Encourage local sourcing of building materials –Experts urge FG

In order to increase Nigeria’s gross domestic product and reduce the cost of owning a house in the country, some experts in the built industry have advocated a government white paper that will encourage sourcing of building materials locally.

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According Mr. Aralu Okeke, the bane of building construction in the country is the government inability to encourage the manufacture and consumption of Nigeria made building materials. He said that because most government officials have the wherewithal to afford foreign building materials, they don’t care what the poor people suffer to get their own houses.

“The failure of the Federal Government of Nigeria to encourage local content in the country’s construction industry is slowing its growth. The industry, which is a major employer of labour, has been in slow growth due to a combination of factors which the local operators blame mainly on the domination of the industry by foreign firms,”he said.

Another respondent on the issue of local building materials, Mrs. Bimpe Lawumi said that Nigeria can make the best of laws but they don’t know how to implement the laws. This she said always creates vacuum in the supervision channels. The factors that militate against the growth of industry in the country makes Nigeria a dumping ground for all half baked materials.

“These factors also include but not limited to power factor, policy factor and phobic for local goods. Government of Nigeria should in the first place encourage local content as a way of creating jobs to the teeming unemployed youths. If government policies are friendly to all these, then the drive to increase urbanization would have gotten a positive facelift but the reverse has always been the case.

“Despite the lackluster attitudes of government, the rate of urbanization in Nigeria has continued to witness tremendous increase in the last five decades. Census in the early Fifties showed that there were about 56 cities in the country and about 10.6 percent of the total population lived in these cities,”she noted.

This, she said, rose dramatically to 19.1 percent in 1963 and 24.5 percent in 1985. Today, the national population is estimated to be about 197.4 million with the urban population constituting about 60 percent. “The phenomenal rise in population, number and size of our cities over the past few years have manifested in the acute shortage of dwelling units which resulted in overcrowding, high rents, poor urban living conditions, and low infrastructure services and indeed high crime rates.

“These are indicators that there is huge market in the country and that if consumers’ needs are met, the country will be exporting like China. But this is not to be because the taste for the indigenes are not within the country but for things manufactured exotically. This problems are not only in the building materials but also in the sectors especially in the automobile industry,” she concluded.

How land speculators swindle Abuja residents

Land in the Federal Capital Territory (FCT), especially in the Abuja Municipal Area Council (AMAC), is not only the choicest assets in the country, it is the costliest and most contested by the most powerful and most influential members of society.

While it is highly contestable, it is equally fraught with swindlers and scammers who scamper restlessly in search of who to defraud.

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Oftentimes, residents fall prey to these illegal activities and they are fleeced of their money. Although, the tricksters do not rob with dangerous weapons, most victims have died because of their activities. In view of the preponderance of land scammers in FCT, as property lawyers are feeding fat from the numerous cases in court.

According to a property lawyer and the National Co-ordinator of Peoples Rights and Justice—a human rights organisation, Mr Victor Giwa, before any buyer embarks on any land business, the first thing is to get experts. The first expert, he said, is a good lawyer, a property lawyer; the second expert is a surveyor and the third step is to take the document to the relevant agency that issued the document.

“You need to be careful. You need to be very careful. If anybody wants to buy land or any property in Abuja, the first thing is to get experts. The first expert you need is a good lawyer, a property lawyer. Not any lawyer. Some people run into problem because of what was involved in their property transaction. You should ask the lawyer if he has experience in property land transaction—-land business. You must also get some other experts like the land surveyor. But if you get a lawyer he will help you to put all these together. Then you ask for the title. The lawyer will conduct what we call ‘search’ with the necessary agency. The lawyer will tell you the way and manner you should go into the purchase of the sales of the property. It is very key that you involve an experienced and professional lawyer when you are going to enter into any land or property transaction” he said, citing cases of deaths as a result of land scammers.

“So, we have seen a lot of issues. I have seen a lot of families frustrated because of land transaction. He (victim) went to buy an AMAC land, sold to it to a person. When the person went to AMAC he discovered that the title he had was fake. As I speak to you now the family is scattered. These are the effects of fraudulent transactions as regards property. That is why we have concentrated so much on property. So, in a nutshell we have had more than 18 cases of fraudulent transactions” he disclosed.

Giwa told the story of a retiree who invested all his money in a property but discovered later that the property belonged to a catholic church. He collapsed, he said, and died before his case could commence in the court.

“A man retired some years ago. He was paid his pension allowance and all of that. He saw a good property at Garki and bought it not knowing that it belonged to a catholic church. The man was disappointed because of lack of due diligence on the land before he bought” he said.

