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Tag: Housing

  • ANT tasks Housing Minister on affordable housing for all

    ANT tasks Housing Minister on affordable housing for all

    The Association of Nigerian Tenants (ANT) has congratulated the newly appointed Minister of Housing, Prof. Ahmed Dangiwa while tasking him on the need to help achieve affordable housing for all.  

    The National President of ANT, Dr. Edward Olutoke, said housing is a critical area in the lives of Nigerians, particularly the poor and vulnerable.

    He emphasised the pivotal role that affordable housing plays in fostering economic stability, social inclusion, and overall national development.

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     “We commend the Minister’s foresight in recognising the importance of cooperative housing initiatives, which holds the potential to create sustainable and community-driven solutions. Such endeavour not only enhances the living conditions of residents but also contributes to the harmonious development of neighbourhoods and communities at large.”

    The release further stated that the association is ready to collaborate with the Ministry of Housing under Dangiwa’s leadership, offering insights, expertise, and support towards the realisation of a housing sector that is equitable, efficient, and responsive to the needs of the people.

    “As he embarks on this vital journey, we are confident that his wealth of experience and dedication will drive positive changes that will reverberate across the country. ANT assures the Minister of our unwavering commitment to promoting dialogue, fostering understanding, and advocating for policies that prioritise the well-being of tenants and homeowners alike.”

    The Association of Nigerian Tenants (ANTs) is a leading advocacy group dedicated to championing the rights and interests of tenants across Nigeria.

  • ‘Rent-to-own way to bridge housing gap’

    ‘Rent-to-own way to bridge housing gap’

    The housing gap in Nigeria keep widening yearly. Operators are looking at rent-to-own agreements to bridge the gap. Assistant Editor OKWY IROEGBU–CHIKEZIE writes that if the National Housing Fund (NHF) and the Federal Mortgage Bank of Nigeria (FMBN) live up to their billings, more Nigerians will become home owners.

    Operators in the housing sector have said the only way to bridge the about 28 million housing gap is rent-to-own. Rent-to-own (RTO) agreements include a standard lease agreement and also an option to buy the property later. They argue that advanced economies adopted this by having a virile mortgage system. 

     The dream of owning a property appears to be fading daily for millions of Nigerians, and this could be attributed to bad policies, high cost of building materials, inflation, lack of accessibility, and alarming interest rates from lenders.

     According to the Central Bank of Nigeria (CBN), home ownership is just about 10 per cent, compared to 72 per cent in the United States and 78 per cent in the United Kingdom. Due to the high cost of construction materials, the rise in land prices, poor infrastructure and the high cost of finance, owning a house has become more difficult for middle- and low-income households.

     The RTO scheme is a contractual agreement between a renter and a property owner. In this scheme, the tenant initially rents a property for a specified period, with the option to purchase upon lease expiration, though some other contracts may mandate purchase. During the rental period, the tenant pays a fixed rent, some of which is applied towards offsetting part of the purchase price of the property, if they decide to exercise their option to buy. The price is usually agreed upon in advance and may be based on the  market value or a predetermined figure.

    The scheme aims to give renters a pathway towards eventual home ownership. Each monthly instalment is shared between the rent and a fixed amount saved as part of the down payment for the house. The tenant/buyer can apply for another financing option – such as a mortgage – to pay the outstanding balance for the house. This is payment at the end of the lease period.

    An RTO agreement allows would-be home buyers to move into a house right away with several years to work on saving for a down payment before trying to get a mortgage.

    The RTO allows prospective buyers to lease a property with an option to buy. Its agreement is a deal in which you commit to renting a property for a specific period; with the option of buying it before the lease runs out as your tenancy is converted into a bulk sum and a greater percentage from the Federal Mortgage Bank of Nigeria (FMBN) if one is a contributor to the National Housing Fund (NHF).

    Contracts also establish the amount of monthly rent plus the extra amount the renter pays monthly. The additional amount is usually credited to the final purchase price, so it reduces the amount the buyer has to come up with when buying the home.The extra rent is non-refundable. It compensates the seller for agreeing not to sell the property to anyone else until the agreement with the renter ends.

    Contracts should also stipulate who is responsible for maintenance during the rental period.

    How does Rent-to-Own work?

    In their contract, the buyer and seller agree on the price to pay for the house. Regardless of the home’s value, the buyer can acquire it for that amount soon. To take into account anticipated gains in home values, RTO home prices frequently exceed market rates. The buyer benefits if the home’s value has increased more quickly than anticipated. The tenant may leave if the house’s value drops.

