a lot more studies are still ongoing today.
Testing Sorbing Properties of some Spill Absorbent Pads in a Research Lab
Finally, in the recommendations, there was an emphasis on monitoring. This is another area or discipline completely and can be an area of expertise. Environmental monitors will be responsible for ensuring compliance with regulations and for promoting continuous improvement. Remember the baseline establishment mentioned as part of the pre-development processes.
This is good as it brings me to the subject of technology in Environmental Management and what options are available
This is a revolution as with other disciplines currently enjoying the impact of technology. Using GIS-based solutions, we can now develop applications that monitor site regeneration and recovery over many years. The presentation can be seen several countries away. Today, it is possible to include remote sensing in site characterization and assessment using aerial photography, geo-penetrating radar, and resistivity imaging. Amazingly, studies are already exploring nanotechnology and nanoparticles for groundwater contamination remediation. Remediation progress and the influence of nature on the process can be monitored using remote sensors with automated monitoring systems.
Finally, it is now possible to use unmanned aerial vehicles or drones to carry out site surveillance with the possibility of cutting project logistics costs and safeguarding people and property. Because in the end, managing scarce resources is key to a successful project outcome. You see, there is a lot that can be done within the practice.
For long, the NITEL building at numbers 3-5, Moloney Street, Tafawa Balewa Square, Onikan, Lagos remained a subject of controversy. Its supposed sale then was enmeshed in conflict. In 2015, lawmakers waded into the matter. But, last week, the issue was settled when the edifice was sold to the Lagos State Government for N2.5 billion, writes OKWY IROEGBU-CHIKEZIE.
Good news has come the way of the Federal Government as it last week sold the NITEL building at numbers 3-5, Moloney Street, Tafawa Balewa Square, Onikan, Lagos. In 2015, federal lawmakers probed the earlier sale of NITEL and its mobile subsidiary MTEL, as a result of accusations and counter accusations thus that the companies were undervalued and the winner of the bid, NATCOM Consortium, might only be interested in their assets and not in resurrecting the enterprises. This was the case with other companies purported to have been sold by the Bureau of Public Enterprises (BPE) where the new buyers allegedly stripped the companies of its asset, including the Ajaokuta Steel Plant.
There was a red flag that the NATCOM Consortium may launch voice and data services, but by focusing on 4G LTE services only, the investigators raised the alarm that NATCOM Consortium may not rebuild NITEL.
The terms of reference for the probe panel were to investigate if the sale of the two companies were undervalued. Furthermore, the probe was to take a critical look at the country’s privatisation laws to immediately reverse the sales and to ensure that these assets are returned to the real owners – Nigerians. The lawmakers stated that NITEL and MTEL could generate wealth and create employment for a large number of Nigerians, hence the need to ensure that things were “properly done in the sale”.
In their report, they revealed that NITEL and MTEL were worse than they were prior to their sale.
The Federal lawmakers also added that Nigeria’s privatisation policy seems to favour foreigners who are interested in tapping into the country’s resources and not development.
After several delays, just last week the Federal Government finally, through the National Council on Privatisation (NCP), chaired by Vice-President Yemi Osinbajo, granted approval for the sale of the NITEL/MTEL located at number 3-5, Moloney Street, Tafawa Balewa Square, Onikan, Lagos to the state government for N2.5 billion.
In a statement, Head, Public Communications, Bureau of Public Enterprises (BPE), Chidi Ibeh, said the property was one of those listed for sale by the Liquidator of NITEL/MTEL Non-Core assets at the cost of N2.5 billion. He said the NCP chaired by Osinbajo granted the approval at its second meeting for the year held last Tuesday.
It would be recalled that NITEL was incorporated in 1984 but commenced operations in 1985. NITEL was owned by the Federal Government, 93.3 per cent share, and FirstBank of Nigeria Plc, 6.7 per cent.
However, MTEL was established in 1996 out of NITEL to provide cellular services. It started a General System for Mobile communication (GSM) in March 2003 after NITEL transferred its GSM licence it acquired when the Nigerian Communication Commission first auctioned Digital Mobile Licences in February 2001.
