Tag: Housing

  • Land Use Act, others inhibiting ‘housing for all’

    Land Use Act, others inhibiting ‘housing for all’

     Housing is one of the three basic necessities of life. Over the years, successive governments have paid lip service to affordable housing for all. It is estimated that over 17million deficit exists in the housing sector. Experts say the gap can be bridged if President Muhammadu Buhari prevails on the National Assembly to repeal the obnoxious Land Use Act and other artificial barriers, reports MUYIWA LUCAS.

    The rising cost of building, land titling and other associated requirements for housing development have been identified by various stakeholders as reasons for the huge housing deficit in the country. If these can be effectively tackled, it is believed that improvement will come to the sector,  plagued by 17 million deficit.

    To this end, a leading player in the built environment, and Vice President, International Real Estate Federation (FIABCI), Africa Chapter, Chief Kola Akomolede, has urged the Federal Government to look into the numerous problems in housing, if the President Muhammadu Buhari administration hopes to achieve shelter for Nigerians.

    To do this, Akomolede said, the president must confront the high cost of acquiring land, building materials and finance.

    The first step to achieve this, he explained, is to launch the War Against High Cost of Land (WAHCOL). This is by proposing a bill to first repeal the Land Use Act from the constitution and make it amenable to necessary amendments, warning that without this, the common man will continue to have little or no access to land.

    Indeed, the Land Use Act is also a disservice to the Federal Government because even if it wants to provide houses for the masses, it has to beg the states to give it land and if any state refuses, there is nothing it can do about it.

    Besides, he noted, the problem of Governors’ Consent, which had been an albatross  against the transfer and perfection of title to land, should be  addressed, because easy access to land is the first step towards enshrining affordable housing for the masses.

    The high cost of building materials has also remained a huge problem for building construction. At the present price of major building materials, experts contend that there is no way affordable housing can be provided. Cement, which is a major component in building construction sells for about N2, 000 per 50kg bag.They argue that the government must look for ways to bring down the cost of cement and all other building materials.

    To achieve this, Akomolede suggests that grants or very low interest rate loan could be given to cement manufacturers to expand their production capacities. He also said the removal of import duties on cement manufacturing equipment as was done for telecoms equipment and removal of excise duties on cement manufactured in the country would salvage the situation.

    He said as an interim measure, the government should allow the importation of cement at duty free for the next two years to crash the price, after which it should be stopped as soon as the local manufacturers of the commodity have completed their expansion projects. The same measure should be applied to all other building materials in the country.

    The role of finance in building construction cannot be overemphasised. Therefore, there is a reason to explore cheaper means of financing housing projects. To experts, tackling this menace to achieve effective housing delivery should be on two fronts. Firstly, government,  must find a way to make finance available at affordable rates of interest as it is obtained in developed countries to both property developers and individuals who want mortgage to buy own a home.

    In most developed economies, interest rates on mortgage is between three and five per cent, compared to between 18 and 24 per cent in the country. Sadly, by the time property developers add this to their cost of building houses, the houses cannot be affordable to the common man, thereby making it difficult for potential house buyers to meet the monthly or yearly repayment even on a long time basis.

    “For example, the monthly interest alone for a loan of N5million at 18 per cent per year is N75,000.  This does not include capital repayment.  How many people can afford this in a country where the minimum wage is N18,000 per month? Yet, you can hardly get a house that will cost less than N5million” Akomolede said.

    Importantly, stakeholders and experts in the building and finance agreed that there is an urgent need for government to set in motion the necessary machinery to re-examine the National Housing Fund (NHF). The NHF is believed to be a veritable vehicle for collection of money for mortgage but it has not been harnessed fully. To make the NHF work efficiently, it is advisable that experts in building, finance and law must be assembled to re-examine the law and remove areas of conflict in it and recommend how it can be implemented for the benefit of all.

    “If government is asking workers to contribute two and a half per cent of their monthly income to the NHF, why can’t government itself (at the federal, state and local levels) show good example by contributing two and a half per cent of its revenue to the fund?

    “It can then compel all companies to contribute two and a half per cent of their annual profits before tax to the fund.  In this way the fund will grow from year to year and will provide sufficient fund for the mortgage institutions for on-lending to both property developers and individuals who want mortgage to build or buy a house,” the FIABCI Vice president argued.

    However, government has not failed to make it clear that investment in housing is primarily the responsibility of the private sector. Government said the private sector should drive the process, while it only provides the enabling environment.

    However, Akomolede disagrees, insisting that the Federal Government must accept housing as its social responsibility, especially to the middle and low income cadre. He averred that government must make budgetary allocations to the sector the way it does for education, health, agriculture, works, aviation, sports, and others. He insisted that housing is as important as all the sectors to which government makes huge allocations every year.