    Pros and cons of Rent-to-Own for buyers Pros

    Buy with bad credit: Buyers who can’t qualify for a home loan can start buying a house with a rent-to-own agreement. Over time, they can work on rebuilding their credit scores, and may be able to get a loan once it’s finally time to buy the house.

    Lock in a purchase price: In markets with increasing home prices, buyers can get an agreement to buy at a price now with the purchase taking place several years in the future.

    Test drive: Buyers can live in a home before committing to buy the property. They can learn about issues with the house, and any other problems before it’s too late.

    Move less: Buyers who are committed to a home and neighbourhood (but unable to buy) can get into a house they’ll eventually buy. This reduces the cost and inconvenience of moving after a few years.

    Build equity: Technically, renters do not build equity the same way homeowners do. However, payments can accumulate and provide a substantial sum to be put toward the home’s purchase.

     Disadvantages

     Forfeiting money: Something you need to know about rent-to-own agreements is that if you don’t buy the home, you lose the extra money you pay. Sellers may be tempted to make it difficult or unattractive for you to buy so they can pocket your investment.

    Slow progress: You might plan to improve your credit or increase your income so you’ll qualify for a loan when the option ends, but things might not work out as planned – you should know this about rent-to-own agreement before starting out.

    Less control: You don’t yet own the property, so you don’t have total control over it. Your landlord could stop making mortgage payments and lose the property through foreclosure, or you might not be in charge of decisions about major maintenance items. Likewise, your landlord could lose a judgment or quit paying property taxes and end up with liens on the property. The agreement should address these scenarios. The landlord isn’t allowed to sell while you have an option on the property, but legal battles are always a major headache and expense.

    Falling prices: Home prices might fall, and you might not be able to renegotiate a lower purchase price.Then you’re left with the option of forfeiting your option money or buying the house. If your lender won’t approve an oversized loan, you’ll need to bring extra money to closing for a down payment.

    Late payments hurt: Depending on your agreement, if you don’t pay rent on time, you may lose the right to purchase, along with all of your extra payments. In some cases, you keep your option, but your extra payment for the month is not counted, and won’t add to the amount you’ve accumulated for eventual purchase.

    Experts say RTO schemes are a viable option for eventual home ownership without the burden of a sizable lump payment. The scheme is not very well-known; however, it has been in operation for some years.

    Furthermore, the RTO programme comes with flexible and convenient payments that help the tenants plan their finances. It is an easier, long-term option for home ownership and less risky than traditional mortgages, as people are not locked into long-term deals.

    Rent payments also serve dual purpose of contributing towards ownership.

    It is true that majority of Nigerians are living below the $2-a-day poverty line and cannot afford decent housing. As of last November, the National Bureau of Statistics (NBS) reported that about 133 million Nigerians are poor. This accounts for nearly 63 per cent of the  population.

    A further four million Nigerians are purported to have fallen below the poverty line in the first half of 2023 (World Bank Nigeria Overview: March 2023). The poverty figures in Nigeria threaten to increase by 13 million or more Nigerians before 2025 if no interventions occur. The Statistics Bureau’s findings also show that 38.6 million Nigerians experience some level of housing poverty.

    Furthermore, rising interest rates instituted by the CBN affect housing as it hiked the interest rate from 11.5 per cent in April, last year to 18.5 per cent last month.

    The Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Madu Hamman, discussed how the CBN’s rising monetary policy rates have negatively impacted Nigerians’ access to real estate investments and mortgages.

    The FMBN Director made these remarks at a virtual forum with the theme “Navigating current challenges in the Nigerian mortgage market”. Rising interest rates have a ripple effect on the mortgage market. Mortgage rates are reported to have soared from a 20-24 per cent yearly range to 24-27 per cent. They also influence housing by raising the cost of construction with the climbing prices of raw materials.

    An example is the price of cement, which has risen from N3,500 in January, last year, to N5,400 last month. This makes Nigeria’s housing deficit tenuous, as many struggle to build their houses, hence, the usefulness of the RTO scheme.

    The government aims to provide affordable housing by piloting RTO schemes. This has been in operation and available to civil servants for decades at the federal and state levels. It has birthed the Federal Low-cost Housing Estates, and state Low-Cost Housing Estates, a few of which are situated in most major cities around the country.

     At the state level, an example of the RTO system is the Lagos State’s Home Ownership Mortgage Scheme (HOMS).The Federal Mortgage Bank of Nigeria (FBMN) has also propagated the scheme through the National Housing Fund (NHF).The scheme has also extended to the private sector, as some real estate developers have used it to market otherwise unaffordable homes. Notable real estate companies that have unveiled RTO programmes in the year include Mixta Africa and FirstHome Mortgage Brokers.

