Chief Executive Officer of UACN Property Development Company Plc, Odunayo Ojo, tells FATTEH HAMID how the housing deficit in Nigeria and other challenges facing the real estate sector can be addressed
What economic plans can the Federal Government put in place to tackle the current housing deficit in the country?
The current administration needs to focus on policies that will improve the macroeconomic indices in the country. The rising inflation, volatile foreign exchange rates, rising costs of building materials and utilities, and reduced disposable income of most Nigerians, means that the purchasing power of people is currently under immense pressure as the cost of living rises. Access to land with good title and adequate infrastructure is also an area the government needs to look into to reduce the overall cost of development. The stability of the naira is very important as many of our building materials are imported. We also need to encourage the manufacturing of building materials locally to reduce the cost of construction and create jobs.
There are concerns over the government’s mortgage plan as a means of ending the country’s housing crisis. Do you see the feasibility of this and is it sustainable?
Any plan geared towards providing adequate mortgage solutions to Nigerians is welcome. The lack of mortgage finance with the right tenure at the right interest rate has always been one of the key impediments to resolving the housing crisis in the country. I would strongly recommend that the government works closely with professionals, the private sector, and other key stakeholders in the built environment industry in arriving at policies to support the structuring of mortgage products for best results.
Capacity gaps on the side of developers, procurement of substandard material and techniques as well as a dearth of oversight function by relevant government agencies have been blamed for the incidents of building collapse in the country. What is your view about this and how it can be addressed?
The menace of building collapse in the country is a serious one that needs to be addressed urgently. The causes of building collapse are multi-dimensional. Some stem from poor design, others stem from the use of substandard building materials, while others are due to poor workmanship, monitoring, and supervision both from professionals and regulators, among other reasons. The result is similar – loss of investments, capital, and sometimes loss of life. To address this trend, more needs to be done by professionals in the built environment industry like architects, builders, structural engineers, town planners, estate surveyors, etc to ensure that only qualified professionals are engaged in the design, construction, and supervision of building projects. Also, the various monitoring agencies from the government need to ensure that there is better scrutiny of projects and stricter penalties for erring developers to serve as a deterrent.
Do you think there’s a need to better regulate the activities of real estate developers in the country?
Yes, I believe there is a need to ensure that only qualified and certified professionals are allowed to practice in the built environment industry and be involved in real estate development and construction. This will curb the incursion of quacks and inexperienced people in the industry and prevent the risk of building collapse and other negative effects.
As a company CEO, how do you ensure 100 per cent compliance with your standards by your workforce to ensure that they get quality materials for clients?
At UPDC, we adhere to the highest standards of processes and practices. We have well-documented processes for all our activities and ensure these are strictly adhered to and constantly monitored. We have zero tolerance for non-compliance, and this is communicated to everyone within the company. We also work with only qualified professionals and ensure that we procure our materials from credible sources. Lastly, we train our staff members in contemporary skills and capabilities in line with the changing complexities of building construction and development. We put a premium on our reputation as a company with many years of heritage. We never take the trust our customers have put in us over the years for granted.
What are the most recent yet significant initiatives of the company towards reducing the ever-increasing housing deficit in urban areas in the country?
UPDC is the foremost real estate development company in Nigeria with over 26 years of experience in delivering high-quality real estate products and services to our customers. UPDC, the only publicly listed real estate company in Nigeria has delivered thousands of housing units in various parts of the country including Lagos, Abuja, Ibadan, Asaba, Port Harcourt, Calabar, and other cities in the country. In recent years, UPDC has begun to focus on the middle-income segment of the market, where there is a huge demand for decent, safe, and affordable housing solutions. In our way, we are contributing to the reduction of the housing deficit in the country and improving the quality of life in our communities. Our recent projects, The Hampshire and The Pinnock Prime developments in Lekki, Lagos, are specifically designed to provide well-priced housing solutions in good locations and with best-in-class amenities.
With the current state of Nigeria’s economy and scarcity of funds to execute projects, Nigerians are still faced with the need to have a roof over their heads. What are the economically friendly options that Nigerians can opt for?
Housing is a basic need of man. So, the provision of shelter and housing is of utmost importance to most people. The harsh economic conditions have meant that new strategies will have to be adopted to achieve the goal of home ownership in these difficult times. Some of the strategies being adopted in recent times include using design to reduce the costs of construction. For instance, the design of compact homes means that there is a reduction in wasted space and that there is better efficiency in the use of building materials. Another key strategy is collaboration – where a group of people or investors come together to jointly undertake projects, thereby reducing the overall cost to individuals. Crowdfunding and the use of cooperatives have also become very popular in providing economies of scale and bulk buying. Working with experienced developers like UPDC can significantly reduce the risk to customers by avoiding mistakes and ensuring people get the best for money on their developments.
What are the challenges faced by the UPDC in Nigeria’s real estate sector?
Availability and access to long-term finance and capital is a major challenge in the real estate industry and continues to be one of the reasons why projects are not undertaken at the appropriate scale. The rising costs of building materials are also a key challenge in the provision of affordable houses that most Nigerians can purchase. The dearth of skilled manpower is a challenge in ensuring consistency in the quality of products being delivered in the sector. The cost of acquisition of land in good locations with adequate infrastructure is also one of the challenges that we face in the sector. In all, there are ongoing engagements with various stakeholders in finding sustainable ways to surmount these challenges as quickly as possible.
Apart from property development, what are the other services the UPDC offers the public?
Apart from real estate development, the UPDC is involved in facilities management through our subsidiary – UPDC Facilities Management Limited – which is focused on delivering best-in-class FM services to our numerous customers. The UPDC is also involved in hospitality through our Festival Hotel, a 472-key conferencing and leisure hotel located in Festac, Lagos. In addition, the UPDC provides advisory services including asset management, development management, and project management to our private and corporate clients across the country.
What is the general outlook in the real estate subsection of the economy as we look forward to 2024?
We are positive about the outlook of the real estate sector in 2024. We believe the economic reforms being implemented by the current administration will have long-term benefits for the country and ultimately lead to economic growth which will be what we all desire.