    He said the private sector should be encouraged to provide housing for the public but regrets that experience over the years has shown that the private sector cannot provide housing for the low and middle income, which are the largest group in the society. This, he reckons, is because the private sector is in business to make profit and provision of housing for the low income is not a profitable venture. This, he said, makes it unattractive for the private investors to venture into. He argued that government cannot afford to leave housing for the common man entirely in the hands of the private sector as such an action will be laying the foundation for a housing crisis.

    Akomolede warned the government against heeding the advice of the World Bank and International Monetary Fund (IMF) that housing should be left to the private sector, while the government concentrate only on creating the enabling environment for them to supply the housing needs by the society, because this has always been their position, which regrettably, has brought about the huge deficit in the country.

    He said: “There has always been this argument that houses built by government are always more expensive because of the corruption usually associated with the award of contracts for the houses. The question we should ask is: Does this affect housing alone?  Is there no corruption in the award of contracts for roads, schools, hospitals, airports, and others? If the answer is no, then should government also stop the construction of roads, schools, hospitals and airports and leave them for the private sectors only?”

    Akomolede added that the belief that houses built by governments are more expensive cannot be substantiated, because private developer houses are much more expensive given that they will factor in, the cost of finance and their profits, making the houses to be priced in several millions and not affordable to the masses.

    Therefore, he said, governments cannot leave affordable housing for the low and middle income to the private sector only, because doing so would mean the government is abdicating its responsibility of providing decent accommodation for its citizens.

    ‘If the government is asking workers to contribute two and a half per cent of their monthly income to the NHF, why can’t government itself (at the federal, state and local levels) show good example by contributing two and a half per cent of its revenue to the fund? It can then compel all companies to contribute two and a half per cent of their annual profits before tax to the fund.  In this way the fund will grow from year to year and will provide sufficient fund for the mortgage institutions for on-lending to both property developers and individuals who want mortgage to build or buy a house’

     

  • Cornerstone, US investors seal deal on housing

    Cornerstone, US investors seal deal on housing

    TO up the ante in real estate sector, Cornerstone Real Estate Limited has entered into a partnership with an American investment firm.

    The firm, Aesbus Knowledge Solutions, which has interests in manufacturing, telecommunications and real estate related businesses, last week sent a high-powered delegation to inspect housing development projects being handled by Cornerstone.

    Aesbus representatives, led by its Chief Executive Officer, Mr. Earl Castor, and one of its directors, Dr. Solomon Olatoye, following tour of Cornerstone’s Oregun Phase II Housing Project in Lagos, expressed satisfaction with the quality of work done on the site. “This is one of the best housing projects, especially in terms of quality of work done, including the finishing aspect, that we have seen during our short visit to Nigeria,’’ the team leader said.

    The partnership also positions Cornerstone to trade in real estate, seeking such services in any part of the US, thereby expanding its operations beyond the shores of Nigeria.

    The Chairman, Cornerstone Real Estate Limited, Mr. Lanre Okupe, hinged the success of the firm on the prudent management of materials and manpower, which has lead to the delivery of high quality products at competitive prices.

    The Oregun housing scheme is one of the several estate development schemes the firm is working on. After completing and selling out the Phase One of the Cornerstone Oregun Phase I Housing Project, works is nearing completion on the Phase II of the scheme, which is being developed on a five-acre land in Ikeja, Lagos. The Phase Two consists of 14 units of various duplex types, comprising two units of three-bedroom detached houses, with one room boys’ quarters; six units of four-bedroom semi-detached houses with one room boys’ quarters and six units of three-bedroom terrace house.

    Okupe explained that each duplex sits on an approximate land area of 350m2-400m2 , comprising an all en-suite four-bedrooms, while the ground floor space area includes the entrance lobby, foyer, main living room, dinning, kitchen, visitors’ toilet, guest room en-suite.

    The first floor space area include the family lounge with balcony, two-bedrooms and the master’s bedroom, spacious living and dining areas with exquisite wood work, well-finished wardrobes and kitchen cabinet as well as P.O.P ceiling. It is fitted with stainless steel aluminum railings, among others. The terrace houses, Okupe said, would also be finished with P.O.P ceiling, stainless steel aluminum railings, well-finished wardrobes and kitchen cabinet, among others.

    Owning a house in the scheme is easy, says the Cornerstone boss. Explaining the procedure, Okupe said payment by intalments is allowed, with 30 per cent down payment while the balance is spread over a year. The duplexes sell for N85 million per unit, while the terrace houses go for N75 million.

    In its over 27 years of operations as housing estate developer, the company has delivered over 10 residential housing estates across Lagos Metropolis and won several awards for delivering qualitative housing projects.

     

  • NMRC: One year after, what hope for housing?

    NMRC: One year after, what hope for housing?

    The launch of the Nigerian Mortgage Refinance Company on January 16 last year raised hopes that the 17 million housing gap may soon be bridged. How far has the body fared one year after? MUYIWA LUCAS asks.