Disclosing why he went into the business of helping those that have been defrauded of their land, he said: “Our organisation (a Non-Governmental rganisation) started with property issues because everybody who lives in Abuja is either a landlord or a tenant. And everybody lives on a property. So, it is very important that you know, especially, property in Abuja, what exactly is going on and how you are going to react on your property. So, we discovered that we are getting a lot of complaints from two major areas. One, on property and two, on transactions. So, 70 per cent of the complaints we are getting even from the courts, are from property. So, we felt that there was a need for us to concentrate on issues of property. And we also discovered that a lot of the residents of FCT are victims of frauds regarding property. Either fraud in the sense that you are buying the property or you are buying a fraudulent title or you are being defrauded as the seller. So, we started now as an NGO to concentrate on fraud in property in FCT. So, about 90 per cent of the cases so far that have been reported to the Commissioner of Police. We work with Commissioner of Police. We work with Department of State Security (DSS) and almost all the security organizations” he submitted.

A victim of land scammers, Mr Adenrenle Olubusi who bought a parcel of land from AMAC at Guzape in Abuja, said that early this year when he went to inspect the land with a view to developing it, he discovered that another man was already clearing his land. When he went to AMAC, he was told that it was a case of double allocation, which means, one of the owners should be reallocated. But the two owners did not want to give up to the another.

“When I bought my land in 2013, I conducted every due diligence and discovered it was real. But early this year when I went to develop it I saw some people clearing it. So, I contacted my lawyer who put a ‘caveat emptor’ notice on the land and invited the supposed owner for explanation” he said.

A man, Mr Okofor Afonjo whose land is also at Lokogoma lamented that after buying his land he went for study leave abroad. When he came back, he discovered that a gigantic mansion has been erected on his land.

“I bought three plots of land at Lokogoma in 2010. The title of the document was certified real by the appropriate authorities before I proceeded on leave. But after my study leave I discovered that a man is now operating a school on the land” the matter is now in court” he said.

By Isaac Anumihe

Short let rentals profit plunges as liquidity crisis deepens

Rents are falling faster in short let residential property markets, creating a “draconian dilemma” for investors that sought an escape route to high vacancy rates, following a massive over-supply of apartments in the nation’s major cities.

The phenomenon, which was not new in the real estate business, is touted to be a more cost- effective and convenient solution to the high vacancy rates conundrum.

For instance, residential vacancy rate in Lagos is put at about 33 per cent, 28 per cent in Abuja and 13 per cent in Port Harcourt.

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Although, it was not known in Nigeria few years ago, short let apartment was accepted that even landlords saw the concept as an easier way to recoup investment on property.

It opened up a potentially lucrative market as they can command around 30 per cent higher rates than long-term rentals. Short lets also offer greater flexibility to extend tenancy contracts weekly or monthly at the landlord’s discretion.
Short lets also give customers opportunity to stay in a private property that offer a more personal and comfortable experience than a serviced apartment or hotel.

The phenomenon also increased and assumed popularity with about 30 per cent increase in letting. However, that popularity and profitability, which short let rental business previous enjoyed is waning because of what experts attributed to continuous negative growth in the real estate sector as a result of liquidity issues.

Recently, the economic crunch has badly hit the short let apartment business; hence the prospect is now nose-diving. Consequently, operators are not recording expected turnovers, as they should, thereby reducing their profits.

For instance, investigation by The Guardian showed that a one-bedroom in Shonibare Estate, who previous goes between N35, 000 to N40, 000 per day has come down to N30, 000, while two-bedroom apartment came down from N50, 000 to N45, 000.

The same goes for three-bedroom apartment for N65, 000 from N75, 000 per day.

In Ikeja GRA, a three bedroom, which formally goes for $150 per day is between $100 to $120, while a three bedroom in Victoria Island, who goes for N2 million per month, is charged from N1.5 million and N100, 000 per day from the initial N200, 000.

Likewise, a luxuriously furnished and serviced three-bedroom penthouse with all rooms en-suite located at Maryland, Ikeja, Lagos, which formally goes for N90, 000.00 per day has been reduced to between N80, 000.00 and N85, 000.00.

Also a fully furnished super luxury two-bedroom short-let apartment now goes for about N45, 000 in Maitama, Abuja.

Similarly, in Lekki Phase I and 1004 estates, the price of a moderate three bed room flat on short – let goes between N100, 000 to N40, 000.

Speaking on this trend, the Group Managing Director and Chief Executive Officer of Luxury Villas Group, operators of “Apartment 13-13”, located at Admiral Way, Lekki Phase 1, Lagos, Mr. Tommy Odama, attributed the situation to the challenging economic situation that affected business generally in Nigeria.

According to him, it is understandable because short let patronage is a function of influx of foreigners and non-foreigners migrating from countries and other states largely outside the country and this only happens with a booming economy.

