Bode Afolayan, president of Real Estate Developers Association of Nigeria (REDAN) in this interview with KEHINDE AKINTOLA, speaks on successes recorded including signing of MoU with Shelter Afrique for the delivery of 10,000 affordable housing within six months, business environment, among other issues. Excerpts:
How safe is investment made by our members in housing sector in Abuja
Very safe if investors at the point of coming into business is able to appraise and fulfill all righteousness. Fulfill all righteousness in the sense that conduct your due diligence then you can go to sleep.
Why do people who have titled documents from Area Councils fall prey so often
Thank you. You see if people claim they are having requisite approval, remains vague not until it is either acceptable to the other party that is the people who granted the approval or the person conducting the assessment. Because going by what we have in the sector these days, you cannot rule it out that people can come with anything. In fact, the developer himself might be a victim of circumstance. So such things must be subjected to series of confirmations before we can admit that it is genuine.
What is the Association doing to assist members who have genuine complaints
Yes, in fact the whole lot of development coming under the proposed phase 5 is still a subject of series of accusations and counter-accusations on the part of the government and the developers especially my members. But we are working around it and in the next couple of weeks going by the information available to us, through the agencies of the government, it would be resolved.
Will you say your members are having it well so far in terms of access to land and other indices
Not really. It’s just because of the function of the Constitution that is, the Land Use Act. Two, the institutional problems. For instance it takes ages to get certain approvals because of the structure and for us as pressure group we are doing everything humanly possible to address these and I think we are moving forward because today, we’ve been able to create the necessary awareness. One of those things which we believe in is the relationship with the Media, like I’m talking to you today; major stakeholders, we have opportunity to hear from them what the problem to us is. And it is the beginning of addressing the problem. As an organisation, we are working so much to do our advocacy to change the laws or the people. Two, we are coming up with some bills at different levels to ensure that we change the way things are being done in the sector.
So far, the National Assembly has not done anything on the amendment of the Land Use Act, what is your take on this
You know when you operate in a system that is too bureaucratic in nature or you operate in a system that is being politicized or you operate in a system that the people are beginning to lose confidence or hope in anything better. It takes too long a time to correct. But we don’t need to lose hope, because one day things must change and it has to be effected by people or push by a group of people and today we are lucky, we thank God for giving us the opportunity to be part of the team, advocating for a positive change. If there is anything you want to be remembered for, it’s for us to be part of the team that will change the entire structure, positive change. We as an organisation, we are now working closely with the people in the National Assembly, in fact we are advising our members to be part of the politics so that they can be part of the next dispensation either part of the people that will be in the National Assembly or influence election that they know too well that would help them to change things in the sector.
But, how pushy is your Organisation to ensure technocrats head the housing sector
That is not too easy but just like its being done in every part of the world lobby; we are putting things together to ensure that we are part of the system that brings people into government so that we will be part of the system that will equally put people or get people to do the right thing for the masses and for the sector.
In your assessment, will you say government has achieved anything meaningful in terms of its policies on mass housing and urban renewal
Don’t let us forget the fact that the sector is just evolving in Nigeria. What I mean evolving in Nigeria, anywhere where there is people there must be the need for houses but the need and the demand is being driven or influenced by the structure. So we are now putting structures in place that will enable an average person to own a house in Nigeria. For instance, the government together with us, we already have the mortgage sub-sector being enhanced a little. We have the NMRC now, we have the recapitalization of the mortgage banks, we are advocating for the capitalisation of the federal mortgage bank and we are even looking forward to the establishment of the construction bank and institution to provide money for real estate development. We are working with the National Assembly to repeal or amend laws that are housing related and we believe all these things coming on board will change the face of housing delivery in Nigeria.
If not politicised
Politics cannot be taken away from human settlement or relationship, even between individuals even in your respective family structure we still do some politics but what we are beginning to do these days is to ensure that with politics the basic is still being provided.
Looking at the number of houses being delivered by REDAN members and individuals across the country, will you subscribe to the estimated 16 million housing deficit ascribed to Nigeria
Thank you for that question. You see today I want to authoritatively tell you that nobody can clearly tell you the amount of deficit we have, it’s still by estimate. Come to think of it, we do not even have statistics of the numbers of houses that are available, so if you have an idea of what your population is all about, it’s still estimation. You do not have the number of houses available so those are based on assumptions but there is one thing we need to appreciate, it’s that we need lots and lot of houses to provide for the teeming population so there’s deficit.
Why is it that the census conducted cannot address this problem
I’ve written a letter and we are working with the Bureau of Statistics in fact we are working on putting a committee together to start looking at how to address some of those things. But in addition to that as an organisation, as an investor, we are looking at the possibility of having an idea because we don’t want to build for speculative market any longer. So from time to time on periodic basis, my association, I’m telling you authoritatively we’ll begin to release to the public through the office of the National Bureau of Statistics information about housing demand.
The first one will come in the next three months or by the end of September we will tell you where we are because for now we are now rolling out questionnaires through our website to enquire or encourage people to make demands for houses and the type of houses.
By the end of the third quarter of the year, September, we would let you know what the demand as at that date is, from the people and periodically we will be rolling out the figures because we want to put money into housing development. You will notice recently that we went to Shelter Afrique AGM and by the special grace of God in the next 48 hours we will be in Nairobi to sign an MoU for delivery of 10,000 units of houses so we want further development to be driven by market demand. To be able to do that effectively and efficiently, we are beginning to ask organisations or groups to express interests so we will collate all these things together and say okay for today, this is what the demand looks like.
We are talking of effective demand, we want people who will say I need houses, this is where I work, this is what I am and this is what I can pay. It’s not just for you to say I want houses when you cannot pay or qualify for mortgage. So we will help the government and the people of this country to begin to provide statistics in that sector.
How do you intend to fund the 10,000 houses
We have gotten the Shelter Afrique. I have the MoU, it will be signed in Nairobi, we will leave for Nairobi Wednesday and by the special grace of God we will sign it Friday, 20th of this month for delivery of the 10,000 houses. It is the funding that we are getting from them.
Where will the houses be located
We are working with our supervising ministry, the Ministry of Lands, Housing and Urban Development and the ministry also is working with the Coordinating Minister of the Economy because it was an idea of the federal government to deliver the houses in six months and for us in the private sector particularly REDAN that was established by the government to help the government actualise their housing programme, we are delivering it. So the minister (housing) will communicate appropriately.
Already we have the members who have expressed interest in delivering those houses, we have asked them to give us their submissions, where they have the titled lands, the unit of houses that are likely to be delivered. So we will roll it out for the members of the public to key into.
