…as FCT losses N600 Billion Annually to Real Estate Sector- Onuh
By Joyce Remi- Babayeju
The FCT Minister Mallam Mohammed Musa Bello has promised that henceforth all fraudulent developers would face hard times as the Chairman, Ad-hoc Committee to Investigate the Operations of Real Estate Developers in the Federal Capital Territory (FCT), Hon. Blessing Onyeche Onuh disclosed that FCT loses N6000 billion revenue annually from the real estate sector.
Onuh made this disclosure at a Two Day workshop organized by the Federal House of Representative Investigate Ad-hoc Committee on Mass Housing /Real Estate Development in the FCT held at DrTranscorp Hilton Hotel, Abuja on Monday in Abuja.
According to Onuh, the workshop is to discuss the economy of the real estate industry. “We shall clearly articulate the value chain in this multi-trillion naira industry and identify why the FCT has not been getting its fair share.”
“This committee’s preliminary findings indicated that the FCT has been losing an estimated N600 Billion annually revenues accruable to it from the real estate sector.”
“Take for example a house or land is sold for N500,000,000.00 (five hundred million naira), the lawyer gets his legal fee, the agent gets his brokerage fee, the bank gets its transaction charges and the government gets nothing if the transaction is not presented for registration. ”
She express displeasure that such transactions go on in volumes every day unregulated, leaving government with the perennial struggles of meeting up its responsibility of providing modern amenities for the people.
She said many of these transactions are done in cash making the industry a safe haven for money laundry and illicit financial flows. The time to change the narratives is now”, she assured.
Onuh entreated the Minister to enforce the provisions of the law establishing the federal capital territory for the common good of all Nigerians living or visiting the FCT.
“The process to check nefarious activities of many developers must begin today.
We enjoin you to demonstrate the political will most needed at this critical moment in the development of The Federal Capital City. ”
“We are certainly seating on a ticking time bomb and history shall record it that at this time we had the opportunity to restore the confidence of the Nigerian people in our ability to preserve their commonwealth.”
She noted that mass housing sub sector would address the alarming housing shortage in the FCT.
The FCT is blessed with a large land mass and has been magnanimous with its policies to encourage mass housing development in the territory as its fare contribution in reducing the national housing deficit, this is demonstrated in the mass housing policy of the FCT.
But majority of players in the
housing development sector have not reciprocated this magnanimity thereby creating a weak housing sector which is clearly inimical to the land value chain; from value for money for the subscribers or off takers to a sustainable revenue base for government, she observed.
The minister added that the administration will have no option than to work together under the right laws and regulations to reveal the act.
Bello said, “I personally will ensure that we work together under the leadership of the AD-HOC Committee with strong enforcement of the law and regulations as was earlier indicated by the chairman of the AD-HOC Committee. ”
” Inspite of the few challenges, I maintain that the public private partnership still remains the only option available to us in meeting houses challenges,”
We have commenced in Gwagwa district and subsequently, others will also come up with very strict regulations that protects the Estate investors , protect the government, and protect the on takers as well as those financing the projects along the entire value change ,he hinted.
taking time to go through the various strategies of the housing development of the FCTA, within the last few years, the theme of The minister was optimistic that the outcome from the Workshop will further strengthen the quest for the development of FCT that is more responsive to the needs of the people .
“A fast growing city of Abuja, and it’s ever increasing human population there will always be a need to meet the shelter needs of all the categories of people who have chosen to reside here.”
According to the minister over the years, various changes, strategies were involved to meet the right basic accommodation needs of the residents of the FCT , starting from the government on first set of accommodation of civil servants in Garki Area One, and a part in Gwagwalad and Suleja .
These were eventually sold off to civil servants occupants and that is the sale of government houses , thus giving many Nigerians the opportunity to own their own houses in the nation’s capital city.
This was followed by the FCT Administration’s subsequent introduction of the mass housing scheme driven by the private sector to mitigate the housing needs of the citizenry.
Meanwhile, the Deputy Speaker, House of Representative, Hon. Idris Wasa said the house will continue to make laws to stop all unethical practices in the real estate and other sectors.
He added that, real estate is second to oil industry in revenue generation, but unfortunately, players in the real estate have continued to defraud both government and off takers.
Wasa promise to recover every Kobo supposed to be paid into the government coffers.
