Delta govt to build 11,500 housing units for residents

Delta state government has entered into partnership with several key players in the housing industry to provide over 11, 500 housing units to Deltans.

Housing commissioner, Arch. Joseph Ajiri Ogeh who disclosed this during a media briefing in Asaba, listed the major players to include LARFARGE (Green house) which is to provide ten thousand housing unit.

Others include Shelter Afrique and the Nigerian Sovereign Wealth Fund for 1,000 and 650 housing units, respectively, the commissioner said.

Other achievements of his ministry, he said, include the execution/ renovation and completion of 154 3-bedroom and four bungalows at N2.9billion, renovation of government quarters for N500million, Head of Service Complex for N577million, and office building for DSIEC for N244.3 million.

Others are remodelling/rehabilitation of governor’s lodge Abuja for N244.2milliom, development of new central secretariat complex Asaba for N13.6b.

Ogeh the construction of new secretariat complex was awarded to North China Nigeria Limited and is expected to be completed in the next two years.

When completed, the complex will house 28 agencies (MDAs). The commissioner said this will help the state government to drastically reduce rent paid for offices.

Alphonsus Agborh

 

Nigerian Low-Cost Mortgage Lender Set for $1.4 Billion Boost

Nigeria’s government plans to inject 500 billion naira ($1.4 billion) into its low-cost mortgage lender over the next five years in an effort to spur home ownership that has failed to take off in Africa’s most-populous nation.

Faced with a housing deficit of 17 million units, Nigeria is seeking to improve access to home loans in an economy that vies with South Africa as the continent’s biggest. A lack of proper land deeds, poverty and record high interest rates means there are only an estimated 50,000 registered mortgages, of which state-owned Federal Mortgage Bank of Nigeria accounts for 18,200, according to Chief Executive Officer Ahmed Musa Dangiwa.

The lender is seeking to boost its capital from 5 billion naira at a rate of 100 billion naira a year, he said in an interview on June 21 in the capital, Abuja. FMBN is expecting proposals on its recapitalization, as well as a reorganization of its business, to be approved by all arms of government by the end of 2018, Dangiwa said.

The company’s current capital base is “grossly inadequate,” he said. “That’s why we’re in the process of ensuring that the capital base be increased.”

Armed with the extra cash, the lender can go from the 2,500 new mortgages it plans to sign up this year to 100,000 over the next two years, Dangiwa said. The extra capital will also encourage other investors to provide additional funding, he said.

In August, the FMBN will flag off a 1,500 housing project it is providing funding for under a new “rent-to-own” program that Dangiwa says will help creating more mortgages and access to housing.

In South Africa, the continent’s most-industrialized economy with a population of about 55 million, mortgages account for almost 30 percent of total credit, the largest component of banks’ assets, which amounted to about 5.14 trillion rand ($382 billion) at the end of January, according to central bank data. Nigeria has a population of about 200 million.

Nigeria Mortgage Refinance Co., the nation’s state-backed mortgage guarantor, which provides loans to banks, plans to issue 11 billion naira worth of 15-year bonds through multiple sales as part of a five-year 440 billion-naira program, NMRC Chief Executive Officer Charles Inyangete said in a March interview.

Elisha Bala-Gbogbo

Mpape land owners threaten court action over reallocations

Land owners at Mpape 1 Annex in Abuja have threatened action against the Federal Capital Territory Administration over what they call ‘unlawful re-allocation’ of land allocated to them in Mpape District.

In a statement by their counsel, I.M. Gadzama of Silver Shield Chambers, the property owners claim that the FCT Minister, Malam Mohammed Bello had reallocated their lands to mainly members of the National Assembly without prior notification.

“Our clients are the bonafide title owners of the properties situated and lying at Mpape 1 Annex with registered title documents and the properties are at various levels of development duly approved by the minister’s office since 2003.

