Category: Property

  • Abuja residents accuse FHA of  land grabbing, sale of waterways

    Abuja residents accuse FHA of land grabbing, sale of waterways

    Residents of Adkan Estate in Gwarimpa, Abuja have accused the Federal Housing Authority (FHA) of land grabbing, selling of lands on waterways and green areas.

    The residents said the action of FHA had heightened insecurity in the area and caused severe erosions due to the blockade of waterways, which might turn dangerous during the rainy season.

    Chairman Adkan Residents Estate Association, Kabir Abanbi said this   at a briefing by residents of the estate in Abuja.

    He said residents could no longer endure the frustrating, unconscionable and land grabbing by FHA, hence they are speaking out.

    He said: “We can no longer endure the frustrating, unconscionable and downright land grabbing activities of the Federal Housing Authority, hence, the decision to speak out about our travails in recent times.

    “Adkan Estate, Abuja Model City, Gwarinpa II was a project, which proposed to set up housing units with considerable thoughts devoted to housing design and neighbourhood planning.

    ‘’Within the estate was to be a District Centre meant to cater for the diverse needs to have a sustainable society. The District Centre was to house a recreational centre, a police station, a market and religious centres, among other things. Certain areas were also marked and designated as green areas. These were meant to complement the aesthetics in the estate. As one of the earliest estates, Adkan Estate was built in accordance with this plan.

    “However, the prospect of residents enjoying these utilities was cut short as the Federal Housing Authority moved in to appropriate and sell off the land within the district centre for commercial purpose. The loss of what was designed to be the hub of the estate and to provide the much-needed services, particularly security was, needless to say, a blow to residents.This, naturally, led to incidence of insecurity, particularly rising cases of thefts within the estate and with the traffic left unmanned; a number of cases of children being knocked down by vehicles was reported.”

    Head Public Affairs FHA, Kenneth Chigelu said: “The authority dissociates itself from the purported sales  on the social media, of land in our Adkan model city estate. The sale is a scam and is not from Federal Housing Authority or any of its agents. The general public is, hereby, advised to beware.

    “The purported sales of land along the the water ways by FHA is not only misleading, but malicious.

    “The recent activity along that axis, is as a result of harmonisation and integration of all allocated plots and physical development along the Outer Northern Expressway (ONEX) by FCDA, with ministerial approval. FHA’s jurisdiction does not extend to the ONEX. Such authority is vested on the FCDA.

    “The masterplan of  Gwarinpa Estate is rested with FHA. It is, therefore, wrong to presume any undeveloped parcel of land around any neighbourhood as a recreational centre.

    “Such a request from the residents of Adkan Estate is with the authority. We are working on it, with a claim that the land was given to them  verbally by an Executive Director.

    ‘’We find this challenging since our allocations are not made verbally, and is usually signed by the Managing Director and Chief Executive.

    ‘’Without prejudice, the asuthority is doing everything we can to make our residents comfortable  having on mind the dynamics of town planning.”

  • Providing affordable housing to informal sector

    Providing affordable housing to informal sector

    For many members of the lower and middle classes, home ownership remains a life-long dream. Due to the huge cash required to either buy or build a house, they are unable to make their dream a reality. However, succour seems to be on the way for them as a firm and the Federal Housing Authority (FHA) have floated an house ownership scheme for them to get their homes, reports OKWY IROEGBU-CHIKEZIE

     

    Succour may be on the way for the lower and middle classes who have been finding it difficult to own a house.

    Some private organisations and government regulators, have joined hands to solve their problem of home ownership.

    One of them, Affordable Housing Cooperative, peultimate week, in partnership with the Federal Government-owned Federal Housing Authority (FHA), set up a scheme aimed at making house owners easier.

    Inaugurating the scheme in Lagos, the Managing Director, FHA, Senator Gbenga Ashafa, said  the sectors had been captured in the ongoing mass housing drive.

    Ashafa, who was represented by Mr Hayatuddeen Atiku Awwal, Managing Director, FHA Mortgage Bank, explained that the bank operated a single-digit interest rate and the FHA was committed to making low interest mortgage available.

    “We are glad to be a part of the pioneer of the affordable homes cooperative initiative in Lagos,’’ he said.

    According to him, designs and costings are important components that the FHA took into consideration to deliver the right specifications to end users. He said the FHA had a Cooperative Homes Ownership Department, whose professionals design affordable houses, especially for those in the informal sector.

    Ashafa added that the FHA Mortgage Bank also accessed the National Housing Funds (NHF) for Nigerians, which allowed cooperative societies or individuals to access mortgages.

    “Mortgage can be accessed for up to 30 years and the cap on the mortgage is N15 million. lnformal sector is encouraged. On our database, we have over 15,000 individuals in the informal sector who are registered, evaluated and appraised indexed by the bank,’’ he explained.

    He commended the state government for boosting housing. Ashafa said FHA was rejuvenating FESTAC Town and trying to reclaim over 1,000 hectares of land “to demonstrate how affordable home ownership would be delivered to Nigerians, especially those from the informal sector’’.

    According to him, the FHA is also collaborating with the state government and other private developers to acquire over 60 hectares along the Sagamu Expressway for another affordable mass housing initiative.

    He added that 18 units were handed over to beneficiaries of FHA housing schemes in Lagos, adding that the programmes were ongoing in Ibadan, Gombe, Kano, Kaduna, Owerri, Enugu, among others.

    “So, FHA and FHA Mortgage Bank are committed to making sure that houses are affordable to Nigerians both in the formal and informal sector,’’ he said.

    On the affordability of the houses, he said: “FHA is abiding with the international labour law, which states that an employee must not commit more than one-third of his monthly salary to housing. We produce houses that can fit in to any income category.”

