with – 9japroperty https://9japroperty.com.ng All you need to know about properties Thu, 25 Aug 2016 10:20:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.4.15 Nigeria Gets Tough With Marauding “Omo Onile” In Search Of Land To Seize https://9japroperty.com.ng/nigeria-gets-tough-with-marauding-omo-onile-in-search-of-land-to-seize/?utm_source=rss&utm_medium=rss&utm_campaign=nigeria-gets-tough-with-marauding-omo-onile-in-search-of-land-to-seize https://9japroperty.com.ng/nigeria-gets-tough-with-marauding-omo-onile-in-search-of-land-to-seize/#respond Thu, 25 Aug 2016 10:20:37 +0000 http://9japroperty.com.ng/?p=4887 A year before his wedding, Jude Egharevba was overjoyed when he bought a plot of land to build a house for him and his fiancee on the outskirts of Lagos, Nigeria’s commercial capital. But his joy was short-lived, after a group of young men stormed his land and demanded cash to leave peacefully. The same […]

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A year before his wedding, Jude Egharevba was overjoyed when he bought a plot of land to build a house for him and his fiancee on the outskirts of Lagos, Nigeria’s commercial capital.

But his joy was short-lived, after a group of young men stormed his land and demanded cash to leave peacefully.

The same men and other gangs visited his land several times and disrupted the building work, forcing Egharevba, an oil and gas executive, to pay them off with one million naira ($3,175) over the course of a year in order to finish the construction.

These men, known as the Omo Onile, which means “Sons of the Soil” in the local Yoruba language, roam Lagos looking for land owners and property developers to dupe and extort for money.

“They milk you at every stage, and beat up your workers if you don’t pay,” said Egharevba, 28, who had to postpone his wedding due to the constant setbacks to the construction of his house.

The menace of the Omo Onile, whose numbers have swelled in recent years amid rising unemployment in Nigeria, is discouraging investors, hindering businesses and holding back development in Lagos state, government officials say.

 Nigeria Gets Tough With Marauding “Omo Onile” In Search Of Land To SeizeEarlier this year, the governor of Lagos, Akinwunmi Ambode, vowed to crack down on those who extort landowners or take over their property, and set up a task force to tackle the problem.

The state’s assembly followed his lead, and on Aug. 15 the Lagos State Properties Protection Law was enacted.

The law punishes land theft and a range of related offences with fines and a jail term of between five and 21 years.

“These hoodlums were becoming embarrassing, and were frustrating companies,” Akinjide Bakare, chairman of the Omo Onile task force, told the Thomson Reuters Foundation by phone.

“Lagos was losing investments to other states, and the government decided to step in and act,” Bakare added.

“SONS OF THE SOIL”

Land disputes and theft have long been a contentious issue in Lagos, and across Nigeria, according to land rights experts.

Dating back to the 1920s, most disputes within society and customary court cases have been about land, said a staff member at the National Archives of Nigeria, who asked to remain anonymous because he was not permitted to speak to the media.

In 1978, Nigeria passed the Land Use Act, which nationalised all land, and was intended to override customary land rights – where people have traditional rights but no legal recognition or protection of their land. This aimed to make land more accessible, improve tenure security, and boost development.

But the act made allocating land discretionary, fuelling state corruption, and contributed to Nigeria’s large informal land market, academics and development experts say.

“Some Omo Onile believe the land was originally theirs and so act as if government ownership does not count,” said Matthew Ottah, a Lagos-based lawyer and also a victim of the Omo Onile.

While there are no estimates of the number of Omo Onile, their ranks are believed to be growing as Nigeria’s unemployment rate has reached a seven-year high – 12 percent – and Lagos state’s population continues to grow past 20 million people.

Across Lagos, the Omo Onile idle in their communities, often drinking and smoking, but always on the lookout for abandoned projects, land purchases and deals struck by construction firms.

“There are no jobs from the government and vulcaniser (local rubber) work does not pay so this is better than stealing,” said Jamiu Alao, a young man who scouts out potential victims for the Omo Omile in Ajah, an area still under development in Lagos.

Some have set up small, bogus offices to bait prospective landowners, sometimes with illegible or misspelt signage and flyers, where they pose as genuine real estate developers.