    At a recent interactive session with select reporters, a real estate expert and Managing Director, Legrande Properties Development Company Limited, Mr Jide Durojaiye, advised Nigerians to reach the FMBN to assist them to get about 90 per cent mortgage loan charged at a single digit interest to rent and own the housing units being provided by Legrande Properties Development Company Limited, at Ibeju Lekki, Lagos.

     He canvassed the need for the public to embrace the ‘rent-to-own’ housing policy to bridge the housing deficit and have value for themselves, which he said, has the model to meet their shelter needs.

    He lamented that the model was not used in Nigeria, and urged governments to provide an enabling environment to popularise it. He said the scheme was approved last December, adding that the policy makes the person to be the owner as well as an investor in the house.

    He said: “You don’t need to carry bulk money to pay for a place. You will have money for other things and have more years to pay. Rent-to-own is the solution to the housing problem and deficit. It gives you enough time to pay and it is making a tenant a homeowner. You have enough money to take care of your family. You are creating value out of the rent you are paying. Many people can fall for this before they retire. Now that the Naira is depreciating, we need to invest in real estate.’’

    He said the Naira weakness was killing the real estate business as prices of building materials keep going up, especially that of cement.

    The Legrande Properties Development Company Limited boss lamented that people are not aware or don’t have confidence in banks because there are a lot of resistance. He said though the FMBN disburses funds to the primary mortgage institution (PMI), the latter  fails to disburse to the people and that it was for this that the RTO was created to deal with subscribers.

    He said the model was making housing finance and home ownership easier in developed countries and would help to bridge housing gap.

    The realtor said Nigerians were under-utilising opportunities for mortgage finance offered by the FMBN. He said the RTO offered an opportunity for affordable mass housing.

    “As I am talking to you, they (FMBN) have money and people are not using them,” he said.

    He said Lagos State Government was partnering Legrade Properties Company in reconstructing the Jakande Estate, Ajah from two to eight storeys and building 11 estates called Alexandra Courts, Coastal City, Ibeju-Lekki. He urged the public to step out of the old style of building or acquiring houses to embrace the RTO by also falling back on  mortgage.

    He said the model was the most convenient way for people to own homes, with loans from mortgage institutions and pension funds.

    “Now, once you are a contributor to the Federal Mortgage Bank, you are qualified and will be charged one per cent interest, and the only collateral that the bank needs from the person is the deed from the developer. In the case of Alexandra Courts, the subscribers need to pay an initial deposit of 10 per cent which is N4.6 million from the cost of the house at N46 million while the bank pays the rest,” he said.

  • Improving access to affordable housing

    Improving access to affordable housing

    Sir: Shelter is one of the basic needs of man, and the idea of affordable housing to cater to this need is both practical and viable. According to the United Nations Human Settlements Programme (UN–Habitat), 30 per cent of the world’s urban population resides in slums, with deplorable conditions, where people suffer from several deficiencies, including lack of access to improved water, absence of sewage facilities, living in overcrowded conditions, and in buildings that are structurally unsound. There are conflicting figures about Nigeria’s housing deficit, but experts often quote between 17 and 21 million.

    Affordable housing refers to housing that addresses the needs of the low-income earners in the society. This is the section of the society whose income is below the medium household earnings, and the majority of masses of Nigeria belong to this category. 

    With over 170 million people, Nigeria, the most populous country in black Africa, has a population of over 70 million low-income people. Currently the minimum wage for the Nigerian worker is N30,000, while the disposable income of majority of the fresh graduates is less than N60, 000 per month.

    Affordable housing has remained elusive to the average Nigerian, in spite of numerous programmes to tackle affordable housing challenges in the country. The low and middle income earners especially are the most affected by this. Due to affordability, they live in densely populated or informal ‘slum’ areas. The high income earners, one per cent of the population, occupy a small percentage of the housing stock. Therefore, the majority of newly built homes in city centres are left unoccupied. Thus, the problem of affordable housing remains a critical issue in the socio-economic wellbeing of Nigeria.

    For example, in Lagos State, the price tags placed on the units of the Lagos HOMS Project cannot be classified as being for low-income earners, like those who earn the minimum wage of N30,000 monthly, especially when considered from the United Nations standpoint, where an adult is not expected to spend more than 30 per cent of his/her income on housing (by international standards a house should not cost more than three times the occupiers’ annual income.)

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    Let us even take for example someone who is earning N150, 000 per month. When he subtracts 30 per cent of his present accommodation need, subtracts expenses on other needs, including school fees and feeding, what would be left that would serve as disposable income that he can put into a housing programme? So, first and foremost, he cannot even afford a 30 per cent down payment from his salary. Thus it becomes a burden and one begins to wonder how long it would take to own a house in Lagos.

