Category: Property

A guest speaker’s advice at Odu’a Investment Company Limited 45th anniversary may alter the course of event for the conglomerate, writes Group Business Editor, SIMEON EBULU

What the owners of Odua’a Investment Company Limited (OICL) got from their guest speaker, Dotun Sulaimon, at the organisation’s 45th anniversary  celebration a week ago at the Airport Hotel, Ikeja, Lagos (one of its assets), can hardly be captured in one word. It was neither a commendation, nor a rebuke.

It can best be described as an admixture of a deferred hope, but nonetheless with a promising future anchored on so many ifs and options. More or less like saying, ‘the future will tell,’ subject to the actions you take.

The Group Managing Director/CEO of OICL, Adewale Raji, set the tone for discussions on that anniversary day in his welcome address when he said: “We have carefully crafted this anniversary, to not just commemorate how far we have come since we were incorporated 45 years ago, but to paint a picture of how far we hope to go.”

He, therefore, enjoined attendees, well-wishers and stakeholders to participate in shaping the future of the organisation, saying OICL has the vision to be a world-class conglomerate, driven by a collective mission and strategy to enhance, as he put it, “this legacy for future generations.”

Latching on to Raji’s mission statement for the organisation, Sulaimon either by design or coincidence, zeroed in on the part of Raji’s agenda for the company on his dream to transform OICL into a world-class conglomerate.

Given Sulaimon’s obvious vast knowledge and experience in corporate matters and history, he is not one to disagree with any knowledgeable goal setter, no, not one with Raji’s pedigree, and no less OICL’s Board, whose Chairman, Dr. Segun Aina whom he acknowledged, is his friend.

For Sulaimon, any set goal is achievable if all the parameters are in place. But as he stated from the very onset of his presentation, he didn’t come to rubber stamp any one’s idea, neither was he there to rock the boat. He came as could be gleaned from his paper, to be a part of a solution to an otherwise promising venture, or an idea that has gone somewhat awry.

Sulaimon, while not dismissing (far from it) OICL’s management’s global agenda and vision, presented in a flawless expose, options open to the organisation, which if they embrace, so to say, will leave them achieving their pet dream of becoming a conglomerate, not just in name, but one with profit to show for it.

He pursued the argument so forcefully that it would be difficult for the owners and managers of OICL to act otherwise, or to attempt to ignore the essence and import of the counsel.

Hear him: “The current board states that it is purposeful in its strategy and new vision to be a world class conglomerate with a determination to use strategic partnerships to enhance this legacy for future generations.

”The word that jumps out for me is, “conglomerate” and this immediately raises many questions in my mind. Conglomerates are supposed to have advantage (over stand-alone firms) of low-cost capital as money earned from performing  businesses in the group can be invested in businesses for future growth. That is the theory,” Sulaimon said, pointing out, however, that “the experience is checkered.” He argued that “most conglomerates, if not all, carry a big minus: a lack of focus or specialisation which leads to underperformance across the portfolio.”

His submission: “Conglomerates are not as highly prized or rewarded in capital markets as stand-alone firms, the truth of the matter Is that owning a non controlling portion of a wonderful, fast growing segment of a leading business Is far more enjoyable and far less work than struggling with 100 per cent of general marginal businesses.”

Sulaimon counselled that OICL should consider the fate of yesteryears’ conglomerates like GBO, John Holt, SCOA, Mandilas, CFAO, UAC, Leventis, and PZ in deciding the best route to take OICL. His question as to how many of those entities remain in the top reckoning should be food for thought for OICL managers.

Sulaimon cited the American billionaire,  Warren Buffet, whose model of big corporate business,  to him is how a conglomerate should function.

His words: “One of the best examples and most celebrated conglomerates is Berkshire Hathaway that has been led in the last 50 or 60 years by Warren Buffet, one of the wealthiest humans on earth.

Berkshire is successful and has been consistently so because it has a mix of controlled and non-controlled businesses, and is able to allocate and deploy capital to where it makes the most sense based on the business’ durable competitive strengths, the capabilities and character of its management and price,” saying in its portfolio, Berkshire owns large stakes in companies like Apple, Bank of America, Coca Cola, American Express, KraftHeinz, Verizon, Chevron and Moodys, among several top corporate names and brands.

The guest speaker, therefore, puts the question, whether it won’t be in the best interest of OICL to own parts of several profit-making entities, than own 100 per cent of a failing, or not so successful enterprise!

Lost opportunities 

Sulaimon was critical that much as OICL historically did not protect, nor preserved its assets, it equally did not take advantage of investment opportunities that beckoned in its 45 years of existence, to grow its business.

”What happened to Wemabod Estates? What happened to all those swathes of land and prime real estate in Ikoyi, Ikeja Industrial Estate and GRA? What happened with the large, controlling holdings in WAPCO, now Lafarge, Guiness, Dunlop and Wema Bank?’’ he queried, pointing out that in 45 years, regrettably, “OICL neither promoted nor nurtured new businesses.

“Where was OICL when MTN, Airtel, Guaranty Trust Holding Company, Zenith Bank, Access Bank were birthed? What happened?