They issue fake certificates of occupancy, collect money from landlords overseeing renovations, and conspire with some local traditional leaders to fleece property developers.

“Those who have money for land must settle with those who are keeping the land safe,” Alao added. “The new people must show respect to the old people – the sons of the soil.”

BATTLE FAR FROM OVER

When construction boss Kunle Adigun decided to take on the Omo Onile years ago, and press charges against the intruders, he arrived at his building site to find all his workers had quit.

“Eventually, I had to pay up,” the 32-year-old said.

“It is no good arguing with them or bringing police into the matter, because even they want to get money from land deals.”

Previously, forcibly entering a person’s land or seizing that land was punishable under the Lagos Criminal Law by two years in jail, yet it was rarely enforced, experts say.

Frustrated by the impunity of the Omo Onile, lawyer Ottah, who has been supporting their victims for over a decade, set up a start-up for land verification, identifying “risky lands”, detailing a history of land cases, and selling land.

“For unsuspecting buyers, I recommend a trustworthy lawyer, a quantity surveyor … and prayers,” Ottah said with a smile.

The new Properties Protection Law, which criminalises a range of offences from the illegal occupation of property and the use of land agents to selling property without authority, has been hailed by Lagos residents and activists alike.

Yet the battle against the Omo Omile and land theft is far from over, according to Samuel Oloyede, a professor of estate management at Covenant University, just outside of Lagos.

“There is no way to completely eliminate this issue – the land is vast and there are no official records in many cases.”

“The new law will minimise disputes because no one wants to go to jail. But it can not stop the problem completely because people will always find a way to cheat the system,” he said. ($1 = 315.0000 naira) (Reporting By Eromo Egbejule, Writing by Kieran Guilbert, Editing by Jo Griffin.; Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, women’s rights, trafficking, corruption and climate change. Visit news.trust.org)

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How surveyors can boost real estate with pension fund https://9japroperty.com.ng/how-surveyors-can-boost-real-estate-with-pension-fund/?utm_source=rss&utm_medium=rss&utm_campaign=how-surveyors-can-boost-real-estate-with-pension-fund https://9japroperty.com.ng/how-surveyors-can-boost-real-estate-with-pension-fund/#respond Wed, 03 Aug 2016 14:27:42 +0000 http://9japroperty.com.ng/?p=4790   As the total value of pension fund assets with licensed Pension operators rise to about N5.6 trillion, a senior official of the National Pension Commission has urged stakeholders in pension administration to utilise the provisions of the Pension Reform Act for more infrastructure and real estate development in the country. The Director General of […]

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As the total value of pension fund assets with licensed Pension operators rise to about N5.6 trillion, a senior official of the National Pension Commission has urged stakeholders in pension administration to utilise the provisions of the Pension Reform Act for more infrastructure and real estate development in the country.

The Director General of the National Pension Commission, (PENCOM), Mrs. Chinelo Anohu-Amazu made the disclosure while presenting a paper titled: An Overview of the Pension Reform Act 2014 and the Provision for Investment Outlets in Real Estate Sector’’ at a seminar organised by Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos State Branch, held at the Lagos City Mall, Victoria Island.

She informed participants that the new Pension Reform Act (PRA 2014), has made provisions for states and local governments to embark on Pension Fund investments in the housing sub-sector, unlike the 2004 act which only include the federal government service, ’’ the contribution pension rate has increased from 7.5 per cent for the employers and 7.5 per cent for employees to 10 per cent employers and 8 per cent employees respectively’’.

Under new initiative, PenCom had remarkable growth in Pension fund assets from N2.9trillion in 2012 to N5.3trillion by December 2015 and increased pension contributors from N5.39million to N6.89million retirement Savings Accounts (RSAs) over the same period.

Represented by Mr. Ibrahim Kangiwa of the Commission, he stated: ‘‘We have 21 Pension Fund Administrators, four Pension Fund Custodians and seven Closed Pension Fund Administrators.The PFA as we know them are pension operators charged with the responsibility of managing pension funds, they take care of collection, investments and pay out while the custodians are licensed to be in custody of pension funds”.

She expressed the willingness of the Pension Industry to support the mortgage finance sector to create more jobs, ”The 2014 act has also tried to incorporate the private sector by way of introduction of a micro pension scheme which is currently been developed by the commission with regulations and guidelines been finalised’’.

