PROPERTY ARTICLES

Simeon Ahonsi is the Chief Executive Officer of Sim Group and Chairman of Sim Properties Limited. In this interview with Correspondent Bamidele Ogunwusi, he bares his mind on the role of private developers in the provision houses for the masses, challenges in the construction industry and other issues. Excerpts:

From the point of view of a private developer, what are the challenges being faced by private developers in the course of producing more houses in the country?

First and foremost, we need to acknowledge the bravery of indigenous private developers for coming out to save the country from the mess of homelessness. One of the major challenges that we, private developers, are facing is that of financing. Banks that are suppose to provide finances for building houses are not doing so. Those that are given developers money are not given for long-term. Most of them give short-term loans. There is no where in the world that you use short-term loans to build houses. It is only in Nigeria that people buy houses on cash and carry basis. We need to let the banks know that we are not happy that they are not supporting our business. The business of building houses for Nigerians is a serious one and we, at SIM, are serious and passionate about it.

What is the place of government in this? I mean where you want government to come in and assist in making the dream of people like you, who are passionate about building houses for Nigerians, a reality?

Government is trying their best. I mean some state governments are trying their best at creating the enabling environment for developers. One way by which government can be of assistance to developers is to ensure that they provide infrastructure in estates being developed by private developers. One of such infrastructure is road network. This will reduce the pressure on the developers.

Some people believe that it is only government that can solve the problem of inadequate housing in the country. What is your take on this?

In my own opinion and due to past experience I think government alone cannot solve the problem of housing needs in the country. Government has a role to play and this could be either direct or indirect. By direct, I mean direct involvement of government in development of houses and by indirect, I mean a situation whereby government works behind the scene by giving incentives and waivers to developers.

What is your take on the call by some people that government at all tiers in the country should go into provision of social housing for the masses?

Like I said earlier, government has a role to play. That does not mean that private developers too cannot be involved in social housing. I think any serious developer should be concerned with the number of houses he is able to build for the homeless than the houses for the rich who can afford to buy house at any price.

What role do you think private developers can play in proving social housing for Nigerians?

We have a big role to play. We can assist government because some of us have the experience in the business and we are ready to make available our experience in achieving the goal of building cheap and affordable houses for Nigerians. If the government said it is ready to assist private developers with land and other infrastructure the cost of building houses will reduce and this will lead to the construction of cheap and affordable houses.

Do you think with the current global economic meltdown social housing is achievable in the country?

I think it is achievable. We can make use of local materials that are readily available around us. For instance we can make use of local clay brick or we can build mud houses. My worry is that will Nigerians in urban centres live in houses built with mud or clay bricks? We need to know what the masses want.

Let's talk about your newest project, the SIM/Police Housing Scheme. Can you give us an insight on how it all started?

There is no magic in it. The Inspector General of Police, Mr. Mike Mbama Okiro sees what we have been doing and he has confidence in the company. We are opportuned to be the handlers of Ogun State scheme because the IG sees Sims Property limited as a serious company. We went to Abuja and we have series of meetings and we were commissioned to develop 300 housing units for the Ogun State Command of the Nigeria Police.

What motivated your company in going into the scheme?

We were motivated by the passion to create houses for people. We have a passion in making sure that Nigerians, including members of the Nigeria Police Force, have good and affordable accommodation. It is the desire to assist Nigerians that we started the company. We are in housing development to help ease the problem of housing in the country and to give shelter to Nigerians. This scheme is to see that every police officer has a roof over his head.

We gathered that you have spent over N300 million on this project. How did you get the funding for it?

We did not go to bank we looked inward for the funding.

What is the magic?

There is no magic per see. It is just a commitment and denial. If you want to be a successful businessman you will be able to deny yourself of so many things. We sourced our resources within the Sim Group disposal and well wishers who loved what we are doing.