    Managing Director, Townsend Property Investment Limited, Mrs.  Morola Babalola, pioneer of the Affordable Housing Cooperative in Lagos, said the informal sector accounted for about 40 per cent shelter gap in Lagos.

    Mrs. Babalola said the daily income earners like the vulcanisers, hairdressers, and drivers belonged to cooperative societies which her firm would liaise with to deliver decent affordable houses to them.

    She said those in the informal sector had no homes and that the huge shelter gap must be closed by targeting an inclusive saving plan to deliver decent affordable houses to them.

    “Our focus is to provide every Nigerian the opportunity of affordable and decent living, bridging the gap of the housing deficit in Nigeria, “she said.

    She stressed the need to upgrade the living standards and ensure that communities became organised and structured to prevent haphazard development and settlements.

    “We are going to create a formal structure for the informal sector,” she said.

    Mrs Babalola called for collaboration of stakeholders as well as federal and state governments  with the company to open up new decent communities.

    Also, Senior Special Assistant to Lagos State Governor on Housing, Kolade Ayodeji Amodu, said the state government was making policies targeted at increasing housing stock.

    Amodu said vertical buildings were being adopted alongside innovative technology that reduced construction time.

    According to him, collaborations with private partnerships are being explored to produce affordable decent houses for Lagos residents.

    “Based on the T.H.E.M.E.S. agenda in which the thrust is to transform the state into a 21st century economy that is comparable to others in the world, the housing development policies would be more robust and yet domesticated to our environment.

    “Affordability and accessibility are critical factors being considered in terms of provision of scalable homes for the low income earners with appropriate mortgage for those with structured earnings.

    “The government is for all and many people fall within this category,” he said.

    President, Chevron Employees Cooperative Society, Kolade Oyinbo, said they were keying into the project with Townsend on affordable housing.

    He urged groups to buy into the project and that the government should further encourage such initiatives to stem crime, stressing that since it was a structured payment, the public should be encouraged to buy into it.

  • How crowd funding can boost housing stock

    How crowd funding can boost housing stock

    A firm, Richfield, has unveiled a subsidiary PropVest to help the average income earner who wants to own a house or property but find it difficult, OKWY IROEGBU­CHIKEZIE reports.

     

     

    Richfield Nigeria, a real estate development firm and owners of PropVest, with estates in Lagos and Ogun states as well as Abuja, has unveiled PropVest, its income-generating investment subsidiary, to help workers make short-to-medium term cash flow from real estate investment.

    Its Founder & Chief Executive Officer, Samson Odegbami, said cash  his firm would provide the needed via what he called crowd funding.

    He said: “Their idea of the automated platform is to make financial inclusion of the low income earner possible. We distribute wealth through real estate, provide intelligence, advise on proper use of land. Automatically, the system notifies the firm to pay investors on the due. We reduce physical interaction, so an investor can monitor his investment from anywhere in the world. Investment options start at an entry point of N150,000, spanning various cycles of between six and nine months, with returns between 10 percent and 54 per cent.”

    He said PropVest is a an emerging change maker that strives to reduce the housing deficit in Nigeria by pioneering an inclusive investment and earning model that funds real estate projects across the nation.

    He recounted that the Nigerian Bureau of Statistics (NBS) had, in August 2012, estimated that Nigeria had a deficit of 17 million houses and required 700,000 houses yearly, compared to less than 100,000 being constructed.

    Again, he said, in 2019, PricewaterCooper (PwC), the second-largest professional services network in the world, supported this data and confirmed that the housing deficit in Nigeria was indeed getting worse.

    He said: “As an emerging innovative change maker in the real estate industry, PropVest is set to reduce the housing deficit in Nigeria by 500 units. This, it is making possible by pioneering an inclusive investment and earning model that funds real estate projects across the country. The real estate industry is a renowned sector that has continued to experience unparalleled growth over the decades. Of the over 206 million Nigerians, more than 17 million people are still without a home. This is partly due to challenges that individuals face such as lack and cost of funds to build, inflation resulting in constant hike in prices of building materials and skilled labour, among other issues.”

    According to him, harnessing the power of new age technology and resources management skills, his firm has established as a channel that utilises stakeholders’ effort and fund to develop real estate projects; bringing sustainable solutions to old enduring challenges.

    He reiterated that they have brought digital solutions to challenges in the sector such as the Land Use Act, which has impeded the sector, verifiable land with proper documentation and titling, automated solutions targeted at Nigerians in diaspora who want to invest in real estate with assurance of their funds.

    According to him, the idea is to invest the extra fund or cash and reap between short and medium  term with a time line of between six to 12 months.

    Odegbami urged the government to give the sector the needed attention.

    Managing Director, Calabella  Integritas Project Limited, Oladipo Odunola, said: “We believe that PropVest will help move Nigeria forward by raising finance to build quality homes.”

    He said they were partnering  PropVest  to deliver   green and sustainable  buildings.

  • ‘We’ve  been neglected by govt’

    ‘We’ve been neglected by govt’

    Last Saturday was the second anniversary of the Ita Faaji building collapse. The five-storey building, with a penthouse and a primary school on the second floor, killed about 20 persons, including pupils. The Nigeria Institute of Building (NIOB) marked the anniversary with the theme “Building collapse and lessons learnt”, reports OKWY IROEGBU­CHIKEZIE

     

    In March 19, 2019, a five-story building collapsed on Lagos Island. Buried in its bowels were tenants and pupils of a school which occupied some floors in the building.

    It was a pathetic sight as many of the tenants and kids who had come to school that morning never returned home alive. There were reports that 20 people, among them, pupils, died in the incident.

    However, with effective rescue by agencies of the Lagos State Government, firms and organisations, no fewer than 60 people were saved, though with severe injuries.

