Experts advocate for a clear policy regarding the real sector – Blueprint Newspapers Limited

Real estate sector experts expressed a variety of views on the federal government’s policies and programs in this sector.

In separate interviews conducted in Warri, Delta State, they called for robust policies and programs that would effectively propel the industry.

According to them, there was little action from the government in terms of development activities last year, adding that the government should give priority to this sector.

Vice Chairman of the Association of Professional Bodies of Nigeria (APBN), Delta State Chapter, Lewis Afolabi, has urged the Federal Government to come up with clear policies in the real sector.

Afolabi, who expressed dissatisfaction over the lack of policy direction of the federal government in the real estate sector, said the Lagos-Calabar Coastal Expressway is the only viable project initiated by the current administration in the real estate industry.

He said the massive coastal highway project is currently a controversial issue in the public domain, adding that when the Federal Government initiates a clearly defined real estate policy, Nigerians will play a key role in it to boost the development of the sector.

Afolabi said real estate is a critical sector of the economy that deserves special attention and urged the government to give it priority.

“The Federal Government has no real estate policy except the Lagos-Calabar Coastal Highway. This is a more or less controversial issue in terms of the extent of compliance with due procedures, procurement and environmental impact assessment (EAI).

“It is a multi-billion Naira project. For the first time as a nation, we are undertaking a project that is costing over $15 trillion, which shows just how massive this project is. “Since the beginning of this administration, we have heard about housing projects in the newspapers rather than on the ground,” he said.

Afolabi said the devaluation of the Naira has impacted the real estate industry, noting that production costs have skyrocketed due to the weak exchange rate.

He said most real sector material manufacturing companies import their equipment, including raw materials, at inflated costs.

“Most entities that import directly do so at very high costs. Factories producing tiles and other materials used in real estate have closed due to poor electricity.

“So if you talk about policy, there is no clear policy because the government has not disclosed that this is the policy on how we want real estate to develop,” he said.

He advised the government to work with APBN at the national level and involve specialists from various sectors of the economy.

Also speaking, Architect Sunday Osagie urged the Federal Government to create more opportunities in the real estate industry and urged the government to work on the exchange rate to address inflation and purchasing costs.

“Most roads across the country are in a terrible condition. Nigerians are grappling with a housing deficit and there is no time frame on policies for this sub-sector.

The government should create target-oriented real estate policies and programs.

“The government should also finance construction directly or through partnerships with private developers to address these challenges in the future,” he said.

However, the Chairman of the Nigerian Institute of Buildings (NIOB), Delta Chapter, Samuel Omiri, said the Federal Government performed well last year, especially in the housing sub-sector.

Omiri said there are many construction projects underway in Abuja and some other parts of the country in collaboration with private developers to address accommodation issues.

“The federal government is working with private developers to provide citizens with access to affordable housing in the Federal Capital Territory and some other cities in the country.

“The Minister of Work and Housing is working around the clock to ensure that the project that has already started is not abandoned halfway through. Talk about the Lagos/Calabar Coastal Highway and other road projects.

“For now, I rate the federal government above average because it has only been in office for a year, remember that there is bureaucracy in the offices. That’s why they try,” he said.

Omiri said the high exchange rate poses a great challenge not only to the real sector but to every aspect of the economy.

“The high costs of cement and other construction materials are worrying in the real sector, and this is caused by the high exchange rate.

“When the US dollar was trading at N1,900, a full length 12mm rod was sold for N15,000 and at major dealers in Warri it was sold for between N24,000 and N25,000.
“Normally, 16mm costs between N9,500 and N11,000, depending on the size and standard of the rod.