“Sixteen years thereafter the present minister of FCT in connivance with the National Assembly members and others redesigned substantial part of the Mpape District as Maitama II comprising originally of 1,300 plots into 2,300 plots of same and now reallocated same to themselves,” the statement said.

The statement said the beneficiaries of the ‘unlawful’ allocations were already selling the plots to general public “causing chaos between existing allottees and the subsequent purchasers.”

The property owners rejected reallocation of plots and have called for reversal by the FCTA saying “treat this as our client’s notice of intention to sue in the event of refusal, neglect or any inadvertence.”

Malikatu Umar Shuaibu

FCTA to recover ministries’ lands allocated for other purposes

Minister of the Federal Capital Territory Malam Muhammad Musa Bello has charged ministries, departments and agencies (MDAs) that have lands allocated to them under the FCT Master-plan to come forward to regularise them by processing their titles.

The minister said this is one way of safeguarding such titles against encroachment or inadvertent reallocation.

Bello made this call when his Ministry of Interior counterpart, retired Lt-Gen. Abdulrahman Dambazau, paid him a courtesy visit in Abuja.

The minister disclosed that the FCT Administration was working to recover all lands in Abuja that were originally designated for ministries and agencies in the Abuja master-plan but were unwittingly allocated for other purposes.

“With respect to allocation of land to Ministry of Interior and many other ministries that are not housed in the main secretariat, we are working at the areas at the Ahmadu Bello and Shehu Shagari ways, especially trying to identify lands within the designated areas that were originally meant for ministries but over the years were inadvertently allocated for other purposes.

“Wherever it is practical and possible, we will try to recover these lands,” Bello said.

The FCT minister also indicated that the FCT Administration was also trying to revive the project for the expansion of the Federal Secretariat to provide befitting office accommodation for other ministries that are not housed in the main secretariat.

Earlier in his remark, the Minister of Interior, retired Lt-Gen. Dambazau urged the FCT Administration to have a closer look at the small markets that are springing up around the Internally Displaced Persons (IDPs) camps in the FCT, saying some of the markets have been turned to platforms for sale of dangerous and prohibited drugs.

Speaking on the Old Secretariat building housing the Ministry of Interior, Dambazau said, the ministry was looking for a befitting area to erect a new Secretariat that would reflect its image and importance.

The ministry, he said, warehouses the five major paramilitary organisations charged with the responsibility of maintaining the internal security and public safety in the country.

He expressed hope that they would be properly accommodated to perform their functions effectively.

Malikatu Umar Shuaibu

Obaseki’s land, other reforms, triggered our interest in Edo State – Chinese Ambassador, MIXTA Africa Boss

The growing confidence among investors to set up in Edo State, has been attributed to the ongoing reforms in the various aspects of the Edo State economy, initiated by Governor Godwin Obaseki.

Investors say the positive disposition of the Obaseki administration to a market-driven economy and the institutionalisation of the reforms, namely; the Private Property Protection Law that has eliminated man-made encumbrances to access land, amongst other initiatives, attracted them to the state.

The Chinese Ambassador to Nigeria, Dr. Zhou Pingjian, who was in Benin City recently, said that the feedbacks from Chinese companies that have set up in the state, indicate that the state is on an aggressive drive for investment and is committed to fine tuning her laws and policies where necessary, to achieve her goal.

The Chinese Ambassador assured of his home country’s commitment to boost her relationship with Edo State and extend the friendship to the education sector. Partners of the Edo Development and Property Agency (EDPA) in the development of the 1,800 Emotan Garden in Edo State, MIXTA Africa, said that the major elements for big ticket investment in housing development are present in Edo State at the moment.

The Managing Director, MIXTA Africa, Mr. Kola Ashiru-Balogun, said they decided to partner with Edo State “because of the Obaseki led- administration’s drive for developmental projects.” Ashiru-Balogun added, “We recognise the market and we are ready to offer affordable housing. The governor has said that we should use the project to create jobs.”

