Reinventing Nigerian Real Estate Market through Effective

Report
Reinventing Nigerian Real Estate
Market through Effective
Information and Land Management
Systems.
By
MUHAMMAD BASHAR NUHU,
M.TECH, ANIVS, RSV, MNIM, MNES
ESTATE MANAGEMENT DEPARTMENT,
FEDERAL UNIVERSITY OF TECHNOLOGY,
MINNA.
NIGERIA AT A GLANCE
•Official Name: Federal Republic of Nigeria
•Abuja (Approx. 2.5m residents)
•Area: 923.800 Sq.km
•Population: 2006 = 144.7 million, now about 150 M
•Annual growth rate of 2.4%
•Ethnic Groups: More than 250
•Religious Groups:
Muslims (50%) Christians (40%) Indigenous (10%)
Languages:
.English (Official), Hausa, Yoruba, Igbo
•Currency: Naira, 1-NGN =100kobo,
•Nigeria is the most populous country in Africa, and
one of the fastest growing countries in the world
-Land markets exist when and
wherever it is possible to exchange
rights in land.
-The interest of banks and other
financial institutions to lend money is
underpinned by an efficient land
market, which in turn is supported by
an efficient land administration
system.
The efficiency of the land market
varies across the world together
with its openness to public
scrutiny and support for the
concepts of sustainable
development of a nation.
Nigerian Real Estate Industry
Contributed average of 5% of GDP over
the last five years
CBN estimated the size of the industry
at N1.1 trillion in 2008
(Source: CBN Annual Reports)
Key Issues
- Systematic Cadastral Survey of the
country is critical for providing
comprehensive spatial data and
information about the property rights of
all Nigerians,
- Facilitation of titles to all Landowners,
- Determination of land limits, be it
corporate or individual ownership.
OBSERVATIONS;
- The existing Land Policy hinged on the Land Use Act
of 1978 is fundamentally inadequate,
- Land Acquisition is greatly resisted – Compensation
payable is neither fair nor adequate,
- Different states of the Federation have started
some process of Land information System but not
Standardized,
- Most states have several ‘Local origin’ coordinate
systems in use,
- Most states still use sketch plan to initiate land
processing,
Challenges Confronting Real Estate in
Nigeria
Problematic Land Tenure System
Land Use Act of 1978 (Access to land is difficult)
All land is vested in government – right of occupancy,
does not confer title
A person’s right of occupancy may be revoked
Requires Governor’s Consent
Bureaucratic and disfunctional implementation of policies
Access to Finance (Banks and financial institutions are
scared away; defective title documents; lack of respect for
contract; difficulty in enforcing foreclosure; difficulties in
realising real estate collaterals)
Absence of adequate Mortgage Institutions and
infrastructure
Potential & Opportunities
Untapped Real Estate Market
Nigerias’ landmass: 970,000
square kilometres
Population of about 150
million
Rapid urbanization
Looking Ahead
Knowledge of crucial role of Real Estate in
Economic Development – De Soto model
Harmonization and enforceability of government
policies
Enforceability of contracts
Enforceability of Rule of Law
Strengthening of mortgage institutions
Establishment of construction banks, e.g.
- China Construction Bank
- India Construction Bank
- Singapore Construction Bank,
- Malaysia Construction Bank
Overhauling of Federal Mortgage Bank of Nigeria
Creation of National Databank and a wellarticulated identification pattern through
Mapping of all Lands for effective Land
Titling.
Provision of Technical assistance to State and
Local Govts to undertake land cadastral
nationwide.
Establishment of a National Depository for
Land Title holdings and Records in all states.
Establishment of adjudication mechanism for
ownership conflict resolution
Doing Real Estate Business in Selected Countries
Singapo South Malaysia Best Practice
Nigeria (2010)
Indicator
re
Africa
Days to register property
82 days
5
24
144
Cost to register a property
20.9% of
property
value
2.8%
8.7%
2.6%
Number of procedures to
register a property
Days to deal with
construction permits
Costs to deal with
construction permits
Number of procedures to
deal with construction
permits
New Zealand
2
Saudi Arabia
0.0%
Norway
1
13
3
6
5
350 days
25
174
261
24.5%
7.1%
Singapore
25
Qatar
0.6%
25
Denmark
6
580% of
income per 19.9%
capita
18
procedures
11
17
Conclusion;
The Nigerian citizens need the cadastration of
their lands for the purpose of access to credit,
transparency, robust free land market
economy, security and protection of
ownership rights.
This can not be achieved without efficient and
effective Land Information and Land
Management put in place.
THANK YOU
‘Barka da sallah’

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