A/ibom property firm CEO identifies major flaw blocking FG housing stocks from adequate patronage
Aproperty investment expert in Akwa Ibom State has discovered the flaw that holds the much-relied upon federal housing scheme from winning the heart of the workers. Patrick Udonfan, a lawyer and managing director of Akwa Ibom Property and Investment Limited (APICO), believes that the offtaker flaw is what is holding the scheme from being a hit-success.
In an exclusive interview in his office in Uyo, the expert speaking on investment opportunities in the state and Niger Delta, the federal housing scheme has a huge problem getting workers able to raise the 10 percent required to join the scheme as owner-occupier.
He told BDSUNDAY that the scheme was a good intention but not well planned because of the 10 percent down payment. “The category of civil servants for the two-bedroom houses of about N7million; 10 percent is N700,000. So, how many civil servants can bring out N700,000 and collect the key before you talk of monthly remittances,” Udonfan said.
The lawyer, who is also the national legal adviser of the Housing Cooperative Society Limited, has already tabled a proposition to replace the 10 percent deposit demand.
He said: “I raised this issue at a national meeting. We must look into the issue of off-takers fund so we can spur the enthusiasm of the workers. Yes, there have been monthly deductions as a kind of savings for them to have access to these houses but there is another clog in the wheel of succeeding because of this 10 percent off-takers fund.
“That is the clog. If it is N5m, it will be N500,000. Nobody can give the solution because the Federal Savings Bank said they cannot go lower than that, but there are other schemes and initiatives we know. There is one we call ‘Rental Buildings System’ where a developer will build the house and then a beneficiary will move in like a tenant and deducted every month. It could be N20,000 and he would be paying this amount as long as he remains in the house. This amount is part of the cost.
If at the end of 35 years and he retires, and he has not completed the cost of that building, he has an option. He may decide to step aside and the money so paid is forfeited; he may look for lump sum to offset the balance; Or, it is taken from his gratuity/ pension. The bottom line is that at the end of it all, the house is his. This is the suggestion we put on the table and it may come up one of these days. The ‘ Family
Homes Scheme’ is believed to be coming up with that strategy.”
On whether Akwa Ibom State would adopt the suggestion he submitted at the national level, Udonfan said the state has no power to deviate from the national format because it is centrally controlled. “Some of us are saying why civil servants seem to be uninterested is because of this off-takers approach. If there is a way the governments can ameliorate that by way of loan to the civil servants to pay the initial deposit (10percent), it will be a good way of assisting workers to own houses.
“The workers even have options of where to collect the forms from: APICO or Federal Savings Bank. The land is provided by the Akwa Ibom State government for the ones in this state.
“APICO is an agency of government established by law for the purposes of overseeing housing development in the entire state; government estates, building residential estates, opening estates, and partnering with developers to build affordable houses in the state for the citizens and those who may want,” he explained.
On the activities of APICO, the CEO said: “Before now, the agency had the Ewe Housing Estates, Shelter Afrik Estate, Akwaima 1, 2. Still in progress is the Civil Service Housing Scheme in collaboration with the Federal Mortgage Bank which is strictly for civil servants. It is still under construction. We have a number of developers approved to undertake development of affordable houses. We have Aba Road Housing Estate which we manage.
“We are open to investors and developers. We provide
land and partner with them. We map out the modalities on how to put the houses to use after they had been developed, how the off-takers would pay and acquire their property. The property would come under the maintenance of the Akwa Ibom State Government through APICO.
“We encourage any investor to look into this very formidable area of investment in Akwa Ibom. We are in partnership with Shelter Afrik for that housing estate.”
Housing needs in Akwa Ibom, targets, projections?
Udonfan gave details of the various schemes and updates thus: “Ewe Housing we have 1205 units of houses; duplexes, other categories; Shelter Afrik: we have over 800 units; Akwaima 1, 2, we have about 150. At Abak Road Housing Estate, we have about 50 units. The Civil Service Housing Scheme Phase One in Ibiono LGA, we are looking at about 2000 when completed. This is a total of 2,205 in phase one at different stages, plus 5,000 targeted in next phase.”
He went on: “We are concentrating on the civil servants and that was why we earmarked 2000 in the first phase. You cannot build all in Uyo capital city. We have a site in Abak for residents in that area and for people who may not afford the ones in Uyo capital city. Costs vary from city to sub-urban areas. You can drive in 20 minutes from Abak to Uyo. So, some persons may prefer Abak due to cost variation.
“In Uyo LGA and Eket, we have land also where we may start construction soon. Eket is a developed area because of Mobil. There has not been any government housing scheme in that area, so we intend to kickstart something there soon.
“Civil Service is about 30,000: The land space can take up to 5000 units of houses in the various locations we have, but with the FG housing for all monitored through the Federal Mortgage Bank, the problem is the offtakers. You cannot push in the developers when you know the off-takers are not fully committed. The people who initiated this idea had good intention but there are issues.”
“Some ask what use the APICO would be to any investor that steps into the state, or where AKIPO would play a role for incoming investors? If an investor comes and wants to invest in the housing sector in this state, the responsibility of the state government through APICO is to provide enabling environment such as land and infrastructure such as access road, electricity and water.
“There are some developers that may say, no, I do not want delay. No matter how fine a building is, if infrastructure is not there, it would not attract allottees. The investor may say to avoid delay, he would provide the infrastructure and build it into the cost of the houses. For land, we know it would be ours because we are the origin of the investment. It is a business and after the off-takers have taken over the buildings, it is under our own custody to maintain the estate. We must sure the investor gets the worth of his investment.”
Conclusion:
The essence is for Uyo to play the new role of investment destination of the Niger Delta by providing adequate and affordable houses for investors to reside in and face other tasks.