    To mark the second anniversary of the incident, that drew the ire of Nigerians, the Nigeria Institute of Building (NIOB) at the weekend held a forum, which provided an opportunity for parents to vent their anger on the state government for neglecting them. They urged it to set up a committee on the collapsed building.

    Representing the parents of the pupils, Mrs Omowunmi Balogun said: “Our scars are still fresh. We are hearing that the owners of the land are using their connection to start construction on the site on which our innocent children perished. Some of us were invited by NIOB last year for the rememberance and this year again, but nothing concrete has been said concerning our plight. We insist that our children will not die in vain. The government should compensate us and insist that those responsible for our plight are apprehended and adequate punishment meted out to them.”

    NIOB President Kunle Awobodu explained that the body was an advocacy group and not a government agency and that its duty was to ensure that the government and the people did right, especially in the sector.

    He said the group brought school bags and other things the pupils needed to go to school to relieve their parents of some burden.

    He said:  “We empathise with all the survivors of building collapse and those who have lost loved ones in various collapses.The school children at Ita-Faaji and others who survived one collapse or the other need care and attention to pick up their lives again in addressing the scars. Help and counselling in overcoming the trauma of such collapse remains necessary.

    “This building that collapsed at Ita-Faaji immediately Mr. Babajide Sanwo-Olu won the Lagos State gubernatorial election served as a challenge to the then incoming government on the rise in the spate of building collapse and the importance of addressing the building collapse menace dispassionately.”

    Read Also: Building collapse: Lagos moves against quackery

     

    “The outcome of many investigations on collapsed buildings has identified inappropriate management of the building production process on sites as  the major problem. The interwoven complex activities of building construction require expertise in their management. The expert to handle this delicate process is the trained and certified builder, who has been licensed by the Council of Registered Builders of Nigeria (CORBON).

    “The collapse of the five-storey building at Ita-Faaji exposed the loophole in the law and development process that had been severally exploited to promote quackery on building sites, in Lagos State in particular and Nigeria in general.  The Lagos State House of Assembly took steps to decisively block the loophole through a stakeholder’s public hearing on its physical planning and building control regulations which regulations were eventually signed by the Commissioner responsible for Physical Planning and Urban Development.These steps birthed the 2019 physical planning and building control regulations of Lagos State.”

    According to him, the key parts of the regulations is the correct and unambiguous provision of  Section  4, Subsection 2 of the 2019 Lagos State Building Control Regulations which states: “The site execution of every building under construction shall be managed by a registered builder.”

    He noted the relevance of March 13, 2019, saying on that day innocent, helpless but promising school children lost their lives (due to system failure of older Nigerians).  March 13 is thus symbolically chosen to remember Ita-Faaji building collapse victims and other victims of building collapse in various parts of the country, he stated.

    On why the building collapsed, he said it was due to quackery, non-adherence to building regulations, lack of accountability and failure to bring culprits to book, saying these applied to other building collapses in the country.

    The NIOB chief regretted that Lagos accounted for about 60 per cent percent of building collapses nationwide.

    Awobodu lamented that even when there was an effort at prosecution, such sometimes come too late to achieve the required effects of deterrence. Sometimes, the efforts towards prosecution are either frustrated or prolonged as a result of sentiments and political considerations.

    The use of experts would help this nation overcome the menace of building collapse, he added.

    Former Director-General, Lagos Safety Commission, Wahaab Oki, asked Lagosians  to patronise professionals. He commended NIOB for taking up the advocacy.

    Honorary Secretary, Nigeria Institution of Estate Surveyors & Valuers (NIESV), Lagos Chapter, Niyi Olagoke, urged experts to imbibe ethics of their profession.

    He said: “If sites are monitored and relevant laws implemented, it will make for sanity. Unfortunately, developers are only out to make money through sharp practices as against adherence to building regulations.”

    The government, Olagoke added, should get rid of quacks on building sites  and ensure the safety of lives during and after construction, by having laws and regulations that meet or exceed the basic minimum requirements of the Nigerian National Building Code.

    Chairman, Nigeria Institute of Architects (NIA), Lagos Chapter, David Majekodunmi, asked experts not to compromise quality.

    He  urged the government to enact  laws; ensure regulation, monitoring and compliance to avoid building collapse.

  • 15 years after: MMA 2 hotel projects still in limbo

    15 years after: MMA 2 hotel projects still in limbo

    The 15-year-old dispute between the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited (BASL), the concessionaire of the Murtala Muhammed Airport Terminal Two (MMA2), Lagos, over the concession agreement, has left sour taste in the mouths of operators and stakeholders, particularly those in the built environment. They are worried that the protracted legal tussle has contributed to the neglect of the Hotel and Conference Centre projects at the airport, leading to huge revenue and job losses, and also raising security issues. Assistant Editor OKWY IROEGBU­CHIKEZIE reports

     

    The President, Nigeria Institute of Building (NIOB), Mr. Kunle Awobodu, is seething.

    To him and perhaps, any well-meaning Nigerian, the delay in delivering the Conference Centre and the our-Star Hotel at the Murtala Muhammed Airport Terminal Two (MMA2) has not only become a national embarrassment, but  also resulted in huge loss of resources and revenue, including jobs that would have been created if the two projects had been completed and delivered.

    Both projects have been in limbo for over 15 years, following the protracted legal tussle between the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited (BASL), the concessionaire of MMA2, over the concession agreement. Now, Awobodu and other concerned stakeholders in the built industry are screaming blue murder over the neglect of the two projects caused by the lingering dispute between FAAN and BASL.

    The NIOB chief lamented, for instance, said Nigerians who would have been otherwise engaged and earning a living over the years have been deprived of that opportunity. While commending the idea behind the project, he said the hotel project, for instance, would have been self-sustaining within a short period, as many travellers who had early morning flights or fly in late at night would have patronised the facility.

