The Lagos State governor, Babajide Sanwo-Olu, says the state government is determined, more than ever before, to address the critical challenges that have impeded the growth of investment in the property business in the state.
Some of these challenges, the governor said, are availability and security of land, the issue of land grabbers and the delay in processing and issuing necessary papers and permits such as certificate of occupancy, building permit, etc.
A major concern of the government is to create an enabling environment for investment to thrive in the real estate sector as a strategy to bridge the housing deficit and also fully harness the inherent potential for job creation and wealth generation for the people, the governor said at the on-going West Africa Property Investment (WAPI) Summit in Lagos.
Lagos has a very challenging housing situation. A Pison Housing Company Report estimates the housing demand-supply gap in the state at 3 million, requiring about 200,000 housing units to be built yearly for the next 10 years to bridge.
The report says that about 80 percent of the state’s over 20 million residents are renters, meaning that the state’s housing sector offers huge investment opportunities waiting to be tapped.
Sanwo-Olu, who was represented at the summit by Moruf Akinderu-Fatai, the state commissioner for housing, assured both existing and potential investors in the real estate sector of government’s commitment to address all their concerns with the deployment of cutting-edge technology, especially in the land management and administration system.
“We are also committed to ensuring transparency and accountability in the whole system of processing security documents within the shortest time possible,” the governor said.
In spite of the challenges in Lagos as a mega city, Sanwo-Olu said the real estate sector has continued to increase in importance in terms of returns on investment and contribution to the economy.
He highlighted noticeable increase in investors’ interest in real estate sector. This interest, he said, is driven by increased urbanisation which has led to significant rise in demand for properties for both residential and business purposes.
The governor cited another driver of this interest as prospect of the real sector investment resulting from the projection indicating rapid population growth rate. It has been projected that by 2050, Nigeria’s population would have increased by 100 percent.
“For Lagos State, about 12 million people will be added to the current population estimated at 22 million by 2050,” the governor said.
The implication of this expected growth is the need to develop strategic plan that will take care of the basic needs of the huge population, including shelter, food, health and education facilities.
“For us in Lagos, there is a peculiar challenge of land size. While Lagos accounts for over 20 percent of the national population, it occupies only 0.4 percent the total national geographical area,” Sanwo-Olu stated.
“This situation is even complicated by the fact that about 20 percent of the land area is made up of lagoon and oceans. With this statistics, Lagos will continue to be a major hub for real estate business,” he said.
CHUKA UROKO
