By Olumide T. Agunbiade
| Real Estate writer
Several years ago, two notable economists,
Arvind Subramanian and Xavier Sala-I-martin, in a paper for the IMF said
Nigeria was a ‘metaphor per excellence of a failed development experience,’
describing the government as so damaging to progress that Nigeria would be
better off if someone sat down and wrote out cheques to every citizen to the
portion of their share of oil receipts.
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| A typical Nigerian Housing Estate |
All governments in Nigeria since independence have highlighted
housing as a priority. Unfortunately, the nation is yet to develop a vibrant
mortgage market and houses continue to be provided through the usual
traditional method of buying land and building over some years or saving to buy
a home which could take an individual’s entire lifetime.
Recently, the Federal Government has appealed to private
sector operatives to increase their investment in the housing sector in order
to assist the government in housing the citizens in line with vision 2020 when
the nation hopes to join the 20 largest economies of the world.
Experts also believe that efficient, accessible, simple
regulations and clear property rights can expand the natural entrepreneurship
of small and medium size firms even further. However, the ‘World Bank’s Doing
Business’ in Nigeria 2010 report revealed that it is easier to do business in
Jigawa - a state declared as the poorest state in Nigeria by World Group and
the CBN two years ago - and other northern states than any major cities in
Nigeria.
In Nigeria, 2012 was characterized by inactivity in the
construction sector, low level of effective demand for properties and tumbling
of property values and rentals especially in frontline cities of Lagos, Abuja
and Port Harcourt. “There is a gradual improvement from the depressed state of
2011 and this is a good development for property and related transactions,’
says Chudi Obosi, a Consultant at Ubosi Eleh and Company, an estate surveying
firm, ‘the greatest opportunities for real estate lie in the middle to low
income sector where demand greatly outstrips supply.”
