18 February 2013

Nigeria: Abuja Demolition Scaring Investors-REDAN President

The persistent demolition exercise being carried out in Abuja is beginning to be a source of fright to investors in the housing sector.

The President, Real Estate Developers Association of Nigeria (REDAN), Chief Olabode Afolayan, speaking during a stakeholders meeting recently in Abuja, noted that the recurrent demolition exercise was not good for their business as it was scaring people away from investing in property, especially in Abuja. He also noted that banks were beginning to shy away from accepting landed properties as collaterals for loans.

He however stated that the presidency, has agreed that the issue will be addressed as demolition was not the answer. He then asked that people should desist from building houses without following the master plan even as he said concession may be given to those that are already on ground.

He said, "For those ones that are on ground we are conscious of the investment and the interest of the beneficiaries. On the strength of that, government is assuring us that they will not bring down houses."

On how to make sure members stop leading people astray, the REDAN President noted that they were resolute that any member found wanting will be sanctioned. "We need to join hands with the government so that people don't abuse the master plan and at the same time ensure that officials of the government do not abuse their offices. On this issue, we have resolved that houses will not be brought down," he stated.

Recall that over 700 houses were demolished in Lugbe, Abuja, last year while stakeholders have continued to argue that the huge housing deficit of over 17 million cannot be addressed when people's hard earned money are being destroyed.

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