    As Far as the housing sector is concerned, the outgoing  administration of President Goodluck Jonathan can be said to have put in place policies and institutions to drive the sector, with the aim of solving the estimated 17 million housing deficit in the country. One of these policies led to the establishment of the Nigerian Mortgage Refinance Company (NMRC).

    While setting up the NMRC on January 16 last year,  Jonathan was convinced that his administration is creating the enabling environment for primary mortgage banks and other financial institutions to offer real mortgage facilities to Nigerians at affordable rates. The NMRC scheme,  set up to bridge the funding gap of residential mortgages and promote availability and affordability of good housing to working Nigerians, is to provide mortgage lending banks with increased access to liquidity and longer term funds in the mortgage market.

    It is designed to be an integral part of the country’s financial system, with special focus on housing finance and, or the mortgage system. Also, it has the mandate to resolve access to affordable housing finance and, more importantly, as a focal point for creating an enabling environment for housing finance by playing a strong developmental role in supporting the improvement of land, legal framework,  housing development and construction.

    Thus, it is the latest hope for low-income earners, who cannot afford the cost of a mortgage loan. Simply put, though the NMRC is government inspired, it is a private sector-led effort to provide affordable housing for Nigerians through loans accessed from mortgage and commercial banks. It is being implemented as a component of the Nigeria Housing Finance Programme, an initiative of the Federal Ministry of Finance in collaboration with the Central Bank of Nigeria (CBN), the Federal Ministry of Lands, Housing and Urban Development (FMLHUD) and the World Bank/International Finance Corporation (IFC).

    As a take-off for the scheme, the World Bank approved a concessional $300 million, 40-year interest free International Development Association (IDA) loan to facilitate the execution of the Housing Finance Programme. About $250 million of the IDA loan will be disbursed in instalments to NMRC as Tier 2 Capital based on key performance indicators–it will be retained on NMRC’s balance sheet to provide credit support for NMRC’s bond issuances. The balance of $50 million will be allocated to other components of the Housing Finance Programme in the following order: $25 million for the establishment of a Mortgage Guarantee Facility for lower income borrowers and $25 million to support the development and piloting of Housing Microfinance Products.

    The Federal Mortgage Bank of Nigeria (FMBN) is to also benefit from a $25 million facility to improve its mass housing programme and empower some of its microfinance partners. This measure is also believed to be a major step that will equally reposition the Federal Housing Authority (FHA). The introduction of NMRC is expected to reduce the cost of mortgage loan by improving market efficiency, lowering cost of funds and allowing for longer repayment tenor period by financial institutions.

    Already, as a boost for the NMRC, it has also attracted foreign or international suitors. For instance, Cantor Fitzgerald, a global investment firm with expertise in asset-backed mortgage securities, recently signed a $1 billion pact with the Federal Government for investment in the mortgage sector. The company also indicated its desire to build 10,000 houses in Kaduna, Lagos, Enugu and Abuja within the next one year. The Managing Director, Debt Capital Markets Division, Cantor Fitzgerald, Mr. Jack Heffernan, also described the NMRC as “exactly the right business model to bring liquidity to Nigeria’s housing sector.”

    This feat has since been lauded by stakeholders in the housing sector and other sectors of the economy. For instance, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, said the entry of such a player into the mortgage sector will boost the prospect of achieving the core vision of the NMRC, which is to get young Nigerians convenient access to means of owning their own homes.

    “Cantor Fitzgerald’s presence in Nigeria shows that our mortgage strategy is attracting the right kind of attention from the right kind of people around the world and this will deepen and diversify and ultimately reduce the cost of mortgage and housing in Nigeria,” she said.

    But, laudable as this seems, 15 months after the set up of the NMRC, it is yet to have the desired effect. The agency launched its first application for 10, 000 housing units middle of last year, but about 66, 402 applications were received. Of this figure, 25,000 applications are said to have been pre-qualified; 9,000 has been given offer letter, while monies have been disbursed to 33 Nigerians to acquire their homes.

    A number of other initiatives are also being worked out with the National Pension Commission (PenCom) to enable workers borrow from their Retirement Savings Account (RSA) to own houses.

    The expectations of Nigerians from the NMRC may be understandable given the difficulty in obtaining mortgage- a nightmare the NMRC has come to reduce, if not eradicate. The company also realises this. For instance, its former Chief Executive Officer, Mr. Sonnie Ayere, said the process of refinancing is not what is done suddenly. He said: “It takes several processes and we are on those processes and by early this year, the company will officially issue its first mortgage refinancing and the whole world will see it.”  He said several months after the establishment of the company, the management had to work on creating an enabling environment for its take-off, so as to have something sustainable, because it is not all just about finance, as there are other issues such as foreclosure, which is also important, that has to be considered.

    For now, the Prof Charles Inyangette-led NMRC, may not have had any strong physical showing on the mortgage scene, but experts are convinced that the future is bright for the company if its mandate are properly pursued, especially now that the NMRC has received its licence from the CBN.

