‘Security not Infrastructure Major Challenge in Real Estate Sector’
Chief Executive Officer of Lifestyle Asset Hub Limited, Mr. Abioye Oke has identified security as a major challenge in the Real Estate sector of the Nigerian economy.
Oke, who placed security above infrastructure such as power, water, road and some unfavourable government policies, called on government to urgently address the issue if the country must overcome the housing deficit in the country.
He spoke at a media parley with some journalists in Abuja on his recent award as African CEO of year 2021. The African Skill Centre, South Africa and LION Outreach International,
USA, at a recent Africa Lives Development Conference and Awards in Kigali, Rwanda, conferred the award on Oke in recognition of his support to governments in ameliorating the menace of housing deficit ravaging the African continent. While Lifestyle Hub is already established in Nigeria, Ghana and Rwanda, it is already concluding efforts at establishing in Cote d’ Ivoire.
Speaking on the challenges in the sector, Oke said there are currently new technologies that readily address the issue of infrastructure, if when deployed will bring quality housing to Nigerians at a much cheaper cost.
“The problem is most of our policies for industry players, we are used to traditional way of doing things. We need to start thinking differently, with different thoughts, trust me, we’ll be able to sustained a vertical design, vertical constructions because there are lots of smart ways to getting this done. So for us, “I was at a forum and I said right now, we don’t even need the federal government to give us power again, let’s commend them, they have tried. They should just give use security. We the private sector, we’ll generate power and we will credit it to the federal government that they gave us the enabling environment to generate power.
“A forward-thinking developer, forward thinking entrepreneur should take power out of its problem list, your problem now should be security. In terms of the issues of maintenance, sustainability, you know that’s the least of the problem. Even in terms of plumbing system, there are lots of plumbing systems that pump water almost effortlessly. There is a way that from the fifth floor to the tenth floor, all the waste water stays on the third floor, the same water you wasted, there’s a plant that treat it, so that it can be sustainable, you don’t need to have too many plants, maybe one big plant down stir.
“There are a lot of innovative companies in the western world that we have done research on. They are not even willing to come to Nigeria to support us because they feel they can be kidnapped. So, the security issue is even affecting the housing sector indirectly”, he said.
On the issue of affordability, Oke disclosed that LifeHub has introduced a structured social funding system that will deliver quality housing to all classes of Nigerians.
“To own an average terrace duplex in Abuja, you need between N70 to N150 million, depending on the type. How many people can afford to acquire properties in these sums, very few; we now decided that instead of going the traditional way, we will introduce a new package in the real estate industry. If I tell you that you can own the same property with N16 million would you believe it? When you subscribed with N16 million, all you’ll do is recommend four other people to subscribe in the same sum and you qualify for your house. So, you’ll have to do some work.
“Another package is for N4 million, and when I said N4 million I am not talking it is the down payment, that is the only money you’ll ever pay, but there is serious work to be done, you’ll recommend four people who will pay in the same sum and you earn 5 percent and those four people will need to recommend another,” he said.