The Nation Newspaper

Tag: estates

  • ‘Why unoccupied estates, houses litter cities’

    ‘Why unoccupied estates, houses litter cities’

    The immediate past President, Real Estate Developers Association of Nigeria (REDAN), Alhaji Aliyu Wamakko, has blamed the lack of regulation in the real estate sector for the existence of unoccupied massive estates and buildings in major cities in the country by individuals whose sources of income are questionable.

    Amid the huge housing deficit in the country, many estates in major cities are completed but lying unoccupied, he stated.

    According to him, the issue of unoccupied estates is mind-boggling not only to Nigerians, but to the developers and also to the government as well.

    He said: “Internationally, there is what we call the Financial Action Tax Force. This Financial Action Tax Force is gauging and supervising the money laundering issue of all the countries in the world.

    “In addition, Section 11 of Money Laundering Act and Terrorism clearly states that anyone who acquires, uses, retains or takes possession or control of any fund or property, knowingly or reasonably, ought to have known that such fund or property is, or forms part of the proceeds of an unlawful act; commits an offence of money laundering.

    “Before my tenure ended last year, we crafted “Real Estate Regulatory Council of Nigeria, 2023” which is targeted at fully regulating the sector and also curtailing money laundering in the country. It had inputs from all the regulatory institutions; all the state commissioners, all the professionals in the built industry were part of the drafting  and was eventually passed by the 9th National Assembly and later transmitted to President Tinubu on  June 9th for assent but he declined assent.

    “The truth must be told, some of the houses that we see are a product of money laundering from the people who stole money from the government and they don’t even want to put a signage to indicate any name of an estate developer, because they are proceeds of crime, they are just building as the money is there.

     “There are so many of them in Abuja, in Port Harcourt in Lagos, Kano. If you go, you will see so many of them.

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    “We deliberately initiated the bill to protect the interests of the developers. If the government signs that bill, you will not be talking about unoccupied estates because there will be regulation and if you want to erect any estate, you must register, be licensed and be known, but unfortunately, we don’t have one and the issue may continue to linger.

    “Sadly, the bill has been passed in the Senate, and also the House of Representatives but is yet to be assented to by the president.”

    According to him, the idea were to protect and regulate the sector and also reinforce the National Building Code but unfortunately as it stands, “we can’t do much with regards to the rising cases of unoccupied estates even though it is also affecting us as developers because many of those erecting these estates are not known”.

    On the high cost of building materials Wamakko said a lot of things have caused the skyrocketing prices of building materials.

    According to him the major ones are inflation, high transportation costs and unstable exchange rates. “You know most of the building materials are imported and transporting them has also increased, so these are the issues that cumulatively increase the cost of building materials,” he added.

    On the way out he said: “40 per cent of the African housing deficit is in Nigeria. Africa has about 55 million housing deficits, while Nigeria is having about 20 million or even more out of it because this data is from the Shelter Afrique Housing Development Bank. So, the most important thing I think that can be done is to provide some form of subsidy for the housing sector that will go a long way in reducing the cost on developers and the end user.”

    On alternative funding for the real estate sector, the former REDAN boss said except under the Renewed Hope Housing Estates programme, government through this programme could channel the money meant for houses to developers who can now borrow at single interest rates at nine per cent at most, otherwise, nothing can be achieved.

    Continuing in the old style of patronising  government contractors to build these houses, the government will do well to channel these mortgage loans to registered developers  who will develop the houses and also repay the loan at the appointed time, he added.

  • Fed Govt begins construction of estates in 33 states

    The Federal Government has commenced the construction of mass housing projects in 33 states. To actualise the project, it plans an upward review of mobilisation funds for contractors up to 50 per cent to enable emerging contractors in the building sector deliver their projects satisfactorily.

    The minister of Power, Works and Housing, Babatunde Fashola, who disclosed this at the sixth meeting of the National Council on Lands, Housing and Urban Development, told delegates at the event that with ongoing housing projects, the government had fulfilled the commitment it made at the 2016 council meeting by 90 per cent.

    “At the time of the council meeting in August 2016, I reported that we were finalising designs to accommodate our cultural, climatic and other diversities. I had explained that when the designs were completed, we would commence construction to pilot the designs and test them for affordability and acceptability. I am pleased to report that construction has started in 33 states where land has been made available,” explained Fashola.

    Fashola also stated that stakeholders had resolved to facilitate the use of exchange of letters for the transfer of title to land when states were transferring land to the federal government. He said, “I am happy to report that there has been very inspiring compliance based on the several letters of exchange that I have received and which I have duly signed. All I need say about this in terms of compliance is that if there are still states yet to comply, they should please do so very quickly.”

