From Jude Chinedu, Enugu
The group Managing Director of COPEN Group, Rev. Ugochukwu Chime has said that real estate has the potential to play a pivotal role in the economic development of the South East region.
Chime said this while launching a real estate initiative known as “Igwebuike” in Enugu.
He urged South East governors and investors to tap into the huge economic potentials of the sector for accelerated development, adding that the sector was critical for employment generation and inclusive economic growth.
He said that the idea behind Igwebuike was to commence a series of engagements, discussions, knowledge sharing and perspective enhancement to reduce transaction time and transaction costs, arising from alignment of possibilities towards shared benefits in the sector.
“For instance, the housing deficit in Nigeria which runs in millions, when appraised from the number of people and resources needed to create them, and the diagonal impact it will bring, shows us that we have an opportunity and not a problem.
“Apart from other positive developments in the real estate ecosystem, the Retirement Savings Account (RSA) has over 4 trillion naira available for investment in the sector.
“In the light of these opportunities, the challenge before us is to design an appropriate mechanism, a vehicle and roadmap for unleashing the potential that is in the sector for the improvement of the lot of our people, especially, in this current, dire, socio-economic environment.
“In our attempt to interrogate the issues and challenges involved in the real estate sector, we realized that there has not been the needed mental review and paradigm shift that is needed to address the sector’s challenges and turn obstacles to stepping stones for higher mutual benefit for all..
“Stakeholders have not come to understand that their activities, action and inactions are capable of affecting the overall outcome for everyone, and thus an urgent need for realignment, refocusing and harmony. Currently, both the private and public sectors of the economy are facing difficulties of unimaginable times.
“Government revenue is affected by the number of houses that are built, house rent has gone very high because it is affected by the number of available houses because of the principle of demand and supply. The communities want the value of their land to increase, developers want affordable land to develop etc
“The concept of Igwebuike is therefore a fallout of this appraisal and is seen as the beginning of providing solutions which will involve all of us, as stakeholders. We need to equip ourselves with the right knowledge of what needs to be done, how
it should be done, who has to do it and the reward mechanism attached thereto. In the end, it will lead to a joyful outcome for all.
“Today, we have taken deliberate steps to bring together the government, traditional rulers and communities who own the land, investors who have the money, the developers as well as those who supply building materials and those
who buy the properties, as well as those who need real estate and those who market it.
“We look forward that Igwebuike will lead to
greater coordination, cooperation and harmonious working relationship among all the stakeholders in this region. So that we can understand the various activity centres for all the stakeholders, and how to proactively engage in ways that are required for each to function productively, profitably, successfully.
The Managing Director, Federal Mortgage Bank of Nigeria, (FMBN) Hamman Madu commended Rev. Chime for the initiative, adding that the housing sector is a significant contributor to any economic growth and has multiplier effects on the economy.
He however said that, “Over the years, the NHF scheme has proven to be a veritable source for housing finance in Nigeria, financing mortgage acquisition, construction loans to real estate developers and more recently, directly to individuals for self construction, housing micro-loans and a Rent-to-Own window.
“It is very instructive to mention that under the above credit windows, FMBN has funded 21 estates in Enugu Zone comprising Abia, Anambra, Delta, Ebonyi, Enugu and Imo; there are also 20 ongoing projects,” he said.