Real Estate Investment in Nigeria

                                                                    

To a lot of Lagosians, the quiet hum of the mega-city project remains distant, primarily because it is to many, just another project that does not mean anything, maybe for reasons that do not go beyond lack of understanding and comprehension.

Findings have however revealed that a simple definition of the project is the re-development of Lagos to fit into the new title, which the state has found herself by virtue of population.

 

A mega city according to the definition of human settlements is a city with a minimum population of 10 million and above. In this league of cities are New York City (16million), Sao Paulo (17million), Mumbai (18million), London (12million.), Tokyo (26million), Los Angeles (13million), Beijing (12million) Cairo (10million) and Shanghai (12million). Apart from their sheer population, most of the world’s mega cities (with a few exceptions) are highly industrialized, technologically advanced, hub of international trade, well-developed transportation network (air, land and water), globally connected telecommunications, skillful labour force and well-planned urban landscape with complementary / functional urban services i.e. electricity, water, sanitation etc.

 

With a population of over 10million, Lagos by proposed legislation or otherwise has definitely attained the glorious height of a mega-city; howbeit with the attendant issues and problems of living up to that titanic position. However, the Lagos Mega-City Region covers an area of 153,540 hectares which is more or less the entirety of Lagos with a continuously expanding built-up area that gulps parts of Ogun State comprising at least, four local government areas of Ado-Odo/Ota, Ifo, Obafemi Owode and Sagamu. “These areas spread through an estimated area of 22, 840 hectares, comprising 15, 640 hectares for non-urban uses, such as, agriculture, conservation/preservation, forest and water supply reserves, recreation, tourism and regional parks, while urban uses in Ogun

State accounted for only 7, 200 hectares.” According to information from the Ikoyi office of the Mega-City Project; headed by Professor Akin Mabogunje, a Professor of Urban and Regional Planning. A report of the Professor Akin Mabogunje-led Presidential Committee on the redevelopment of the Lagos Mega-City Region, made available for sighting at the Ikoyi office of the project, revealed that the Lagos Mega-City is a region in crisis- infrastructural facilities; services and utilities are severely stressed. “Its residents are neither safe nor satisfied and the environment is highly polluted and decaying.” Quotes the report.

It is perhaps for these reasons and more that former President Olusegun Obasanjo formally inaugurated the Lagos Mega City Region Development Authority with the words “the problems of Lagos, which also flowed into Ogun State, are beyond the scope of the two neighbouring states, stressing that Lagos being a former federal capital, the Federal Government had to intervene.” This was also acknowledged by serving President Umar Musa Yar ‘Adua on 22^nd of  July, 2007 during an official visit to Lagos where he also met with the Governors of Lagos and Ogun states, when he said that the “federal government can no longer ignore the population growth in Lagos, as there is the urgent need to begin the development plan for a mega city”, an Olympian height Lagos has attained (growth wise) in the hierarchy of cities in Nigeria, nay the world.

Hence, Mr. President came purposely to confer with Governors Fashola and Daniel of Lagos and Ogun states respectively, on the modality for drafting legislation on the mega city status of Lagos to the National Assembly to pass into law.

Some of the other reasons for the translation of Lagos into a mega-city according to the Prof. Mabogunje’s committee report states that

·          The Mega-City Project came about as a result of the chaotic nature of urban development in

             Lagos

State, which has impacted negatively on

Ogun

State. This singular factor has become a source of concern for international investors and       first-time visitors. Recent statistics by the National Planning Commission, NPC, and the Central Bank of Nigeria, CBN, revealed that
            no less than 60 per cent of total economic activities in the country take place in

Lagos 

State.

·          The Lagos Mega-City as already defined came about as a direct impact of the inadequacy of decent residential accommodation within the Lagos metropolis, and its attendant encroachment on OgunState lands.

·          The population pressure in the Mega-City Region has been heightened over the years by inadequate housing provision for the continuous streams of immigrants. The report pointed out that although the Mega-City occupies only 37 per cent of the land area of

             Lagos

State, it accommodates nearly 90 per cent of the total population of the state. The average population density within the region is          about 20, 000 persons per square kilometre, compared to the national average of only 1, 308 persons per square kilometre.

·          The inadequacy of decent residential accommodation has resulted in the Lagos State section of the Mega-City Region to record 42 slum areas as at 1985. Latest count has put the number a little over 100. The effect of these ever emerging slum areas is disheartening as the corridors of land along the Lagos-Ogun

State borders have been experiencing enormous pressure as the

Lagos metropolis spills over to them. Neighbourhood areas such as Ota, Ibafo, Mowe, Ojodu, Akute and Ogifo are already under heavy and intense pressure of physical growth with very few indicators of real infrastructural development- the roads are in the most unmotorable states with little or no drainage facilities available.