    The NMRC has the mandate of encouraging financial institutions to increase their mortgage lending by providing them with long-term funds; increase the maturity structure of mortgage loans and assist to reduce mortgage rates. It is also expected to increase the efficiency of mortgage lending by facilitating and standardising mortgage lending practices of financial institutions.

    Yet, the NMRC has not failed to attract criticism from the Nigerian Labour Congress (NLC), which expressed reservations over its setting up. The workers fear that it would make the only secondary mortgage institution in the country, the  FMBN, redundant. The NLC described the project as “pure business for high networth individuals.”

    Labour also feared that the NMRC will not cater for the interest of average Nigerian workers, and instead, urged government to assist the FMBN secure loans that would enable it deliver affordable houses for Nigerians in the low income cadre.

  • Resort Savings, Just Shelter team up on housing

    Resort Savings and Loans Plc, a mortgage bank quoted on the Nigerian Stock Exchange (NSE), has entered into a business collaboration with Just  Shelter & Allied Products Limited to provide mortgage facilities and marketing services widen the scope of housing provision to Nigerians through mortgages.

    Just Shelter & Allied Products Limited has developed 14 blocks with six three-bedroom flats in each block at David’s Court Estate Arepo, Ogun State.

    To facilitate the project, Resort Savings and Loans is granting the company the needed mortgage facilities to would-be purchasers. The NHF facilities through Federal Mortgage Bank of Nigeria (FMBN) are also available for the subscribers.

    Head, Estate Services Department, Resort Savings and Loans Plc, Mr. Alex Animasaun, said  the project, which covers 1,578 hectares, is the first phase of various housing units they are developing in Lagos and Ogun states.

    He noted that the project is located in the Arepo community and it’s about 10 minutes’ drive from Lagos State Secretariat, Alausa, Ikeja

    “A typical unit is made up of a large living room attached with visitor’s toilet, kitchen with all the fittings attached with a sizable store, master bedroom with bath, standard wardrobe, and other two rooms’ en-suite with shower. Other services within the estate are; generator, industrial borehole and overhead tank and adequate parking space among others,” Animasaun said.

    He assured that the estate is covered by global certificate of occupancy noting that selected subscribers are only expected to perfect their personal documents with the Ogun State Government.

    Animasaun urged existing and prospective customers of the mortgage bank to take advantage of the new development, assuring that Resort Savings would help with the loans to access the flats.

     

  • Propertygate launches N500m housing project

    Propertygate Development and Investment Plc has commenced N500 million building projects in the Lekki Peninsula corridor of Lagos State. The on-going housing projects are billed for completion between June and September this year.

    Managing Director, Propertygate Development and Investment Plc, Mr Adetokunbo Ajayi, said the building projects included fully detached duplexes built to deliver elegance, comfort and style and are currently about 65 per cent subscribed.

    According to him, the projects have market value of over N500 million on completion and are uniquely named based on the individuality of each different design. The projects are in three clusters within a private gated estate with each housing unit enjoying exclusive space area.

    He explained that despite the challenging operating environment in Nigeria, the company’s products and services shall always be guided by the principle of innovativeness and value-driven for its diverse clients.

    He noted that the design and execution of the company’s products would continue to place premium on customer satisfaction adding that investment in real estate is one of the potent means by which the federal government could diversify Nigerian economy in the wake of shocks that have characterized the global oil market.

    Explaining the unique features of the project, he noted that one of the clusters, christened Catembe Court, had been designed as mini-scheme to give taste and premium living experience.

    “The Court comprises  all rooms ensuite 4bedroom detached  houses, each with ensuite maid’s room, entrance porch, ante, main living room, dining area, visitor’s toilet, kitchen with pantry, family sitting and sit out  terrace,” Ajayi said.

  • Strengthen FHA for housing delivery, say stakeholders

    Strengthen FHA for housing delivery, say stakeholders

    The Federal Government has been urged to strengthen the Federal Housing Authority (FHA) to enable it deliver on low-cost housing.

    Arising from a FHA management retreat, stakeholders urged the government to transform the authority into a regulatory agency so as to have better control of the housing sector.

    In a communique issued after the retreat held at the Nigerian Air Force (NAF) Conference Centre in Abuja, the participants said the envisaged transformation would enable the FHA make the desired impact as government’s foremost housing agency.

    They further advised that the proposed private sector driven Federal Housing Corporation, which the Bureau of Public Enterprises (BPE) reform document recommended as a successor to FHA, should inherit the commercial housing component of the Authority’s mandate.

    In the communiqué, the participants drawn from the Authority’s Technical Board, Interim Management Team and other critical stakeholders, recommended that the reform document be realigned to meet with the current realities in the country.

    The three-page communiqué enjoined the government to provide adequate financial power for the FHA to enable it deliver on its responsibilities as enunciated in the social housing components of the reform package.

    The communiqué decried the 18-month tenure given to the Interim Management Team and advised that the current interim structure be upgraded to a full tenure of four years to enable the management pursue the reform process to its logical conclusion.

