PROFESSIONALISING REAL ESTATE AGENCY PRACTICE IN NIGERIA

PROFESSIONALISING REAL ESTATE AGENCY PRACTICE IN NIGERIA: ISSUES AND THE WAY FORWARD

BACKGROUND TO THE STUDY  

Professionalizing is derived from the term Profession/Professional. A professional connotes a person with a distinct competence for a specified function or discipline (Ojewunmi, 2005). Such a person would have been trained or has acquired the necessary training in that discipline to become a professional in that field. A professional exists within the context of a profession; a distinct discipline or career path with its own training, qualification and membership requirements and standards. It is in the bid to establish such standards that professional bodies exist to ensure that persons within its fold have the requisite training/qualification and also abide by its rules and ethical standards (Kuye, 1998). A professional in any field is a highly regarded person and is deemed to have a certain level of competence expected of a person in that profession.

Real estate agency is essentially a land based profession that deals with the business of buying, selling or leasing of interests in real estate, which may be land or buildings or interests therein. Practitioners of this trade are generally addressed as Estate Agents in our environment. Considering the importance of housing in mans hierarchy of needs and the huge deficit that exists in the housing sector in Nigeria, Real estate Agents generally play a very important role in the socio-economic life of the country. Generally a real estate agent is a person, who possesses the authority to act on behalf of another person with a view to establishing contractual relationship between his principal and a third party. The person, who employs the agent, is usually called the Principal. Several variants of real estate Agent/Agency exist (Olatunji, 2008).

The practice of Real estate Agency in Nigeria at present remains largely unorganized, unregulated and unprofessional. Apart from the Nigerian Institution of Estate Surveyors and Valuers that has set standards for its practice by its members i.e. Estate Surveyors and Valuers, the large majority of those who practice estate agency do so without the basic training in that field, without any certification or qualification, without any regulation and largely in an unprofessional manner (Gambo & Ashen, 2012).

The practice is generally open to all comers and entry and exit are at the sole discretion of the person. Due to the lack of a central professional/regulatory body that will set minimum standards for entry, set standards for its practice, as well as ensure adherence to a code of ethics, most estate agents are generally on their own and quackery with its attendant consequences is very prevalent if not the order of the day (Gambo & Ashen, 2012). A multiplicity of local estate agents Associations exists but these are essentially local bodies without the right structure, leadership or plan to advance the practice of real estate agency beyond the parochial interest of the founders or originators (Hemuka, 2002).

The effects of this present state of real estate agency practice in Nigeria are indeed too numerous to count. The major effects are that due to lack of regulation and requisite competence on the part of the practitioners, the consuming public has been on the receiving end of estate agents in terms of very poor services, fraudulent transactions and losses of income through the activities of dubious practitioners (Hunter, 1997). As a result of this, the public perception of the real estate agent is very poor. Real estate Agents are generally looked upon as persons, who engage in sharp practices and whom you have to deal with, with “all eyes” open. In view of this, the practitioners are not respected in the society. The very low level of respect for the practitioners has led to a situation where both vendors and landlords alike do not see the need to remunerate them appropriately, while the lack of standardization and regulation has led to both the landlords and the vendors turning themselves into agents. In most cases, multiple agents are appointed and owing to lack of standardized practice procedures it usually turns into a cut throat competition amongst them. The level of abortive work done by the average real estate agent is phenomenally high due to the non standardized practice procedure. The police, EFCC and other law enforcement agencies are after the real estate agents in the belief that a lot of money laundering is done through the acquisition of properties with illicitly acquired wealth (Olatunji, 2008).

To achieve professionalism in the practice of real estate agency in Nigeria, the right approach will be to work towards ensuring that Real estate agents are appropriately trained and certified to practice, establish standardized prequalification and registration protocols for the prospective estate agents, keep a register of all qualified and certified estate agents, enforce compliance to a code of ethics and practice through sanctions, institute and implement mandatory training programmes for practitioners, Institute appropriate professional indemnity insurance programmes for members, to ensure the protection of members of the public, set remuneration due to agents whether as single agents or cooperating agents, generally regulate the practice of estate agency, develop and project the practice of estate agency as a respectable brand that will continuously earn the trust of members of the public through quality service delivery of its members. It will also protect and defend the interest of practitioners.

