REDAN advocates for Legal framework on Housing in Nigeria

REDAN advocates for Legal framework on Housing in Nigeria

By Larry Onwuta

The national President of Real Estate Developers Association of Nigeria, REDAN, Engr Ugochukwu Chime has emphasized the need for a National Housing Council, a forum where professionals and members of the real estate and housing related service producers come together under one umbrella, one mission to bring out challenges and proffer solutions to the housing problem in Nigeria.

Engr Ugochukwu Chime said the existing legal infrastructure and institutions cannot deliver the expected housing activities unless there is a reformation by way of amendment of the Land Use Act for operational enhancement and provide States a destination of choice for investors.

The REDAN President stated this while delivering his speech at the Southeast Housing Summit and Exhibitions at Kobb Civic Centre, Enugu, “titled Akulueuno”, stating that the following core areas include, ” The number of steps needed to obtain planing approvals and perfect titles need drastic reduction, as well as the cost of such transaction. A couple of states have been able to reduce title perfection cost to 3% of property value. The aim is to make it competitive with similar investment activities like buying and selling shares on the stock market”.

“The national housing finance project domiciled in Central Bank of Nigeria (CBN) , working in concert with other stakeholders especially Nigeria Mortgage Refinance Company have developed a model mortgage and foreclosure document that effectively protects interest of parties especially the investors who have been hesitant to invest in the sector because of the very high risk associated with collateralization of facilities and recovery of investments. The document has been sent to all States government and effectively canvassed by Nigeria Mortgage Refinance Company (NMRC). The domestication of the Law in states with enhance the real estate climate”.

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Multi door Court Process, ” This effectively reduces the transaction cost of litigation involved in recovery of collaterals and mortgage assets from defaulters. The current time and cost is very prohibitive and disincentive for investment in the demand side of the real estate industry”.

Development Finance Institutions, “To ensure compliance to industry best practice on the part of states and development, it is crucial that all the DFIs give a one year notice of intent to stop future investment in states that refuse to enact the appropriate Laws and policies that will ensure that funds invested in their State does not get entangled because of the many obstacles to approvals huge transaction cost and time”. he stated.

Engr Chime also affirmed that there is a critical need for interface between governments who design policies for the economy to blend their thought with those of the real practitioners.

The Enugu State governor Ifeanyi Ugwuanyi who represented by Secretary to the state government, Prof Simon Ortuanya stated that the platform was to educate people in the Southeast on the need for them to invest in their home land (region).

Governor Ugwuanyi said the current policies of the state government to provide housing scheme was to stimulate the interest of the people to invest in their home land.

He also affirmed that the state government has mapped out plans towards housing project through non oil revenue platform.

Ugwuanyi maintained that policies of government in developing housing in the state was through Mortgage Banking which covers the three senatorial zones of the state.

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While reacting to the development, one of the beneficiaries of the housing scheme Chukwudi Anthony who was trained as a Carpenter however expressed delight over the training, stating that it enhanced his his financial and professional status.

Chukwudi said though he had previous experience but could not develop it due to financial difficulties but now ” the government has trained me I can handle a sight make some tables and other works ” he stated.

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