Edo State Government sealed a deal for the construction of 1,800-unit Emotan housing project in Benin City with MIXTA Africa, which marks the first housing project by the state government in 16 years. The gound-breaking ceremony for the affordable housing was performed by Vice President, Prof. Yemi Osinbajo.

Edo State is home to ceramic, steel and other companies owned by Chinese investors. The state’s ambitious projects such as the Benin River Port in Gelegele, an auto assembly plant and the Benin Industrial Park are being driven by the Chinese.

Vanguard

FISH: FG returns to drawing board over high prices by developers

The Federal Government says is returning to the drawing board to address some of the challenges that had been bedeviling the implementation of the Federal Integrated Staff Housing Scheme (FISH).

The Head of the Civil Service of the Federation, Mrs Winifred Oyo-Ita, stated this in an interview with the News Agency of Nigeria (NAN) in Abuja.

She said that the Government had realised that the cost of houses in the FISH Programme originally planned to go through developers was too exorbitant for civil servants hence the need to return to the drawing board.

Oyo-Ita said that the Office of the Head of Civil Service of the Federation (OHCSF) was currently partnering relevant Ministries Departments and Agencies (MDAs) to reduce cost of infrastructure and land.

She added that this partnership would further reduce the cost of the houses and make it affordable for civil servants, instead of the initial price placed on it by the developers.

She said that the major challenge FISH was encountering was that the concept of the programme was not captured by relevant MDAs in their various budgets, but has been addressed in 2018 budget.

“ Now we have to go back to the drawing board, we are now working with our infrastructure housing MDAs.

“To see how we can bring down the prices to a level that civil servants can actually take advantage of.

“The private developers will no longer have to bear the cost of the land and infrastructure because these are two things that cause high cost of houses,

“We will now take advantage of the developers input by way of skills and technical knowhow, while the government agencies provide the land and infrastructure.’’

The head of service expressed her gratitude to the FCT Minister, Minister of Power, Works and Housing for providing a district for the FISH programme.

She also thanked the Minister of Power, Works and Housing, for providing infrastructure for FISH in the 2018 budget, and the Minister of Finance for their contributions towards the programme.

Kate Obande-Okewu

 

‘Delay in judicial process affects housing delivery’

There are growing concerns that the delay in Nigeria judicial process, especially in commercial matters has compounded the inadequate housing for Nigerians. The agitations on housing deficits date back to 1991, when Nigeria was said to have housing deficit of seven million units. Since then, the deficits in housing requirements have been growing at 5.8 per cent per annum, which has given rise to a slum population estimated at about 70 per cent.

Whilst available statistics on Nigeria’s housing deficit paint a grim picture, the effect of delay in the nation’s judicial process has continued to worsen efforts at house delivery in the country. With a population of almost 180 million, according to data from the United Nations, an annual population growth rate of 2.8 per cent (2015) and an annual urban population growth rate of 4.7 per cent, Nigeria need urgent action to mitigate the deficit.

This is more so as global trends show that the world is experiencing housing crisis and various countries, especially in the global south, have approached the issue with the urgency it requires. According to the World Bank, the estimate for tackling Nigeria’s 17 million housing deficit is put at N59.5 trillion. This is not too far from the estimation of the Federal Mortgage Bank of Nigeria which had put it at about N56 trillion to be able to adequately meet the housing needs of Nigerians.

According to United Nations statistics, about 1.6 billion people live in substandard housing globally, while over 100 million are homeless. Nigeria hosts an uncomfortably large percentage of these two, with millions considered to live in substandard housing.Thus, the nation’s housing coverage rate still remained at dismal 25 per cent.But, experts said housing would continue to remain a mirage if left to the government alone, unless private developers are encouraged to invest in real estate.

However, with the slow adjudication process in the nation judicial process, primary and secondary mortgage institutions have classified investments in real estate as very high risk, at times attracting nearly 24 percent interest rate.The Guardian learnt that the offering is based on the difficulties in enforcing mortgage contracts and foreclosure on properties in local courts.