    Some steps to alleviating the problems of affordable housing delivery include concentrating on ways to provide the enabling environment for mass housing production. Basic building materials should be given tax and duty relief and government could develop incentives to encourage both the public and private sectors to use indigenous building materials. Other strategies may include granting tax holidays to developers and providing free land to them to reduce the cost of producing houses.

    Sites and service plots could be provided to private sectors, housing cooperatives, Real Estate Developers Association of Nigeria (REDAN) and individuals. Plots could be allocated at different rates per square metre for different uses. The low-income earners should have the lowest rate with the size of each plot not more than 150 square metres. The basis of allocation should strictly be one man one plot, members of (REDAN) should be encouraged and motivated with tax incentives, subsidised building materials and discounted rate per square metre.

    Plots allocated for affordable housing schemes must not be fraudulently used for medium or high income housing projects. There should be sanctions and strict penalties for violation of terms and conditions stipulated on the letter of allocation.

    For successful implementation of this scheme, it is imperative to study and assess the actual housing needs of the low income earners. It should be known that before low-income earners can afford to buy or rent houses the price or rent must be low or subsidised by the government.

    It is when housing units that artisans can afford are provided that the people can say that there is affordable housing for the common man! If that can be achieved, then low-income earners will be happy that they have some housing units targeted at them.

    •Daniel Ighakpe,

    FESTAC Town, Lagos.

  • Expert seeks priority for housing

    An expert in the built environment sector, Kola Akomolede, a surveyor, has said the country does not need a Works ministry. He regretted that housing has not been given the attention it needs because it has always been merged with other ministries, such as Works and Power, with attendant corruption.

    Speaking with The Nation in Lagos, Akomolede observed that, in the last four years, the ministry has been merged with two others. Housing suffered same fate in the last administration but for the commitment of ex-Minister Babatunde Fashola.  He said he could have done better  if he was allowed to handle the housing ministry alone.

    Akomolede said: “Anytime you merge the housing ministry with others, proper attention is not usually given to housing issues.  Before now, it was only President Shehu  Shagari who gave attention to the housing ministry, he went ahead to build  houses in the states of the federation, though people criticized the quality of the houses, it offered accommodation to the majority of the civil servants. He had food and shelter as his two-point agenda and that was commendable.

    “Against that in the late President Umaru Yar’Adua’s seven-point agenda, there was no Ministry of Lands and Housing,  he didn’t think housing was important but there was Works ministry which, like in other administrations, was used to siphon money, where huge contracts were awarded for political patronage.

    ‘’As a professional, l would like to see a separate Ministry of Housing where attention would focus on houses solely without  a divided interest. My argument is that there should be nothing like Ministry of Works.

    ‘’The only work the Ministry of Works seems to be doing is mainly the construction of roads and the building of houses. We canvass that the ministry of houses should be allowed to build houses while the ministry of transportation construct roads and ministry of education construct their school.  If this is adhered to, there will be need to have a separate Ministry for Works with the exclusive right to construct roads, houses, schools and hospitals,” Akomolafe said.

    He called on President Muhammadu Buhari to separate housing from other ministries to make housing effective for the public.

    He noted that housing is the most important  factor after food. If not, why do politicians buy up houses everywhere but fail to come up with viable policies to provide  mass housing. There is this theory that the colonial master thought housing was not important to Africans, they  created  the Government Reserved Areas (GRAs) where they  accommodated their senior members of staff who were mostly white  with a boys quarter for the blacks serving them, added.

    On Lagos-Badagry Expressway, Akomolede advised the Federal and Lagos State governments to complete the road as it is the gateway to the nation’s economic potential. He wondered how much the nation would have lost by the neglect of the  road. He criticised the idea of a particular administration abandoning the projects of previous governments even when the project is in the best interest of the public.

  • Housing: Stakeholders push for new law

    The Attorney-General of the Federation (AGF) Minister of Justice, Abubakar Malami (SAN), has said over N60 trillion is required to address the country’s 17 million housing deficit.

    Malami disclosed this in his keynote address at the just-concluded workshop on the Model Mortgage and Foreclosure Draft Bill, at the Rockview Hotel Royale, Abuja.

    The theme of the workshop was: “Creating an enabling environment for the growth of the housing and mortgage Sector: The need for land and law reform”.

    Malami, represented by Mr. Biodun Aikhomu at the three-day workshop, further said more than 80 per cent of the nation’s population lived in informal housing arrangements.

