Members of the Real Estate Developers Association of Nigeria (REDAN) and experts in the housing industry have urged the Federal Government to implement estate development policies, explore industry’s potential to create wealth and jobs for unemployed Nigerians.
They urged the government to activate local production of building materials, and training of artisans, as well as associations to regulate their members to regain and/or retain the confidence of the public.
The Managing Director of the Nigerian Mortgage Refinance Company, (NMRC), Mr Kehinde Ogundimu, who led the call at the 15th yearly general meeting of REDAN entitled: “Envisioning the Nation’s Prosperity through Real Estate Development,” in Lagos, said Nigeria has tremendous opportunity to witness improved economic growth, as well as achieve overall prosperity through a thriving real estate development sector.
He argued that with the articulation, implementation of optimal real estate development policies and enabling business environment, the real estate development industry could catalyse the much-needed infrastructure development and overall economic development in the country.
Ogundimu explained that real estate development provides a wide range of employment opportunities in various areas such as construction, architecture, engineering, project management, real estate brokerage, property management, and maintenance. Ogundimu said direct and indirect employment opportunities are created where real estate projects are located.
“It is estimated that for every $1 million invested in the construction subsector, around 25 jobs are created. According to the African Development Bank, the construction subsector in Africa creates more jobs per unit of investment than any other sector. Real estate development is a key driver of wealth creation and revenue generation in most economies, with returns on investment often exceeding those in other asset classes.
“Real estate development contributes to economic prosperity through government tax revenue. The government collects taxes in the form of property taxes, sales taxes, property title transfer charges and income taxes on real estate transactions,” he said.
According to him, as real estate values increase over time, investors and developers make significant profits from buying, developing, and selling properties.
While property owners generate sustainable income from rent, which are typically reinvested in other real estate projects or other sectors of the economy to drive increased economic growth.
He lamented that across the world the housing industry contributes significantly to Gross Domestic Product (GDP) with over 20 per cent whereas in Nigeria the industry only contributes about 5.30 per cent to GDP. “We cannot achieve the full benefits of the nation’s prosperity through housing if we do not have a functioning credit system, low interest rates regime, and efficient land administration,” he observed.
Outgoing REDAN president, Dr Aliyu Wamakko, said the association remained committed to its mandate, which is to provide mass and affordable housing to Nigerians. He added that it maintained cordial and productive relationships with critical stakeholders in the housing sector.
To standardise product and processes in housing delivery, he said REDAN introduced the estate and products endorsement schemes, to ensure quality project developments with distinct seals for members, endorsed estates and accredited companies.
“The 6th Council initiated efforts to sanitise the business of the real estate sector. In this regard, we proposed the Real Estate Council of Nigeria (RECON) Bill, which was passed by the 9th National Assembly and waiting for the assent of President Bola Tinubu. We synergised with the regulatory authorities in the quest to abide and keep our business operations in sync with the laws of the country, thereby, ensuring national security.
“Accordingly, we interfaced and collaborated with regulatory institutions such as the Economic and Financial Crimes Commission (EFCC), Special Control Unit Against Money Laundering (SCUML), Nigerian Financial Intelligence Unit (NFIU) and Independent Corrupt Practices and Other Related Offenses Commission (ICPC),” Wamakko said.
In his remarks, the new REDAN President, Akintoye Adeoye, reaffirmed commitment to consolidate on the achievements of his predecessors to grow the industry, and pledged to collaborate with all relevant stakeholders.
Also speaking, a professor in the Department of Estate Management, University of Lagos, Timothy Nubi, charged housing developers to serve as a voice that influence policy that can engender unprecedented growth in the sector.