While saying that the act has also brought in provisions to protect pension funds by bringing in disciplinary measures like jail terms for anybody found to be involved in skimming, to deprive pensioners of their pensions, she urged real estate valuers and other stakeholders to device means of ensuring massive investments in housing for Nigerians, since the act made provisions for increased investments in infrastructures and housing development.

One of the ways it’s been done is that the PFA’s cannot have direct access to pension assets, the PFA’s directs the PFC’s to invest the pension assets but, they cannot for example; request for N10milion, any instruction given by the PFA’s before the custodians releases funds, it has to receive value for the money it has released’’.

In a paper; ‘’Investment of Pension Fund and Idle Funds in Housing Development: The Estate Surveyor and Valuer’s Perspectives’’, Chudi Ubosi said with Nigerians still experiencing about 15 million and 17 million housing deficits and the demand for housing put at 10:1 for demands and supply, about N59trillion are needed to bridge the gap in housing production pointing out that the sector contributes about 1.3per cent to the nation’s Gross Domestic Product (GDP).

Citing Lagos which has been described as the most vibrant property market, he stated that home ownership is still less than 20per cent with about 1500 net settlers daily and housing demands outstripped supply by 4.40million units and 1,42million, hence a shortfall of 3Million has erupted as the current situation of things in housing sub-sector, in Lagos

Ubosi harped on the need for the three tiers of government to develop greater use of professionals; estate surveyors and valuers in feasibility, viability and project management of the housing sector to promote integrity and accountability while all limiting laws and regulations preventing deployment of pension funds as well as direct investments in housing infrastructures are removed without further delay.

“Nigeria is one of the few countries in the world with no mortgage, funds may just be in the banks; there is the need to create financial products and mortgage backed securities”, he stated.

Managing Director of Stanbic IBTC Pension Manager Limited, Mr. Eric Fajemisin observed that pension funds have not been idle as widely speculated; rather the majority of the funds have been used basically for infrastructural development in the country.

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WAC signs exclusive distribution deal with retailers https://9japroperty.com.ng/wac-signs-exclusive-distribution-deal-with-retailers-2/?utm_source=rss&utm_medium=rss&utm_campaign=wac-signs-exclusive-distribution-deal-with-retailers-2 https://9japroperty.com.ng/wac-signs-exclusive-distribution-deal-with-retailers-2/#respond Tue, 12 Jul 2016 07:00:34 +0000 http://9japroperty.com.ng/?p=4696 Tile manufacturing firm, West African Ceramics Limited, says it has made a pact with major building materials’ dealers on exclusive sale of its products in notable markets across the country. According to the firm, the exclusivity store initiative, which has many dealers signed on across the country, was demonstrated with the inauguration of the first […]

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Tile manufacturing firm, West African Ceramics Limited, says it has made a pact with major building materials’ dealers on exclusive sale of its products in notable markets across the country.

According to the firm, the exclusivity store initiative, which has many dealers signed on across the country, was demonstrated with the inauguration of the first Royal Exclusive Showroom in favour of a major building material dealer at the Mararaba Building Materials Market in Abuja.

The General Manager, West African Ceramics Limited, Mr. Bhaskar Rao, was quoted in a statement as saying that the showroom was a one-stop shop for all products under the Royal stable, which would elevate the trade experience of dealers to a modern level.

 

“They will now be able to attract various segments of consumers and customers in an open market place, because the showroom will not just be a shop to display tiles, but will serve as an experience centre where customers get to be informed, entertained and experience tile applications such as kitchen and bathroom setup,” he said.

PUNCH.

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WAC signs exclusive distribution deal with retailers https://9japroperty.com.ng/wac-signs-exclusive-distribution-deal-with-retailers/?utm_source=rss&utm_medium=rss&utm_campaign=wac-signs-exclusive-distribution-deal-with-retailers https://9japroperty.com.ng/wac-signs-exclusive-distribution-deal-with-retailers/#respond Mon, 04 Jul 2016 07:58:59 +0000 http://9japroperty.com.ng/?p=4678 Tile manufacturing firm, West African Ceramics Limited, says it has made a pact with major building materials’ dealers on exclusive sale of its products in notable markets across the country. According to the firm, the exclusivity store initiative, which has many dealers signed on across the country, was demonstrated with the inauguration of the first […]

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Tile manufacturing firm, West African Ceramics Limited, says it has made a pact with major building materials’ dealers on exclusive sale of its products in notable markets across the country.