Mr Ibeh recalled that the NCP, at its meeting on February 27, 2012, approved the privatisation of NITEL and MTEL through “guided liquidation”.
He said under the guided liquidation strategy, the core assets and business undertakings of NITEL and MTEL were to be sold as a single or multiple lots.
NITEL and MTEL were to be sold to a qualified bidder by the liquidator under the guidance of the NCP.
Ibeh said the strategy was adopted by the council after due consideration of other options, considering the previous failed attempts to privatise NITEL and MTEL through Strategic Core Investor Sale. The property is encumbered by illegal occupants and the Lagos State Government has promised a takeover of the property, he stated.
“The council also considered the failed attempt to privatise NITEL and MTEL, through Negotiated Sale strategies and the huge liabilities to creditors to the tune of over N300 billion,” he added.
Former Chairman, Nigeria Institution of Estate Surveyors & Valuers( NIESV), Lagos Chapter, Sam Offiong Ukpong, said it was a welcome development. He said some of the implications is that the property would be put into productive use to eliminate waste. It would not be left to rot and decay, thereby fighting obsolescence – be it physical, economic or functional, but rather increase the stock of available commercial spaces in that. neighbourhood.
Ukpong said: “Blue chip companies and organisations may have options for prime properties in prime locations such as the property in question. With improved or enhanced supply, prices and pricing may become competitive with others in its category.”
Also, President, Nigeria Institute of Quantity Surveyors (NIQS), Shonubi Olayemi said the sale of the building was long overdue as it would release the latent value of the property, which had been wasting away due to neglect over the years since NITEL was liquidated.
He added that the Lagos State Government with her resources could release the latent value through rehabilitation and put it to good use for the benefits of the citizens of the state.
Also, former Director-General, Lagos Chamber of Commerce & Industry, Dr Muda Yusuf said the sale was good. According to him, the truth is that the Federal Government has about 2,000 properties, which have either been abandoned or are grossly underutilised.
He said: “Many of these properties are in prime locations across the country. We need to unlock value from these idle and wasting assets. We need to dispose of more of those assets. Many of them are even being occupied by miscreants and constituting serious security risks in their neighbourhoods.
“It is worthy of note that the government has now instituted an asset register to properly take an inventory and unlock value from those assets. It is not only for revenue, but also for real estate development.”
The Special Adviser to the Lagos State Governor on Housing, Mrs. Toke Benson-Awoyinka, has pledged to deal with fraudulent cases in the real estate sector by strengthening Lagos State Real Estate Regulatory Authority’s (LASRERA) collaboration with law enforcement agencies to address concerns in the sector.
Mrs. Benson-Awoyinka made this known during a Real Estate Outlook 2023 forum organised by the Nigerian British Chamber of Commerce, in Lagos. It had as its theme: “Pitching Your Tent Post-2023 Election”.
In a related development, Awoyinka said LASRERA will be partnering the Economic and Financial Crimes Commission (EFCC) to make sure that the industry is sanitised and made attractive to investors, while also encouraging individuals and organisations to register with the agency.
Mrs Benson-Awoyinka told participants to team up with the agency in implementing the reviewed LASRERA Law.
She stated that the reviewed law would assist in gathering data for the state real estate investments such that investors/investors would be able to operate under an atmosphere that promotes ease of doing business in line with the vision of the administration of Governor Babajide Sanwo-Olu.
She clarified that the real estate practitioners’ database being compiled by LASRERA was not meant for taxation purposes but for infrastructural development in line with international best practices in the real estate sector.
The Special Adviser said: “The value chains of this real estate system are yet to be unlocked in which job and wealth creations can be established with the training of young people to take the works of artisans in the sector rather than employing those from neighbouring countries. This will assist in the creation of job opportunities for our young people and also add value to our currency.’’
She urged those practitioners to engage insurance firms to safeguard investments of not only those who died during construction, but also people that had invested in the projects too.
In January as part of the moves to eliminate quakes, she asked for the support of realtors to complement the state government’s efforts to improve the integrity of real estate.
An advocacy Group, Housing Development Advocacy Network (HDAN), has urged the President- elect Asiwaju Bola Tinubu to give more attention to the Housing sector.