This is somewhat attributable to court congestion and the resulting slow adjudication process which is a key deterrent to mortgage financing.Given credence to this, Debo Adejana, a real estate entrepreneur, who heads one of Nigeria’s leading Mass Housing Development Companies; Realty Point Limited, said litigation is one of those things every developer dread so much.

Adejana, who had first hand experience of danger of delay in one of his firm’s project in Lagos, said no developer will want his project to be tied down by litigation because you cannot predict when it will finish because of the right of appeal.He stressed that his firm was lucky to come out of the problem through out of court settlement after two years before actual development on site.He said: ‘Cases in Nigeria can drag up to 10 years because of the right of appeal in our judicial process”.

Another developer, Jonathan Ekpeyong, said litigation started just at the point of selling to clients, which affected business and inability to pay back to the banks.Ekpeyong, who do not want to disclose the name of his firm, said the matter is not fully settled 15 years after they went to court.Beyond these was the case of the vast area of land that shares boundaries with the Oniru, the Elegushi, and the Olumegbon estates in Lekki area of Eti-Osa Local council in Lagos State, which is one of such cases that dragged for so long before amicable resolution of the problem.

The matter affected some estates such as Pinnock Beach Estate, Arcadia Estate, Beach Resort Estate, Friends Colony, Nicon Town, and a host of others.The legal battle involving Eletus and their lawyers, who reportedly got a warrant for 254.558 hectares and the move to assert claim to the land affected development in some estates in the area.Problem began in 1981 when the then Lagos State Governor, acting pursuant to the powers granted him under the Land Use Act, revoked all existing rights on the land in Eti-Osa and Ibeju Lekki areas of the state. The Ojomus, being owners of the land from time immemorial, had at that time, sold 254.558 hectares of land to the late Mr. Gbadamosi Bandele Eletu by deed of conveyance.

The conveyance, dated August 23, 1977, was registered as No.36 at Page 36 in Volume 1648 of the Lagos Lands Registry. But the Ojomus challenged the acquisition of their ancestral land in court, which reportedly ruled in their favour and invalidated the acquisition. In 1993, the Lagos State Government published another revocation notice No 20 Volume 26 of May 13, 1993.

It was however learnt that shortly after the revocation of 1993, the inheritors of the late Eletu challenged the right of the Lagos State Property Development Corporation, LSPDC, to use a portion of their land, which they bought from the Ojomus.The case went to the Supreme Court, and was decided several years after on July 12, 2013. There was also the legal battle waged by landlords of Shangisha against Lagos state government for 27 years over the soul of Magodo estate scheme.

However, 27 years are long, inordinately long period to get judgment in any court matter, let alone a case involving shelter over their heads ‘ one of the most basic needs of nature. The landlords’ victory is further dampened by the fact that it was the third time they would get judgment, their cases having been upheld by the High Court and the Court of Appeal; but government, for some reasons, failed to meet their desire.

Ripples of the Supreme Court judgment directing that 549 plots of land located in Magodo-Shangisha in Lagos, be given to their rightful owners soon began to splash on the property owners, with Shangisha Landlords Association pushing for compensation.The judgment sent apprehension among residents of the area, which later affected prices of property in the area.

Speaking on the impact of justice delay in housing delivery, the Governor, Central Bank of Nigeria (CBN), Godwin Emefiele said, it is generally acknowledged that one of the modern-day determinants of development in any environment is the effective protection of property and contract rights, and that this in itself requires a modest legal infrastructure embedding precise rules that are easily enforceable.

Emefiele, who spoke in Abuja on the theme: “Mortgage Disputes in Nigeria: The Need for Expeditious Resolution of Case”, at a workshop for judicial officers on mortgage, urged the judiciary to speed up the processes for deciding on mortgages and commercial disputes as way of fast-tracking the growth of the housing finance sector in Nigeria

Citing other climes like the United States of Ameriaca and Europe, Emefiele said mortgagees know that failure to pay on their mortgage results in drastic consequences such as the right of immediate take-over of the property through foreclosure. “In Nigeria, this is not the case and -therefore discourages banks from granting mortgage financing to clients.”
Referring to the 2016 Report of the Centre for Affordable Housing Finance in Africa which indicated Nigeria as having just an estimated 25 percent homeownership rate, he stressed that “Interestingly, the report highlighted legal and administrative constraints, rather than lack of funds or programmes, as some of the major issues constricting the growth of home ownership in Nigeria”, he stated.