According to the firm, the exclusivity store initiative, which has many dealers signed on across the country, was demonstrated with the inauguration of the first Royal Exclusive Showroom in favour of a major building material dealer at the Mararaba Building Materials Market in Abuja.

The General Manager, West African Ceramics Limited, Mr. Bhaskar Rao, was quoted in a statement as saying that the showroom was a one-stop shop for all products under the Royal stable, which would elevate the trade experience of dealers to a modern level.

“They will now be able to attract various segments of consumers and customers in an open market place, because the showroom will not just be a shop to display tiles, but will serve as an experience centre where customers get to be informed, entertained and experience tile applications such as kitchen and bathroom setup,” he said.

 PUNCH.

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Lagos communities comply with open street gates policy https://9japroperty.com.ng/lagos-communities-comply-with-open-street-gates-policy/?utm_source=rss&utm_medium=rss&utm_campaign=lagos-communities-comply-with-open-street-gates-policy https://9japroperty.com.ng/lagos-communities-comply-with-open-street-gates-policy/#respond Mon, 08 Feb 2016 09:59:33 +0000 http://9japroperty.com.ng/?p=4180 Lagos propertyCHECKS and feedbacks from residents and communities across Lagos State have revealed that there has been gradual compliance with the policy of Governor Akinwunmi Ambode to keep their street gates open between 5.30a.m. and midnight daily. Some of the streets, which have thrown open their gates include Aisha Animashaun, Awori, Johnson and Olutunda in […]

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Lagos propertyCHECKS and feedbacks from residents and communities across Lagos State have revealed that there has been gradual compliance with the policy of Governor Akinwunmi Ambode to keep their street gates open between 5.30a.m. and midnight daily.

Some of the streets, which have thrown open their gates include Aisha Animashaun, Awori, Johnson and Olutunda in Ilupeju; Association Avenue, Kayode Adebanji in Ejigbo; Olutosin Ajayi in Ajao Estate; Ayanboye Street, Kosofe and Fawole Street in Shomolu.

Reacting to the prompt compliance, the Special Adviser to the Governor on Communities & Communcations, Mr. Kehinde Bamigbetan, disclosed that random checks and feedbacks from the officials of the Community Development Associations (CDAs) with pictorial evidence demonstrate that residents have embraced the policy.

Commending Lagosians for their support for the policy, Bamigbetan urged community leaders to mobilise more landlords behind the policy to ensure that the objectives of the administration are achieved.

It would be recalled that the administration revived the open gate in daytime policy to facilitate the patrol of neighourhoods by the police, provide speedier access of the Fire Services to landlords in need and save pregnant women in labour from avoidable death.

The government took decision following appeals from the public and the difficulties encountered by state officials to provide emergency services to the public.

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Ogun provides 23 communities with water schemes https://9japroperty.com.ng/ogun-provides-23-communities-with-water-schemes/?utm_source=rss&utm_medium=rss&utm_campaign=ogun-provides-23-communities-with-water-schemes https://9japroperty.com.ng/ogun-provides-23-communities-with-water-schemes/#respond Mon, 21 Sep 2015 12:21:45 +0000 http://9japroperty.com.ng/?p=3686 The Ogun State Government, through the Ministry of Rural Development, has provided water schemes for 23 communities to ensure uninterrupted flow of potable water. The Director of Rural Electrification in the ministry, Mr. AbdulRasaq Ojetola, said in a statement that the schemes comprised 7.5KVA power generator, tanks, pipes and fetching platforms, among others. “Government has […]

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The Ogun State Government, through the Ministry of Rural Development, has provided water schemes for 23 communities to ensure uninterrupted flow of potable water.

The Director of Rural Electrification in the ministry, Mr. AbdulRasaq Ojetola, said in a statement that the schemes comprised 7.5KVA power generator, tanks, pipes and fetching platforms, among others.

“Government has deemed it fit to provide potable water and adequate sanitation in an affordable way as well as the required infrastructure to facilitate and enhance socio-economic development across the local government areas,” he said.