    According to him, the constraints to housing sector development   included the difficulty in securing governor’s consent; poverty and affordability gap; slow adjudication and bureaucratic processes involved in housing registration and perfection of title. He, therefore, advocated reforms that would foster short, medium and long term solutions to these challenges.

    The AGF said the provision of housing is one of the objectives of the Economic Growth and Recovery Plan (EGRP) instituted by the Federal Government. He said the Nigeria Housing Finance Programme, which is being co-ordinated by the Central Bank of Nigeria (CBN) and supported by the World Bank, is playing key role in the scheme.

    With this submission, Malami set the tone for various paper presentations, culminating in the issuance of a communique by participants.

    It was, therefore, instructive when stakeholders at the end of the workshop spoke with one voice on their position regarding the Model Mortgage and Foreclosure Draft Bill. One of this was the call for each state  to draw a road map for the passage and implementation of the Model Mortgage and Foreclosure Law (MMFL).

    In doing this, the states are to bear in mind the three pillars of the model – regulatory framework; collateral registry and education and public awareness. This process, they argued, should be fast-tracked as soon as possible to avoid the distraction of electioneering process that may arise later in the year. This position formed the fulcrum of the communique issued at the end of the deliberation.

    As part of the communique, participants were unanimous that there was need for the existence of the  political will across all tiers and levels of government, to pass the “Model law” as well as address other land administration challenges in the housing and mortgage sector.

    It further noted that there is need for governors to take ownership of the process of passage and implementation of the MMFL; noting also that there is need for increased collaboration among stakeholders (executive; legislature; judiciary; operators and regulators) for effective policy formulation and legislation to engender housing and mortgage reform.

    Other recommendations include the passage of the MMFL and resolution of other land administrative issues to be escalated to influential fora such as the National Economic Council; Nigeria Governors’ Forum and the Attorney Generals’ Forum. It also stressed the need to automate land registries and land titling processes in all states for better co-ordination of activities and information sharing in the industry; need for interface between the Land Registry and Mortgage Registry in states where these registries are separate; need for state governments to see discounts/reduction of statutory fees and rates as incentives to increase internally generated revenue (IGR) as well as broaden the revenue collection base of the state, thus making the MMFL an incentive to the states.

    It was further submitted that there is need to consider the financial implication of the legal framework being proposed by the MMFL and the possibility of adopting existing structures to minimise cost and serve as an incentive, rather than a dis-incentive to the passage of the law; need to address potential conflict of interest between the proposed state Mortgage Board and the existing Land Registry/Authority.

    It stressed the need for operators to be realistic in their projections/models in determining the types of houses built in states and fixing unit prices of such houses to suit the various states and income/salary scale of housing beneficiaries and mortgage schemes, bearing in mind the housing/mortgage policy that not more than 33 per cent of a beneficiary’s income should be used to service a housing loan/mortgage; need to simplify and modify mortgage creation to meet modern trends and exigencies of the housing and mortgage industry.

    Others include the need to expedite the process for obtaining governor’s consent (by delegating the authority to more than one person) in respect of secured transactions or reassess/streamline the process to eliminate the delay in obtaining such consent so that transactions involving real property would be easier and more seamless; and also the need for states to provide the necessary infrastructure and social amenities (i.e. motorable roads; electricity supply; pipe borne water etc.) to make housing estates attractive to Investors; developers and potential homeowners.

  • Ibeto, US firm merge to stimulate cement, housing needs

    The recent acquisition of 70 per cent equity in an American firm by Nigeria’s Ibeto Cement Company has been described as a remarkable feat. This is not only because it represents the first transaction to be executed on a reverse merger basis, but for its import on the local and African economy, reports, MUYIWA LUCAS.

    Ibeto Cement Company Managing Director, Cletus Ibeto, by nature, is a self-effacing man. But owing to the new vista of business empire he has to oversee, he may have to shout himself to the roof top. And he has every reason to.

    The firm, recently acquired 70 per cent majority equity in Century Petroleum Corporation, a US publicly traded petroleum exploration and production company. This acquisition has made the Nigerian firm the controlling partner in the merger, thus throwing up Ibeto as the Chairman, Board of Directors of the new merger.

    For stakeholders in the industry, the pattern of the merger- a reverse merger option, is unique. This is because reverse mergers are not very popular approaches. Wikipedia describes such mergers as “the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. The transaction typically requires re-organisation of capitalisation of the acquiring company”.

    Speaking on the development, an obviously delighted Ibeto said: “This is in line with our collective dream to place Nigeria in its rightful place in the comity of nations. It is strong testament to the abounding potentials in today’s global village and economy.” He lauded stakeholders in the historic merger, saying it will improve the level of actualisation of the huge cement business opportunities around Africa.

