Category: Property

THE Managing Director and Chief Executive Officer of Infinity Trust Mortgage Bank, Dr. Olabanjo Obaleye, has said that the bank has so far financed more than 14 big and mini estates in Abuja.

Obaleye, who said this in an interview on the sidelines of the bank’s 13th Annual General Meeting (AGM) in Abuja  during the week, noted that the bank had also supported developers by financing two estates in Lagos and one in Nasarawa.

He said the bank is also  looking at developing one in Warri this year as part of a nationwide expansion plan.

He said: “We are a national mortgage bank; so we are spreading. Where we see a very good opportunity to impact, we will surely be there.”

Asked if there were plans to grow beyond Nigeria, the CEO said the Nigerian market was big enough for the bank to operate. According to him, his organisation is yet to cover even 10 per cent of the business opportunities in Nigeria. ‘’After we have been able to make Infinity a household name in Nigeria, we will start thinking about the opportunities in other climes,” he said. Speaking on some of the setbacks in the mortgage industry in the country, He said the challenges were caused mostly by external environment, particularly the government and macro-economic situation of the country. “If you have challenge from the external environment, there is nothing you can do than to adjust your system to it. Whatever affects other economic area will affect mortgage bank. The high interest rate is a concern to us as it is to prospective home owners. Then the cost of perfection is a challenge to us just as it is to them. Then the foreclosure law is another thing. We have classes of people that are on mortgage, they have the money but they are not willing to pay’’.

He regretted that we  still do not have the right legislative infrastructure to ensure that disputes on mortgage are disposed off in a timely manner.

The governments of Japan and Austria have approved a $1 million fund to strengthen the participation of the private sector in combating climate change in Nigeria and other African countries.

In a statement, they said the fund will be channeled to the Africa Private Sector Assistance (FAPA) grant, which aims to expand the role of the private sector in the Nationally Determined Contributions (NDCs) of African countries. NDCs are national efforts to reduce Greenhouse Gas emissions and form part of the Paris Agreement on climate change.

The Nation learnt the project will be implemented by the Climate Change and Green Growth Department of the African Development Bank (AFDB) which will in turn engage the private sector, especially SMEs, in improving the integration of climate change measures in their investment decisions.

The Regional Member Countries (RMCs) selected for the implementation of the project are Nigeria, South Africa, Egypt, Angola and Mozambique. The project is expected to contribute to green and inclusive economic growth and enhance the capacity of SMEs, project developers and sponsors to scale up green investments that support NDCs.

It will also help increase private sector investments that facilitate the implementation of NDCs in target countries. The project will address constraints to attracting climate finance, including lack of enterprise knowledge, and insufficient capacity in preparing green bankable projects.

It would be recalled that FAPA is a multi-donor thematic trust that provides grant funding for technical assistance, as part of the Bank’s Private Sector Development Strategy. The governments of Japan and Austria and AFDB are active contributors to the fund, which to date has provided over $68.58 million to 79 projects in 38 countries across the African Continent.

The FAPA portfolio includes regional and national projects that improve the business environment, strengthen financial systems, build private sector infrastructure, promote trade, and the development of micro, small and medium enterprises (MSME’s).

During the 2015 campaigns, former Power, Works and Housing Minister Babatunde Fashola, while criticising the Jonathan administration, said six months was enough for any government to fix power and housing as infrastructure development is not rocket science. Does he still hold the same view after his four-year experience as minister? Professionals, experts and stakeholders examine housing and infrastructural delivery under him. OKWY IROEGBU-CHIKEZIE  writes

PROFESSIONALS in the built environment sector have a mixed bag of reactions on the performance of the immediate past Works and Housing Minister, Babatunde Fashola. While some said he performed within the limits of available resources given to him, others were of the opinion that his four years were inconsequential.  According to this school of thought, he performed below expectation and should probably not be returned or if he is returned,  he should be made to preside over a ministry.