It’s Executive Director of HDAN, Festus Adebayo, in statement, noted that the administration of President Goodluck Jonathan made appreciable effort in its bid to provide affordable housing, but the current administration cannot be credited with such success in the housing sector.
He lamented the current situation where housing is not a part of the first five top priority areas, stating that it was appalling as it remains the most compelling index in measuring the growth of the economy in developed countries like America and not oil.
According to him, the government must really take effective action on the issue because housing should not be a mere political stunt and the incoming administration has to be committed to improving the welfare of citizens by implementing resilient and decent housing initiatives.
Adebayo cited a situation where a civil servant is unable to afford a home of six million naira, even after being in service for upwards of twenty years, stating that the practice all over the world is that houses are purchased on mortgage and not on cash-and-carry basis.
He urged the incoming government of Asiwaju Tinubu to be consistent in creating an enabling environment to attract investment in housing and make the private sector thrive.
He canvassed the need to approach issues of affordable housing in a manner that is radically different from what his predecessors had done. The HDAN Executive Director urged the incoming President to ensure the Central Bank of Nigeria redoubles efforts at strengthening the mortgage system in the country.
“The new government must not be involved in the direct construction of housing but instead collaborate with credible developers with an excellent record of achievements while also ensuring regulation of the real estate practice with the objective of promoting professionalism in the sector”, he stated .
HDAN also notes that there is a need for a radical perspective on the part of key players and relevant government agencies in ensuring land availability as well as better regulations and professional inputs in developing designs to reduce cost.
It is also important for the new government to engage manufacturers of cement in a bid to reduce the continuous rise in the price of building materials across the country.
He called for a partnership model that will guarantee a win-win scenario for all stakeholders based on willingness to sacrifice.
With a robust mortgage system, Adebayo assured, corruption at the level of the civil service will be cut down drastically.
While emphasising that the construction and use of decent housing also affect the well-being of the people, physically and mentally, as well as the environment, he challenged the incoming government to prioritise the issue of affordable housing in the interest of all Nigerians, as it is not only a necessity but a matter of the rights of citizens.
Emmanuel Alade, one of UK’s outstanding architects, has joined Black Excellence Project.
The Black Excellence Project aims at giving young black people the opportunity to harness and develop their practical and analytical skills so as to promote an enabling environment for growth, awareness and excellence.
This weekend’s Black Excellence project was facilitated by Euton Daley, Amantha Edmead and Kimberly Waring-Paynter, with an inspiring initiative aimed at broadening the opportunities available to young people by offering invaluable industry exposure. The project is supported by the 1 to 100 Podcast, which has been instrumental in uniting a diverse group of voices and professionals.
Emmanuel Alade’s role in the project was to deliver a day session focusing on Architecture in Practice.
He gave insights into and shared experiences from his career as an architect.
According to him: “Contributing to the project in this way and engaging with the next generation of architects and builders was indeed a humbling and rewarding experience”.
Throughout the session, Alade alongside the students were able to explore the many different facets of architecture: design concept and planning, project management and construction. The importance of sustainability in the field of architecture, and how we can work together to create equitable opportunities for all was also discussed extensively.
Aligning with the vision of the Black Excellence Project, Alade stated that one of the most rewarding aspects of the day was seeing the enthusiasm and passion of the young people who participated and the amazing sketches they were able to create. Their questions were thoughtful and ideas impressive, showing a real commitment to building a better future.
Alade thanked the organizers of the Black Excellence project for their vision and dedication, as well as the 1 to 100 podcast for their support. It is his hope that the participants of this project will be inspired to pursue careers in architecture and other related fields, and grow to become sought after professionals within the industry.
Emmanuel Alade is the founder and CEO of CreatrixEmpire, Afrobeatsglobal, ZEDesigns, Voicetome and UncutXtra Magazine and a Nigerian- UK based architect. The Nigerian UK based architect is an alumni of the University of Portsmouth and Oxford Brookes University where he obtained his Bachelor and Masters degree in Architecture respectively and completed Part 3 at the Architectural Association School of Architecture London.
He has several years of experience under his belt as an architect and entrepreneur with multiple businesses while providing job opportunities for lots of individuals.