“Unfortunately, we all know the state of our economy”, he added.
An operator of a short let apartment in Maryland, identified simply as sola said he is considering closing shop because of the downturns in business.

According to him, the initial influx of expatriates into Nigeria for one form of business or the other has reduced, hence patronage has reduced apart from the Yahoo guys, who often come around.

Also, the operator of Haute Apart, Ikeja, Mr. Oluwafemi Ebenezer said the economic impact is relative as those with strategic position are still recording patronage despite the economic crunch in Nigeria.

According to him, clients, who normally come from outside the country prefer to stay where they can get all the amenities like mall, cinema and nightclubs.
He disclosed that in a short-let apartment, clients have the three-bedroom, four-bedroom all with the same facilities like internet, swimming pool, gym, exquisitely furnished kitchen and other facilities with that of the hotel but the difference is that it is a ‘home away from home’ where the client enjoys unlimited privacy and fully furnished apartment without having to go through the hassle of buying furniture or any form of household materials.

Ebenezer explained that most of clients are expatriates who have similar short-let business in their country and book online with the operators in Nigeria.
In addition, he disclosed that government officials in the country also patronise the business when they have important functions to attend in area where there are short-let operators.

He also stressed that operators whose clients come from corporate may be the worse hit as their patronage is dependent on their business but not those who want to enjoy home from home and do not want to stay in conventional hotel.

The hash economic climate is real and evident but it has not really impacted on my business, because of my relationship with my clients and the environment where I operate from”, he added.

Another operator of Short-let in Lagos Island, Seyi Ekanem said the business allows prospective clients to pay for an apartment for short-stay for a period of one-year, one- month or on a daily basis while the billing system is per day just to satisfy the needs of those who want to have a better deal away from the normal hotel, where they are usually offered a one room with a bed.
He disclosed that the business is not isolated from the liquidity problem affecting other businesses and the real estate sector in the country.
According to him, some of his clients are people come from abroad and the location of the apartment matters a lot to them because it is very important to patronage.

Ekanem explained that the future of the business is very bright as most clients that patronise them are expatriates who have similar short-let business in their country and book online with the operators in Nigeria.

In addition, he disclosed that government officials in the country also patronise the business when they have important functions to attend in area where there are short-let operators.

Also, Mausi Bababunmi of Mausi Realty, Magodo observed that the business which is fast gaining its pride of place in the real estate sector is hinged on the principle of ‘the location, determines the price’ and prices are charged per day from N35, 000, N50, 000 and above, depending on the company.

“It is another industry and opportunity under the real estate sector where interested persons explore avenue to make money. There are some people who don’t like the regular hotel at all, and so they prefer the short-let where they can cook by themselves and enjoy their own escapades and privacy”, he added.

By Bertram Nwannekanma

Building Materials Traders Urge FG, Anambra Govts To Construct Bridge

Onitsha – Traders of Building Materials International Market, Ogidi, Anambra State have cried out to the Federal and State Governments to construct a pedestrian bridge at the market site, along Enugu/Onitsha Express road to end avoidable road accidents involving pedestrians attempting to cross the opposite side of the road which also accommodates cluster of markets.

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The construction of the bridge has become necessary in view of several deaths recorded on the express road involving victims who meet their untimely death while being crushed by over-speeding vehicles in their attempt to cross the road to make some business transactions or get to their destinations.

While mourning the death of some victims who lost their lives after being hit by vehicles while crossing the road, the President, Building Materials International Market, Ogidi, Chief Jude Nwankwo (Ezeudo) told our reporter that it was painful to witness the death of a customer or dear ones who by reckless abandonment of its responsibility to the citizens by governments lead to untimely death of innocent citizens and called on both the State and Federal Governments to construct a pedestrian bridge in the area.


Chief Nwankwo who expressed shock on the news of the death of a customer to one of the traders in the market narrated the ugly incident which led to the death of the victim while attempting to cross the other side of the road, but was reportedly crushed to death by an over-speeding vehicle.

The market leader, however, maintained that the busy and unsafe nature of the road has forced many customers to abandon the market for other markets to make their business transactions, even as he noted that Ogidi Building Materials Market remains the largest and well- stocked building materials market in the entire South-East and West Africa in general.
By Gloria Anaeze

The Challenges with Refugee Housing in Italy

ROME, Italy — Positioned just across the Mediterranean from Africa, Italy serves as a gateway to Europe for people escaping political instability, religious persecution and economic downturn in Africa and the Middle East. In 2017, 119,000 migrants (67-percent of all EU migrant arrivals) arrived in Italy from Libya, Tunisia, Eritrea, Sudan, Nigeria, and Pakistan. Italy’s immigration system is oversaturated and unable to support the continuing migration of people to Italy. This influx of refugees has created many complications, and refugee housing in Italy is becoming increasingly scarce.

