The demolition of a housing estate in Abuja
last year has remained a sore point for estate developers in the
territory. While the affected developers are still trying to recover
from the loss, stakeholders in the sector are of the opinion that more
investment could be lost if conscious efforts are not put in place to
checkmate these activities. Even though some stakeholder consider the
destruction of such building as unnecessary since the country is faced
with an alarming housing deficit, others are of the view that the
government needs to put in place the right policies so that housing will
be available for everyone. Evelyn Okoruwa writes Billions of money
invested in property has been lost of recent to the demolition of such
properties, often termed illegal by the authorities.
According to stakeholders in the housing sector, the ripple negative effect demolition of property has on the economy cannot be over emphasised as it cripples economic activities.
One of such negative effects is the resultant unemployment as workers employed in these demolished sites have been out of work.
The build industry employs labourers such plumbers, carpenters, iron benders, brick layers, masons, painters and professionals like architects, surveyors, engineers and other relevant professions.
Apart from that the transport sector has been greatly affected since people hardly move building materials from one point to another, this has invariable affected both the building materials sellers and the transporters. While in the mining sector only few aggregates are being bought, in addition to that, the developers themselves have lost the money invested in developing such sites.
An independent developer who craved anonymity told LEADERSHIP that he lost over N20 million during the demolition exercise and is yet to receive any compensation from the government.
He disclosed that he took ill when his site was demolished and is still yet to recover from the shock due to the money he lost, emphasizing that the money was borrowed and he is still trying to service the loan he took to develop the site.
Speaking on the issue, the President Real Estate Developers Association of Nigeria (REDAN), Chief Olabode Afolayan, noted it is really difficult to quantify the loss as millions of money have been lost in the whole demolition exercise.He disclosed that the exercise ha not only affected the housing sector but all other sectors that depend on it to strive.
He further disclosed that most of the affected members have agreed to opt out of court and negotiate with the minister, while reaffirming that the Lugbe crisis will soon be over. Rrecall that over 1,004 houses were demolished in Lugbe, Abuja, between August and October last year and it was estimated that property owners may have lost over N37 billion to the demolition of illegal structures.
While stakeholders continue to groan over their loss, they lament the unseriousness of the government to provide housing for Nigerians considering the huge housing deficit which is widely acclaimed to be between 16 to 18 million. While noting that the housing deficit is much more than the estimated number, they lamented that rather than encourage developers, the government is making it difficult for them to help ease the deficit.
As part of the Federal Government's transformation agenda, it had on many occasions promised to deliver affordable housing to Nigerians.
However developers have argued that the federal government is not ready to provide housing and have implored Nigerians to know that their future is in their own hands in terms of housing delivery.
They urged Nigerians not to rely solely on the government but contribute their own quota, stressing that the implication of the government's laid back attitude to the housing sector is that for there to be adequate housing in Nigeria, the sector must be 99.9 per cent private sector driven but however urged the government to bring the right policies into play in order to move the sector forward. Stressing the importance of the right policies, the National Secretary General, Nigeria Institute of Quantity Surveyors, Mr. Akinpelu Adewumi, noted that any government policy that is not implementable, measurable or sustainable will not give any result.
He disclosed that if government is serious about mass housing, it must be seen to be driving the policy. He opined that one way the government can drive it is to provide infrastructure, noting that if developers are allowed to provide infrastructure for buildings, such houses will not be affordable.
Adewumi urged the government to provide infrastructure first and then see how to incorporate local materials into the production and as such the cost would be brought down drastically.
By encouraging our local goods, he said more jobs would be created in the process while building cost would also be reduced.
According to stakeholders in the housing sector, the ripple negative effect demolition of property has on the economy cannot be over emphasised as it cripples economic activities.
One of such negative effects is the resultant unemployment as workers employed in these demolished sites have been out of work.
The build industry employs labourers such plumbers, carpenters, iron benders, brick layers, masons, painters and professionals like architects, surveyors, engineers and other relevant professions.
Apart from that the transport sector has been greatly affected since people hardly move building materials from one point to another, this has invariable affected both the building materials sellers and the transporters. While in the mining sector only few aggregates are being bought, in addition to that, the developers themselves have lost the money invested in developing such sites.
An independent developer who craved anonymity told LEADERSHIP that he lost over N20 million during the demolition exercise and is yet to receive any compensation from the government.
He disclosed that he took ill when his site was demolished and is still yet to recover from the shock due to the money he lost, emphasizing that the money was borrowed and he is still trying to service the loan he took to develop the site.
Speaking on the issue, the President Real Estate Developers Association of Nigeria (REDAN), Chief Olabode Afolayan, noted it is really difficult to quantify the loss as millions of money have been lost in the whole demolition exercise.He disclosed that the exercise ha not only affected the housing sector but all other sectors that depend on it to strive.
"For a couple of months, Dangote Cement had to close its factory in Benue State because of drought. You can begin to itemise it that way. So the loss is really much. It is unquantifiable. I can authoritatively say that it has affected the GDP of the country by the time things are being put together at the end of the year."However, the government has promised to forestall any future demolition. REDAN's Executive Secretary, Mr. Goke Odunlami, disclosed that members affected in the Lugbe demolition has agreed to take the advice of the chairman, Senate committee on the FCT, Senator Smart Adeyemi, to go into negotiation with the FCT Minister, Senator Bala Mohammed, instead of pursuing the court case.
He further disclosed that most of the affected members have agreed to opt out of court and negotiate with the minister, while reaffirming that the Lugbe crisis will soon be over. Rrecall that over 1,004 houses were demolished in Lugbe, Abuja, between August and October last year and it was estimated that property owners may have lost over N37 billion to the demolition of illegal structures.
While stakeholders continue to groan over their loss, they lament the unseriousness of the government to provide housing for Nigerians considering the huge housing deficit which is widely acclaimed to be between 16 to 18 million. While noting that the housing deficit is much more than the estimated number, they lamented that rather than encourage developers, the government is making it difficult for them to help ease the deficit.
As part of the Federal Government's transformation agenda, it had on many occasions promised to deliver affordable housing to Nigerians.
However developers have argued that the federal government is not ready to provide housing and have implored Nigerians to know that their future is in their own hands in terms of housing delivery.
They urged Nigerians not to rely solely on the government but contribute their own quota, stressing that the implication of the government's laid back attitude to the housing sector is that for there to be adequate housing in Nigeria, the sector must be 99.9 per cent private sector driven but however urged the government to bring the right policies into play in order to move the sector forward. Stressing the importance of the right policies, the National Secretary General, Nigeria Institute of Quantity Surveyors, Mr. Akinpelu Adewumi, noted that any government policy that is not implementable, measurable or sustainable will not give any result.
He disclosed that if government is serious about mass housing, it must be seen to be driving the policy. He opined that one way the government can drive it is to provide infrastructure, noting that if developers are allowed to provide infrastructure for buildings, such houses will not be affordable.
Adewumi urged the government to provide infrastructure first and then see how to incorporate local materials into the production and as such the cost would be brought down drastically.
By encouraging our local goods, he said more jobs would be created in the process while building cost would also be reduced.
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