    The minister said he had personally visited project sites in Taraba, Gombe, Ekiti, Oyo states, adding that “what I saw demonstrates to me very clearly how impactful the National Housing Programme has been, even at the pilot and inception stage.”

  • ‘Govts advised to develop residential estates’

    To reduce housing deficit in the country and cut the soaring rental value of apartments, governments at federal, state and local levels have been urged to develop residential estates for their workers.

    This was the submission of the new  President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Dr. Bolarinde Patunola-Ajayi.

    Patunola-Ajayi, who spoke at the institution’s council meeting in Abuja, argued that if governments could house their staff, the cost of rent will come down drastically.

    “The problem of rent control is in the area of demand and supply of housing units. If there is no constant supply and there is high demand for housing, it would affect the cost. If federal, states and the local governments can house their staff, the cost of rent will come down and those who are looking for houses will have options,” he said.

    NIESV, he further said, applauded the  administration’s attention to housing, saying the pledge by the minister of housing that government will build 7000 units this year is a welcome development. He said if this is done repeatedly over a period of four years, a lot of housing units would be added to the existing housing stock and private developers will have no option than to reduce their rent.

    Patunola-Ajayi decried the huge number of completed housing estates lying unoccupied, especially in Abuja, calling for the establishment of the Office of Valuer-General of the Federation where all property would be identified. He also canvassed a private developer tax for all vacant houses, stressing that all vacant property should be subjected to tax payment.

    He said the institution, as the only profession licensed to carry out valuation of property in the country, would map out plans on how to pilot its affairs over the next three years adding that, his administration would focus more on capacity building to ensure that members are well trained to meet up with international best practices.

    “We want to keep to professionalism. Professionalism is a global issue; there is global framework and standards on how to render services in the surveying profession,” he said.

  • Palms Villa Estates berths in Lekki, Ikorodu

    A real estate firm, Chattel Reality and Investment Company says it has introduced a land ownership scheme that will eradicate owning a land in Lagos State as being the exclusive reserve of the rich and the powerful. One of such schemes with which the firm intends to achieve this is the Palms Villa Estate in Ibeju Lekki and Ikorodu,  which the firm has started selling.

    Aside from its 10 per cent discount offer on all land payment plans, the company is spreading payment options for purchased land up to four years. This, it says, is to give all low income earners an opportunity to be landlords in Lagos. For instance, to own a plot of land at Chattel Reality’s Palms Villa Estate in Ikorodu, an intending buyer can pay as low as N22,000 monthly and N83,000 monthly for land in the Palms Villa Estate in Ibeju Lekki.

    Its Managing Director, Mr. Ifeanyi Okafor, explained that such initiative is one of the company’s strategies to get more Nigerians to invest in properties and own their own houses. “We must as a matter of urgency always look for incentives to encourage people to own their homes. Things are pretty difficult at the moment and many people might not be able to afford a huge sum of money to purchase a land not to talk of building a house. So for us, we are more interested in empowering people and helping them to achieve their dreams of becoming a landlord,” he explained.

    Chattel Realty and Investment Company limited is an innovative real estate development company that engages in the development of master-planned housing estates. The company’s objective is to provide cutting-edge real estate solutions to the huge Nigerian real estate market, which yearns for affordable housing as well as other real estate investment products.

  • The rise of private farm estates

    The rise of private farm estates

    In a new push to revive agriculture, private operators have established farming estates where they sell and lease land to new farmers. It is an effort to lay a stronger foundation for growth in the agric sector, DANIEL ESSIET reports.

    Ibadan is now a valley of gold for farmers. As a result good rainfall the area has seen in decades fields of cassava, yams and maize, tomatoes, yam tubers, bunches of plantain, mango, cashew, banana, and palm  heavy with grain that will sustain communities.

    In few places, farmers use irrigation farming using banks of existing water sources during the dry season for crops such as tomato, pepper, garden eggs, cucumber, watermelon, teferia (ugwu), okra. The Oyo State government is doing everything to preserve agricultural land, particularly that close to the city.

    This led to the development of a food system that supports sustainable production of safe, healthy food that is available to all.

    Within this context, an economic model, known as farm estates has emerged. Under the arrangement, transfer of land to investors is a core component. Benefitting farmers are given land to grow food for themselves, their families and local communities.

    To boost food  production, governments in the Southwest, have embraced farm estates strategy giving out fertile land with good transport links to  farmers at low cost for many years.

    To attract  investors  to fish  farming, Lagos State government has unveiled opportunities in  its fish farm estates which investors could tap into and make millions of naira.

    The fish farm estate targets the low income groups, such as artisan and fishermen, school leavers as well as high income groups and corporate bodies.

    For instance, Ikorodu Fish Farm Estate established on a 34-hectare parcel of land at Odogunyan, Ikorodu, had 262 production plots which had been allocated to 176 allottees, making the estate fully subscribed.