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Refugee Housing in Italy
Because of the Dublin System, an EU regulation that mandates that “the country in which a migrant first enters the EU is responsible for their asylum claim,” Italy and other Mediterranean nations often bear the brunt of responsibility for migrants seeking asylum in Europe. Unfortunately, the current government in Italy has started refusing refugees, drastically reducing the number of refugees entering the country by 77 percent since 2017. For those who are in the country, there are fewer and fewer benefits being distributed, such as housing.

Unable to rely on the immigration system to provide refugee housing in Italy and incapable of paying rent for their own apartments, many migrants have little choice but to occupy abandoned buildings to avoid sleeping on the street. The Italian government, however, has been cracking down on these squats, evicting as many as 800 men, women and children at a time without providing alternative shelter. Thus, refugee housing in Italy is neither provided by the state nor is it tolerated when refugees create their own.

Project MAAM
Giorgio de Finis, an art curator based in Rome, came up with a solution by deciding to provide security through art for people based in one of these squats. De Finis’ project is called MAAM and it is a contemporary art museum located in an abandoned salami factory and slaughterhouse on the periphery of Rome.

MAAM, which stands for Museo dell’Altro e dell’Altrove di Metropoliz (Metropolis Museum of the Other and the Elsewhere), has been occupied since 2009 and currently houses 200 people, including 60 families, mostly from Peru, Morocco, Romania and Ukraine. While only open to the public on Saturdays to protect the privacy of its residents, entry to MAAM is free, although donations are accepted.

Before de Finis began his project, MAAM’s inhabitants had already cleaned the space, transformed various factory buildings into homes and begun to paint on the walls. MAAM is now home to more than 500 art murals and installations by over 300 artists, many of whom are respected figures in Roman contemporary art circles like Pablo Echaurren, Alice Pasquini and Gio Pistone. The Borgen Project learned during a visit to MAAM that one work, in particular, is estimated to be worth $300,000 alone.

More Than Just Art
Because the squat is technically illegal, De Finis’ idea was to legitimize the space by giving it commercial value while also enhancing the lives of the people living within it. As a result, many art installations double as playgrounds, toy rooms, and study spaces for the children. Artists also take inspiration from the heavy-handed xenophobia experienced by the residents of MAAM, creating art that simultaneously celebrates the native countries of its residents and pays homage to their diversity. The space also includes classrooms, where lessons in Italian are offered to MAAM’s residents to help further integrate them into Italian society.

The once-abandoned structure has been tied up in legal battles since 2013 as property-owner Pietro Salini, CEO of the property-giant group Salini Impregilo S.p.A, wants to build residential apartments on the property, but he cannot legally demolish the structure while it is inhabited. In July 2018, the civil courts of Rome ordered that the property be restored to Salini, along with a payment of $31.5 million from Italy’s interior ministry as a fine for tolerating the illegal squat. The court also ordered the eviction of the 200 men women, and children living inside MAAM.

Organizations Trying to Help with the Housing Crisis
Although shut down by the Italian courts, MAAM has set a creative precedent for solving the problem of refugee housing in Italy. As a structure, it survived as a stable home for its 200 residents for nine years, and as a museum, it worked to bridge the gap between refugees and their new communities by opening itself up to the public every week for free.

There are also several organizations on the ground in Italy working to help refugees. Based in Rome, the Joel Nafuma Refugee Center (JNRC) is a nonprofit that works to give homeless refugees the tools necessary to create a life for themselves in Italy, including legal advice, employment services, technology courses and language classes. The JNRC helps about 200 to 250 refugees per week and about 12,000 refugees each year.

The International Rescue Committee (IRC) in Italy has also been working to integrate refugees and provide refugee housing. Since November of 2017, the IRC has also been helping to integrate refugee children into schools by educating teachers on how to best provide for refugee children, hoping to encourage further integration of refugee families into Italian society.

There is not one simple solution to the refugee crisis in the world today. Each country must do its part to ease the financial burden of taking on those in need. Italy’s proximity and location in Europe have made it an ideal place for refugees to land whether the country wants them or not. But there are organizations and people trying to help the relief efforts and provide these refugees with the resources they need to start a new life.

– Jillian Baxter

Salvini crackdown: bulldozers demolish Italian camp housing 1,500 refugees

More than 1,500 people are being ousted from the refugee camp at San Ferdinando, in southern Italy, in the largest eviction since Italy’s rightwing populist government’s immigration measures kicked in.

On Wednesday morning, almost 1,000 paramilitary police officers surrounded the 400 shacks where the migrants have lived since the camp was established in 2010, near Gioia Tauro, in Calabria. As people were ushered out clutching their few possessions, bulldozers demolished the shanty town of cardboard and wood huts in a matter of hours.