 

Having identified these reasons for moving Lagos alongside Ogun State into the realm of mega city, key areas in the report which is guiding the Mega-City project office have been identified with differing solutions and plans proffered to be implemented.

These areas of interest include Power generation, Fire prevention, security, geographical restructuring to leave ample parks, and open gardens available as recreational facilities. Others are good water provision, pollution prevention and flooding problems which the report has very strongly attributed to the blockage of drainages.

Professor Mabogunje at a recent sensitization program organized for members of the Lagos Chamber of Commerce and Industry (LCCI) on the on-going Lagos Mega City Project by the officials of the Lagos Mega City Development Authority said while responding to questions bordering on the preparedness of the state and Federal government for the mega-city project; that “various developmental projects had started and that all the markets in Lagos were going to be re-designed in conjuction with banks.”

He also revealed that works had commenced on the expansion of the Lekki-Ajah expressway and that the construction of the coastal road would soon commence.

 According to Yacoob Abiodun an Urban Planner attached to the project office from Abuja at the Federal Government Support level; “the main priority and focus of the Lagos Mega City project now is a ‘quick-fix’ for the

Lagos traffic and the modes of public transportation befitting of a mega city. The on-going Bus Rapid Transit (BRT) is one solution out of many possible solutions to address the stress which commuters and motorists go through daily within

Lagos metropolitan area.”

In line with other mega-cities all over the world, Lagos needs a mass transit mode with a capacity to transport large number of commuters in and around the mega city region. The metro mode should according the project run from various points in a bid to alleviate commuters transport problems.

When it started out, the now popular BRT buses plied only Berger to Race-course, but now other routes have been added even including the Ikorodu road axis which should be commencing soon, now that the ground work is almost done.

The Ogun State government axis using the Gateway City Development Company is also monitoring developments and construction activities along the Mowe-Ofada axis in its bid to ensure well planned housing formats and structures.

According to an official of Gateway City Development Co. Ltd, who spoke with this writer under anonymity, “the company was floated in 2004 to monitor and guide development on the axis as it is the opening to other parts of the country from Lagso State, hence the Mega-city project taking place in Lagos and Ogun.”

Working with international and local private estate developers, corporate bodies and cooperatives, the Ogun state government is coordinating the gradual transformation of turning its over 20, 000 hectares of land along the Lagos/Ibadan Expressway into a mega city- a sure extension of the Lagos end of the project.

Today, according to a THISDAY Newspaper report, “the entire territory is home to various estates and factories with ownership ranging from individuals to corporate entities.”

Implementing three strategic development options, the helmsman of Gateway City Dev. Co, Surveyor Kola Omobo has stated that either by direct government investments and acquisition of properties, private sector capital infusion and/or Public Private Partnership, the axis is being monitored to be built or developed according to the Mega-City posture.

He disclosed that the enormous cost of developing the area informed the decision to partner private investors.“Our plan is to take advantage of the axis contiguity and heavy congestion in Lagos by turning it into a place that would showcase Ogun State.

“The Gateway City axis is an alternative to the Lekki Development Corridor in Victoria Island which is why we are overwhelmed by the rush for land in the Gateway area. That is an area where anybody coming in or going out of

Lagos must pass through,” Omobo said.

He added that some of the modern housing estates currently being developed include Havila villa Estate, a joint venture between the Ogun State Government and Grand Properties; OGD Sparklight Estate, joint venture between GCDC and Sparklight Company Limited; Lonex Gardens, Heritage Gardens, Wemabod Estate and Sky-view Estate.In the joint ventures, GCDC provides the land as government contribution, while the private developers provide funding for the estates. He said the agency has also allocated land to The Sun Newspapers Co-operative and the Nigeria Union of Journalists (Financial Standard Chapel) that are working to build their housing estates within the GCDC corridor.By the time all these housing estates are fully developed, Omobo said “the area would have turned into a mega city, assuring that the stakeholders would stick to the master plan for the area.”

Give or take, most peoples’ fingers are still crossed; even as a lot of the officials of these projects in Lagos and Ogun States respectively are waiting for some major activity to further enlighten them on the way things are going. But whichever way, the project is here to stay, and critics are watching to see the successful implementation of some of the things and suggestions that the Prof. Mabogunje report has proffered.     

Snippets

·          Members of the Mega-City Authority project include representatives of the Federal Ministries of Housing & Urban Development, Works, Environment, Transport and Finance; relevant ministries of Lagos and Ogun States and Local Governments; Lagos Chamber of Commerce and Industry and one banker each from the two states.

Isn’t it about time a wise investor take position along that axis?

Do you now see why you should buy into some of the Mowe/Ofada axis landed property offers in Prime Assets magazine?  Go to www.primeestatesng.com now to key in immediately.