Nigeria’s federal and state governments are increasingly stepping up efforts to improve on the ease of doing business in the country’s real estate and other sectors of the economy by creating environments that enable access to land for increased housing stock.
Over the past three years, Nigeria has implemented more than 140 reforms and moved up 24 places in the World Bank Doing Business Index (DBI) rankings, according to records by the Enabling Business Environment Secretariat of the Presidential Enabling Business Environment Council (PEBEC).
In the 2018 Global Competitiveness Report, the secretariat recalls, the World Economic Forum (WEF) recognised Nigeria’s business environment as one of the most entrepreneurial in the world and highlighted the country’s improved competitiveness in enabling business environment.
Before now, Nigeria ranked poorly in ease of doing business in virtually all sectors of the economy. In real estate, registering property was a huge challenge. At a time, the country was ranked 185th out of 189 economies in ease of registering property by the World Bank Group. The country was also ranked 129th out of 189 economies in ease of starting a business, affirming its earlier ranking at 96 out of 97 – just a step above Sudan – in Jones Lang Lassalle (JLL) global real estate transparency index.
Nigeria was also ranked 171, 62, 140 and 187 out of 189 economies in ease of dealing with construction permit, protecting minority investors, enforcing contracts and getting electricity respectively, making it the 170th economy out of 189 in the overall ranking indices.
But with the ongoing reform efforts being championed by PEBEC, the country’s business environment has improved significantly.
Jumoke Oduwole, a senior special assistant to the Vice President on Industry, Trade and Investment, disclosed at a real estate forum in Lagos recently that there was an ambitious effort towards achieving sub-100 ranking in ease of doing business by 2020.
As a result of the ongoing reforms, dealing with construction permits and registering property have become a lot easier and cheaper in places like Lagos and Kano where, before now, the cost was outrageous and punitive, while the process was cumbersome and tortuous. Anambra, Enugu, Edo, Ondo and Ogun are also states where approvals and access to title documents have improved.
“Nigerians can now access accurate information on all fees, procedures, requirements and laws from the Lagos State Physical Planning and Permit Authority (LASPPPA) website,” Boladele Dapo-Thomas, permanent secretary, Lagos State Ministry of Physical Planning and Urban Development, confirmed.
Generally, there is access to statistical information on land disputes, infrastructure development charge (IDC), soil test and environmental impact assessment (EIA), certified true copy (CTC) of title document and survey plan, and reduced costs for permits due to the elimination of some requirements. Developers now enjoy an improved planning permit application process via an e-planning platform.
In Kano, Nigerians can now appoint private professional firms to carry out inspections before, during and after construction. They can also expect to receive building plans within 14 days and request the issuance of a Certificate of Habitation without physical inspection.
Those seeking approvals can now submit an application and make e-payments for building plans simultaneously at the Kano Urban Planning and Development Authority (KNUPDA), just as they can expect water connection in seven days of payment to the Kano State Water Board.
The GIS technology in Edo State has reduced the cost of obtaining Certificates of Occupancy by over 80 percent, while the Enugu State government has approved a 50 percent discount on accrued land use charges.
The Homeowners Charter in Ogun State has continued to ease issuance of land titles to beneficiaries. Ondo State has launched an automated Land Use Charge Payment System, while Anambra has embarked on a revalidation exercise culminating in the issuance of digital titles to landowners.
All these are opening up investment opportunities in these states. It is hoped that as access to land continues to be easy, more investment will be made in housing development, thereby increasing the stock and ultimately reducing the deficit which is estimated at 17 million units.
Lagos has also embarked on public private partnership initiatives to increase its housing stock and close its housing demand-supply gap estimated at 3 million units. Dapo-Thomas cited the Lagos Affordable Public Housing (LAPH), which aims to deliver 20,000 housing units in four years.
The state is in partnership with Echo Stone which will deliver 2,000 units by the end of this year. It is also in partnership with Gravitas Investment which is building a city called Gracefield Island in Lekki, while Rendeavour, another partner, is developing the Alaro City in the Epe axis of Lekki Free Trade Zone.
CHUKA UROKO