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“As promised … we went from words to actions,” said the interior minister, Matteo Salvini, head of the far-right League party. The majority of the camp’s inhabitants are from sub-Saharan Africa and worked in nearby farmers’ fields as illegal agricultural workers for paltry, exploitative wages.

In February, the mayor of San Ferdinando, Andrea Tripodi, said the camp was a danger to health and a fire risk. Four people have died in fires there over the past year.

Salvini had promised to relocate them to reception centres, but several refugees told Italian media they were looking to find shelter in abandoned houses in the countryside. Aid groups condemned the authorities, arguing that the demolition will increase homelessness and risk social unrest.

Celeste Logiacco, union leader for Flai-CGIL, told the Guardian that the camp was home to at least 200 women, many of them victims of sex trafficking. “I just hope they will find a safe place for them,” she said. “They are vulnerable women who need help and support.’’

According to activists, more than a dozen illegal camps have been demolished in Italy over the past four years. In March 2017, the authorities cleared a settlement in Rignano Garganico, the largest migrant labourer camp in Europe, which accommodated 3,000 workers in Puglia. A year earlier, bulldozers destroyed a camp in Nardò, in the Salento region, which housed about 100 labourers.

Two months later another informal shantytown, Borreano, in Basilicata, which also housed hundreds of African workers, was demolished. Last May the informal camp in Campobello di Mazara in Sicily was demolished by the local authorities, who deemed it too dangerous for people to live there because of the human waste scattered around an area that had no electricity, toilets or showers.
Migrant labour is a booming business in Sicily, not only for farmers but also for the contractors who recruit men and women to work illegally in the fields.

Some Africans who have seen their camps destroyed say they are being paid €2 (£1.71) an hour, €7.50 below the legal minimum wage.

According to the Italian Union of Farmers (UILA), 36% of workers employed in the agricultural sector are foreigners, mainly from Africa.

Laws passed in 2017 promised eight-year prison sentences for those recruiting and exploiting migrant workers. But Italian labour unions say up to 300,000 illegal workers continue to generate billions of euros a year in profit for Italy’s agricultural sector.

Tackling Housing Inequality In Lagos Nigeria, By Fola Adeleke

It is high time the government stopped seeing slum dwellers as an eyesore that must be uprooted for a vision of a mega urban city that the majority of the current residents cannot afford to live in. An inclusive city is needed for the future sustainability of Nigeria’s economic hub that benefits everyone.

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In Nigeria’s current election cycle, the election of the president has dominated public discourse and diverted attention away from the March 9 election of public representatives at the state government level – the public office holders who will have the most significant impact on the lives and livelihood of the majority of Nigerians.

Lagos is the most populous state in Nigeria and in Africa, with an estimated population of 21 million people. This is 2.5 times the population of New York (8.8 million) and five times the population of Johannesburg (4.4 million). Earlier this month, the outgoing governor of Lagos State presented the 2019 budget to the State House of Assembly. The proposed 2019 budget is $2.4 billion, while the 2018 budgets of Johannesburg and New York were $4.4 billion and $89 billion respectively. This shows the grand challenge of tackling social issues in Lagos with very limited financial capital to do so.

Lagos is largely dubbed as the city of the future and many foreign media have been lauding new public-private partnership projects such as the Eko Atlantic City (10 million square metres of land reclaimed from the ocean) currently being constructed with new urban designs and self-energy generation.

However, this story of the development in Lagos largely ignores the prevailing story of housing inequality in Lagos.

A review of the Lagos Master Plan for development 2012-2025 at the heart of the electoral promises of the current ruling party, the All Progressives Congress (APC), acknowledges the myriad challenges facing an overpopulated city like Lagos, including on issues such as housing. In the government’s own analysis in the Master Plan, an estimated 15 million (70 per cent) of the population of Lagos live in slum housing. A 2016 World Bank Report confirms that two of three people in Lagos live in slum dwelling.

The depth of the government’s misguided initiative in tackling the housing problem in Lagos extends to the forced mass evictions that took place in 2017 from various waterfront communities in Lagos. According to Amnesty International, over 30,000 people were forcibly evicted from settlements in Lagos in defiance of court orders, while 11 people were unlawfully killed…


Despite this, housing is not on the priority list of the manifesto of the two main candidates in the forthcoming elections in Lagos. It is not mentioned or addressed at all in the manifesto of the main opposition party, the Peoples Democratic Party (PDP), while the APC mentions housing as a supporting economic sector of the five main pillars it aims to address. The essential aim is to continue the current government’s housing scheme that is insufficient at best.