    Awobodu noted that the facility is not only safe, but also located in a secured environment unlike now that people leave from parts of Lagos, endangering their lives to be able to catch their flights. He said the completion of the edifice would cut down on travel time for travellers, both for those that always have early morning flights and late night flights. He also regretted the countless number of travellers who have missed their flights or got attacked while leaving the airport very late.

    The NIOB boss decried how an otherwise good project had been left to die or better still left comatose for years as a result of unending court processes and politics. He expressed fears that the way it is going, the edifice will not be completed anytime soon. He, however, called on the government to do the right thing and allow the project to be completed and put into use.

    Awobodu is not alone in his heartache over the abandonment of the projects due to the face-off between FAAN and BASL.The Chairman, Nigeria Institution of Estate Surveyors & Valuers (NIESV), Lagos State Chapter, Dotun Bamigbola, is also worried. “This is an abandonment of another laudable project, especially one that would have contributed to the development of aviation and tourism in Nigeria,” he told The Nation.

    An evidently peeved Bamigbola said notwithstanding the contractual details, the hotel would have contributed to improving the standard of a critical aviation asset, both in value and service delivery. “It could have been a key contributor to the economy, just as similar facilities in other international airports around the world are,” he added.

    The NIESV chairman also said had the facility been completed, it could have also paved the way for such facility to be replicated in other international airports over the 15 years it has remained uncompleted. He lamented the loss of revenue to investors as well as the aviation industry, loss of tax income to the country, loss of employment, loss of quality service improvement and loss of prestige to the nation, particularly to the aviation industry.

    However, loss of revenue to investors, loss of tax income to the country, and loss of employment, among others, is not the only issues agitating the minds of stakeholders in various sectors following the neglect of the Hotel and Conference Centre projects at MMA2 caused by the protracted dispute between both parties.

    Security concerns may have also added to the frustrations of stakeholders. For instance, the former General Secretary of the National Union of Air Transport Employees (NUATE), Comrade Olayinka Abioye, said aviation unions objected to the buildings from day one because of the manner the land was taken over from traders and business owners.

    He, however, brought a rather scary dimension to the union’s opposition to the project when he noted that when the building started, “We (the unions) raised security issues essentially as it is directly in line of sight to the Presidential Lounge. After security scrutiny, it was discovered that a sniper could actually shoot at very important personalities (VIPs) at the lounge.”

    Other industry professionals, who bared their minds on the issue, expressed fears that with the upsurge in terrorism attacks in the country, attacks could be launched from there and targeted at VIPs or the airport as a whole. One of them, who didn’t want to be mentioned, said the airport could be destroyed from any of the rooms except adequate care is taken to scrutinise guests which may not be possible at every given point in time.

    On the way forward, the commentator said: “The solution is to first respect the position of the court of law, which is on the side of Bi-Courtney. Secondly, for national interest and security, pull down the agreement between the ministry on behalf of FAAN to restore the environment to the established laws and pay compensation to whoever is or would be affected.”

    BASL, owned by billionaire businessman Dr. Wale Babalakin, had in the past 15 years, locked horns with FAAN over the concession of MMA2 over some contentious issues. For instance, Babalakin insisted that the concession, which was premised on a Build, Operate and Transfer (BOT) basis, was for 36 years. But FAAN would have none of that, insisting that the concession was for 12 years.

    BASL has also battled relentlessly with FAAN over the operation of the General Aviation Terminal (GAT), which it believes should be part of the concession. The crux of the matter was that Babalakin constructed the link road between MMA2 and GAT, and that he had since stuck to the belief that GAT belongs to him, a position FAAN disputed.

    Babalakin was also said to have sought FAAN’s approval on the two projects, the Conference Centre and the Hotel, to which the land was allocated by the latter and work started in 2005. In line with the terms of the projects, Babalakin was said to have secured a foreign loan to complete the four-star hotel and conference centre and FAAN was expected to provide a guarantee.

    The project reached about 70 per cent completion before it was stalled by funding because, according to sources privy to the matter, Babalakin could not secure the foreign loan to complete the project.

    Group Corporate Affairs Manager of Bi­Courteny, Mikhail Mumuni who  spoke to The Nation said: “We are eager to commence construction. We are having ongoing talks with  relevant government agencies.  As soon as the discussion are concluded, we will be back on site.”

    Now, operators and stakeholders, particularly those in the built industry, are kicking, insisting that the continued delay in completing the projects was hurting revenue accruals to investors and the aviation industry. It has also resulted to loss of tax revenue to the country and loss of employment, among other unsavoury consequences.

    Founder, Centre for Aviation Safety and Research, Sheri Kyari, said the government should show the political will to deal with the matter and allow it to rest. According to him, the government can carry out what he called, ‘buy-back’ of the buildings.

    “If the government had leased the buildings, it could buy them for the sake of public interest. The matter in the first place emanated when the Federal Government, represented by FAAN, saw that the contract papers were biased towards the lessor. Since the government has not reviewed it, they only put a lid on the matter. They can as well remove it,” he said.

    The Nigerian Civil Aviation Authority (NCAA) has absolved itself of any blame over the abandoned projects, saying there was nothing wrong with siting the buildings where they occupy. Its spokesman Mr. Sam Adurogboye said while the issue was still in court, the agency had not breached any provision of its regulations on the hotel project.

    He added: “Istanbul has a 10-storey building within the terminal used as hotel. Are you saying NCAA should not have allowed the development at the airport which would create jobs?”

    He said the comment about the hotel facing the VIP lounge was not tenable, adding that nobody needed to come to the airport to carry out espionage with the advancement in technology.