The future

Sulaimon minced no words in laying the failure, or inaction of the past, on the past administrators of OICL, saying “a squandering of inherited riches” aptly described that past period, excluding in his judgment, the current board which he said cannot be held accountable for OICL’s past misdeeds.

Again, Sulaimon put his vast knowledge on corporate matters into play, by questioning, this time, state ownership of businesses.

Investment Options

Could we consider turning OICL into a sort of Sovereign Wealth Fund for the Western Region? We all know what sovereign wealth funds do and how they operate, prime examples of SWF’s being those of Norway, Kuwait, Saudi Arabia, Qatar and Abu Dhabi. Through this mechanism, he explained, the six Western states will set aside an agreed amount every budget cycle to be aggregated and professionally invested for the benefit of future generations. Alternatively, he put forth the idea of transitioning OICL into a limited life Private Equity Fund or a Fund of Funds or a Permanent-Capital Investment Fund, or an infrastructure development fund in the Mould of African Finance Corporation to fund the development of toll roads, bridges, railway Iines and other economic assets and infrastructure in the Western Region.

He also put to question the idea of the owners considering a 60:40 or 40: 60 ownership and control split between public and private capital, rather than the existing 100 per cent ownership. Sulaimon said the underlying objective in all these, “is to move OICL away from being an operating entity, directly or indirectly to becoming an allocator of capital to the most promising business opportunities, leaving the operation of businesses in which they co-invest to those who are capable and incentivised to manage the business for value, growth and success.

If there is one thing that has led us to where we are today economically, as a country, as a region, or as a corporate entity entrusted with public resources and legacy, that one thing is management. We have demonstrated that we do not know how to manage any business for long term growth and success.

“The earlier we come to terms with this reality, the better for us as a people,” he said.

Alternatively, he put forth the idea of transitioning OICL into a limited life private equity fund or a fund of funds or a permanent-capital investment fund, or an infrastructure development fund in the mould of African Finance Corporation to fund the development of toll roads, bridges, railway Iine and other economic assets and infrastructure in the Western Region.

 

With more buildings collapsing in Lagos after the 21-storey Fourscore Towers went down recently, operators in the sector have blamed the problem on poor material and workmanship, and regulators for inaction, reports Okwy Iroegbu-Chikezie

Expectedly,  the Lagos State government has set up a panel to investigate the cause of the lkoyi collapse, which arguably, remains the worst so far in the state. Despite observers’optimism that there would be no longer any collapse, about three collapses have occurred after the lkoyi tragedy.

The question by stakeholders is: When will building collapse stop? Few weeks after a 21-storey building collapsed and claimed about 46 lives in the high brow Ikoyi area of the state, another building under construction around Magbon in Badagry area of the state collapsed and  killed four workers.

The immediate past President of Nigeria Institute of Building (NIOB), Kunle Awobodu, lamented the incessant building collapse in the centre of excellence. In a statement tagged, ‘Whither Nigerian built environment professionals, he stated, “Building, my   beloved profession, is under relentless siege. Building, you are produced to protect and not to endanger lives. Those quacks, who have ignobly changed your natural function into a trap are committing the unpardonable sin, making the efforts of those of us that have dedicated some years into the task of  preventing building collapse seem fruitless, whither Nigerian built environment professionals.”

Another builder, Lohvang Galle Nimmyel said the government is not doing enough. He urged the government officials to ask questions and confront the root evil. He said: ”The government sits and watches a man being sold a piece of land for N200 million, asides the cost of the structure to be built. And that’s fine. It’s none of anybody’s business, least, the government. The government would only give the man approval for development that would have no capacity to yield N100 million in 10 years. Of course we all enjoy deceiving ourselves by expecting that this businessman will simply play by the rules. Do we believe that after sinking about N500 million on the project, he will graciously wait for between 50 and 70 years for returns on his investment.”

According to him, developers in Lagos don’t stumble into flouting approvals.They plan it from day one. Common sights are areas, especially close to the airport, where buildings are not expected to go more than two storeys – i.e, one suspended floor. These developers would make two sets of drawings – one for the government for approval, and the other for the actual construction. For approval, they’d do a two-storey with a penthouse. Once approved, they’d bring out the one for the construction – a full three-storey building.

“These are just minor cases on the mainland. And they always speak like this: how can I buy a land for N30 million and you’d say, I should do only two storeys – when will I get back my money?

“If it seems far-fetched that the government should intervene in such private transactions as land purchase, then let’s just go ahead and employ more judges, build more courts, have a permanent panel, build more prisons for those that would be found guilty. And, of course, let’s stop getting shocked when the collapses happen and more people die’.

“Again, if we also think that cement can just jump from N1,600 to N2,450, and then to N4,000, and the earning power of the citizens is not even constant but declining, but expect that quality of structures would be anything to write home about, then playing the ostrich might just be fun.

“Until all citizens go on strike, and the government resigns or wakes up and becomes responsible, we’re going to need more courts and prisons,” he added.