The housing scheme introduced by the outgoing government of Lagos is the Rent-to-Own programme. This programem is described as “a system whereby prospective home owners make a 5% down payment, take possession and pay up the remaining balance as rent towards the ownership of the property over a period of 10 years.” The cheapest home available under this scheme (a one bedroom house) costs around $5,500. While that may sound affordable, this initiative ignores the reality in Lagos where majority of the residents are part of the 88 million Nigerians now living in extreme poverty.

According to the World Bank, it costs $50,000, compared with $36,000 in South Africa and $26,000 in India to construct a three-bedroom house in Nigeria in a location with access to public amenities, yet the average annual income per person in Lagos is $8,000.

The depth of the government’s misguided initiative in tackling the housing problem in Lagos extends to the forced mass evictions that took place in 2017 from various waterfront communities in Lagos. According to Amnesty International, over 30,000 people were forcibly evicted from settlements in Lagos in defiance of court orders, while 11 people were unlawfully killed and at least 17 people went missing after violent evictions by security forces and unidentified armed men. These evicted residents were not consulted, compensated or provided alternative housing. Despite the court ruling that this eviction was unconstitutional, compensation and resettlement of the displaced residents are yet to occur. Notwithstanding the government’s claims that these evictions were as a result of environmental concerns, these evictions have largely occurred because of the government’s desire to create access to land for private developers to construct luxury housing developments that the majority of the residents of Lagos cannot afford.

A better pro-poor policy on housing is needed in Lagos. Given the budget constraints in Lagos, current initiatives such as the construction of affordable housing for 10,000 residents, the rent-to-own programme or creating affordable mortgage schemes as currently being done and prescribed in the APC’s manifesto, are not the solutions to the housing problem in Lagos.

Since Nigeria transitioned into a democratic state 20 years ago, successive governments in Lagos have failed to prioritise the needs of the majority of its residents. Prioritising public-private partnerships on luxury housing developments such as the Eko Atlantic City project shows the lack of respect the Lagos state government has for the dignity of the majority of the people it governs.

A better pro-poor policy on housing is needed in Lagos. Given the budget constraints in Lagos, current initiatives such as the construction of affordable housing for 10,000 residents, the rent-to-own programme or creating affordable mortgage schemes as currently being done and prescribed in the APC’s manifesto, are not the solutions to the housing problem in Lagos. These initiatives do not benefit the 15 million people living in slum housing in Lagos.

For the long term sustainability of Lagos, particularly in meeting the challenges of overpopulation, as more people from within Nigeria continue to relocate to Lagos to seek economic opportunities, investing in the poorest neighbourhoods in Lagos should be a primary concern for the incoming government of Lagos. Improving slum housing through the provision of public infrastructure such as upgrading sanitation through the provision of public toilets and access to clean drinking water can be a starting point to deal with these housing challenges.

A rethink of the Lagos Master Plan is also necessary. The government needs to put the welfare of the majority of the residents of Lagos at the heart of the plan and begin to recognise the inherent dignity in each human being. Majority of the workers that make Lagos work, including care workers, drivers, security personnel, cleaners, construction workers and various handyworkers, often retreat to live in these slum locations. Without them, Lagos cannot function. It is high time the government stopped seeing slum dwellers as an eyesore that must be uprooted for a vision of a mega urban city that the majority of the current residents cannot afford to live in. An inclusive city is needed for the future sustainability of Nigeria’s economic hub that benefits everyone.

Fola Adeleke is a Senior Atlantic Fellow for Social and Economic Equity at the International Inequalities Institute, London School of Economics.

Alternative lenders: An opportunity for power and infrastructure development in Nigeria

Going by general consensus, there is a positive relationship between the growth of the power/infrastructure sector of an economy and its overall development. The importance of these sectors cannot be overlooked as they directly affect the well-being and productivity of any country. Very few sectors have a bigger impact in the world today compared to power and infrastructure as it provides light, mobility, heat, and it makes our lives better.  It enables us to commute through roads, railway transport system, ports, power, and airports, study and learn, use our smartphones, PCs, etc.

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Research has however shown that only approximately a third of people have access to electricity and quality infrastructure in Sub-Saharan Africa. Nations that have quality infrastructure and electricity are more likely to exceed the forecasts of development analysts. In the face of this evidence, it is imperative for Sub-Sahara African nations to raise various means for power and infrastructure development.

