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Sanwo-Olu on course to make Lagos 21st century housing sector a reality –Akinderu Fatai

A prominent member of Governor Babajide Sanwo-Olu’s administration in Lagos State, Hon. Moruf Akinderu Fatai, who is the Commissioner for Housing, has lauded the giant strides of the governor in the housing sector, adding that it is one of the proofs that he has done well in his first tenure and deserves a second term in office. he said with over 2,000 sets of new housing units  to be commissioned soon in different parts of the state, the governor has done well in completing all abandoned housing projects and starting a new one

Ayodele Olalere

What can Lagos residents expect from the housing sector before the end of the tenure of this administration?

As this administration winds down its four-year term, we are set to commission four housing schemes soon, around June. We have Odo-Onasa, with 660 units; we are rounding off the connection to the national grid that had been delayed. We also have another 445 resettlement schemes in Agbowa for those to be resettled temporarily in case of natural disasters or having the need for resettlement. The governor will be handing over that too on the same day. We are expecting a date from Mr. Governor. Then we have Gbagada. We are currently having issues with the scheme. When a project has been delayed for so long by the time you return, it’s usually complicated. Some contractors may not have interest again; some might be dead. Some must have folded up but we have been able to reach an appreciable stage.

Then, we have in Egan-Igando, over 600 units. We are trying to make it 800, and this year we have divided it into three phases. We are rounding off the first phase, with 270 units. People have even paid because it has always been there, but the quality and safety of that particular scheme, some houses have to go down, some have to be re-engineered. It’s like building a new place entirely, and due to lack of funds, we have to execute it gradually. We are at 270 presently, and we will inspect the level of work soon.  Basically, these four units, which we are sure will happen soon, are all funded via budgetary allocations.

Do you also collaborate with the private sector to achieve the task of tackling the housing deficit?

Yes, we are also pushing efforts with our private sector partners. One apparent engagement is that of the Ilubirin scheme, on which work has been going on for some time. You will have seen the difference. The new idea for that place is that a lot of sign-offs have to be taken from the Federal Government. It was designed in such a way that a bridge will pass through that estate. It is going to be a work and live environment.

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We have a lot of activities going on in Abraham Adesanya Estate. As we speak, we have about 640 units, and we are pushing hard with different private sectors to make sure by June any of the two schemes come to life. It’s not within our powers, but we are pushing them (private partners) hard because it is the money they are investing in the schemes. A lot of things have affected most of them, and we have to be cautious and exercise restraint in the way we push them, albeit, I can assure you, we are making a lot of progress.

We also have Sangotedo scheme II, which is coming on board soon, 444 units. It’s something I can also assure by December, according to plan it will be ready, making 1,188 units for Sangotedo. What we have now are 744 units that were commissioned by Mr. Governor recently.  We are also thinking about the expectations and sustainability of the movement toward making Lagos a 21st-century economy.

The built sector has a very huge role to play in this, we are thinking of building in thousands and also concentrating our attention on road infrastructure. Mr. Governor has given us a marching order to put in place policies and actions that will involve the private sector and wherever we can seek help for the realization of building in thousands with readiness to give all necessary support because that is what the people want from us. And also ordered us to ensure affordable rates for people to access easily to reduce the huge housing deficit in the state, that is why we have approached the Federal Housing Authority, FHA funds that are in Abuja, basically for low-income earners. The initial conditions they presented to us are not in tandem with what we have in Lagos.

It is expected that going by the rate of development coming into the Imota and Ikorodu axis, there will be a need for a housing scheme in the axis. What is the government doing in this regard?

By the grace of God, we have reached an advanced stage that we can say that the project will go as planned; that is the Imota, 3,460 units. The idea is that we have to work via the private sector.  We have been able to identify a private sector, which is ready to deploy technology and negotiate with private sector operators like Dangote, for cement prices, and a kind of technology that will reduce the cost so that in the end, the maximum for a 2-bedroom flat will be around N7 to N8 million.  That is what we are determined to achieve.

For the existing estates, particularly the Jakande Estates, what is the plan of the government on them?

Mr. Governor is also passionate about the slums and estate regeneration. A lot of efforts are ongoing in this direction. We have regeneration of Jakande Estates across Lagos. The government is looking for willing private sector partners in achieving this and also add more value to deliverables. Also, there is a place in Ajegunle, Tolu Complex, in Ajeromi Ifelodun Local Government, called “Mosquitoes Village.” This administration has not only put in policies to regenerate the place but put in place infrastructure that will make the people they’re comfortable and happy. We also have infrastructural development plans for the place and other areas. The regeneration project requires a lot of discussion and negotiations. This government is working hard to ensure that people are not taken out of their places without talking to you and meeting at a point. It’s not a matter of just throwing them away irrespective of legality. This administration has been talking with them.