Reacting to the impact to housing delivery, Lagos-based lawyer and a notable human rights activist, Mr. Johnson Esezoobo, said there should be a system that should allow judges to determine if a matter can go on or not especially when there are frivolous.According to him, Nigerians are yet to clarify the judicial system to determine when litigation is necessary or not. He stressed that many lawyers do not have reasons for engaging the court process other than pursuing personal motive and to blackmail others.

Ordinarily in commercial litigations like property matters, most of the cases should not get to court but because lawyers are often desperate for quick results, irrespective of how it was achieved, they took to litigation.“Where a party has brought some documents even without special knowledge of forensic analysis of documents should be able to know that they are not proper and discourage such litigation.“Unfortunately, our courts are encouraging litigations. You found out that attitude of courts encouraging appeal or litigation does not help in quick resolution of matters. They want to hear all the matters even when they can look at the papers and within a short time discourage litigation. We don’t have that kind of attitude in our judicial system. “People brings all manners of facts and documents and the court will indulge them on it. The court is more interested in listening to all manners of things even when they are frivolous”, he added.

For the second vice president of Nigerian Bar Association (NBA), Mr. Monday Ubani, each delay in judicial process affects the economy generally. “If we don’t fine-tune our legal system to ensure quick delivery of justice, the economy is actually the first culprit. It will also affect the inflow of foreign investments into the country because the foreign investors will basically look at how quickly you can resolve issues in case of disputes. Where it takes ages, to resolve legal issues, the investors will not be too keen to invest in your country and the foreign investment involved even in the housing sector.

“ Even, the local investor, who may not enter to the development of real estate and housing would not want to because of these litigations. It will take some years, imagine you have a housing dispute and it takes 20 years to resolve how do you justify that and people will not be interested in that area. Generally delay in legal resolution of issues affects the economy and especially with housing delivery, it will affects investors that will come into that area knowing fully well that it takes ages to resolve issues. So what we need to do is to create more courts and employ more judges in our judiciary”, he said.

Bertram Nwannekanma

‘FG under-developing housing sector’

The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has expressed concerns over the passage of national budgets without implementation on the housing sector, stressing that there is so much deceit and under development in the sector.

NIESV stated that budgets meant for the sector have continued to be treated with levity, stressing that while only fifty percent of what was budgeted last year was released, the sector may not receive up to 25percent of its allocation in this year’s budget due to its late passage.

President of the Institute, Mr. Rowland Abonta, said time had come for the federal government, National Assembly and Stakeholders to sit and plan the housing programme to achieve development in the sector.

He said: “There is no master plan on ground for effective housing production and delivery in Nigeria. The problem of Nigeria has not been the issue of budgetary provision. The greatest problem we have is budget implementation. So whether they removed the budget meant for housing or not, we may not see any new thing in that sector. “In the last two years, budget had been made for housing but nobody is accounting for what quantity have we added to the housing sector. It is like throwing a drop of water into the Ocean. The president himself must acknowledge and our legislators must acknowledge that there is a serious need for stakeholders in housing to sit down together and decide on master plan for housing in Nigeria”.

He said the government should stop using budget padding as excuses for its failure to develop the sector, stating that Nigerians are tired of failed promises.“I am a private practitioner and in the last financial year we spent billions bidding for housing in the real estate sector only to be told that the same presidency has released only fifty percent of the budget for 2017 and now budget is signed in June, you can imagine that we won’t get 25 percent of this year’s budget. So it is not about budget, these are cheap excuses, political excuses by those in authority to shy away from responsibility to the people that put them there”, he said.