A former Chairman of Nigeria Institution of Estate Surveyors & Valuers (NIESV), Lagos Chapter, Mr. Sam Ukpong declared that the minister, Babatunde Fashola didn’t perfom as a minister unlike when he was the governor of Lagos State He regretted that Lagos/Ibadan and  Lagos-Badagry expressways were not completed in four years that he administered the ministry. According to him, Fashola scored zero in road construction and infrastructure upgrade.

On housing, he argued that he couldn’t confirm the number of houses the minister could claim to have built out of the 17 million housing gap in the country. He maintained that he didn’t expect a miracle from Fashola, a lawyer, that knows less to nothing about construction though have been a governor and performed creditably in different fronts.

He said to have given him three ministries to administer without a care for the millions of Nigerians who will be affected by that singular action called much to be desired.

Ukpong argued that Buhari shouldn’t have appointed a non-professional into a sensitive ministry such as Works and Housing and further criticised the collapse of three ministries under a man. He said: “We have a population of over 200 million, is it possible not to have identified a professional to administer the ministry and besides in a nation of millions of professionals is it possible that the president could not have found more eminently qualified professionals to take care of all  the ministries as single units. Unfortunately everything is politicised in this country. We can only hope and pray that they would have learnt their lessons and know that they contributed to Fashola under performance as a minister”.

He advised that the incoming minister must be chosen from the position of knowledge and strength  so that he can be in a position to advise the president. The former NIESV boss said  little wonder we have accidents on our roads almost on a daily basis as trailers fall on each other with most roads dotting craters and pot-holes.

He stressed that a non-professional will never succeed in a technical ministry such as Works & Housing due to its complexities.

A fellow of the Nigeria Society of Engineers and Facility Management Consultant, CEO of Ethical Business and Management Associates (EBAM), Afolabi  Adedeji, advised President Buhari to unbundle the three ministries and assign individual professionals to administer them.  He revealed that poor infrastructure delivery has added to the problems of most Nigerians leading to suicidal tendencies and increased security concerns.

While commending Mr. Babatunde Raji Fashola for doing his best in the built environment- a technical area  outside his professional calling,  he asked that there should be securitised tenure for ministers so as to enable them concentrate and perform their duties.

He asked the new minister that may be appointed to target the lower rung of the ladder  in terms of housing provision. He regretted that something is deficit about the nation’s housing policy or provision, noting that there is glut in the upper end of the real estate market.

Yet, major highways across the country have not received major attention as they have become abode of criminals such as kidnappers and other criminal elements  as a result of the parlous state of the roads.

Adedeji further advised that the government should  revisit Public Private Partnership (PPP), which will inject private funds into construction and housing provision. He called for the introduction of social and mass housing to cater for the poor, elderly and those incapacitated in one way or the other.

CEO Alpha Gate Builders Limited and a member of Nigeria Institute of Builders (NIOB), Mr. Adedeji Adebayo, said that combining three important and sensitive ministries was not  a wise decision.  He said it looked to him that there was too much responsibility without executive back up.

According to him, Fashola as a minister was not  in  full control compared to when he was a governor, a reason he said made the former Lagos governor not to achieve much  in the housing  sector as the public were yet to see the houses built  across the federation.

Adedeji said the ministry didn’t achieve much apparently as a result of lack of policy direction.  He said: “Fashola would have performed better under another president that is proactive but by and large he has tried his best but not good enough to show for that big office.

Lagos/Ibadan Express way is a project poorly executed for lack of coordination from Abuja. He should have sacked the Controller of Works but for politics. He probably would have achieved more but for his government lack of clear infrastructural direction”.

He canvassed for a seasoned Civil/Highway Engineer to be made to head the Works minister going forward while a chartered Builder should head the Housing ministry. According to him, this is to put round pegs in round holes.

He advised that the ministry must target housing for the less privileged not for the rich to close the housing gap. He suggested the government building Studio apartments as obtainable in advanced countries.

He further asked for home ownership scheme that assures that every family have roof over their heads. Adedeji advised the incoming minister to collaborate with NIOB to see that the National Building Code is signed into law while the price of cement a major component in building and construction is controlled and the Federal Mortgage Bank of Nigeria reorganiSed to fulfill her mandate.