    The estate is producing an average of 10,000 tonnes of fresh fish per annum. This project has created jobs directly and indirectly to hundreds of young school leavers and undergraduates of fisheries. It has a technology demonstration centre comprising 50,000 juvenile/cycle fish hatchery and 300 kg fish capacity processing unit  constructed by government to serve as a demonstration centre.

    While the government is promoting investment opportunities using farming estates  models, private organisations and individuals have jumped at this opportunity and have been active at all levels of the market. Private promoters involved are those who demand a new paradigm for agriculture.

    One of the entrepreneurs involved in the private farm estate project is the Chief Executive, Natural Nutrient Limited,Mr Sola Adeniyi.

    He has over 220-acre farm estate in Ewekoro Local Government area, Ogun State. He gives at least a plot to  start-up farmers to plant plantain. Sales so far, showed the strength of demand across the country. Since there is competition for farmland, he is getting good returns on his investment.

    He has been getting many enquiries from expanding farmers looking for land to farm.

    The farm includes pasture, arable land and woodland. His main enterprises include arable cropping, In addition, there is an arrangement for a number of residential farm houses to help support the estate.

    Adeniyi said his company is ready to welcome visitors to the farm to find out more about what they do. This includes other farmers, customers and the local community.

    What he envisions is a new generation of Nigerians who want to generate income through absentee agriculture.

    For  civil servants and business people  who  live in Lagos, he wants see them make money  through farms  in the estate that will be manage for them  in their  absence.

    Nigerians living away  from the estate location will be able to reap thousands of naira yearly in profits from cash crops grown with the help of workers employed to run their farms by the estate management.

    What is required is the capital to buy the land and monthly management costs.

    Adeniyi stressed that his organisation wants to support Nigerians to increase their incomes through absentee agriculture. With prices for basic foodstuffs at their highest levels, many Nigerians would be  well rewarded by farming.

    Adeniyi  has a huge diversified farm and wants to help absentee farmers prosper.

    Before going into private farm estate business, he had established a thriving Moringa tree plantain.

    Through training provision, he has   helped new farmers to deliver better quality produce while increasing outputs and decreasing costs, as well as spoilage. This had led to higher incomes for the farmers, who are mostly smallholders.

    He trains local farmers in areas such as cultivation methods, post-harvest handling and food processing to improve their entire process according to international quality standards such as Good Agricultural Practices (GAP), which is one of the most widely trusted standards for food safety.

    For him, the benefits for farmers operating through farm estates are quite obvious: enhanced product quality and productivity, reduced post-harvest loss through proper product handling and faster delivery to the market, more stable income on a regular basis thanks to larger, demand-driven orders in the setting of an up-to-date distribution system and reduced third-party costs and enhanced efficiency in the supply chain.

    Most of the farmers who have brought into the project are local small and medium farmers and food processors from different areas of Ogun and Lagos states.

    They are going to produce fruits and vegetables, some will run aquaculture businesses.

    Another promoter of a private farm estate is Mr. Sanmi Akindipe, chief executive, Set Group. He believes for more farmers to escape poverty, higher yields and greater revenues are needed.

    According to him, they can only achieve this under a low-cost location with, natural farming potential, nice weather and plenty of opportunities. He has acquired a 500 hectares farm estate that will be given out to farmers and  retirees thinking of farming. The farm is to be organised into reasonable sized blocks. Few metres  away from the International Institute of Tropical Agriculture (IITA), Ibadan, the facility provides for residential farm apartments. Akindipe is eager to see the estate help to build a healthier ecosystem for locally grown food.

    Investors buying into his farm estate project can also use the presence of agricultural institutions and related agencies such as Oyo State Agricultural Development Programme (OYSADEP), Institute of Agricultural Research and Training (IAR&T), Ogun-Osun River Basin Development Authority (OORBDA), National Institute for Horticulture (NIHORT), Cocoa Research Institute of Nigeria (CRIN), (IITA), Forestry Research Institute of Nigeria (FRIN), Oyo State School of Agriculture, Igboora, University of Ibadan, Lagoke Akintola University of Technology (LAUTECH), Ogbo-moso, Nigerian Institute of Social and Economic Research (NISER).

    With the location near Ibadan, producers and urban consumers will now be connected at a regional scale, bring together the demand from consumers and, on the other, aggregate products from local and producers in surrounding areas.

    For him, farming estates is one of the best examples of a successful farming system, providing real income to producers. Consumers, particularly the new middle class, are hungry not only for new foods, but also for new food systems. In the estate, each farmer is a free to  acquire enough equipment to run an independent operation.

    He said farmers would seek out new production methods, new marketing approaches and new technologies.