The British Deputy High Commissioner, Lagos, Ben Llewellyn-Jones has said trees play vital roles in humanity and as such their planting should be encouraged.
He stated this during planting of 100 trees in select communities and schools in Lekki and Epe, Lagos organised by Network of Incubators and Innovators in Nigeria (NINE), with the support of the British Deputy High Commission in Lagos, and the Kids Beach Garden (KBG).
In a statement, the speakers said they chose the communities to reduce erosion, mitigate climate impacts and increase awareness on the importance of nature-based solutions to climate change.
Llewellyn said: “Trees and forests play an important role in ensuring we have a healthy planet, prevent pollution and mitigate the impacts of climate change. Strategic tree planting is one of the most important ways we can contribute to securing a greener and cleaner world – this is in addition to protecting our trees and biodiversity.
“By re-introducing nature and ecosystems into built-up areas, we believe that this project will benefit the residents of Lagos State and the Nigerian population.”
Out of the 100 trees, 20 were planted at the KBG, while the remainder were planted in four primary schools.
Chairperson NINE Bankole Oloruntoba, said: “The impact of climate change is felt everyday across the world and in in addition to the collective global effort to mitigate the effects of climate change, we have brought the innovation community to ‘do and tell’ when it comes to climate change.”
Programmes and Operations Lead, NINE, Bukola Akinrele, reiterated that the organisation’s goal towards ecosystem development.
Also, present at the event were the Lagos State Ministry of Education and Lagos State Coconut Development Agency, local government representatives, and staff of the UK Foreign, Commonwealth & Development office (FCDO), among others.
The Federal Mortgage Bank of Nigeria (FMBN) plans to build 139 housing units to Federal Capital Territory (FCT) workers.
The houses will be built, in conjunction with Mshel Homes Limited, through its Staff Multi-purpose Cooperatives Society Limited.
Chairman, FMBN, Mr. Ayodeji Gbeleyi, during the foundation laying, said they are committed to ensuring that Nigerians have access to decent accommodation through affordable mortgage financing for low and middle income earners.
He said approval and disbursement of the loan for the project was an indication of the bank’s desire to continue empowering Nigerians in the area of homeownership through home construction and mortgage.
Represented by Mrs. Nkechi Ejezie, Gbeleyi said: “We are using this to drive home affordable accommodation through the Cooperative Housing Development Loan window with which the bank finances houses for contributors to the National Housing Fund (NHF), to enable them buy their apartments.
“This past month, we have started the inauguration of 1,400 housing units delivered in 14 states across the six geo-political zones under the Phase I of the Workers Affordable Housing Scheme. We also commenced 2, 5000 units at 180 per state of the federation.”
The bank’s Managing Director, Mr. Hamman Madu, said they had opened several residential housing estates in eight states, in collaboration with the Nigerian Labour Congress (NLC), Trade Union Congress (TUC) and Nigerian Employers’ Consultative Association (NECA).
“The giant stride we are making nationwide is aimed at reducing housing deficit and empowering Nigerians at all levels to develop affordable products and schemes to grant at least six per cent to those subscribing to our NHF,” he remarked.
Beisdes, the Group Managing Director, Mshel Homes Limited, Baka Mshellia, said they planned to provide affordable homes to low-income earners, saying: “We intend to keep the passion of the bank by constructing quality housing units.”
The President, Staff Cooperative Society, Muhammad Lawal, said the idea of building an estate had been one of their priorities.
REDAN Executive Secretary, Yunusa Shuaibu called for the recapitalisation of FMBN, adding that the apex mortgage institution could achieve much if more funds were injected into it.
In a related development, the Minister of State for Transportation, Prince Ademola Adegoroye, has inaugurated a 60-housing unit constructed by FMBN and Abiskoly Housing Estate at Peggy, Kuje, Abuja for the National Human Rights Commission Cooperatives Society.
The Central Bank of Nigeria (CBN) late last year launched the redesigned N200, N500 and N1,000 notes. The bank also capped the withdrawal of the new banknotes at N100,000 weekly for individuals and N500,000 for corporations. Later, it raised the limits to N500,000 for individuals and N5million for corporations. The apex bank says one of the reasons for the redesigned and replacement policy is to tackle inflation, which is running at 21 per cent, by reducing the amount of cash in circulation. The policy seems not to have lived up to its bidding as developers, realtors, artisans, suppliers in the construction sector are lamenting, writes OKWY IROEGBU-CHIKEZIE.