    Noting that the government was not mulling the FHA privatisation, the participants said the restructuring and commercialisation of the agency deserved the support of all.

    Stressing that the reform of the FHA for effective housing delivery was an imperative action, it called attention to the misalignment between population growth and the nation’s urban development and called for the prioritisation of the provision of social/affordable housing in the country.

    FHA’s Managing Director, Professor Mohammed Al-Amin, in an exclusive chat with The Nation, said the Authority’s desire to go into social housing for which a special task team comprising professionals and experts have been set up to study the partnership system and come up with a template for social housing.

    “Social housing involves houses for low income earners; houses that are very much affordable of which a lot of Nigerians belong,” he said, adding that the partnership system that  was in place before his appointment focused more on the commercial system.

    Al-Amin, however, admitted that government cannot go into social housing alone, hence, the need for partnership. But having such partnerships, he reckoned, the FHA has to  come up with new realities, which requires that other private sector social housing driven companies be invited.

    “We can partner several government organisations, unions, trade unions, trade organisations and others in this area. This will then enable us to fashion out a way of bringing down whatever the interest rate is to a single digit and  negotiate with the government at all levels to come into the provision of infrastructure in housing because most of the cost or the high percentage of the cost that translates into the final market cost of a house is being risen by the cost of infrastructure being built into it,” Al-Amin said.

    He assured that social housing would be embedded in the reform going on in the sector, saying that what the Authority is looking for is to provide shelter for Nigerians at low cost.

    Other participants at the retreat included Director-General, Bureau of Public Enterprises, Mr. Benjamin Dikki; members of the FHA’s Technical Board and the Interim Management Team; the National President, Senior Staff Association of Corporations, Transport, and Communications (SSACTAC) and representatives of the Amalgamated Union of Public Corporations, Civil Service, Technical and Recreational Services Employees (AUCPTRE).

  • Police  tackle housing  deficits in Aba

    Police tackle housing deficits in Aba

    The Aba Area Commander of the Abia State police command, Assistant Commissioner of Police Peter Wagbara has started addressing the accommodation challenges in his jurisdiction. Dilapidated structures are being rehabilitated. The commander’s quarters are also being rebuilt and expanded to accommodate more people.

    The woeful housing profile of the police is well documented. Their barracks built decades ago can only house a limited number of personnel. Even those inadequate facilities are filthy in most cases, with all kinds of negative behaviour associated with them. As a result, a good number of police personnel live outside the barracks, exposing themselves to undue danger and indignities, such as rent issues.

    A police source recalled how a friend and course mate from Police College Enugu was gruesomely murdered by men of the underworld immediately after their posting. The source said his friend would not have been killed in the manner he was if he were appropriately housed in the barracks.

    The source also said he too has been living outside the barracks for over 20 years.

    “My friend and course mate after we passed out from the police college in Enugu was posted to one of the communities in one of the southeastern states. When he got there, he told me that there were no quarters for them and so he had to go and rent an apartment outside the station.

    “One day when he was sleeping, some armed men attacked his area and when they got to his house and upon discovering that he was a police officer, they inflicted bodily injuries on him before riddling his body with bullets.

    “They didn’t get any arms because we book and sign out our guns from the armoury as soon as we are through with the day’s duty. You know that police or security agents are usually seen by the bad boys as their rivals. That was how I lost my bosom course mate.

    “If he was living in a police barracks such things would not have happened even though I have lived outside the barracks after my training till date. It has not been easy living in the midst of civilians. Are you talking about the continued harassment of the landlord, co-tenants or the community that one lives? It is not easy but there is nothing one can do owing to the nature and health condition of most of the police quarters.

    “Sometimes, the sewage is full and nobody cares to evacuate it, making some people to even defecate in nearby bushes. I even find it difficult as I am talking to you to visit some of my friends who stay in the quarters,” the source said.

    To address the issue of accommodation in his command, the Aba Area Commander, ACP Peter Wagbara on resumption of office started with the reconstruction and expansion of office of the Area Commander and the rehabilitation of Area Commander’s quarters in Aba which was abandoned for more than 10 years after it was burnt.

    The Nation gathered that while several attempts by Wagbara’s predecessors to renovate the house failed because of “paucity of fund”, they resorted to paying heavy hotel bills throughout their stay which Wagabra was not comfortable with, hence the renovation of the ACP’s quarters, renovation of offices and one of the residential quarters for officers and men under his command through the assistance of public spirited individuals.

    It was gathered that the renovation work on the residential quarters at its completion would provide accommodation for over 100 policemen.

    One other key area that received a facelift is the communication or control room of the Area Command which has been equipped with modern communication gadgets which has made communication with patrol teams more effective and that according to sources at the Aba Area Command helped in checking crime in commercial city especially, during the Christmas festivity where no crime was recorded in any part of the command during the period.