    The merger of Ibeto Cement and Century Petroleum bestrode two key sectors of the economy: cement and petroleum.  While it is popular knowledge that the latter remains at the core of our national economy, cement is also a key indicator of any economy. Stakeholders are convinced that housing sufficiency or its lack, therefore, is directly proportional to its level of economic development, especially in relation to cement.

    A report by Morgan Stanley, a US multi-national financial services firm states that: “Cement consumption per capita tends to rise initially with rising gross domestic product (GDP) per capita, but then falls as countries mature economically.”

    It is worthy of note that Nigeria’s construction industry/sector is only 3.2 per cent of the GDP. This may be related to a World Bank statistics, which has it that 60 per cent of Nigeria’s estimated population of over 180 million is caught in the trap of homelessness.

    In the continent’s cement industry, African nations are currently at the low end of cement consumption relative to other emerging economies. With growing populations, it is predicted that cement consumption in Sub-Saharan Africa will grow by an average of between seven and 10 per cent year- on- year over the next two decades. Yet, Nigeria and Senegal are the only two countries in West African sub region that are blessed with limestone deposits in commercial quantities. This makes the cement industry a major development contributor not only in local housing needs, but as a major foreign exchange earner.

    Ibeto praised Federal Government’s initiative, noting that government’s national Backward Integration Policy (BIP) on cement and the call to increase its local production spurred Ibeto’s  acquisition of Nigeria Cement Company Limited (Nigercem), located in Nkalagu, Ebonyi State. He said the strategic acquisition of Nigercem was aimed at expediting Ibeto Cement’s local production  by resuscitating the Nigercem plant and developing the project as a brand new dry process plant. The company is also developing another 6,000 Metric Tons Per Day (TPD) Cement plant at Cross River and Abia states.

    Ibeto also has an ultra-modern bagging plant in Port Harcourt, where it began operations in 2005, with a flat-storage capacity of 50,000 metric tons and a production capacity of 1,500,000 metric tons per annum, which translates to a production capacity of 4,000+ metric tons per day. It has two (2) production lines, each with a capacity of 2, 700 of 50kg bags per hour or designed total production capacity of 5, 400 of 50kg bags per hour. An integral part of this plant facility is a modern purpose-built jetty (Ibeto jetty), which can accomodate ships of 190+ metres long with sophisticated and state-of-the-art ship unloaders, mounted at the waterfront on the jetty to facilitate discharge of bulk cement from offshore/foreign mother vessels.

  • N10b housing estate for Abuja

    The race to reduce housing deficit in the country has taken a leap, following the inauguration of a 249 housing units estate, valued at about N10 billion in Abuja.

    The estate, known as ASO Garden Estate, stakeholders in the built environment said, was a reflection of what having a virile mortgage system in the country can offer.

    The project, The Nation gathered, was conceived and financed by ASO Savings and Loans and developed by Global High Property Development Limited. It is expected to raise the bar in housing projects delivery and also for mortgage institutions’ participation in housing development across the country.

    Indeed, for a country that is faced with a monumental housing shortage which has rendered millions of the citizens without homes or decent accommodation, it was a delight for the crowd that gathered to witness the inauguration of the first phase of the estate project.

    The ASO Gardens Estate comprises of 249 housing units. A breakdown of the units further revealed that it is made up of 129 units of  2-bedroom apartments; 117 units of 3-bedroom apartments and three units of 4-bedroom terrace houses. This brings the total construction cost of the estate to N10 billion.

    Located in the Karsana East District, which is part of Abuja Phase IV, the ASO Garden Estate is a serene community of exquisite homes on a 27 hectare site, just after Gwarinpa, along the Kubwa Express Road, precisely beside the Papal Ground. The estate will be developed in phases. To provide the ultimate lifestyle experience, the estate is in a serene environment and displays high quality infrastructures, recreational area and civic facilities.

    The Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Ahmed Dangiwa, who led dignitaries on a tour of the estate commended the Board, Management and Staff of ASO Savings and Loans Plc for “successfully completing a project of this magnitude in spite of the challenging economic environment.”

    Describing the ASO Gardens Estate project as a landmark achievement, especially in the country’s difficult journey toward addressing her housing shortage, Dangiwa expressed conviction that the project will go a long way in ameliorating the housing needs of people desiring to have their own homes in Abuja.

    “I therefore want to specially commend and congratulate ASO Savings and Loans Plc., and its partner on this project, because they are the financiers and mortgage provider. We are happy that these institutions are complementing the efforts of Federal Mortgage Bank of Nigeria and other agencies doing all within their capabilities to advance the cause of home-ownership for Nigerians of all classes,” he noted.