Ojetola said the ministry, through its Department of Rural Water Supply, had also constructed solar powered borehole water schemes in Ikereku Olodi, Abeokuta North; Yewa Disu, Yewa North; Sigi Baido, Ewekoro; Lisa, Odeda; Ehin Osun, Ijebu North East; Jabata, Imeko Afon; Osunbudepo, Ijebu North; Fakale, Sagamu; Areago, Obafemi Owode; and Oguru, Ijebu East.

He said the ministry had also organised a programme tagged: ‘Ile kan, igbonse kan, ko je lilo’, ‘One house, one toilet for use’ to improve sanitation in the rural communities.

“Hence, there will be significant investment that will confirm the state government’s presence to the rural dwellers through the provision of potable water, rural electrification projects and construction of roads,” he added.

PUNCH.

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3Invest, Houston EB5 woo investors with Arabella project https://9japroperty.com.ng/3invest-houston-eb5-woo-investors-with-arabella-project/?utm_source=rss&utm_medium=rss&utm_campaign=3invest-houston-eb5-woo-investors-with-arabella-project https://9japroperty.com.ng/3invest-houston-eb5-woo-investors-with-arabella-project/#respond Tue, 25 Aug 2015 15:41:33 +0000 http://9japroperty.com.ng/?p=3486 3Invest Limited has revealed its partnership with Houston EB5 for the purpose of raising capital in the Africa region for another real estate investment opportunity in a residential project known as Arabella, in the United States. The Chief Executive Officer of 3Invest, Ms. Ruth Obih, said the move was coming on the heels of the […]

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3Invest Limited has revealed its partnership with Houston EB5 for the purpose of raising capital in the Africa region for another real estate investment opportunity in a residential project known as Arabella, in the United States.

The Chief Executive Officer of 3Invest, Ms. Ruth Obih, said the move was coming on the heels of the success of the just concluded capital-raising partnership for the Marlowe residential project in Houston Texas, USA.

“This is the second project this year and the third project that we have been privileged to be working on as exclusive regional industry partner,” she said.

According to Obih, Arabella is a 33-storey, 99 residence contemporary tower with two, three and four bedroomed floor plans, positioned next to the highly anticipated River Oaks District.

She said, “Every architectural detail of Arabella is a reflection of the belief that a high-rise home begins with the art of superior exterior modelling, and concludes with customised interior finishes similar to the great new genre of high-rises ascending skyward in New York City.

“From the stunning entrance facade, to the spectacular lobby, Arabella aspires to move the design needle forward for Houston.”

Obih said the project partner, Houston EB5, is a Houston, Texas-based real estate investment company offering potential investors the opportunity of investing in real estate development in Houston Texas, the United States.

“In addition to the prospect of a good return on investment, investing in Arabella will make investors eligible for permanent residency in the United States through the EB-5 programme administered by the US Citizenship and Immigration Services under the Department of Homeland Security,” she added.

The Managing Director of Houston EB5 Regional Centre, Acho Azuike, said the majority of the investors, who subscribed to Houston EB5’s previous projects, were from Mexico and other Latin American countries with Nigeria close behind.

PUNCH.

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Lagos terminates contract with Afriland Properties to develop Falomo Shopping Centre https://9japroperty.com.ng/lagos-terminates-contract-with-afriland-properties-to-develop-falomo-shopping-centre/?utm_source=rss&utm_medium=rss&utm_campaign=lagos-terminates-contract-with-afriland-properties-to-develop-falomo-shopping-centre https://9japroperty.com.ng/lagos-terminates-contract-with-afriland-properties-to-develop-falomo-shopping-centre/#respond Thu, 20 Aug 2015 09:03:15 +0000 http://9japroperty.com.ng/?p=3460 WorldStage Newsonline—The dream by Afriland Properties, a member of the Tony Elumelu’s Heirs Holdings Group, to redevelop the Falomo Shopping Centre, Ikoyi  into a shopping mall, an office complex and world class residential apartments that will serve the needs of the burgeoning populace in Lagos State and beyond has been dashed with the termination of […]