    Some of the police officers who spoke to our correspondent thanked Peter Wagbara for seeing the need to rehabilitate their dilapidated quarters which would go a long way to solve their accommodation problems when completed as they equally called on the police authority to build more quarters for them in order to save them from being exposed to preventable dangers.

    A police officer living outside the barracks who would not want his name in print told our correspondent that the dangers of living outside the barracks contribute to the level of their performance and productivity.

    According to him, most policemen resident outside the barracks don’t perform optimally because of the dangers of being attacked by their host community, armed robbers and hoodlums who would trace them to their homes to unleash terror on them.

  • FG signs $80m pact to provide 1, 672 houses

    The Federal Government and Messrs Signature Value Homes Ltd., on Tuesday signed over 80 million dollars Memorandum of Understanding (MoU) to develop 1,672 houses in the Federal Capital Territory (FCT).

    The Minister of Lands, Housing and Urban Development, Mrs. Akon Eyakenyi, signed on behalf of the Federal Government, while Mr. Anand Ramani, Managing Partner, signed for Messrs Signature Value Homes Ltd.

    Eyakenyi said that the event was significant to this administration to meet its promise in the housing sector.

    She said that the Federal Government had a great mandate to ensure that Nigerians had shelter over their heads and to ensure that the vision of affordable and quality housing was met.

    She said the development of the houses on a 20 hectares of land situated at Gwagwalada was a mixed development that would comprise of one, two and three bedroom flats.

    The minister said that the ministry had the mandate to handle the process of providing houses and to achieve this; advert was placed and competent developers were invited to partner with the ministry.

    “Several people applied, due process was taken and the selection was made and today we are about starting the implementation process with the developers carefully selected by the ministry.

    ‘The Messrs Signature Value Homes Ltd., developers did a very beautiful presentation and gave all the proofs that they have financial backing to undertake the project.

    “The ministry, having carefully handled the technical part, is today signing the MoU to enable the developer mobilise to site,’’ she said.

    Eyakenyi said the role of the ministry in the project, among others, was to stress the need for quality and affordable houses.

    She said that the ministry on its part gave an unencumbered land to the developer free of charge so as to take part of the construction cost off.

    Also, the Minister of State for FCT, Mrs. Olajumoke Akinjide, commended the Minister of Lands for putting to good use the land allocated to the ministry.

    Akinjide said that the provision of the 1,672 house will go a long way to reduce the housing deficit in the country while urging the developers to do a good job.

    “This is your first project in Nigeria, so the implementation of what you do will open the gateway for you to do more jobs. This is because after today, the 36 states of Nigeria will also be a part of this project.”

    In his remarks, Ramani said that the entire development would be done in phases with the overall cost of 80 million dollars and up to six types of houses.

    Ramani said that 300 to 400 houses would be constructed in the first phase of the development which would be completed between six to nine months.

    He said that each house would cost between 30 to 32 dollars, and assured Nigerians of a good job.

    “This is our first project in Nigeria so our future in Nigeria depends on the delivery of this particular project so we will not disappoint you.

    “We thank the government for this privilege and we promise to do our best; we will use the modern planning technology to develop this project,”

  • 4,000 benefits from affordable housing projects

    Lafarge Nigeria Plc has said 4, 000 Nigerians has so far benefited from its affordable housing scheme project.

    The scheme tagged “Ile Irorun” was initiated by Lafarge Nigeria in response to the challenges of urbanization in the most populous country in Africa, with a housing gap estimated at about 16 million units.

    Speaking to journalists at the Totally Concrete West Africa held in Lagos, the general manager, Industrial Performance, Lafarge Nigeria, Mr. Lanre Opakunle said that 4,000 Nigerians has benefited from the scheme, saying that this is a major step towards the realisation of Lafarge’s ambition to help build better cities in Nigeria.

    He stated further, “Lafarge’s commitment to building better cities is unwavering hence we initiated this project to help provide access to affordable housing for Nigerians”.

    According to Opakunle, with the development of the real estate, the mortgage system is beginning to come up that is the way we can have a good growth in cement consumption, in Nigeria 70 per cent of cement consumption is for individual homes builders with 17 million housing deficiency.

    He added that the company has been working with LAPO Microfinance Bank, saying “We provided the professional expertise and LAPO provides the finance as this would bring a sustainable solutions to the needs of local population in terms of housing.”

    He urged the government have the building code pass and to ensure description from the manufacturing cement on each products.

  • Housing deficit: Red bricks as panacea

    Housing deficit: Red bricks as panacea

    One of the intractable problems Nigerians, especially the poor, experience is lack of decent accommodation, which results from high cost of building materials of which cement is the major component. SULAIMAN SALAWUDEEN writes that, to address the housing deficit in the country, government and individuals should consider red brick blocks as major alternative to cement. 

    Food, clothing and shelter are mankind’s most basic necessities of life. While food and clothing could be somewhat common among man and the animals, shelter distinguishes him from the wild beast. Man lives in homes while animals, especially the non-domestic ones, live in bushes or burrows.