There is the need to purposefully and methodically build reservoir of funding as regards the development of electricity and infrastructure with the critical stakeholders. Nigeria remains at the centre of Sub Saharan Africa’s growth story with a constantly increasing population rate and abundant natural resources. Strong demographic growth, increased technological innovation and fast urbanisation also continue to shape the future of Nigeria. However, her huge infrastructure and power deficit has constrained economic growth and development, thus inhibiting her ability to improve the quality of life as envisaged by her governments at several levels. The need and opportunity for power and infrastructure development in Nigeria is enormous. However, one of the major challenge faced in this regard is funding as the Nigerian economy is dominated by short-term financing of three to five years terms, traditionally provided by domestic commercial banks and the infrastructure sector is long term finance based. The infrastructure and power sector is long-term finance based and requires seven to ten year loan tenure usually with participation from international banks and development finance institutions and in some cases with risk guarantees from multilateral organisations like the World Bank. The question that arises therefore is, how can the power and infrastructure sector be funded to induce development? During the Hogan Lovells 5th annual Africa forum themed ‘Africa Fit for the Future’, one of the key sector sessions was led by Shalini Bhuchar, an asset finance partner, who chaired a panel of leading industry experts in African banking and finance. The panel included Adesuwa Okunbo, Partner and Managing Director of Syntaxis Capital Africa and the Forum’s keynote speaker, Mrs Ibukun Awosika, Chairwoman of First Bank Nigeria who proffered insights to the financing of Africa’s future. They represented views from across the banking and finance mix, which, as an industry, is critical for stimulating economic growth, especially in Africa.

So when challenged with the task of deciding ‘Who is taking the Lead in Lending?’ there was sure to be some healthy discussions on the subject. There is demand in these sectors but the challenge is the bankability of start-ups due to, among other things, the risk of failure and bankruptcy. Ibukun Awosika echoed this sentiment and also cited the reluctance of certain banks to invest in oil and gas, especially given that there have been notable instances where banks have been unable to recoup returns on their investment. As part of its discussions, the panel was of the opinion that this need for power across Africa has opened up specific opportunities for SMEs in the energy sector and for alternative lenders to fund power producers, fuel traders and other energy infrastructure. Often, with this initial backing, an SME can feed into large established corporates and global traders to build a solid credit record. Asides the conventional commercial bank debt, alternative lenders include DFI lending, debt capital markets solutions and private credit all have a role to play. Commercial banks will however continue to take the lead at a local and regional level and, together with DFIs, act as catalysts to facilitate sustained growth in liquidity in the loan and debt capital markets. Whilst the volumes of private credit deals may not be at par with the USA or Asia, private credit is a much needed alternative lending class in Africa and is indeed on an upward trajectory.

Nigeria will not be able to sustain her current levels of population and economic growth without enhancing her infrastructure. Investing in infrastructure will drive economic growth, provide jobs, and deliver vital services to the country and the majority of its citizens. As Nigeria continues to grow and its cities seek to become more competitive, sustainable, smart, and resilient (given demographic and social changes, climate change, resource scarcity, and rapid urbanisation rates), the opportunities to invest in both core and social infrastructure will continue to grow. Funding African SMEs can by its nature have a positive impact growing businesses and increasing employment, allowing SMEs to step up their business to compete internationally and in accordance with best practice from a social and environmental perspective. There are many great stories, and this is an exciting space to be in.

Adunni Amodeni

How to speed up your property transfer

Time is money – and transfer delays can be costly

In complex, protracted transactions like property sales, delays are not only frustrating, they can also be extremely costly and may even torpedo the deal completely. However, while some delays cannot be foreseen, it’s possible to exponentially reduce the risk by doing one’s homework and having all one’s ducks in a row from the onset.

This is according to Jill Lloyd, veteran agent and Area Specialist in Rondebosch and Claremont for Lew Geffen Sotheby’s International Realty, who says: “Essentially there are two primary types of delay; the first relating to the confirmation of the sale and those that occur once the sale has been confirmed and hold up the transfer.

“Property transactions are known to be lengthy processes with multiple steps and reams of documentation, and once the potential minefield of suspensive conditions and contractual obligations has been successfully navigated and the deal is finally done, many people breathe a sigh of relief. But the expected downhill cruise to transfer can still become an uphill battle if one isn’t careful.”

 

Lloyd explains how this can happen:

“One of the main reasons for delayed transfers is that the timeline is out of sync, especially when two or more deals are linked and money from one sale is needed to purchase the next property and so on. I once brokered a transaction with seven linked deals all dependent on the sale of a Rondebosch East home and we had to pull out all the stops to get the house sold in time.

“It is also very important for buyers to budget for the transfer costs of the new property they are buying or have an access bond in place on their current home, otherwise when the attorney calls for bond cancellation that bond account will be frozen and they will not be able to access the funds.”

She adds that not giving the required 90 days’ notice of cancellation of the existing bond can also cause delays as well as avoidable late cancellation fees.

“If a homeowner is seriously thinking about selling, they should give notice to the bank holding the bond. In doing so, they are not committing to selling, merely notifying the bank of the possibility and they can keep on renewing the cancellation if they don’t sell timeously or revoke the notification if they change their minds.”