A civil engineer, who didn’t want his name in print, said buildings don’t collapse over night, they give signs which are neglected by developers. He said if the government is alive to her responsibilities, defects will be detected before collapse.

According to him, the building that collapsed in Badagry must have been given some signs before it eventually lost balance. Some of the signs, he mentioned, are major cracks in the wall.

He said: “If there are large cracks in the wall, then there is a big problem. In fact, it becomes a bigger problem if you could see the cracks on both sides of the wall. A crack in the wall indicates that the building is pulling apart. Any building that is gradually pulling apart, is also gradually heading towards a collapse.” Furthermore, he said whenever you see the walls of a house soaked with water almost every time, especially when there is little rainfall, you have to be cautious around such building. This also goes for concrete roofs.

Normally, the walls of your building take in water when it rains, but this is in little quantity.

 

He warned that when walls or roofs are abnormally soaked with water, such building may collapse soon and should be avoided.

Another cue, according to him, is collapsing ceiling. “Whenever you look up, and you see some parts of the concretes falling off, do not take this lightly. Such building is gradually losing the strength to hold the first storey apartment above. Sooner than  later, more concretes will fall, and the building may collapse.’’

He wondered what the  numerous agencies in the Physical  Planning and Urban Development  Ministry  in the state are actually doing in terms of monitoring, testing  of materials and actions.

According to him, except the government checks laxity and probably compromise by officials of the government the state will yet witness another collapse. The solution, to him, it’s not setting various panels to investigate building collapse but being proactive to prevent it.

 

The 7th annual West Africa Property (WAPI) summit has been slated for November 23-24 at Four Points Sheratons Lagos.

The event, which holds in-person and virtually, is the only regional real estate gathering that connects international money to local opportunities and players.

No fewer than 70 speakers and participants are expected at the summit from 170 companies in 20 countries.

WAPI Summit’s host, Kfir Rusin, this year’s event is set to redefine the regional property market, as developers and investors invest for the sector’s recovery.

He said: “This year’s event is set to be more impactful than ever, as industry leaders reconnect again for the first time in two long years and highlight opportunities in what is a dynamic and increasingly sophisticated market.”

Commenting on this year’s event and the future of the Lagos property market, Landwey Investment COO Seun Eyitayo, said: “The WAPI Summit is an occasion to engage with hundreds of people in-person and to reach out to a vast audience during the virtual session.”

“Opportunities for LandWey and other industry players are growing across the sector, particularly for innovative and forward-thinking developers.

“A combination of multipurpose property developments and PropTech are significant indicators of future trends. Smart tech already offers many solutions today. Couple that with climate-conscious housing developments, and you’ve got a winning formula for sustainable living. LandWey projects like Isimi Wellness City and our Hockley Eco Stay Apartments offer the kind of living spaces that will continue to be in demand for decades to come.”

According to Dutum CEO, Tope Runsewe, value in the regional real estate sector is increasingly being unlocked by the public sector’s infrastructure driven policies.

“We see the Nigerian government’s recent focus on infrastructure delivery as a huge opportunity for the property industry. With initiatives such as the Central Bank of Nigeria’s planned N15 trillion infrastructure fund and the National Social Housing Programme, we see a leap in foreign direct investments in the property sector which will lead to a boom in construction projects and create jobs across the ecosystem.

“We believe this will spur overall economic growth as more opportunities are created for those who work in and around the property and construction sectors.”

Purple Group CEO, Laide Agboola, a recognized leader in the local real estate sector believes that the sector’s recovery is increasingly linked to technology.

“After careful consideration of market trends, we seek to devise products and services that can provide lasting benefits to property investors and consumers with the aid of technology.

“We believe that recovery from the recent pandemic in the property sector lies in Proptech innovations and in symbiotic partnerships with leading players to deliver superior returns for investors and experiences for consumers. Leveraging on our experience gained from developing and managing PurpleMaryland (formerly known as Maryland Mall) we are very excited about our upcoming mixed-use development, PurpleLekki, located on Freedom Way in Lekki phase 1.

“The new development will also include the first Citdatines Apart Hotels in the region, a work space, retail, gaming and entertainment facilities. We aspired to alter the market, saw the need to be bold.”

Victoria Crest Homes’ CEO, Ichechi Okonkwo highlighted the importance of the annual gathering for the premier regional industry platform for connecting and highlighting excellence in the sector.

“As Nigeria’s foremost property brand, the WAPI Summit offers us another platform to project our vision of making aspirational living affordable.

“At Victoria Crest Homes (VCH), we are passionate about delivering homes that exceed clients’ expectations, reflecting an enduring culture of excellence. Join us at the conference and exhibition as we unravel the art of delivering exceptional homes”.

A FAMILY in Sabo-Yaba, Lagos State, has appealed to the Lagos State Government to leave its land, saying it is being contested in court. The late Samuel A. Oyadiran Family, which owns the Oyadiran Estate, claimed that the government acquired the large land opposite the estate, under the pretence of clearing it of shanties.

