PROPERTY ARTICLES

Despite the gradual recovery of various sectors of the economy from the economic meltdown, experts have said that the building industry is yet to see any sign of recovery as only few projects have been executed in the last two years compared to the past.

The Chairman, Lagos State Chapter, Nigerian Institute of Quantity Surveyors, Mr. Jide Oke, said that in spite of the emergence of bigger banks post consolidation, recent developments had made it impossible for banks to fund construction projects.

Oke said this at a press conference to announce the Lagos NIQS 2010 Distinguished Lecture Series on Wednesday.

With the theme, "Banking Sector Reforms: Aftermaths and Effects on Infrastructure Financing in Nigeria," this year‘s lecture, which comes up on June 2, has the Central Bank Governor, Mr. Lamido Sanusi, as the guest lecturer.

According to Oke, the lecture is expected to review the impact of the ongoing reforms of the CBN on infrastructure financing in Nigeria.

It would also provide a feedback forum through which professionals and members of the public could contribute and express their views on the reform, he said.

He noted, "We in the real sector have been affected because in the last two years, only few projects were executed compared with what was obtainable in the previous years. Many people also collected money for projects and put it into the capital market.

"Prior to consolidation, there were no banks that could fund oil and gas projects. Although bigger banks came with the consolidation, corruption found its way into it. Then banks were declaring big profits that were not there, but now they are all declaring losses."

The Lagos NIQS boss said that the current reform, which was meant to "capture the bubble capital had helped to identify the "real fund" that was available for the built industry."

He added, "Infrastructure is the nexus that the whole essence of development in this country revolves and this includes such amenities as power, roads, bridges, dams, airports, rail lines, hospitals, housing and so on, all of which make life better and contribute to national development.

"In Nigeria today, inadequacy or lack of these facilities has been the bane of our development. To bring about the development of these infrastructures, there is no doubt that financing from banks and other lending agencies would be needed."

Part of the chapter‘s programmes lined up for the year also include a refresher course on measurement, construction and estimating mechanical and electrical installation works for five-star hotels coming up later this month, and a tour of construction sites in Dubai in August.

The chapter‘s chairman said contacts had been made with their counterparts practising in Dubai to tour a seven-star hotel under construction as well as visit the world‘s tallest building in the oil rich emirate, the Burj Khalifa, which was unveiled last year.

The group, during the tour would also have a technical session with experts in Dubai, he said.