  • ‘How seawall saved Victoria Island’

    ‘How seawall saved Victoria Island’

    By Okwy Iroegbu-Chikezie

    Changes in climatic conditions have led to several unforeseen natural catastrophes in the world.

    Some of these climate change-induced natural disasters include erosion, ocean surge, volcanoes, earthquakes and other natural occurrences that threaten people’s lives and their sources of livelihood.

    Some countries, in their bid to manage the effects of ocean surge, have taken several preventive steps to preserve their cities while reducing erosion, others have built seawalls, living shorelines and green infrastructure to lessen the impact of coastal flooding.

    Of recent Victoria Island had experienced several high waves, which crashed on the shore of the Atlantic Ocean.This experience led to flooding that washed away the protective sand fill, drowned motorable roads and claimed lives.

    An environmentalist, Emeka  Ekejuba, said with Victoria Island’s status as one of Lagos’ central business districts, the state was in the danger of losing valuable land and vast revenue with the potential of affecting  the overall Gross Domestic Product (GDP) of  not only the state, but also the nation.

    He commended the technological advancement, new insights and methods to manage natural disasters.

    He recalled how in 2006, South Energyx Nigeria Limited proffered a sustainable solution to mitigate Victoria Island’s imminent danger.

    According to him, the solution was designed to protect the city from the ocean surge. He said: “The solution was predicated on South Energyx Nigeria’s building a seawall to protect the shoreline and then reclaim the land lost to the erosion over 100 years. Seawalls have been an intrinsic part of disaster mitigation strategy by city builders for thousands of years, with tremendous engineering quality improvements. With this seawall in place and under construction, Victoria Island is already enjoying the benefits as life continues to flourish in the city, and businesses continue to expand. The land reclaimed from the ocean has birthed Eko Atlantic City. This new city, which is 10 per cent privately-funded, provides long-term mitigation against flooding and has re-shaped Victoria Island’s physical, economic, and socio-cultural landscape,’’ he added.

    Commending the technology behind the construction of Eko Atlantic City, Ekejuba noted that the city   has  progressed tremendously.

    According to him to date, over 6.5 million square metres of land have been reclaimed with roads in the city are built to a higher elevation and designed for rainwater and stormwater to flow into the  City canal through a central drainage system.

    Another environmentalist Jide Ismail also observed that with the technology deployed on Ahmadu Bello Way, which was almost collapsing into the sea in the early 2000s, is now accessible.

    He said: “Hitherto deserted buildings are being redeveloped while inhabitants of Victoria Island now live without the fear of the ocean surges that threatened them in the past.”

    An example of a country that experiences the drastic impact of climate change is Bangladesh. It is known for its repeated cycle of floods, cyclones, and storm surges. It is one of the most natural disaster-prone countries globally. It is  well known that storm surge and coastal flooding has several life-threatening impacts on the people living in its coastal region,” he stated.

    Ismail said to protect coastal communities in Bangladesh, the World Bank in 2013 started a Coastal Embankment Improvement Project (CEIP), which is aimed at increasing the coastal resilience to tidal flooding and disasters and improve agricultural production.

    He added that so far, the project has helped to mitigate the impact of flooding in the region.

     

  • Curbing menace of illegal dredging, reclamation

    Curbing menace of illegal dredging, reclamation

    Worried by the looming consequences of their illegality on the environment, the Lagos State government have read dredger the riot act. However, professionals in the built environment hold different views. They have proferred solution to how the situation can be better managed, OKWY IROEGBU-CHIKEZIE reports

    Dredging and reclamation of land have remained exercises which are anti-environment, if not carried out without proper approval.

    And with the effects of climate change now becoming a reality, several organisations –  private and public, including government – are alert to the responsibility of protecting the environment.

    For instance, Lagos State as a coastal city, is deprived of sufficient dry land, making expansion, especially in housing, a challenge. This has also led to the high cost of land  in the state.

    And with the need to provide housing units to meet the yearnings of the teeming population in the state, reclamation of land from the lagoon for building becomes inevitable.

    This is why some governments have put in place guidelines for dredging or reclamation, chief among which is an Environmental Impact Assessment (EIA).

    For some however, dredging of the lagoon is for commerce and not development. Across the shoreline of the lagoon, it is a regular sight to behold dredging of sand in crude manual methods. Most of those engaged in this are usually unlicensed.

    However, over the years, it has been worrisome for the government, especially in Lagos. It was, therefore, instructive when the Lagos State government recently warned against illegal dredging and land reclamation.

    In a statement by the Lagos State Commissioner for Physical Planning and Urban Development, Dr. ldris Salako and his counterpart in the Ministry of Waterfront Infrastructure Development, Kabiru Ahmed Abdullahi, the government stated that it had noticed the increasing degradation of the state shoreline as a result of indiscriminate illegal dredging, reclamation and land extensions into the Lagos Lagoon.

    “Of particular concern to the state government are the extensions being illegally carried out at Banana Island and Osborne Foreshore, Ikoyi. The activities of persons who reclaim into the lagoon to increase the size of the land have not only resulted in gross violations of the physical planning laws of the state but also impinged on the ecosystem of the entire area.”

    The commissioners noted that the indiscriminate illegal proliferation of dredging and reclamation practices had brought about serious distortion in the aesthetics of the shoreline with high potential for causing environmental degradation, which is can produce dire consequences, if unchecked.

    Consequently, the Lagos State Government has put on hold approvals on land extensions into the Lagoon at Banana Island and Osborne Foreshore, Ikoyi. It also ordered the cessation of works, constructions, reclamations and other similar activities for extension approvals granted or being processed at Banana Island and Osborne Foreshore, Ikoyi.