The family’s representative, Mr. Kehinde Oyenuga, a retired Assistant Commissioner of Police (ACP), who expressed dismay, said the legal tussle on the land was between his clients – Alhaja Kofoworola Gololo Oyadiran and Ms. Dule Oyadiran, who sued through their attorney, Oyenuga, as claimants. The trio of Prof. Herbert Maurice A. Onitiri; Mrs. Funmilayo Oduwaiye and Rasaq G. Dabiri, are defendants on behalf of the Estate of Lawal Idowu Onitiri, in a suit marked LD 3633/LMW/2016.

Oyenuga said they were surprised to see a perimeter fence erected on the land after it was cleared and that though it was being used by some artisans and others, a billboard indicating that it belongs to the state government was erected there.

Read Also: Suspected land grabber held in Ogun

He described the action as illegal and urged the government to investigate the purported illegal taking over of his clients’ land.

According to him, the land is still a subject of litigation before a court of competent jurisdiction and, all this, he said, was made known to government agents who said they just wanted to clear it of shanties, though the land was being used by mechanics and other artisans.

“Even, in demolishing it, notice was not given, neither was any letter written to inform the family about the exercise,” Oyenuga alleged.

After the demolition, a billboard indicating that the land belongs to the Lagos State Government, with the warning that trespassers will be dealt with, was later erected on it. “We don’t believe that the state government that so much believed in the rule of law can take such illegal action, although some undesirable elements may be hiding under government’s guise to take illegal possession of the land,” he said.

He added:  “We urge and appeal to the ever-listening Governor, Mr. Babajide Sanwo-Olu, to investigate the matter and unveil those behind the illegal deal and bring them to book accordingly.”

Many corporations have reengineered their operations to minimise their environmental impact. Recycling of waste is one of the measures they deploy to reduce pollution and carbon and enhance resource efficiency. OKWY IROEGBU-CHIKEZIE reports.

NIGERIA generates about 32 million tonnes of waste yearly, according to a 2018 report by the World Economic Forum. The country’s waste management is inefficient. For example, 70 per cent of its waste ends up in landfills, sewers, beaches and rivers.

Last year, the Federal Government initiated a policy to improve plastic waste management. Among others, the policy is to encourage the development of a circular economy around plastic waste because, in the past, the standard procedure was to produce, use and dispose of it. The policy came to the realisation that plastics are suitable for recycling or reuse to produce blocks, new plastics or pallets for lock production and other things.

The plastic waste policy is also expected to bolster financial institutions that support recycling projects. The International Finance Corporation (IFC) has granted $39 million loan to Engee PET Manufacturing Company Nigeria for the construction of a polymerisation PET resin plant in Ogun State.

The facility, expected to be  operational within two years, will draw more than 20 per cent of its raw materials from plastic waste, thus helping to restructure the recycling industry.

Thankfully, more organisations, such as the British America Tobacco (BAT), have risen are tackling the menace. Lafarge Africa Plc, for example, said in its sustainability report that it reutilised 71,029 tonnes of waste last year. It achieved this by partnering the Food and Beverage Recycling Alliance (FBRA).

Similarly, CocaCola Nigeria and the Nigeria Bottling Company was into waste recycling, and has reportedly recycled over one billion plastic bottles.

This has been facilitated through partnerships with recycling companies such as Recycle Points, West Africa Energy, Chanjadatti, Wecyclers and collectors in the FBRA.

Notably, pollution from industrial and manufacturing is a global problem given the increase in the volumes of industrial waste. These include chemicals, fuels, paper and, food waste, sewage and packaging such as plastics, most of which end up in landfills or water bodies.

It follows, therefore, that to solve the problem of pollution, governments and businesses must seek ways to minimise their accumulation and promote proper disposal. Some quick wins, which have been promoted include limiting the use of single-use plastics; waste recycling, particularly plastics and the efficient management of landfills.

Agencies such as the Lagos Waste Management Authority (LAWMA)  have unveiled their novel project.

LAWMA Managing Director, Ibrahim Adejuwon Odumboni asked the public to learn how to sort their waste from source, adding with the launch of PAKAM App and the unveiling of over 47 recyclers, residents are in for a good time as every waste they generate and sort out properly will attract payment from the recyclers who will turn them to finished goods such as bags, and slippers.

He said the agency is encouraging residents with the monthly raffle draw to treat their waste as gold, adding that the initial draw recorded over 77,000 entries but 100 were picked from the entries. He said the idea is to help the public create wealth through the waste they generate while recyclers serve as off-takers.

Also, Chairman, Lagos Recycling Association, Femi Idowu Adegoke, said: “PAKAM is avenue to unlock the value in our waste, turning trash into cash we see endless possibilities financial inclusion. It is about attitudinal and behavioural change. If you pick up the app, you can invite us and we come weigh your waste and pay you for it.

“PAKAM is about making money from waste. The app selects people randomly and produces winners.”

The LAWMA boss said the idea of recycling is for sustainability and to free our drainages, shorelines and environment of waste while the public will reap the gain.