Abonta said members of the Institute were in Enugu for the management meeting to review policy issues affecting the organization adding that part of the challenges militating against the profession was the infiltration of quacks.He lamented that government, public and private institutions have continued to patronize them to the detriment of the country. However, he said NIESV is poised to check the trend and urged Nigerians to desist from patronizing them.

Lawrence Njoku

A Global Brand With A Nigerian Foundation…….

In recognition of a need to raise the bar in terms of design quality within Nigeria’s built environment, particularly housing, the aim of Abuja International Housing Show is to give a national focus to key HOUSING issues of importance both the private and public sectors in Nigeria. These range from the development of low carbon design strategies to the complementary roles of design and sustainability within both public and private housing and a demonstration of how Nigeria’s built environment could look in the future.

The objectives of the show include:
– Showcasing innovative, sustainable housing and place-making to a wide audience and to help change attitudes towards house and place design;
– Stimulating the construction industry in terms of consideration of design-led housing solutions and high quality home-grown and manufactured skills, materials and products;
– Investigation and trial of ways of thinking about places, design and materials.

Abuja international housing show is the largest convening of real estate and community development, and affordable housing finance professionals in Africa, bringing together over 1,000 practitioners.

Described as Africa’s largest housing event, the 12th Abuja International Housing Show involves exhibitions designed to provoke discussion on alternative development scenarios: Future Homes, the House, Home/Homelessness and Year One. With the assistance of art and technology, these exhibitions are to focus on major questions of urban lifestyles, and how situations may change or be changed in the future.

The meaning, function and value of the home will be discussed and presented through a framework of different themes relating to home. Future possibilities for housing, Homes and living will be exhibited in what is to be the largest home exhibition of the era, involving specially furnished houses.

Visits to Affordable Housing Estates around Abuja municipality will highlight an opportunity to demonstrate how an occupant can become involved in the design process, including influencing house layout and fabric choices, and bringing individual needs more into focus in future design developments. This would allow the prospective occupant to engage directly with the house-builder, and could ultimately positively increase demand for home grown products and services.

The 12th Abuja International Housing Show, If YOU are not THERE, then YOU are not THERE.visit www.abujainternationalhousingshow.com to register

Kunle Faleti, US Based Mortgage Banker and Abuja International Housing Show Ambassador

Senate applauds Anambra for contributions to National Housing Scheme

Senate Committee on Lands has hailed Anambra State government for commitment toward partnering the Federal Government in the contribution to the National Housing Scheme.

Chairman, Senate Committee on Lands, Housing and Urban Development, Banabas Gemade, said this when he led his committee on a courtesy visit to Governor Willie Obiano, at Governor’s Lodge, Amawbia, on Tuesday.

Other members who were in Anambra include Uwajumogu Benjamin from Imo State, Urhoghide Aishagbonnriodion from Edo State, and other personalities.

The Committee was in Anambra on an oversight function and toured three Federal Government projects in the state. The projects are the Federal Secretariat, Zik’s Mausoleum and National Housing Projects.
Gemade noted the readiness of the Federal Government to partner states for realisation of the National Housing Schemes.

He commended Obiano for providing land for the housing project, but noted that some other states had yet to express interest in embracing the scheme.

“For a very long time since President Shehu Shagari days in office, no government has embarked on National Housing Programme. The APC government has made an attempt.

“We really want to partner with state governments to ensure that they contribute to housing needs of citizens in their various states. Not many states have been forthcoming, but Anambra is contributing toward the project,’’ Gemade said.

The committee chairman described the Zik’s Mausoleum “as a monument that must be completed to preserve the legacies of the country’s past leader.’’

He re-assured that the Mausoleum would be delivered before September this year.

Obiano commended the committee for its interest at ensuring timely completion of federal projects sited in the state, saying he was particularly happy that the contract sum for the Mausoleum had been fully paid.

Emmanuel Ndukuba

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