PERHAPS, no issue hasgenerated some much acrimony among Nigerians in recent times than the redesigned Naira notes policy introduced by the the Central Bank of Nigeria (CBN) Governor Godwin Emefiele.
Though, while introducing the policy, Emiefele stated that it would cure the country of its infationary problems as there is too much liquiduity outside financial system, which would be withdrawn while the policy lasted, among other reasons, this was not to be as the notes were scare.
While Nigerians obeyed the Federal Government’s clarion call to surrender their old notes, the government did not reciprocrate the gesture as they did not get the equivalent notes they returned.
Amid pressure from many Nigerians over the scarcity of the new notes, the apex bank extended the deadline for the phasing out of the old notes from January to February 10. Still, the problem of unavailability of the notes remains.
Some out of frustration took laws into their hands by destroying banks they feel refused to pay them the pittance they occassionally doled out to the cashstrapped.
Assessing the situation, a former Director-General, Lagos Chamber of Commerce & Industry (LCCI), Dr Muda Yusuf, said construction workers and artisans were the worst hit by the policy as they collect their income in cash and were not used to cash transfers being promoted by the Naira redesign policy.
Yusuf, who is the Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE), said: “This class of people is the biggest victims of the cash redesign policy. Many have no bank accounts.Therefore, sourcing cash to pay them is an issue. Even where they have accounts, redeeming the electronic payments into cash is a nightmare. Very little cash is available at the Automated Teller Machines (TAM) channels and the POS charges are atrocious.
“Yet most of their needs. especially food and transportation are cash based.
He further stated that the network congestion is also slowing down the tempo of economic activities across all sectors.
Yusuf maintained that the cash redesign policy is repressive.
According to him, economic activities have been negatively impacted across all sectors. Demand is depressed and sales have slowed.
He noted that the entire real estate ecosystem is populated by ordinary Nigerians who depend on daily income to survive. It is widely known that these set of people, including site labourers, artisans, suppliers depend on daily income because they are the most vulnerable, he added.
Also, a former National Secretary, Nigeria Institution of Estate Surveyors & Valuers (NIESV), Offiong Sam Ukpong, said the effects of Naira redesign were enormous. He said: “How can you buy Naira with Naira, sometimes the cost is up to 30 per cent? What is the propensity to save? It’s zero. The little income and savings people have been putting together over the years are spent on consumption and inflation has whipped out any left over.
“The middle class is whipped out and transferred to the poverty class. So, payment of rent is difficult and default in payment high. Developers are suspending their housing production until further notice because the cost of building materials is prohibitive and affordability is low.
“Has the income of workers increased? Are investors sure of the political terrain? The so called redesigned Naira is not available and the CBN has made the new Naira scarce such that for an ordinary person to get it, you will need to buy it. What the citizenry is going through is hellish and that can only happen in Nigeria.”
CEO, ROLAD Properties & Allied Services Limited, Dotun Oloyede, said they usually do not sell housing units on cash even at the best of times, but regretted that the new Naira policy have increased the cost of building materials and, ultimately, affected the cost of delivering the housing units.
He said: “The policy has affected our suppliers and sub-contractors such as those that supply sand, cement and other products.Those who engage labourers on our behalf tell us they have a big challenge in their hands because the artisans are refusing to be paid through bank transfers as they complain of huge payouts to collect their money through the Point of Sale (PoS) operators who are charging so much premium or interest before they can have access to their monies.
Unfortunately, at every level of construction we pay extra to get the artisans to work.
“Our block moulders that we usually pay N18,000 now charge N20,000 to make up for the cost of getting their monies from PoS and this goes for the artisans – be it block molders, bricklayers, labourers etc. In the same vein, those who supply sand insist on cash payment, saying that sand diggers don’t believe in money transfers as it may never come.
“In addition, some of them say that they don’t have bank accounts and prefer cash, so these challenges we face as developers affect the delivery price of our houses.We plead that something urgent should be done to ease the extra burden for developers.