PAKAM is an all-inclusive waste management software application that connects recyclable waste real-time to recyclers at just a click. It also connects communities to environmental enforcement agencies by reporting indiscriminate waste disposal that leads to blockage and choking of water bodies, using the real-time live video and chat window that pinpoint location. The system is all-inclusive and it will turn waste to a win situation. When you have recyclable waste, the system will connect you to an aggregator who will then schedule a pick-up day

External Affairs Director, BAT, West Africa & Central Africa, Odiri Erewa­Meggison, said: “The list of their recycled  products  may look like products on offer from a conglomerate. They are actually some of the by-products from the waste recycling programme of the British American Tobacco (BAT) factory in Ibadan. Our company achieved 100 per cent waste recycling and zero waste to landfill at our Ibadan factory in March 2021.

“BAT’s success in achieving 100 per cent recycling its waste generated at its factory in Ibadan is thus a remarkable development. Heart-warming as this milestone achievement might be to environmental enthusiasts. It indeed gets more interesting when it said BAT achieved this feat with the support of an implementation partner that is a homegrown (100 perbcent) Nigerian company.

“We launched a corporate recycling programme in 2019, in partnership with some recycling companies in Nigeria. Apparently, the partnerships with the local recyclers has vastly accelerated the company’s waste recycling programmesuch that BAT Nigeria achieved 100 per cent  recycling and zero waste to landfill earlier in 2021. This feat was accomplished four years ahead of the Group’s global ESG target of 2025, as announced in its global strategy announced in March 2020.

“This is why the efforts of the implementation partner, Skaj& U investment Limited, and indeed the efforts of sundry recycling companies across Nigeria must be applauded.”

She reiterated that a little known waste recycling company, Skaj&U Investment Nigeria Limited, whose position bellies their humble beginning as an aggregator of waste paper, which it supplied to a paper recycling plant some 25 years ago.

In a statement, the company says the project with BAT has catalysed its growth, as they employed 150  workers. This was in addition to the expansion of its recycling capacity with the acquisition of new machinery and the introduction of new recycling processes.

“We started off as a waste paper aggregator and transitioned to paper recycling years ago, is today, able to recycle such diverse products as plastic waste, spent oil, tyres, metal waste, carton waste, pallet waste, packs and label waste, waste water, canteen waste, nylon waste, tow waste, foil waste, used kegs, used drums, cable waste and sludge, etc at the BAT factory in Ibadan,” the company said.

Celebratingthe improvement in the company’s strategic, Research and Development (R&D), and  competencies due to the investments in new machinery, and the expansion of their capacity and processes on account of the scale and novelty of this project, it must also be recognised that some of the machines acquired for this project were also fabricated by Nigerian companies. This goes to show that beyond empowering the recycling company, partnerships of this nature also improve capacity further down the value chain. Part-<unding to finance the project was also provided by Nigerian commercial banks.

The BAT chief lamented that environmental pollution remains a gnawing problem; she however, hailed companies rising to the occasion and tackling the menace head on.  Commending the outcome of the various partnership with other companies she hailed it , saying it   has vastly accelerated the company’s waste recycling programme such that BAT Nigeria achieved 100 per cent  recycling and zero waste to landfill earlier in 2021. This feat was accomplished 4 years ahead of the Group’s global ESG target of 2025, as announced in its global strategy announced in March 2020 she added.

According to her this is why the efforts of the implementation partner, Skaj& U investment Limited, RecyclePoints, West Africa Energy, Chanjadatti, Wecyclers and many other collectors in the FBRA and indeed the efforts of sundry recycling companies across Nigeria must be applauded.

“The public sector is also beginning to do more to address the waste challenge. The Lagos State government, for instance, announced in April 2021 that it was transitioning from waste disposal to waste conversion (recycling) partly on account of limited dumpsites”.

“The Commissioner for Environment and Water Resources, Mr. Tunji Bello, stated that the project is expected to create 6,000 jobs initially. The State along with its project partners has also deployed technology in the form of a mobile application known as PAKAM, which enables users to request for pickup of recyclable materials from their homes by registered aggregators on the mobile application”.

“The impacts of this project, beyond delivering a cleaner and healthier environment to Lagosians, will hopefully mirror a far bigger scale, the catalytic effects earlier detailed on the BAT partnership with its implementation partner for the recycling project at its factory in Ibadan”.

At a time of ever-increasing necessity for governments and corporations to minimise the  impacts of their operations on the environment and deliver a sustainable future, partnerships of this nature that also create new jobs, improve entrepreneurial and technical competencies of our homegrown companies are welcome and should be encouraged, she added.

 

The collapse of Fourscore Tower’s 21-storey building in upscale Ikoyi, Lagos last week has raised a lot of dust among the seven professional groups in the built environment. Their leadership argues that the building came down because of government’s failure to ensure that the National Building Code (NBC) is passed into law. They also cite the failure of regulators to sanction offenders in the past, writes OKWY IROEGBU-CHIKEZIE

Has State governments learned any lesson from collapsed buildings in the past? No? says former President, Nigeria Institution of Structural Engineers (NIStructee), Dr. Samuel Ilugbekai, who insisted that had the government learnt any lesson, especially from that of a building that came down at Lekki Gardens two years ago, which had casualties, the collapse of the 21-storey building in Ikoyi, last week, would have been averted.