    Man takes time to prepare for the home in which he will live, as it requires long-time planning. The most important aspect of the planning is the funds with which materials will be procured. Once the fund is available, he begins procurement of the necessary materials.

    However, the most significant material needed for the erection of the building is cement which is a binder, a substance that sets and hardens and can bind other materials together.

    Experts argue that the most important uses of cement are as a component in the production of mortar in masonry, and of concrete, a combination of cement and an aggregate to form a strong building material. There are numerous cement factories in Nigeria such as Dangote Cement in Benue State and Ikoyi, Falomo Lagos, Eastern Bulkcem Company, manufacturers of Eagle Cement, the Nigerian Cement Company Plc. (NIGERCEM) located in Nkalagu, Ebonyi State and Ibeto Cement Company Limited, among others.

    Despite that some of these companies produce enough cement for domestic consumption; the product seems to be out of the reach of the common man due to high price. The vital component for residential building is so costly so much so that its least price is N1, 000; going by the latest price slash by Dangote Cement Company.

    The situation results in the inability of the poor to procure cement for building purposes; thus making the under-privileged to live in ramshackle houses, with its appalling health implications.

    Those who could afford to rent decent apartments are paying through their nose as the rents are very expensive. To worsen the situation, most landlords demand payment of three years rent from their prospective tenants and subsequently request yearly payment on the anniversary of the previous rent. This usually creates problems for most low-income earners.

    This was the experience of Mr. Dada Olowolagba (pseudonym) at the anniversary of his previous rent. He had thought deeply how he will provide shelter for his family the following year if his rent expires.

    Having obtained the three-bedroom apartment he once occupied at a remote section of Ajebandele area of Ado-Ekiti, the Ekiti State capital in December, his landlord had insisted that he must pay the rent for the next year one month before the anniversary of the preceding rent.

    That year, he could not pay the rent. While still running from pillar to post in a bid to settle the rent that was already belated, he visited one of his friends for financial assistance. The visit literally removed the veil from his eyes as why he could not have a house of his own was revealed to him.

    His friend who lives in his own house narrated to him how he was able to end incessant worries and troubles from his former landlord; how he denied himself some pleasures in order to develop a piece of land he had abandoned.

    The tips seemed the fillip he needed. Olowolagba immediately deposited some money with a block moulding industry that supplied some blocks at his undeveloped plot of land in another part of Ado-Ekiti.

    His conclusion on the next line of action was instantaneous. He decided to build a three-bedroom apartment from the following year. He showed much commitment to  the project. He succeeded. The feat raised his status as a proud house owner.

    Investigation by our correspondent revealed that many are of the view that individual ownership of houses would be the panacea for the current situation in which the poor live in decrepit homes.

    For Apanisile Smart, a builder, having a house of one’s own makes one have a peace of mind and prevents such worries as recounted by Olowolagba, even as he said it doesn’t cost so much to erect a decent home.

    “It takes a combination of tact, focus, discipline, prudence and some measure of enlightenment,” Smart said.

    According to him, quite a number of those who languish in stress arising from lack of personal accommodation have not much excuses to give, given the option of mud or red bricks, the principal raw material for building houses which is readily available in all the communities. He also said it has a lot of advantages over cement.

    Smart, however, added that the tendency by a large section of the populace to dub both mud and red bricks traditional or archaic rather than modern structures is a major reason this important component for building is less popular and acceptable among the people.

    He said: “But those who, by any calculation, end up using the mud or red brick blocks soon find out they have landed on a gold mine, a type of building the value of which they may never be able to assess.

    “We are not saying cement is not good and that people should stop using it. What we are saying is, given the ever-rising cost of cement, it is time people began to seek alternatives which red bricks, the production of which has lately been improved upon, provide them.

    “Although my personal house was made of cement blocks, not using red bricks to build it when I did was a mistake.”

    However, he added, people still look down on those who use red bricks as not having sufficient money or living a life of yesteryear. “They feel those type of houses are inferior. How wrong”, he lamented.

     

    Mud or red brick as building option

    According to Smart, while mud bricks are the blocks made from raw and unprocessed mud dug up from the earth, red bricks are those that are processed through the removal of particles before compressing them into shapes.

    Explaining the processes which the mud undergoes before use, Mr  Smart said the old types are laid and chucked using a mixture of sand and cement, while the brick blocks are interlocking as they have been made into such shapes.

    “When some quantity of cement is added to the processed mud and compressed mechanically, the result is often more compacting, stronger, smoother and more attractive than the ones without cement. The latter is currently produced by a company in Ado-Ekiti,” Smart said.

    Continuing, he said: “One of the properties of mud blocks is their naturalness. It also has self compatibility. Stress wise, it bears weight better than concrete. This technically means that it has greater tensile strength than cement blocks. It also has the capacity of acting as bullet-proof because it has no hollow portion. It is cheaper, generates less heat and can be found anywhere and easy to work on.