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WorldStage Newsonline—The dream by Afriland Properties, a member of the Tony Elumelu’s Heirs Holdings Group, to redevelop the Falomo Shopping Centre, Ikoyi  into a shopping mall, an office complex and world class residential apartments that will serve the needs of the burgeoning populace in Lagos State and beyond has been dashed with the termination of the contract by the Lagos State Government

Lagos State Governor, Mr. Akinwunmi Ambode on Wednesday terminated the concession granted by the State Development and Property Corporation (LSDPC) to Afriland Properties for the redevelopment of the Centre, claiming that only N50 million was paid by Afriland Properties, for a 50-year lease of the property belonging to the government

The Governor, in a statement signed by his Chief Press Secretary, Mr. Habib Aruna, said that the decision was carried out based on a recent discovery that the concession was grossly detrimental to the interests of the people of the state.

He said the State Government as custodian of the interests of Lagosians was committed to the restructuring of the LSDPC to ensure it begins to provide positive capital returns to the State Government for the ultimate benefit of Lagosians.

Governor Ambode two months ago, relieved former Managing Director of the LSDPC, Mr. Biodun Oki of his appointment, just as he appointed Mr. Jacob Agosu as Acting CEO of the Corporation, in a move he said was aimed  at stemming the tide of negative capital returns of the corporation.

Heirs Holdings, a pan-African investment company, chaired by Mr. Tony Elumelu, had in July 2013 signed an agreement with LSDPC, for the redevelopment of the iconic Falomo Shopping Mall located in Ikoyi, Lagos State.

According to the plan, the mall was to be redeveloped into a shopping mall, an office complex and world class residential apartments that will serve the needs of the burgeoning populace in Lagos State and beyond.

Speaking at the site tour then, the Managing Director of LSDPC, Mr. Biodun Oki, said: “The Falomo Shopping Mall’s redevelopment is long overdue. Our partnership with Heirs Holdings is in line with the state government’s urban redevelopment project and it bodes well for the state, the country and for the citizens.

“Once this project is completed, we can all look forward to a new and improved landscape that will stimulate business activity in this area and beyond.

“Involving the private sector in our redevelopment agenda is the model for all future projects.”

Speaking on the plan to remodel the shopping complex, the chairman of Heirs Holdings said: “Redeveloping one of the country’s most iconic malls is part of our commitment to drive development and move Nigeria forward through our business activities.”

Afriland Properties Plc according to information on its website is a property management, investment and development company, offering end-to-end services along the real estate value chain, from management to joint-venture investments.

It claimed that with a portfolio size of over N10 billion and one of the largest land banks in Nigeria, Afriland “is pioneering the opportunities presented by an institutional approach to real estate, serving niche markets throughout Africa.”

Afriland stated its vision to be “Africa’s leading real estate company, creating long term value for all stakeholders. Our mission is to deliver world-class developments by leveraging global best practices, strategic partnerships, excellence, and innovation.”

Listed among the board members of  Afriland are Erelu Angela Adebayo, Chairman; Uzoamaka Oshogwe, Managing Director; and Sam Nwanze, Chief Investment Officer at Heirs Holdings.

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Nigeria’s housing sector filled with uncertainties – Afolayan https://9japroperty.com.ng/nigerias-housing-sector-filled-with-uncertainties-afolayan/?utm_source=rss&utm_medium=rss&utm_campaign=nigerias-housing-sector-filled-with-uncertainties-afolayan https://9japroperty.com.ng/nigerias-housing-sector-filled-with-uncertainties-afolayan/#respond Mon, 03 Aug 2015 08:33:20 +0000 http://9japroperty.com.ng/?p=3393 Chief Olabode Afolayan is the immediate past President of the Real Estate Developers Association of Nigeria. In this interview with MAUREEN IHUA-MADUENYI, he advises the government to create a legal framework to accelerate land-related transactions How is the current depreciation of the naira impacting real estate development? In the last couple of months, it has […]

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Chief Olabode Afolayan is the immediate past President of the Real Estate Developers Association of Nigeria. In this interview with MAUREEN IHUA-MADUENYI, he advises the government to create a legal framework to accelerate land-related transactions

How is the current depreciation of the naira impacting real estate development?

In the last couple of months, it has been so terrible that business is becoming almost impossible and we have come to realise now that the cost of not doing anything is far cheaper and better than the cost of doing something. The cost of not doing anything is just to keep up with your running costs, but the cost of doing business is so unpredictable and difficult that it is higher than the cost of not doing anything.