He is not alone in putting the blame at the doorsteps of governments. The leaders of the seven professional groups in the sector said the members of the National Assembly should share in the blame for not passing the National Building Code (NBC) into law, years after the bill was sent to them.

They argued that, by now, it should have been domesticated by each state to serve as the manual for the sector and the tide of building failures would have been stemmed with each practitioner staying on his lane and regulators able to function without much interference.

Ilugbekai asked the government to empower the professionals to take the lead and bring in their competencies to bear on the sector.

On the Lekki incident, he regretted that the developer had gone ahead to build other estates as the government failed to make public the findings from the panel nor the developer prosecuted for his negligence.

“The recent building collapse is what is called a text-book failure i.e. it is a clear pattern. However, we will not assume until the regulatory bodies finish with their findings. One can only assume the monumental loss it would have been for the state if it had been completed and handed over to the new owners; failure is a clear pattern. The impact of the collapse would have undermined the integrity of the adjoining buildings and government will do well to investigate them as the impact would have sent shock waves into the ground travelling kilometres from the site,” he said.

He lamented that professionals had been taken for a ride and if the trend was not corrected, there might not be an end to building collapse.

The past NIStructee chief drew the attention of the public to irregularities. He noted, for example, that the signposts that was supposed to bear the names of professional firms involved in the said construction were not seen. Rather, in their place were only phone numbers. He wondered how the government or her agencies would have monitored such development.

Immediate-past President, Nigeria Institute of Building (NIOB), Kunle Awobodu, said it was as if efforts to stave off building collapse by professionals were in vain. He said the major challenge of the sector was quackery and negligence by state government officials.

Awobodu said: “Building projects of this magnitude are handled by specialists in the construction industry and not people that do not have a past record of integrity with the approving authorities.

“The pedigree of the contractors handling the project needed to be ascertained by the approving authorities before they were given the job.

“However, if the project was monitored by the relevant government officials, the disaster would have been averted, because they would have been able to notice the structural defects that eventually resulted in the collapse of the building.

“Now, prospective property investors will lose confidence in property investment because of this incident. The government needs to boost the confidence of property investors in the state.”

He regretted that people were only mindful of the gains and not safety of the lives. He acknowledged that most failures were as a result of errors on site because of invasion by quacks who had eliminated the services of builders who are to be on site to supervise the construction.

Speaking on the need to empower regulatory institutions, the former NIOB boss regretted that  as large as Ikoyi and Victoria Island were, they only have one supervisor and six monitoring officers each and wondered how they could be effective.

Read Also: Collapsed building: Osinbajo warns against reproducing libelous publication on ownership

Awobodu recalled the danger that these officers face in executing their jobs as sometimes when sites were sealed the developers and owners who are connected to political powers would ambush them, most times to the detriment of their lives.

He said: “There is corruption in the system. Recall that we investigated the Synagogue Church collapse and Lekki Gardens, Massey Street. We followed up with a court action but were greeted with several adjournments for years.”

Chairman, Nigeria Institute of Architects (NIA), Lagos State chapter, David Majekodunmi, said the nation needed an enabling law to make the NBC work, noting that every state needed its NBC to regulate the sector.

He said NBC gives a minimal requirement for materials to be used in every construction as the soil types are different. He said the wind at Victoria Island, for instance, comes with salt and that a developer or builder would need to know that and make adequate arrangement to have materials that would be resistant to corrosion.

“In the NBC, part of the prerequisite is to have professional indemnity insurance. But, sadly, our insurance companies are not helping matters as they will want to collect the whole gain from the consultant. Sometimes, I procure mine from abroad, which is pocket-friendly.”

He stated that looking carefully at the two initial towers by the same developer, they looked different from the one that collapsed and wondered if there was no compromise in terms of quality of materials and cost.

Majekodunmi wondered who the consultants to the project were and if one person singlehandedly built and supervised and what the relevant agencies of government were doing to the extent that they didn’t notice the defects in the building.

The NIA boss asked for continuous material testing and advised the government to outsource part of  the inspection to establish the structural stability of a building.

Asked if he was optimistic with the investigations by the government, he expressed doubt as, according to him, in 2019, when children died on Massey Street, Lagos Island, the government did the same thing; unfortunately, nothing came out of it years after.

Reiterating the culpability of the government, he regretted that since the tenure of Dr.  Olusegun Mimiko as Minister of Works & Housing,  the National Assembly has failed to pass the NBC into law to guide the sector. According to him, if it had been passed, the nation would not be witnessing the tragedy of this magnitude.

Lagos Chapter Chairman, NIoB,  Mr. Lucky Isename, appealed to the Lagos State Government to implement its physical planning laws to stem the rising spate of building collapse in the state.

Isename, while identifying causes of building collapse, said the state had beautiful laws which must be implemented without delay to curb construction failures.

“We need the Lagos State government to strictly implement the Lagos State Physical Planning Permit Authority laws to put a stop to collapse of building in Lagos State,” he said. He called for the engagement of qualified builders and other certified built environment professionals in projects to guarantee quality assurance in building production processes.