We have identified private partners that are ready to implement the policy. We have made a lot of progress. Our journey towards making Lagos 21st century economy in the housing sector a reality is on course. Mr. Governor is determined to achieve this by ensuring our people live in a livable, affordable place.      

  Affordability and accessibility have remained the major obstacle for would-be homeowners, what are you doing in this direction?

We have two sets of housing units: Low-income earners, and high net worth earners. What the governor has directed us to do is to concentrate attention on low-income earners. Apart from the fact that the prices are at discounts, the government has put in a policy to make it accessible to all.  For instance, Igando or Igbogbo Schemes, Igbogbo we sold at N8.5 million for a three-bedroom, and Igando at N10 million for the same 3-bedroom. But if you go to Iponri with the same amenities, we sold Iponri at N30 million. What this means is that we built that for high net worth individuals at a profit that is why we use it to subsidize low-income earners.

We also went further than 75 per cent of those housing units will be on Rent-To-Own policy, RTO. Under RTO, you pay five per cent to move in, if it’s N10 million you pay five per cent. What we also do is that we check the rate around the area the scheme is located. For Igando, the rate was within N12 to N15 million that a private individual who built two bedrooms will want to sell, Mr. Governor graciously it to N10 million. In Igbogbo, he approved N8.5 million.  And RTO, units are 75 per cent, then you pay 5 per cent at a simple interest rate not a compound rate over the next 10 years, but you cannot resell until after 10 years because we are using it to target first homeowners.  But there are 25 per cent arrangements for others like companies who might have worked out mortgages for their staff.

For the low-income earners, especially the civil servants, can they afford the scheme?

Another important aspect is that we discovered that in the state civil service, it will take a level 14 officer to afford a one-bedroom in Igando because of the income. So, what Sawo-Olu graciously did is that another 20 per cent from the figure, you know 75 per cent goes to RTO, and looking at the entire numbers, the civil servants would want to do RTO, about 90 per cent do the thing what this means is that 84 out of 420 units goes to civil servants at 40 per cent rebate. That is 20 per cent of the entire unit goes to civil servants at 40 per cent rebate. So, a civil servant at Igbogbo and Igando will pay six years for a three-bedroom, so we cascade it accordingly. Generally, the challenge that we are having presently, is that the demand highly surpasses the supply. People come from far and near to settle in Lagos where they have no relatives and we have to cater to them because at one point or the other they may be in a position to afford it.

Another project we are working on is the rent-age system. The idea is that not everybody wants to buy a house like a young family, a newly married couple who just need accommodation in the interim. We are encouraging the private sector for funding, one financial institution that is ready to bring more money to the system for that purpose.  But most especially, we are trying to encourage our joint venture partners that from the onset the scheme they will do with us will not be an outright sale but a rent-age system like a young couple who does not want to buy immediately so that they can pay quarterly or monthly. That is a major projection we believe is doable. We are also encouraging partners in accessing funding via contributory pension scheme and wherever they can legitimately get funding at less than 10 per cent, that is one digit. We are encouraging them to do this because we feel it’s the best way to move forward.    

Will the government allow an allottee, who wants to pay up their fee or buy off their RTO instead of waiting for ten years?

People don’t have to buy because forcing people to buy could encourage corruption, and it will also help to reduce friction between landlords and tenants. There is nowhere they pay you yearly but monthly. That is why we have many houses where tenants are unable to meet up in paying their rents. It will also discourage speculation. Some people will want to rent a house now at N120,000, and agents will take 50-50 per cent, talking about an average of N250,000 on rent-age of N120, 000.  That also encourages agents to eject tenants as fast as possible. It’s something that the government is addressing.

We are also looking at getting a housing fund. We have a programme that allows the government to put in seed money as well as also encourage the private sector to put in money. Government money is put at a low-interest rate, so if you are coming up with money with an interest rate, the interest is reduced for those in the built sector. Basically, the projection is to reach all parts of the state.  We are everywhere, such as Epe, Badagry, Agbowa, Ikosi, among others.  We are also making sure that we concentrate on the large segment of our people who are low-income earners.    

What are the major challenges faced in addressing the housing deficit?

One of our major challenges is the scarcity of space; the size of Lagos is so small. That’s why we are building vertically, which is expensive. Also, what is the essence of building vertically when there is no technology in place to reduce the cost of building? Look at average income and look at the eventual cost. We are looking at the challenges and at the same time the solutions. One of the solutions is to see how we can build affordable homes for residents, particularly low-income earners, and the masses. For example, in Imota where we have other projects coming up such as Rice-Mill, and agro-business, among others, hence, we have to meet up with the evolving needs.

So, we are coming up with a huge estate in Imota.  You look at Mile-2, and Iponri, places that will often be visited by investors. Like penultimate weekend, we were there, trying to look for space and solutions. All we need to do is get it right.  As a government, we want to get answers before moving in. We want investors to join us in helping us build for the masses. We encourage a lot of investors because that is the solution.

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