These days, anything you do keeps changing and our projections are always changing. Recently, we got a job with a client to put up three-bedroom flats, six in a block and 18 blocks in total. We got it about five months ago, signed the contract and moved to site; but right now, the cost of the project, that is our own contract value together with the profit as of the time we signed the contract, is almost 70 per cent of the real cost. On daily basis, you see changes in the cost of building materials, even the locally sourced ones.

Even the saw millers are coming to complain about the cost of replacing their equipment. Developers are seriously affected because 90 per cent of construction-related materials are imported either in form of equipment or finished goods. Most of the doors in the market now are Chinese products; how do you fix that? The only thing that is close to certain now is the cost of labour and it also keeps changing because artisans now look at the value of a contract and bill you. In those days, you pay N500 to fix a China door; now, they charge as much as N2,000.

In the light of current economic realities, what should Nigerians expect from real estate developers?

As it stands today, people should see the prices of property as uncertain because what is happening is not giving anyone any direction other than uncertainty. As it stands now, it is almost getting beyond the reach of the average man. The middle class is almost completely eroded now, because not all of them can afford what is on ground. Even the so-called rent-to-own that is being introduced as a way of mortgage, how many people can afford it? How many people can afford to rent a decent one-bedroom apartment?

A one-bedroom apartment in Abuja, for instance, costs between N800,000 and N1m. Averagely, you are paying between N80,000 and N100,000 per month from your salary for a room; so, what is your salary? It shows that even a director in a ministry may not be able to rent a decent one-room apartment because he may not earn up to N200,000 or N300,000 a month; so, how can he meet up?

Property in Nigeria has been described as one of the most expensive in the world, even before the naira fluctuation. Why is this so?

One of the problems is the cost of land; all the factors of production are expensive, but most of them are tied to land. To get land far away in a remote village is even expensive. Titling is another problem because a land without a title is as good as nothing. To get title for your land is a big problem; the cost is very high and by the time you add all these, the final product goes up.

You also talk about infrastructure; no land in the country is in a way that you get good infrastructural development, which makes up a location. A plot of land in Lekki or any choice place in Lagos, for instance, will be a lot more expensive than in Mowe simply because of the infrastructure. By the time you spread this on the land and move to the cost of capital and how to raise funds for development, everything goes so high.

No bank gives loans on single digit interest; some give as much as 30 per cent. The other aspect is material; look at the cost of cement; we are in the raining season when we experience low construction activities but the price of cement is high. How about iron rod? Everything that has to do with building is so very high.

With the current state of the economy, is the country still in line for the predicted growth potential in the real estate sector?

The irony is that from time to time, there will be challenges; what makes the difference is the ability to live up to them and translate them into opportunities. For us, we are not losing out because we have come to see it as an opportunity. What we need to do, for those of us in the construction business, now that imported materials are getting out of reach, is to develop our own made in Nigeria materials. That is locally sourced materials that will give us affordable homes and stand the test of time.

A lot of focus has been on the challenges of the sector, what are its prospects?

The biggest prospect is our population. We have over 170 million people in Nigeria and everyone desires a home. Apart from the population, the demand is so high, meaning that if we can push a lot of products into the market, houses that are affordable will have a lot of prospects. The real estate sector in Nigeria still has prospects; once the products are affordable, they will be taken. The only thing now is for us to sit back and look at what the market needs.

What should investors look out for when investing in the real estate sector?

The basic thing is to identify the needs of the people and their means. Marry their needs to their means and get products that they will find affordable and useful. For instance, if I go to a village where we have primary and secondary school teachers, all I need to do is to identify them and offer them one to two-bedroom apartments and see what they can pay. What they can pay should be able provide the products.

Investors should always be careful about a potential market by clearly defining needs and means. The fact that you are married with children and need a three-bedroom apartment does not mean it must be provided; you should be able to afford it. That is why we are excited about the developments in the mortgage sub-sector in the past few months, the recapitalisation of the primary mortgage banks and the creation of the Nigeria Mortgage Refinance Company, which will provide liquidity for the sector.

It means anyone who has income overtime can apply for mortgage with which they can own a home.

