PROPERTY TRANSACTION GUIDE

How Ogun can derive maximum value from land resources - Experts
By Akinpelu Dada and Ademola Oni

Guardian, Monday, 30th March 2009

Experts in land management and real estate development have advised Ogun State Government on how best it can turn its land resource-base into a valuable asset that will make it the envy of others across the country.

Stakeholders, who converged on Abeokuta, the state capital on Thursday for the 1st Gateway Lands Forum, pointed out that for the state to achieve its goal of becoming a mega city similar to Lagos, it must provide the enabling environment for the Public-Private Partnership development model.

Towards this end, they noted that the government must take steps to organise development of estates and create the right atmosphere for the real estate sector to thrive and attract more investor-funds.

In response, the state government expressed its preparedness to introduce a new set of regulatory environment to control and supervise land acquisition and development; properly plan socio-economic development; expand the revenue base accruable to the state and ensure acceptable urban development and renewal standards in line with global best practices.

Governor Gbenga Daniel set the ball rolling when he said in his welcome address that the location of the state as the gateway to other parts of the country had placed it at a strategic advantage with the land not only being suitable for tourism and agriculture, but that the gateway advantage made it most attractive for the location of industries to capture the internal- markets of Nigeria and the world.

He said that before the company of administration, the state lacked the necessary policy framework and processes for tapping into its natural asset - the land, which was regarded as just a piece of earth with little value placed on it as a veritable means of enhancing internally generated revenue of the state.

Daniel said, "Given the emerging land use pattern, our administration had taken steps to create the right policy environment. It is also our aim to facilitate the acquisition of land for all users with private developers playing the lead role.

"To date, over 30 housing estates and industrial schemes have sprung up in various parts of the state with the Riverview Estate in Isheri being our flagship. Nearly two decades ago, developers got allocation in the area but could not commence construction due to the low-bed nature of the area that made it susceptible to seasonal flooding."

The governor said that the government had been able to check land speculation and insatiable land grabbing by a few individuals, as it had been able to allocate land in sufficient and economic units to genuine investors.

"Our administration is poised to open up the hinterland with the construction of an East-West axial road as proposed in our Regional Plan document. This move will decongest the clustered settlements of Mowe, Ibafo, Akute and Ojodu along the Lagos-Ibadan Expressway axis and free our major highways, while opening up the hinterland for development," he said.

The Director-General, Bureau of Lands and Survey, Mr. Gbenga Ogunnoiki, while noting the transformational growth the state‘s real estate sector was witnessing, said that the socio-economic revolution had greatly impacted on the land use pattern and presented it with the task of matching infrastructural provision with urban population growth, curtailing illegal land use conversion and dealing with emerging slums.

He said, "The evolving real estate market in Ogun State has also brought with it the menace of land speculation, land disputes and an unusual and unwarranted public mistrust for germane government intervention to correct inequitable distribution of land and make land available at the right location and quantity for various development projects."

"However, the state government is living up to expectation in handling with tact and professionalism the challenges of the pressure the increased population mobility and migration has brought upon our major towns, cities and especially settlements in our border region with Lagos State."

Ogunnoiki said that the government had invested heavily in capacity building and community sensitisation with the recently inaugurated Regional Plan Document presenting a holistic approach to how it expected the towns and cities to grow, the pattern of development and new settlements and infrastructure planning.

In a presentation on, "Land Use Reform Policy: Ogun State as Investment Destination of Choice," a professor of urban and regional planning, who is also the Vice-Chancellor, Tai Solarin University of Education, Ijagun, Ijebu Ode, Kayode Oyesiku, said that to ensure that settlements in the state achieve the development growth goals of the government and attaining the dream of making them liveable and sustainable, real estate developers and other investors must buy into the land use development policy to maximise their investments.

Planned new settlements development, according to him, is pivotal on infrastructure development before the residents move into their plots.

Oyesiku said, "Community Infrastructure Levy is an acceptable worldwide revenue to enhance the aesthetic outlook of planned communities. Establishment of residents associations is fundamental to the success of ensuring compliance with land use policy in the best interest of both the investors and residents, who by all means are also investors."

The Group Managing Director/Chief Executive Officer, Sterling Bank Plc, Mr. Yemi Adeola, said that Ogun remained the upcoming preferred area of development for both commercial, industrial, low, middle and high net worth individuals in pursuit of pure residential serenity and commercial convenience.

He identified government’s desire to show performance; availability of land for real estate development; huge off-take potential; the Lagos and Ogun mega city project; well developed and growing industrial estates, investment-friendly reforms; peace and security; availability of infrastructure and conurbation of Lagos and Ogun states as well as political support as factors that enhanced real estate investment in the state.

Adeola advised the government to continue its investment-friendly reforms and transparency, focused development of infrastructure, and continued collaboration with international development agencies and professional agencies to create capacity for PPP implementation in the state.

He also recommended the implementation of budgetary allocation for housing delivery and implementation of infrastructure development master- plan for the state in addition to provision of infrastructure for the proposed private initiatives in an organised manner to attract required financing.

He also called for collaboration with neighbouring states on key infrastructure like the mono-rail system and complementary roads and highways.

The Chairman/Chief Executive Officer, Sparklight Group, Chief Toyin Adeyinka, warned that over regulation of the real estate sector by the government could be harmful, advising the government to, instead articulate a well-defined time frame for approvals and speedy allocation of land to genuine developers.

"The government should also exercise limited controls on projects not directly funded by the state; allow self-regulation for more cost-effectiveness and efficient service delivery and consistency on the part of government in policy formulation and implementation," he said.

Adeyinka urged the government to intensify efforts in developing the raw materials, which abound in the state to facilitate the provision of affordable housing.