Craig Guthrie, Partner at Guthrie Colananni Attorneys says: “One of the transferring attorney’s key roles is to coordinate and control all the role players involved in a transfer, including SARS (transfer duty), the municipality (Rates Clearance Certificate) and the bank.

In order to do this as seamlessly as possible, it is essential that both the buyer and seller submit all the necessary documentation in time, as per the legal requirements and without omissions. This is especially important if either party resides in another country or is otherwise difficult to contact for information and signatures.

 

Guthrie says that although hiccups and stumbling blocks can occur at any point of the transaction, they most commonly occur at the following stages:

  • Bond Approval
  • Bond Cancellation
  • The signing of transfer documents
  • Obtaining valid compliance certificates
  • Issues encountered at lodgements requiring the removal of notes by the Registrar of Deeds
  • Transfers which are unusual and more complex, such as estate transfers which require an endorsement of the Master of the High Court, which can cause a delay

Most of these delays can easily be avoided, through prompt co-operation with the transferring attorney and the paralegal handling their transfer or, if they are outside of South Africa, by giving a valid power of attorney to a person within South Africa who can sign the necessary documents and act on their behalf.

 

“It’s vital that the client is completely up front with the agent regarding their financial situation,” says Lloyd. “We can then facilitate and expedite the process by having our bond broker at ooba, South Africa’s largest mortgage originator, prequalify them and the thorough credit check will reveal any potential snags.

“This step is particularly important for buyers who are self-employed as banks are very strict about the documentation that they require for a bond application. At this stage I always advise all my clients to avoid making any expensive purchases that could negatively impact their affordability.”

 

Lloyd concludes: “Experienced estate agents will guide their clients every step of the way and as long as they are upfront with their realtors, there should not be too many problems to circumvent.

“I also recommend appointing an accomplished conveyancing attorney who is really on the ball. It is all very well allowing your best friend to handle the transfer, but you could end up being enemies if they make a complete hash of it and that happens more often than I like to remember!

“And, as the transferring attorney and agent work closely together behind the scenes to ensure a smooth transfer, it is always an advantage if they already have an established working relationship.”

 

Source: Private Property

States’ economies sees improvement as Fund’s intervention targets 500,000 home and 1.5m jobs

The intervention by the Family Home Fund (FHF) in the Nigerian housing sector to deliver affordable housing to low-income earners in the country will significantly improve the GDP and economy of the states where the intervention is already yielding fruits, people familiar with the Fund have said.

EchoStone is a property development firm that deploys an innovative technology which allows rapid and scalable construction of houses. It is currently building 2,000 housing units beginning with 250 units of two-bedroom detached bungalows in Idale Badagry, Lagos. FHF is to build 20,000 housing units in Lagos.

So far, about six state governments including the FCT have donated land for the development of various numbers of housing units, including Ebonyi State which has donated land for developing 1,200 homes.

Kaduna State has also donated land for its millennium city which promises about 650 homes; the ancient city of Kano has 757 homes; Asaba, Delta State, about 620 homes; Ogun State, about 1, 074 homes; FCT, about 580 homes, while Akwa Ibom has donated land and signed MoU with the fund for the construction of 5,000 low-income houses.

There is an expectation that through a combination of these housing development activities, 1.5 million jobs will be created for both skilled and unskilled labour that will be working at the construction sites.

Analysts say the creation of 1.5 million jobs will have significant impact on the economies of the states, more so with the multiplier effect of job creation.

“When you give job to one person, you shall have impacted the lives of about four or five more persons,” noted Johnson Chukwuma, a civil engineer.

He explained that, one way or another, part of the income earned by these workers goes to the state government by way of paying taxes or other levies, stressing that a state with healthy citizens is, by implication, a wealthy state.

FHF, which is arguably the largest affordable housing-focused fund in sub-Saharan Africa, was in Lagos recently and, according to Femi Adewole, its managing director, its mission to Lagos was to explore a potential partnership for a large-scale affordable housing scheme with a specific focus on Lagosians on low income.

“Alongside good quality homes, the programme will be looking to create jobs for Lagosians. Other aspects of the scheme include a commitment that we are not just to build housing units; we also need to look into the environment and climate change issues which now stare us in the face,” Adewole said.

He assured of the fund’s commitment to the provision of affordable housing, disclosing that they had invested over N20 billion in housing projects to support Nigerians who are earning below N100,000.

“We are also providing financing for developers who will build homes ranging between N2.5 million to N5 million,” he said.

Besides providing funding for the product suppliers, the Fund also aids the demand side by assisting house buyers, giving them a deferred loan for up to 40 percent cost of the houses.
The Fund supports local content in the house-building process and Adewole disclosed that their long-term objective was to ensure that up to 80 percent of manufactured inputs were locally produced.

 

Source: Chuka Uroko

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