As a developer, what are you expectations from the current government in terms of housing policies?

What I want this government to do is to see how they can make land more available and affordable. They should look at the process of land acquisition and titling; we don’t need to change the law, amending the law is also not enough, there should be the political will to enforce it. The government should encourage the provision and development of affordable homes by making land available on the basis of public-private partnership to reduce cost and turnaround time.

Government should also begin to provide guarantee to encourage employers to provide corporate guarantee for their employees. This will drive mortgage so that as soon as houses are provided, there will be enough transaction.

Finally, the government should create a legal framework to accelerate land-related transactions, including mortgages; this will make transactions a bit more liquid just like the way we do with selling cars, for instance. Land transactions should be easy so that people can invest their money in housing and tie their investments in real estate and convert them to liquid cash anytime they wish.

PUNCH.

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Dangote Cement targets 5,000 jobs with Senegal plant https://9japroperty.com.ng/dangote-cement-targets-5000-jobs-with-senegal-plant/?utm_source=rss&utm_medium=rss&utm_campaign=dangote-cement-targets-5000-jobs-with-senegal-plant https://9japroperty.com.ng/dangote-cement-targets-5000-jobs-with-senegal-plant/#respond Thu, 16 Apr 2015 12:11:44 +0000 http://9japroperty.com.ng/?p=3179 Dangote Cement Plc has announced the rollout of products from its $300m cement plant in Senegal amid excitement by the country’s government on the prospect of direct employment of about 5,000 locals by the company. The company noted in a statement that with the new plant, it hoped to improve Senegal’s cement production capacity with […]

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Dangote Cement Plc has announced the rollout of products from its $300m cement plant in Senegal amid excitement by the country’s government on the prospect of direct employment of about 5,000 locals by the company.

The company noted in a statement that with the new plant, it hoped to improve Senegal’s cement production capacity with an additional 1.5 million metric tonnes, while serving an export market demand of two million metric tonnes along the Mali boarder.

It expressed optimism that it would be able to penetrate the market with at least 1.2 million metric tonnes of cement before end of 2015.

The Country Head, Dangote Cement, Senegal, Mr. Luk Haelterman, was quoted as saying that the company’s plant was near completion but had commenced production to fill the demand gap in the country, especially with its 42.5 grade of cement.

He said, “Despite being a saturated one, the company has potential for growth, both for local consumption and export, with the introduction of the new cement grade in the region.

“The last few years have seen the company overcoming a lot challenges in the country, especially those related to the smear campaign on environmental impact of the factory in the country. It is a saturated market with Dangote being the third entrant in the market after two other cement manufacturers.

“What has kept us going is the competitive edge that our 42.5 grade of cement has given us in offering consumers fine quality of cement. Our corporate social responsibility activities have improved and we believe that the plant will be exemplary in community matters.”

According to the statement, the establishment of the cement plant by Dangote is the single largest investment in Senegal by an African and the Senegalese government has promised to protect the company to achieve its optimal production capacity.

It added that both the Nigerian Ambassador to Senegal, Katyen Jackden; and Senegal’s Director of Mines, Ousmane Cisse, commended the doggedness of the Chairman of the Dangote Group, Alhaji Aliko Dangote, in seeing the plant through despite various setbacks.

“The new plant, located in Pout district of Senegal, about 75 kilometres east of Dakar, the country’s capital, has a nominal capacity to produce 4,000 metric tonnes per day and 1.2MT per annum. The plant is expected to create more than 5,000 jobs, with a total production capacity of 1.5 million metric tonnes annually,” the statement added.

Jackden explained that Dangote had, through his investments in African countries, built bridges of friendship across nations, fostering unity and integration among African countries.

Haelterman also noted that the company’s entrance into the Senegalese market had altered the equation in the cement market.

“Senegal, with a population of 14 million people, is a market with ever growing demand for cement because quite a lot of construction activities are going on. There were two existing cement plants before Dangote came on board. But today, Dangote has become the biggest and best because we remain the only company producing the 42.5R, which is better than what we met on ground, which is the 32.5R,” he was quoted as saying.

The Chief Operating Officer of the plant, Athanasios Bampos, said the location of the factory was not only rich in limestone but also in clay and laterite, which are the major components for cement manufacturing.

PUNCH.

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