    But what could be the incentive for such exercise? Findings have shown that the craze to own properties in such highbrow areas principally is the driver of such acts. For instance, Banana Island has remained the most expensive abode for the wealthy and high networth individuals; same for Osborne Foreshore, Ikoyi. A plot of land in Banana Island, The Nation learnt, cost as much N200 million.

    Responding to the stop order notice by the state government and the implication of the illegal dredging and reclamation on the environment,  a former chairman of Nigeria Institute  of Town Planners (NITP), Moses Ogunleye, explained that when a place is sandfilled or reclaimed, a shoreline  in a staccato or unplanned way as done round Osborne Foreshore Estate and Banana Island Estate, the pattern of natural elements like wave, water volume and storm water discharge get affected.

    This, he further explained, aggravates backflow of water into those communities as being experienced in Osborne Foreshore with substantial implication for Dolphin Estate, which is on the other side of the road.

    He stressed that reclamation by a developer portends danger for the immediate property as  wave speed and direction could leave such property unprotected.

    “The government have allowed such to take place around the corridor unchecked for too long. It is good the government issued the directive. But how long will it be? I’m assuming that very soon, the moratorium will be relaxed as there will be pressure from some developers.  Apart from this area, sand filling and dredging are still going on in other parts of the state. But then the  state government is also making revenue from these activities – the dredgers pay some statutory fees.The land reclaimed get regularised  and the owners pay for such. I’m aware that there are many people who reclaimed additional land in the affected areas and are yet to pay or regularise their new or additional land,” Ogunleye said.

    He cautioned that individuals could not just wake up and decide to increase the size of their land or plot outside the context of physical development plan. He, therefore, advised the government on the need to use the moratorium for stock taking on physical planning, storm water, flood  management, shoreline protection and ecotourism  resources management.

    President, Nigeria Institute of Building (NIOB ), Kunle Awobodu, regretted that dredgers were everywhere in Lagos and that he suspected that the government had lost control.

    He also said the government might be helpless because those involved in reclamation and dredging were usually influential members of the society, but added the need for the government to show more concern on what was going on in the environment, not minding whose ox was gored.

    He recalled that in the past, the  location of today’s “Park View Estate”, an upscale abode in Ikoyi, used to be Ikoyi Park which families use as open space for picnics, especially during festive periods.

    “Reclamation and dredging in Lagos didn’t start today, but the government seems unmindful of the environmental implication of such actions because land in those areas are expensive with the government making huge revenue. The implication of these activities are huge and should be addressed as soon as possible,” he added.

    Awobodu alluded to the argument that some developers, who reclaimed land around Lekki, built on them. He, however, cautioned that should the government make good its threat, some businesses might run into troubled waters as they might have taken loan facility from banks.

    On the economic implication, the NIOB president said if they were stopped several professionals and construction workers would be affected and the government, reduced income. He regretted that not only Ikoyi is reclaimed, but also Oworonshoki.

    He advised on imbibing the technology of building in water without dredging and reclamation. He noted that marine and aquatic life style is disturbed at the expense of those who prefer littoral aesthetics by living in the water front.

    According to him, to some people it gives them satisfaction and a sense of living their life to the full by living by the sea without a care.

    Also, the Chairman, Nigeria Institution of  Estate Surveyors & Valuers (NIESV), Dotun Bamigbola, said the illegal dredging  might lead to environmental degradation along the shoreline of the Lagos Lagoon.

    “This is part of the responsibilities which the government should take up in ensuring all such activities are in conformity with the approved limit and standard of reclamation.  Indeed, the Waterfront or Environment Ministry officials should be present to supervise such activities daily to ensure compliance,” he added.

    According to him, one major challenge the government might face is manpower to monitor these activities along the vast shoreline among others.

    However, he advised that if they could not do that, this aspect of government function should be contracted to professionals in the built environment to monitor compliance and sign-off on the report that it had been done to standard as approved.

    He argued that if this was taken,  it would translate to the  professionals being liable for any distortion during the period of reclamation, if later discovered by the supervising ministry or agency.

    He noted that most housing projects that came up along the waterfront were primarily individual dwellings for prestige and a combination of these would limit the impact to the waterfront real estate market in the estates.

    However, Bamigbola noted that if it took longer than six months or a year, it might affect the land value within the estate.

    According to him, there are already other forces affecting real estate in the market, which may push back on the effect of this reclamation suspension in the two estates at Ikoyi.

     

     

  • When elephant comes to revenue

    When elephant comes to revenue

    The symbolism is striking, the structure is imposing. Okwy Iroegbu-Chikezie writes on the relevance and transformation of the former Elephant House to Revenue House

     

    IT was named Elephant House at a time that Elephant Portland cement of the West Africa Portland Cement Company (WAPCO) was dominant in the Nigeria, the iconic ingredient behind many historic buildings and landmarks. Now, the iconic Elephant House is transforming into Revenue House, another historic transition at a time revenue is the central theme of governance.

    Elephant Cement House is one of the iconic buildings in the state and roughly a minute drive to the seat of power. It is conspicuously located, a first-time visitor to the State Secretariat, Ikeja Central Business District (CBD) or to lkeja Mall housing anchor tenants such as Shoprite, cannot fail to notice the imposing edifice in the heart of the state capital.

     

    At the onset

    The imposing building was initially owed by West Africa Portland Cement Company (WAPCO) Plc, now known as Lafarge Africa Plc. It was sold to the Lagos State Government for N3.1 billion some six years ago when the company re­strategised, divested and needed to shore its capital base. The building, which before now hosted banks, financial institutions, professional institutions and others, is now being renovated to serve solely as the base for all revenue-related agencies of the Lagos State Government, thus its new name, Revenue House.

    Speaking on the sale in its first quarter 2017 financial statement submitted to the Nigerian Stock Exchange (NSE), Lafarge Africa said the disposal was part of the company’s turnaround and divestment plan. The divestment to the Lagos State Government was for N3.1 billion, generating a capital gain of N1.2 billion.

