8 December 2012

Nigeria: Demolition in FCT to Cost Estate Developers N37 Billion - REDAN

Abuja — Should the FCT administration make good its threat to demolish the 38 housing estates in the Airport/Lugbe axis of Abuja, as stated by the Minister of FCT, Senator Bala Mohammed during his budget defence at the National Assembly on Tuesday, it will cost the 17, 323 subscribers and developers N37.82 billion.

But the Real Estate Developers Association of Nigeria, REDAN, has vowed to resist any further demolition of the 4, 961 completed houses or those under construction in Abuja that will be affected.

The National President/Chairman-In-Council of REDAN, Chief Olabode Afolayan, stated this during a press conference in Abuja on Friday.

Stressing that the issue of land racketeering in Lugbe needed to be addressed immediately because of its adverse effect on business, he said big organisations had started feeling the impact of the crisis brought on by demolition of houses in the FCT.

"The cement factory in Gboko has been closed down because of the glut in the market, and the next thing that will follow is loss of jobs," Afolayan told journalists. "In fact, some construction outfits have started laying off workers.

"The quantum of investment is well over N37 billion in Lugbe alone. If you look at it comparatively, even our big brother Federal Mortgage Bank of Nigeria (FMBN), that has been around since over a decade has only been able to create about N34 billion mortgages."

He therefore called on all well-meaning Nigerians to join their cause as "we will do everything as an organization that is responsible and determined to resist this proposed action of the minister."

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