Lagos — Like infrastructure, Nigeria is experiencing acute supply of housing. Government seems to be bereft of ideas in solving the acute shortage in the supply of houses across the country. Even private sector intervention has been more exploitative than a solution. In this interview Mustapha Njie, chairman &CEO, Taf Holding Company Limited, a company based in the Gambian explains how Nigeria can decongest its cities and leverage on the right technology to deliver adequate housing.

Excerpts:

Sir, could you please introduce yourself and tell us what you do?

I am a Gambian businessman but I am more into real estate. Some twenty years ago established a company called Taf Holdings Company. We went into construction but now  we are a developer with interest in tourism development.

For 20 years of your existence, what properties have you developed in Gambia and elsewhere?

Our development is mainly in the Gambia but we have interest in Senegal and in Mali. In Dubai also we go in as real estate agents, we buy and sale but in terms of development our major development is in the Gambia.

Perhaps you also tell about some of the properties you have developed and still developing.

In the Gambia, we developed service apartments which we rented out and we sold some in 1991. Then we did some small developments when we bought small parcels of land and developed. Then we developed a 100 room hotel called TafBell and which we have sold already. But our major housing development was in the year 2000 when we developed 210 units' mainly low and middle income houses of two and three bedrooms. And the prices were between $15,000 and $20,000 respectively which we got sold out within a year. After that, we started the Brufut Gardens development in 2003 and we are in the final stage now. It has a total land area of about 40 hectares. We have about 500 units being built and probably within the next six months everything would have been sold out and construction should be completed in the next one year.

In the Gambia, how do you structure payments for your properties, is it cash or what other means do you adopt?

We have different facilities. If we have finished building we may ask you to pay outright. Sometimes we ask for 50 percent down payment and the balance spread over a year. There is also a mortgage facility on off plan, where you pay a deposit of 25 percent and every quarter you 8.75 percent and the balance of 40 percent is paid over a five years period (60 months).

What would say are the challenges militating against real estate advancement in Nigeria?

We haven't started developing properties in Nigeria. We are here to market our properties in the Gambia. The reason why we are doing so is because the prices of properties in the Gambia are much more affordable than the same properties in Nigeria. Secondly, the Gambia is becoming accessible to Nigeria. There are about eight to nine Nigerian banks in the Gambia; that brings confidence. There also a lot of Nigerian airlines now flying the route. Before you could only fly to Gambia on Bellview twice a week but now Virgin Nigeria and Arik are also flying to the Gambia.

Let's talk a little more on the prising regime; you said mortgages are cheaper in the Gambia compared to Nigeria, what in your view is responsible?

I think it's because of the land value and probably cost of doing business. The cost of doing business is relatively cheap in the Gambia, fairly straight forward. Reasons can be argued but I think it is because of our size. Our size is manageable and our population is just 1.5 million people. For those reasons, the same quality of property is quite cheaper there. Land is cheaper and obviously land contributes a significant amount to housing cost.

Perhaps, you would also want to say why you chose Nigeria to market your properties?

Within West Africa, Nigeria is a number. Out of every two West African you meet, one is a Nigeria. The entire West Africa has a total population of 240 million people and 140 of them are Nigerians. So, it makes business sense if you are marketing and going across border, Nigeria is a place to target.

What in your own view is responsible for the housing crisis in Nigeria?

One of the reasons why there is housing problem in Nigeria is that there is congestions. For example, most people would want to leave around Lagos and its environs. The solution to Africa, based on my experience haven travelled across the continent and as one of the success stories of Shelter Afrique, is opening up housing.. We all seemed to be clustering about in the urban areas. We need to create settlement and when you create settlements, you not only build houses but you also build the facilities. There is no basis why public offices (buildings) must be concentrated in the city capitals or state capitals. We should move out of the clusters. By that land will be cheaper. If you say drive 40 kilometres from Lagos and take a virgin land of say 1000 hectares and get it properly planned, you can build facilities there that will keep people in there, with that you address housing needs. If say, the ministry of agriculture or free trade zone is located outside the city centre, you would create a community around that area and decongest the city including traffic congestions.

How would primary mortgage institutions also play a role in mitigating the housing cost?

There a several arguments, it depends on the funds they are accessing. If they access short term deposits, they cannot use it for mortgages, but if they can access long term finances then they can extend the facilities to the end users with low interest rates.