“We await the outcome of the five-man panel  recently inaugurated by the Lagos State government to provide detailed causes of the collapse and recommendations,” he said.

Immediate-past Chairman, Lagos Chapter, NIOB, Mr. Sunday Wusu, called for the inclusion of the private sector in the enforcement and implementation of the state’s building laws for efficiency. He said junior and middle level members of staff of the regulatory agencies of the state government could easily be intimidated by highly-placed individuals in the society, hence, the need for private engagement.

“That is the reason we have been advocating private inspectors; marshall them in all the local governments. Let them be registered in the local government where they are domiciled. Not that a private inspector domiciled in Lekki should be working at Badagry. Wherever you are, work within that environment and if anything happens, you will be called upon, and if a management is being called upon, it is not one person, so they will be responsible for what they are doing,” he said.

National Chairman, Nigeria Institution of Civil Engineers, (NICE), Dr. Jang Tanko, while commiserating with the state, said the incident was avoidable because a structure of that magnitude was supposed to be handled by competent professionals and contractors, especially engineers, throughout the construction of the project.

He canvassed the need to engage professionals to unravel the cause of the collapse. He stated that preliminary investigations by his group showed compromises at several levels culminating in the tragic collapse.

The NICE chair said the incessant collapse of buildings had once again brought to the fore the need for the government to strengthen regulatory bodies and ensure the elimination of quackery in the sector.

In a statement entitled: “Time for Lagos landlords to protect their investments from collapse and save lives”, the Chairman, Nigeria Institution of Estate Surveyors & Valuers (NIESV),  Lagos chapter, Olabisi Demola-Alade, said the unfortunate  incidence was  preventable.

According to her, in a report, unconfirmed by the police, about 50 people were working on the building at 20, Gerrard Road, Ikoyi before it collapsed at about 3 p.m., Monday, November 1, 2021.

She recalled that the Lagos State Building Control Agency (LASBCA) had visited the site of the incident and had clarified that the landlord got the nod to build a 15-storey building, but ended up erecting a 21-storey.

She said while the Lagos State branch of NIESV was yet to verify this, they believed that a responsible agency of government such as LASBCA would not misrepresent an important fact as we have now.

“As estate surveyors and valuers who are the core professionals in the real estate sector, we are pained by this kind of development that results in loss of lives and billions of naira emanating from failure on the part of real estate investors to follow building regulations and international best practices by engaging requisite professionals for construction of a project of this magnitude. The laws of Lagos State require that a certified and registered structural engineer should be on ground at every storey building site to monitor material input at every stage and certify that they are the recommended standards before issuing certificate in defense of the building,” the statement added.

She urged property developers to desist from resorting to shortcuts  which may lead to losses and death of innocent citizens, who, unfortunately, are breadwinners of the families.

According to her, the state has had enough building collapse leading to loss of lives and investments worth billions of naira. Between 2011 and 2019, over 84 buildings collapsed across Nigeria with only 21 of the 84 occurring outside Lagos.

“According to the figures, 59 per cent of the collapsed buildings in Lagos State in 2019 were existing structures while 41 per cent were under construction; seven of the cases were full collapse.

“Several factors have been fingered as the causes of building collapse in Nigeria, chiefly the use of substandard building materials, the deployment of cost-cutting techniques in housing construction which are unsafe and the lack of professional supervision at various levels of the construction process.

We cannot continue to allow excuses that culminate in disaster and great losses. Now is time for all of us to stand together and say no more building collapse.

“Every landlord, real estate investor, housing stakeholder, professional and expert in the built sector to embrace the laws and international best practices relating to erections of buildings as regulated by LASBCA and other relevant agencies.”

Also a professional, who didn’t want his name in print, said though the government and her regulatory agencies and poor workmanship might be blamed, another canker worm in the sector is the unhealthy competition among the various professionals in the sector.

He frowned at a situation where architects and engineers feel superior to other professionals and that most times would veer off their  calling into that of others.

He said this created room for quackery as some artisans and draughtsmen and women most times see themselves as professionals in the sector, thereby causing unimaginable problems.

He advised them to unite and fight as a common front to attract the attention and respect of the government and the public in the interest of the nation.

Also, another unnamed built environment professional picked holes in the selection of a town planner to head the panel set up by the Governor Babajide Sanwo-Olu. He said though he does not want to sound controversial, he questioned the appropriateness of the selection, as according to him, what they are investigating here is structural integrity, among others which is in the realm of civil or structural engineering.

 

 

The House of Representatives has moved to investigate the operations of developers in the Federal Capital Territory, Abuja following complaints by members of the public.

The House mandated its Ad Hoc Committee investigating the operations of real estate developers in Abuja to sanitise the sector.

Chairman of the Committee, Hon Blessing Onuh, said the committee will liaise with stakeholders to create legislation aimed at sanitising the sector and curbing sharp practices.

She said that there would be a public hearing as part of the ongoing investigations into the sharp practices and rots in the real estate sector in the FCT.

The public hearing is slated to hold on Thursday at the Conference Room 028 of the House of Representatives complex.

