Engaging Nigeria’s Real Estate for Global Investment: Matters Arising.

 Three weeks ago, I published an article on this column “Nigeria’s Real Estate: Between Projections and Realities” on www.3investonline.com. The article was a half year review of the Nigeria’s Real Estate Sector; and I concluded in that report that the year under review has been befogged with too many turnings without a movement.

This endemic attitude of ‘talking the work’ has not only mitigated significant progress in the sector; it has aversely midwived a gloom of apathy which industry players are struggling to diffuse in other to reposition the sector in the economic scheme of things.

In spite of the moribund state of the industry, the truth remains it still remains a virile solution to Nigeria’s economic and employment conundrum. The big question therefore is what efforts are too much to unlock a sector which every pundit agrees has immeasurable potentials to significantly drive the nation’s GDP, create employment for the army of unemployed youths and generates wealth for the people?

In a situation where government looks the other way or foot-drags (for reason best known to it) on workable frameworks to explore the industry for growth and the betterment of its citizens; one of the most plausible ways to unlock this sector is to engage stakeholders from time to time to share thoughts, exchange ideas and take cue from working and relevant case studies around the globe, especially economies with similar demography. The effect of these engagements and how they are put to the test is however a matter for another day. But it remains indisputable that constructive engagement is core for Nigeria to develop her real estate sector.

Also, in a nation that devotes less than seven per cent of its budget to the housing ministry which requires about “$150 billion consistently for 10 years” to deal with its strangulating 18 million housing deficits; one of the most virile and less cumbersome processes of developing its real estate is to attract foreign investment. Unfortunately, Nigeria’s economic environment still has to grapple with the anti-Christ of insecurity. Be that as it may, Foreign Direct Investment, FDIs, remain about the only veritable route of accelerated development in Nigeria’s Real Estate.

My concern however is the tongue-lashing that has greeted few individual attempts to turn the table in favour of Nigeria’s Real Estate in recent times.

First, I wish to state for the records that these individuals deserve commendations rather than porous condemnations on the basis of an utopianistic West-Africa dichotomy. It is clear to everyone that an attempt to drawing comparison between both is as fruitless as comparing sleep with death in reality. Therefore, the kind of criticisms that should be aired in this case are those clear and progressive in their letters and spirit – Those systemic and not individualistic in their worldviews.

Second,   admittedly loads of issues abound, especially with the areas of legislations and laws that guide land use and funding structure. It is undisputable that except these challenges are tackled the much idolized prospects of Nigeria’s Real Estate may be best on the pages of papers or in the trash, at worst times. However, the systemic nature of Real Estate requires that the sectors grow simultaneously to make the development holistic. Thus, what we have today is a work-in-progress; an attempt to awaken the authorities from their slumber. 

In addition, if the science and engineering of physical building are universal and the difference between the Western and African Market lie within their enabling and legislative purviews; the truth remains that Nigeria is a ‘special’ market. It is not the fault of players that the enabling laws are not in place; yet their greatest undoing is to do nothing. Thus hosting conferences and workshop is not and can never be a waste of time, rather suggestions should come in the areas of refocusing the strength of these gatherings and how to make resolutions emanating from there, work.

Third, Nigeria Real Estate is still nascent and cannot be immune to all the trial and errors that come with development. There is no Mr. Fix it, especially in Nigeria. Therefore borrowing leaf from practically working model of nations who share similar economic characteristics cannot be absolutely out of place or described as a mockery of the entire Nigerian system. No one lays claim that the models in these countries are fantastic examples made in Eldorado, but let us rather say ‘there is sense in every nonsense’.

Furthermore, worthy of commendation is the fact that those at the vanguard of this new movement are young, enterprising Nigerians who for me, are tired of the status quo and seek strategic ways to make things work; especially for the crop of their contemporaries who could be absorbed by the economic potentials of this sector. Condemning their efforts is tantamount to shooting  rising stars bound to shine and illuminate a global stage.

For example, an up-coming event, Real Estate Unite comes to the Nigerian Market with a novel idea of uniting every sector of the Nigerian Real Estate to discuss challenges in the Nigerian Real Estate. This attempt in various ways is a break from the norm of: one, treating the built sector challenges and issues in isolation by a segment or professional association. Two, forming strategic alliances with both foreign and local stakeholders to fashion ways of mutual benefits and engagements. Three, the independence of this platform signals a sincere approach to problem analysis and strategic solutions – no politics, no ulterior motive. And finally, bringing to the market awards categories designed to project Nigeria’s Real Estate as an investible market for foreign investment.

It must be stated that Real Estate Unite is a process of a thorough research, and sincere thirst to problem-solving. It is the brain child several other conferences and workshops that may be considered ‘a waste of time’; but today, the weakness of these other conferences is the strength of Real Estate Unite which now seek to be an annual event engaging the sector at different stages of her developments. The argument here is development is a chain of continuous process and building on the weaknesses of the former.  Amazing is the response of otherwise ‘apathetic’ experts who see this conference as long overdue and a veritable window to tackle the hydra-headed issues once and for all.

Also, this brings to the fore another event in the sector looking at exploring foreign alliances to tackle Nigeria’s housing hullabaloo – International Housing Finance Workshop, IHFW. Veteran Professor, Timothy Nubi of the University of Lagos recently affirmed at the Lagos Architects Forum, LAF 2012, that when he was consulting for the National Housing Authority, NHA, a proposed two million housing in four years project was to  kick start with 10, 000 units. He said; “We asked the quantity surveyor to give us an estimate and they told us that 10,000 housing units of two and three bed rooms will require 33 million concrete blocks, 110,000 windows, 110, 000 doors, etc. Can you imagine an industry that will produce 33 million blocks? Can you imagine an industry that will produce 110, 000 doors and windows? Can you imagine in a space of four years when we push it to two million units? Where will you have that demon called unemployment? Nubi queried.

Professor Nubi’s rhetorical questions are metaphoric of the dire need to engage a Machiavellian ‘by any means possible’ to unlock the housing sector in Nigeria. The university professor furthered; “Shelter Afrique did about 500 housing units in Uyo and for that period of time the rate of kid-napping and armed robbery reduced because every able bodied youth was on the site laying bricks, bending iron and so on”.

From the Nubi premise, it is clear how much relevance housing in terms of basic human need and economic relevance. In the whole of the year, the Federal Government laid foundation for just 500 units of ‘affordable’ housing in Abuja; the poser therefore is if industry players have to fold their hands and wait for government to invest and open up the sector; then we might have to wait forever! Therefore, IHFW cannot be described as a ‘monkey-banana’ relationship. Yes! It is designed to give Nigeria the ‘we can’ attitude and the ‘know-how’ impression. It takes such boldness sometimes.

On the whole, the overall essence of this is to ensure that we first appreciate the topography of Nigeria before we give a good dog a bad name to hang it. Nigerians in diaspora who also have the collateral knowledge relevant to developing the sector should be willing to extend hands of fellowship or do something to build on the existing frameworks rather than find fault in everything Nigerian. This is home for all of us and making it work is a task that must be done.