    When the rumour mills was agog six years ago on plans by the cement giant to put the building up for sale, it became the subject of much discussion within professionals in the built environment sector, investors  and others, who felt the building was too strategic and ‘domineering’ for it to be put on sale.

    Others felt the owners of the building must have thought over it and came up with a blueprint that it was the way to go. But it was an opportunity for the state government in its bid to entrench the ease of doing business. The location, for the state, is strategic, almost within the vicinity of the levers of government in the state. For those who do business with the government, they can’t thank the government enough for the convenience to conduct their business under a roof.

    This building with great history is set to be inaugurated next month. Investigations by The Nation confirmed that it would have been before now but for the COVID­19 pandemic. All things being equal, the Lagos State government will inaugurate a massive office complex – the “Revenue House”, located at the Central Business District, Ikeja, and in close proximity to the State Secretariat at Alausa, Ikeja, next month. The Lagos Revenue House upon completion will accommodate revenue-generating agencies of the state government.

     

    Revenue takes the centre

    “The Revenue House” was an idea muted in the administration of former Governor Raji Fashola. However, upon cost consideration, that is, for purchase and renovation to bring the facility to usable condition for the state government and the space available for use as car park and others the idea was discarded. It was further argued that it would make more sense to complete the state multi­purpose building located opposite the Ministry of Environment which has more generous car park and other facilities fit for the agencies rather than buying the Elephant Cement Building”, an official of the government who didn’t want to be named because of the sensitivity of project stated told The Nation.

    Upon assumption of office, former Governor Akinwunmi Ambode thought otherwise and went for the project. He was, however, unable to complete the renovation before leaving office.

    Stakeholders in the real estate sector have severally submitted that construction in the industry would be spiked by offices and shopping malls development. A cursory look at real estate in the last five years attests to this position.

     

    A fillip to real estate

    President, Nigeria Institute of Building (NIOB), Kunle Awobodu, who commended the move by the Lagos government administration to continue with the process of ownership of the building for the state, said it makes a lot of meaning for ease of administration.

    He said: “For a very long time, the Lagos State government has had some of its Ministries, Departments and Agencies (MDAs) in the old secretariat and some in rented buildings and apartments. For administrative purposes, it doesn’t make for smooth running of process and procedures. It’s also pertinent to note that the state plan to bring in all their revenue agencies under one umbrella, the idea to my mind, will make for easy and effective administration of the agencies. Clients or those who have businesses to transact or any other thing anything with the agencies will be rest assured that they will do their business under one roof that is purpose built. It’s reassuring that this will give litmus to the much talked about ease of doing business.”

    A realtor Ibidemi Ayodele, in his contribution, said: “This complex, formerly known as “Elephant Cement House”, owned by the cement manufacturing firm, Lafarge Holcim Africa, is touted as a project that will change the face of office development in the country, following its acquisition by the Lagos State Government. He was happy to note that it didn’t go the way of other government projects that were abandoned midstream. He said for businesses like his and others who are always at the Secretariat and hopping from one block to the other, the bringing together of the agencies is a welcome development.

     

    The transformation

    Information available to The Nation have it that the building, a multi-storey office complex, was acquired at a cost of N3.1 billion about six years ago and is situated on a land area of 10,307.97 square metres.

    It also has a space of 4, 687 square metres that will be used as car park.The total built area is about 1,700 square metres while its green area is about 800 square metres. The building consists of four wings of seven floors plus a wing of eight floors and the multi-storey structure consisting of three blocks on a total area of site of 2.01 hectares.

    The new Lagos Revenue House has eight floors with four wings labelled A, B, C and D. Wing A, B and C have seven floors, while Wing D (inner Rotunda) has eight floors (a Penthouse). Architectural wings A and C are bilaterally symmetrical with the same features.

    Essentially, the facility has office spaces of 1,640 square metres per floor and 11,450 square metres offices. The designated guest car park accommodates 220 cars. Other features include a conference room and banking hall.

    Some of the facilities provided for in the building include borehole, storage tank, Water Treatment Plant, Central, Sewage Treatment Plants, Pumping Machines. Other ancillary facilities are: four gate houses, a generator house, a central open courtyard, four elevators, toilets and other conveniences.

    Value creation

    The Lagos State Governor, Mr. Babajide Sanwo-Olu, during a visit to the complex, said upon completion, it will scale down the incidental costs of premises rentals and accommodate most parastatals of the state within the Secretariat vicinity. He, therefore, urged the contractor handling the project to accelerate its delivery to avoid cost overrun works.

    Meanwhile, The Nation learnt that the State’s Ministry of Works and Infrastructure, on behalf of Lagos State Government, has launched a search for competent facility management service providers/contractors to manage the public asset “in pursuance of its infrastructural assets maintenance and management plan has embraced the culture of facility management to ensure professional maintenance of the State Public Assets”.

    The tender is seeking contractors or consortium for the major architectural/structural maintenance and repairs; mechanical/ electrical maintenance and repairs; replacement of fixtures and fittings; power management; sewage and water management; landscaping; painting; pest control and fumigation as well as general routine maintenance.

     

     

  • Construction sector: Optimism on improved activities

    Construction sector: Optimism on improved activities

    Most stakeholders in the construction sector look forward to increased activities and greater contributions to the national economy in 2021, OKWY IROEGBU-CHIKEZIE reports

     

    THE construction sector will see greater impetus in 2021 as various activities by the governments and private sector kick in.

    Stakeholders expected improved construction activities and demand, driven by both governments and private sector.