“The committee calls for submission of memoranda and invites all stakeholders in the real estate sector, government agencies, investors, homebuyers and the general public to a one day public hearing on the above investigation,” Onuh said in a statement on Monday.

There have been complaints that estate developers take money from subscribers without providing the residential houses as promised.

In August 2021, the Independent Corrupt Practices and Other Related Offences Commission (EFCC) announced that it had recovered N53 billion from one of such developers.

Asides failing to deliver, they also lease or sell the same properties to multiple clients, deliver poorly constructed homes, among other irregularities.

A 2020 report by Civil Society Legislative Advocacy Centre (CISLAC), an affiliate to Transparency International (TI), identified cities like Abuja, Lagos, and Port-Harcourt as major black spots of high-level capital flights.

The report said: “The real estate sector has long provided opportunities for persons and companies to launder illegally acquired funds.”

“The share of the real estate services to the nominal Gross Domestic Product (GDP) is estimated at around seven per cent per annum.

“It is a significant contributor to the economy and has the capacity to fast-track the growth of the nation’s economy, if adequately structured.”

A project, Valor City, is being constructed in Oriire local government Area of Oyo State.

The city, according to the founder and Chief Executive Officer of Hastom Group, Mr Debo Olushola, will serve as a human development city for Nigerians, especially the youths.

Speaking on the initiative while addressing a press conference at the University of Ibadan, Olushola said the construction of the city is based on three pillars: reimagined education, sports development and tourism.

Debo said although things are currently tough in Nigeria, but if people are given the right opportunity, things will change for them and the country.

He explained that Valor City will be sited on 2,100 acres of land and is located 30 miles from Ilorin International Airport adding that the city is also 25- minute drive from Ogbomoso town and the electricity supply would be solar powered.

He said the project is hinged on three basic strategies of re-imagined education, sports and tourism.

Olushola, who narrated his experience with talented people who could not succeed because of lack of opportunities, said sports can be a liberator from poverty for Nigerian youths adding that sports is bigger than a whole lot of industries.

“They said our youths should not do yahoo yahoo. It’s bad, it tarnishes the image of our country. Why is yahoo yahoo the first thing the youths think of? Because it is the only thing they see that can take them out of poverty, no other alternatives.

“A guy that is talented in lawn tennis, but doesn’t even know he has the talent because there is no lawn tennis court 50km to his area. The guy you say is a tout that is always boxing people everywhere, can’t we just make him a boxer?

“We don’t really need a political office to make impact, with the help I have received, this is how I can give back.

“So, Valor City is going to be a sports development city. We will develop sports like football, lawn tennis, swimming, basketball, gymnastics, track and field amongst others.

“We are not going to develop people alone, we are going to promote the sports through competition. We will be organising competition.”

The Federal Government and Lagos State have begun talks on harnessing potentials in the housing sector towards cushioning strains in the economy, it has been learnt.

This was hinted at the 10th conference of the National Council on Lands, Housing and Urban Development which began in Lagos.

The theme was ‘Housing Development as a Catalyst for Job Creation, Social Inclusion and Economic Development’.

Director (Planning, Research and Statistics) in the Federal Ministry of Works and Housing, O. B. Ode-Martins, said the Council, which is the highest policy advisory body for the housing sector in the country, would come up with inferences drawn from the deliberations, which, according to him, would be instrumental for policy making towards revitalising and repositioning the sector for economic development.

Chairman of the Local Organising Committee (LOC) and Permanent Secretary, Lagos State Ministry of Housing, Wasiu Akewusola, asserted that the housing sector holds huge potentials for job creation.

He said: “Directly or indirectly, jobs are being created through the construction of houses anywhere in the world. That is how the economy is stimulated. When we put more money in the housing sector, you will create more jobs certainly.”

Akewusola said the meeting was conceived against the backdrop of several economic challenges of joblessness and social explosion, coupled with the COVID-19 pandemic which demanded interventions to mitigate the challenges.

Read Also; We can do much more with mass housing – Osinbajo

According to him, the conference would brainstorm on how the economy can be ‘revitalised through accelerated and inclusive housing development’.

National President of the Town-Planners’ Association of Nigeria Olutoyin Ayinde said it was important for governments at all levels to plan towards developing the housing sector, arguing that ‘if we do not plan, we would perish’.

According to him, the increasing economic demands on the limited land space in the country amidst population explosion call for strategic planning.

“Our land resources are not increasing; they are fixed, but our population is increasing, and as it increases, there is demand for the lands; for agriculture, for housing, for commercial areas; there is demand for animal husbandry, and all of these things can only work out when you plan.

“I believe this is one of the necessary conversations that we must continue to have because Nigeria is yet to be at the level it should be in terms of housing. There has been controversies, for example, on whether we have housing deficits or not, but the truth is when you see people sleeping on roads and under the bridges, you definitely know we have housing deficits.

“I think it is an opportunity for us to begin to rethink our housing policies and our planning. It is only when we think these things through, and we commit ourselves to it, that we are able to become better in terms of housing provision,” he added.