“Before now, for example, those supplying sand can give us any tons we need. But now, they demand cash. They said those they buy from, mostly sand dredgers, insist on cash. None wants to accept transfers because of the fear that it may not go through. They complain that in most cases they will receive bank receipts signifying payment or alerts, but at the end of the day, the cash will not be there. All these lead to delays and higher costs in terms of the finished product.
“Ancillary costs related to housing production is where we have so much challenge because we have suppliers that supply and we get feedback from them. This indeed is not the best of times for people in our business segment because we can’t pay upfront to our suppliers, but that is what is happening, if we remain in business.
“To put it mildly, the new Naira policy has affected the cost of construction because our contractors cannot afford to pay labourers with cash. Yet, withdrawals through the PoS reduce their actual earnings as the operators charge.
“Furthermore, construction is delayed because of the sudden increase in prices of materials and labour. We believe that that government and CBN should take a closer look at the bottle necks regarding this policy.”
Vice President Yemi Osinbajo has commended Odu’a Investments Limited for partnering Diaspora Nigerians on a real estate project worth over N1b in Ibadan, the Oyo State capital.
Osinbajo gave the commendation while opening Westlink Iconic Villa, residential estate project in Alakia, Ibadan.
The project was undertaken by four Diaspora Nigerians, who established Chapter 4 Estate Management Limited, a real estate firm, to invest in Nigeria.
The company partnered Odu’a to develop the former’s 3.8 hectares into modern residential houses. The large expanse of land sits beside the Nigerian Breweries’ plant on New Ife Road in the capital city.
The owners of the real estate firm, led by Mr Suraj Olanrewaju, said they decided to invest in Nigeria after Osinbajo addressed Nigerians living in the United Kingdom (UK) as part of his campaign in 2014/2015. He recalled that Osinbajo promised that the All Progressives Congress (APC) administration would prioritise ease of doing business to encourage foreign and local investors.
Commending Odu’a and promoters of the real estate firm, the vice president stressed that Nigerians in the Diaspora have a crucial role to play in developing the country. He said their knowledge and resources are better utilised in Nigeria where there are investment opportunities.
“I remember vividly the time I went to address Nigerians in the UK. We told them our plans on how to improve our economy and the need for them to be part of it. I remember that some of them had a meeting with me after the session. I’m happy that our move was fruitful,” Osinbajo said.
He commended Odu’a for providing the right environment and the right investment framework for Chapter4 Limited., saying it met the need for affordable private sector support for investments in Nigeria.
To bridge the 20 million housing gap in Nigeria, Osinbajo highlighted the need for the government to provide support for affordable mortgages which he said governments of all developed countries provide to help the masses buy homes.
He said: “The missing link is the affordable mortgages, which governments in developed countries of the world support. Every developed country does that. The interest rate has to be in the single digit. Government intervenes to de-risk lending. So, the role of the government is crucial.”
He explained how the Buhari administration was doing the same through different initiatives to achieve mass housing.
Chairman, Odu’a Investments Limited, Chief Bimbo Ashiru, said there is a bright future for real estate in Nigeria.
He said: “The next couple of years will be very exciting for the real estate sector, especially with the emergence of a new generation of potential home owners and renters who are technologically savvy and prioritise comfort. One component of the property market’s evolution which I believe can make the market more vibrant is an efficient mortgage sector. With the amount of pent-up demand for property in the local market, if the right mortgage terms are available, I believe that originating 100,000 residential mortgages per annum is very possible.
“We, at Odu’a Investment Group, are bullish about the immediate future of the real estate industry. As one of the largest holders of real estate assets in the country, we see first-hand the immense opportunities across the residential, commercial and industrial segments of the sector.
“We plan to develop new, and build on existing partnerships to help meet the growing demand for modern and first-class properties and living environments. Over the last four years, the Odu’a Investment Group has leveraged partnerships with developers such as Chapter 4 Estates Management Limited, Address Homes and many others to envision world class projects such as the Westlink Iconic Villa, Alakia, and the Ikoyi Crescent JV development between Wemabod and The Address Homes Limited”. In addition, he explained that the estate has 67 housing units with amenities for comfort.