    Managing Director, Dutum Construction Company Limited, Temitope Runsewe said the construction industry will be a significant growth driver for Nigeria’s economy in 2021.  He spoke on the sidelines of the “2021 Nigeria real estate market outlook” meeting in Lagos.

    According to him, with the over N3.85 trillion budgeted for capital expenditure by the Federal Government in 2021, spending on infrastructure would help to drive economic growth.

    Runsewe said though the Coronavirus pandemic had affected economies and businesses globally, the medium to long-term outlook for the industry remained positive.

    He said this was because the construction industry increased its contribution to Nigeria’s GDP to N572.9 billion from N513.6 billion in Q2 2020.

    Runsewe said the National Bureau of Statistics had projected the construction industry to record a Compound Annual Growth Rate of 16.6 per cent to reach an all-time high of N13.2 trillion by 2024.

    According to him, this makes it imperative for players in the real estate and construction industry to exploit the attendant opportunities for growth that will be presented.

    “With the positive outlook of the construction industry for 2021 and the forecasted growth in the industry, Dutum construction intends to participate and contribute toward the development of various industry segments,” Runsewe said.

    Chief Operating Officer, NorthCourt Real Estate, Ayo Ibaru listed opportunities being presented to stakeholders in the industry as demand for real estate increases.

    Ibaru said Nigeria was at a great risk of losing Foreign Direct Investment (FDI) to less volatile neighbouring economies, if it failed to adapt to economic realities or continue with the trend of policy inconsistencies.

    He added that the situation would present an opportunity for local investment in the construction industry to thrive.

    He pointed out the role technology and innovation would play for the future of the industry.

    According to him, the adoption of virtual viewings of properties and other property technology offerings are increasing despite cultural concerns.

    Also contributing a highway engineer, Afolabi  Adedeji who  also spoke on the outlook for the construction and the real estate sector for 2021 identified funding and access to Forex as a big issue for all stakeholders in the sector.  According to him there are still ‘shocks’ from the COVID ­19 pandemic regarding site workers, transportation of materials to site, etc.

    He cautioned that all ongoing capital projects must continue, even if there is a need to phase or ‘scale down’.

    “The cost recovery element needs to be re-visited. Tolls & Taxes are unpopular, but what alternative do we have to these? There is still a glut in the upper income Housing Market in our cities. Yet more structures are being erected. Indicators show that the economy is laying prostrate or is on its knees. The wealth available seems to be concentrated in a few hands. The construction industry is a barometer for assessing general macro-economic performance,” Adedeji said.

    He advised that proper maintenance of roads, railways, public buildings, etc, which were procured with loans, must be placed on the front burner.  He further asked that facility management should be incorporated to avoid, emergency repairs at high cost, premature replacement, disuse, abandonment and others.

    Adedeji stated that generally it is not all gloom and bleak adding that with the special Jobs programme for youths in 774 Local Government Council and the 300,000 Housing units  set to be delivered by the government  for low-to-medium income households things may yet change in the sector  in the days ahead.

    Former Managing Director, UACN Property Development Company, Mr. Hakeem Ogunniran said the real estate sector would witness compact developments unlike before. He recalled that while he was with UACN Property, they had a belief that if it’s not luxury development they would not touch it.

    Ogunniran, who is the CEO of Eximia Realty Company Limited, said the times do not support such and noted that studio flats, self- contain and maximum two-bedroom flats would dominate the market. He regretted the many luxury houses that have stayed in the shelf for years in many upscale areas resulting to the preponderance of so many to­let houses.

    According to him any serious developer will build for the needs of the market  and achieve a turn around, noting that young and upwardly mobile young men and women are looking for functional houses that they can maintain instead of large houses, duplexes that are clumsy.

    He said property developers would build what the market want and by extension what is affordable than building large estates and houses that will tie their fund noting that the challenge of fund mismatch in the real estate sector is still a persistent problem and should be dealt with.

    President, Nigeria Institute of Town Planners (NITP), Toyin Ayinde spoke on the need to recognise that the new year marks the turn of another season and so a new beginning.

    According to him we experienced something different from what we all planned for in the year due to the coronavirus pandemic. He, however, advised that it shouldn’t stop us from hoping for a better year.

    “We’re hoping that the government would go through its plan to construct 300,000 housing units. It would trigger some multiplier effect in the economy as a few unemployed could get employed and the opportunity for other economic activities subsequently manifest. I believe that it should be an opportunity for researchers in the industry to propose alternative local construction materials to bring down costs, so that affordability may increase,” Ayinde said.

    According to him, the year provides an opportunity to plan these housing units as part of human settlements or they constitute new towns in themselves. This would require the integration of the various systems that make human settlements sustainable.

     

     

  • Operators urge measures to stimulate mortgage

    Operators urge measures to stimulate mortgage

    Okwy Iroegbu-Chikezie

     

    MORTGAGE operators have appealed for regulatory-induced fiscal and monetary measures that would stimulate the sub-sector towards sustainable development.

    They also implored the Central Bank of Nigeria (CBN) to fast-track the implementation of the Mortgage Interest Draw-Back Programme (MIDP), with other policy measures that would moderate the cost of funds to single digit, on a consistently.

    The operators, under the aegis of the Mortgage Banking Association of Nigeria (MBAN), made the call in a seven-page communiqué after its Chief Executive Officers (CEOs) retreat in Lagos.

    The association plans to engage the CBN on specific modalities required to facilitate policy implementation, monitoring and impact assessment.

    The Annual Retreat for CEOs was held via Zoom and physically, with participants drawn from the mortgage banks, mortgage brokerage companies, CBN, Nigeria Deposit Insurance Corporation (NDIC), Federal Mortgage Bank of Nigeria (FMBN), Nigeria Mortgage Refinance Company (NMRC) Plc, and the Mortgage Warehouse Funding Limited (MWFL).