    “The inside of structures built with red bricks is always cool, which suits a country like Nigeria where electricity supply is epileptic. You cannot experience heat while inside a room built with red bricks as experienced in a house built with cement blocks.”

    Corroborating Smart’s assertion, Mr. Oluwasola Ajayi, a bricklayer of 32 years experience, explained that the best material for building houses, given his experience, are mud blocks which he noted can equally be decorated to one’s taste.

    “There are some houses built with mud blocks that you can never know they are mud. If you get good bricklayer, the finish will be just as smooth as houses built with cement blocks. Most of the buildings around Okesa, Oke-Okeoriomi and other areas across the state capital were built over 60 years ago and they are still strong.

    “The only thing is if someone decides to use the mud blocks rather than red bricks, he has to calculate and ensure that sthe rain did not fall on it while the house is still being constructed. But those with the cement component can be built at anytime of the season. Rain or sunshine, the bricks remain solid and sturdy,” Mr. Ajayi said.

    Mr. Ayeni Stephen, who recently completed his mud bricks building, said the experience had been wonderful. Although he confirmed the perception of inferiority attached to the use of mud blocks in building houses, he admitted he would have preferred cement blocks to bricks blocks if he had sufficient capital.

    He said: “I must admit I decided to use mud blocks because I did not have much money. However, I have realised it would have been a mistake to over-stress myself sourcing money to buy cement blocks. The house is a great joy to me. I have been living there for over a year now. It is ever cool inside.”

    Dele Babatunde, another resident of Ado-Ekiti said: “It is easier to build a house than even buying a car. With just N10, 000, you can build a house. Look for a burrow pit where you can dig up mud, make your blocks there and then transport them down to your site. If you have 2,500 blocks, you will set a three bedroom flat conveniently.”

    Continuing, he said: “What remain for you are the roofing sheets. Palm tree logs or stems are also alternatives to plank woods. They are better than the common planks for use in roofing houses. In my area now, mud blocks are the in-thing. Let people seek knowledge. The Holy Bible says ‘my people perish for lack of knowledge.’”

     

    Are mud bricks easily available?

    While mud bricks are relatively scarce to find, especially in the urban areas, the cement-fortified red bricks are common and available. There is a company that specialised in the production of red bricks in commercial quantity.

    Findings, however, showed that as yet, mainly official establishments have accepted the innovation which the red bricks offer. Government-owned schools, hospitals and office blocks built with red bricks are springing up in the state capital. A few private individuals also use the bricks to design the front of their houses.

    On the red bricks not yet popular,  Mr. Jacob Ibikunle Olugbade, the proprietor of Jaco De-Quincy Industry which produces the blocks in commercial quantity explained that “any new innovation, however good and commendable, always takes time to win acceptance among the people. With time, I believe they will get to know the advantages of red bricks and begin to appreciate them better. If Ado-Ekiti were to be another Lagos, I know the experience would have been different.”

    He also said: “However good an idea is, people will examine it for sometime before accepting it. This is why the bricks, despite its strengths and the fact that it is the oldest type of material ever in use by man, our major patronage have been by government agencies.

    According to Olugbade, building three-bedroom flat with red bricks, costs between N500, 000 and N600, 000.

    “It is cheaper compared with cement blocks when you consider the fact that you don’t have to paint mud bricks houses as you would those of cement buildings which you often have to repeat after sometime.”

    Aside these advantages, people also need to know that the property is also movable as the blocks can be dismembered with ease and moved from one location to another for resetting. This is because the blocks are interlocking unlike cement blocks.

    “There are structures made of red bricks in Britain which had lasted over 400 years and are still standing strong. Even in situations of fire disaster, buildings made of red bricks don’t suffer cracks as those built with cement blocks,” Olugbade said.

     

    Need for government’s intervention

    As the federal and state governments struggle to make houses available for citizens, there is urgent need for their intervention in the area of popularising this cheap means of building houses, more so as the raw materials are locally sourced.

    However, Mr. Akeem Ajuwon appreciated the difficulty in accessing the old type bricks as one of the factors inhibiting its acceptability among the people.

    Ajuwon said: “If the raw material is readily available, people will use it. So many people want to use it but they cannot find it. People cannot dig holes, scoop red sand as in the olden days.

    “I know the mud bricks have been modernised now. We see it all over the places but my opinion is that they are still not common. If government is committed to crashing the prices of cement and support individuals to own their houses, they can do that by supporting the production of bricks blocks to make them available to the poor sat relatively cheaper cost,” he said.

    Lamenting the epileptic electricity supply, Olugbade noted that his company runs basically on diesel which he said has made the cost of running the business high.

    He said: “The prices of the red bricks can be brought down if electricity supply is enhanced. The company has been running on diesel-powered engines all the time, which heightens production costs.

    “I remain in business not because there is much encouragement or incentives but because there is a social responsibility attached. Those working there will lose their jobs if I close down the company. Support from government is very necessary.”