    The Chairman, Board of Directors of ASO Savings and Loans Plc, Ali Magashi said: “For those of you stakeholders, you know what a tough economic operating environment it has been for primary mortgage banks in Nigeria, as such, the delivery of the estate is no small feat for ASO.

    In similar vein, the Executive Director, Corporate Services, ASO Savings & Loans Plc, Risikatu Ahmed, said the successful completion of the project is a further testimony to ASO Savings’ vision to be the mortgage bank of choice in Nigeria in terms of client service and housing provision for the citizens.

    “The successful completion of this project in spite of the daunting challenges due to the difficult operating environment attests to the doggedness of our management team and our   never say fail spirit no matter how intimidating the odds are. We are determined to continue to surpass the expectations of our stake-holders,” she said.

  • Osun Federal Housing project 70 percent completed

    The Federal Government National Housing Programme situated in Abere, Osun State has reached 70 per cent completion, Deputy Director, Architecture, Federal Ministry of Power, Works and Housing (FMPWH), Mrs. Lola Onwubalili has said.

    She disclosed this during an inspection visit to the project site at the weekend in Oshogbo.

    The Ministry official said the project has immensely benefitted the public including artisans, bricklayers, contractors, food vendors and ultimately meant to help address the housing deficit in the country.

    She said 16 units have been practically completed while the infrastructure such as water, power and road is 90 per cent ready.

    Onwubalili, who is the project Team Leader in the state, revealed that the housing project consisted 68 units of flats with two blocks of two-bedroom and two blocks of three-bedroom semi-detached bungalows including a condominium.

    The condominium block which is still under construction has 24 housing units in all, consisting four units of one-bedroom, 16 two-bedroom and four three-bedroom.

    According to her, 12 contractors were involved in the project, adding that they locally sourced their building materials and engaged about 360 direct employees aside from other indirect jobs.

    “Osun State project is one of the five on-going sites in the south-west and we are proud to say it is the best in terms of progress of work.

    “The programme has provided jobs not only for contractors and building professionals but scores of skilled artisans and hundreds of unskilled labourers,”  she said.

    In his remarks, FMPWH Federal Controller, Mr. Kolawole Kukoyi, said the National Housing Programme (NHP) situated in Ede North Local Government is an opportunity to provide affordable housing for the people.

    Though, he explained that the Federal Government was yet to develop the modalities for allocation but gave assurance over the masses interest.

    Mrs. Adewuyi Modinat, sand supplier and Mrs. Titilayo Ayanlola, food vendor lauded government for creating jobs through the initiative and further called for quick commencement of the phase two of the project.

    Meanwhile, in Kwara State, Team Leader, Kunle Shonibare said the state NHP has 38 blocks consisting 76 units of flats executed by 19 contractors.

    He explained that the project which has reached 60 per percent completion will be completed before December,  2018.

    The Kwara State Association of Suppliers said 34 of their members benefitted from the scheme by supplying all materials needed for the project.

    The Permanent Secretary, Kwara State Ministry of Housing and Urban Development, Engr. Abdulganiyu Mustapha pledged to provide additional land for second phase of the project.

    He lauded the federal government for the initiative stressing that it should be replicated in other constituencies in the state.

    He emphasised need for synergy to understand peculiarity of the state in delivering impactful project.

    The programme kicked off in 33 states of the Federation and the Federal Capital Territory between January and February, 2017 with the aim of delivering over 2700 housing units, engaging 653 contractors and providing jobs for over 54, 000 people.

  • Lagos NUJ ’ll look into report of N1.6b housing scheme, says chairman

    Lagos NUJ ’ll look into report of N1.6b housing scheme, says chairman

    Lagos Council of Nigerian Union of Journalists (NUJ) Chairman Dr. Qasim Akinreti has assured members that the report of an investigation committee on N1.6 billion housing scheme initiated by the National Association of Women Journalists (NAWOJ) will not be swept under the carpet.

    Akinreti said the report will be deliberated on by the state NUJ Executive Council before it will be presented to the State Congress on March 10, for further discussion.

    After four months of investigation into the housing scheme initiated by NAWOJ, in partnership with the Lagos Council of NUJ, a committee set up to investigate the controversies generated by project submitted its findings last Friday.

    Receiving the 26-page report at the Lagos NUJ Council Secretariat on Iyalla Street, Ikeja, Akinreti said he was satisfied with the committee members for helping him to achieve one of his election promises, which he noted, has remained a source of concern to subscribers.

    In the report, the committee recommended outright cancellation of the Memorandum of Understanding (MoU) signed by the project’s initiator and NAWOJ President, Mrs. Ify Omowole, former Chairman of Lagos NUJ Council, Mr. Deji Elumoye and the developer, Messers Primewaterview Holdings Limited.

    In arriving at the decision, the committee noted that the contents of the MoU were skewed much in favour of the developer.

    For instance, the developer, based on the MoU, was to take 300 units of houses in the scheme to defray its cost of infrastructural development in the project. The MoU did not state the cost of infrastructure to be built.

    Besides, the firm had spent N21 million of the N73 million it collected from NAWOJ/NUJ on “road stabilisation,” which to the committee, was wrong since it was part of infrastructure development to be paid for with the 300 housing units.

    “The developer has shown gross lack of commitment and diligent execution on the project.  A letter should be sent to the developer terminating the MoU and the project in its entirety. A Quantity Surveyor should be engaged to assess the value of work done by the developer on site. Where the assessment by the quantity surveyor falls short of expenditure submitted by the developer, Messers Primewaterview Holdings Limited should be made to refund the difference.  In the event of failure to comply, the developer should be reported to the Economic and Financial Crimes Commission (EFCC) to help recover the money,” the report read.

    Besides, the report condemned Mrs. Omowole for her decision to withdraw subscribers’ $227,000 unilaterally. According to the committee’s report, Mrs. Omowole’s explanation for such withdrawal was unacceptable.

    “Omowole’s excuse for the withdrawal of the US$227, 000 because of the falling exchange rate and also to pay the developer (Primewaterview Holdings Limited) the advance of subscribers’ counterpart funding is unacceptable because as at the time of withdrawal of the money, there was no signed Memorandum of Understanding (MoU) between NUJ/NAWOJ Pen Jewel Estate and Primewaterview Holdings Limited as developer. The $227,000 was withdrawn four clear months before the signing of the MoU; hence no need to pay counterpart funding at that time.

    “Also, the excuse that the U.S. dollar was losing value at that time is unacceptable as the Nigerian naira further crashed as at the time of signing the MoU,” the committee noted in its report.

    Mrs. Omowole, the committee said, must pay back N159 per dollar, amounting to about N4.3 million, being the balance of the expired $27,610 purported to have been exchanged for N150. This amount was arrived at using the N309 exchange rate figure earlier agreed on. She was also urged to provide evidence of remittance of the earlier N4 million from this money to the NAWOJ Pen Jewel estate account.

    The NAWOJ President, the committee submitted, must refund the N779,000 collected from subscribers in form of application form fees. Although 713 subscribers were captured on the application list, 779 people actually bought the application form for the PEN-JEWEL project at N1000 each.

    The report did not spared Elumoye, who the investigation committee said must refund N4 million being the excess on the alleged N10 million he claimed to have paid to the traditional land owners, “Omoniles,” after findings revealed only N6 million was paid.

    Elumoye, the report added, is also to refund the N2 million he claimed to have paid for the extra land he bought on behalf of the Lagos NUJ Council in Mowe since he was unable to provide evidence of purchase of same.

    The report advised that “any land allocated to subscribers between 2013 and 2017 must be revoked outright.

  • Ministry warns communities against erecting bumps on highways

    Ministry warns communities against erecting bumps on highways

    The Federal Ministry of Works, Power and Housing on Tuesday warned communities located near federal highways in Nasarawa State against erecting bumps without approval.

    The Federal Controller, Ministry of Works, Power and Housing in Nasarawa State, Mr Wasiu Adetayo, gave the warning in an interview with the News Agency of Nigeria (NAN) in Lafia.

    “Normally, for you to fix bumps on a federal highway, you need to take permission. We always reject such request because it is not done.

    “They will come with various excuses such as vehicles killed their people and so on, but by the time you fix such bumps, it is no more express.

    “That is not to say I am exonerating drivers who speed recklessly but the fact remains that we don’t allow speed bumps.

    Read Also: Ministry strengthens fight against child labour

    “So, what they do is to wake up one morning and fix bumps without permission and the bumps they fix cause more accidents which they are trying to prevent,’’ Adetayo said.

    He said it was strange that most of the communities were erecting bumps without the knowledge or approval of their traditional rulers and preventing their demolition aggressively.

    “It got to a stage that the controller cannot just go out and say he wants to demolish illegal bumps. They will attack him.

    “So, we now propose to the headquarters that we have to use uniformed men to assist us because eventually it will get to a stage where we will go out and demolish these bumps.

    “We also discovered that to approach this issue, we need to carry the traditional rulers along,” the federal controller said.

    NAN