1.2   STATEMENT OF THE PROBLEM Real estate agency practice in Nigeria like other countries of the world contributes massively to housing delivery system as it helps to meet as well as cater for the housing/accommodation needs of people. Due to the important roles real estate agents play in the housing and accommodation delivery sector of the economy, so many people have become victims of accommodation fraud from the hands of some of these estate agents who go about duping genuine accommodation seekers which has been the reason for calls from many quarters on the need to professionalize the profession in Nigeria. Professionalizing real estate agency in Nigeria will benefit not just the consuming public but also the practitioners. While the public will benefit through improved or quality agency services from reliable and well referenced real estate agents, the practitioners will benefit through proper regulation of the practice, which will ensure that only qualified and certified persons practice the trade and that the practitioners are appropriately trained, equipped and remunerated.1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To examine the issues involved in the professionalizing of real estate agency practice in Nigeria. To determine the way forward for the professionalizing of real estate agency practice in Nigeria. To analyze the factors hindering the professionalization of real estate agency practice in Nigeria.

1.4   RESEARCH QUESTIONS

What are the issues involved in the professionalizing of real estate agency practice in Nigeria? What is the way forward for the professionalizing of real estate agency practice in Nigeria? What are the factors hindering the professionalization of real estate agency practice in Nigeria?

1.6   SIGNIFICANCE OF THE STUDY The following are the significance of this study:

The outcome of this study will be of benefit to the government and its agencies in that the practitioners of the trade will be brought under one umbrella, which will make easier the regulatory work of such government agencies like the EFCC in its fight against money laundering. The result will educate the general public on the need to patronize the professional real estate agents and what criteria makes someone a real estate agent e.g. qualifications and the professional body the real estate agent belongs to. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7   SCOPE/LIMITATIONS OF THE STUDY This study on professionalizing real estate agency in Nigeria; issues and way forward will cover the activities of real estate agency practitioners in Nigeria considering professional ethics and code of conduct.LIMITATION OF STUDYFinancial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.1.8   DEFINITION OF TERMS Profession: a paid occupation, especially one that involves prolonged training and a formal qualification. Ethics: moral principles that govern a person's behaviour or the conducting of an activity.

REFERENCES David P. Hunter (1997). Professional Ethics and the Real Estate Agent. Illinois Real Estate Letter Fall Fong-Yao Cheng (2008) Client Influence on Valuation: Does It Matter? A Comparative Analysis between Taiwan and Singapore. The 14th Annual Conference of the Pacific Rim Real Estate Society, Kuala Lumper, Malaysia. Gambo, M. J. and Ashen, M. J. (2012). Application of Economic Indicators in Predicting Construction Cost Escalation for Residential Buildings in Nigeria. International Journal of Economic Development Research and Investment, 3 (1), 27-32. Hemuka N. (2002). Ethical Behaviour and the Practice of Real Estate Surveying and Valuation in Nigeria. Kuye Olusegun (1998). Ethical Behavior and the Practice of Estate Surveying and Valuation in Nigeria. John Wood Ekpenyong Annual Lecture Series. Makanjuola Ojewumi (2005). How to Make Huge Profits in Estate Agency: 21 Lessons that Sharpen and Shape You. Knight Service Books, the Pent House Suit, Greenfield Plaza, Ibadan, Nigeria Oluwole Alfred Olatunji (2008). Assessing Client's Confidence and Satisfaction in Construction Professionals in Nigeria. Journal of Environmental Science, FUTA.

LAND REFORMS IN NIGERIA

LAND REFORMS IN NIGERIA: ISSUES, PROBLEMS, AND SOLUTIONS

BACKGROUND TO THE STUDY  

Land Reform generally involves the changing of laws, regulations or customs regarding land ownership. It may consist of government initiated or government backed approach to property redistribution of land as in the case of Nigeria, an outright transfer of ownership of land from the citizens to the state. The common characteristic of land reforms is usually the modification or the replacement of existing institutional arrangements governing possession, use and title. Thus, while land reform may be radical in nature such as large scale confiscation and transfers of land from one group to another or from one group to the state, it can also be less drastic and conciliatory in nature such as less painful transfers of land to the state and regulatory reforms aimed at improving land administration (Dale, 2007).

Land is perhaps the single most important natural resource in the sense that it affects every aspect of a people’s live; their food, clothing, and shelter. It is the base for producing raw material for the manufacturing industry. It is an important resource. No nation-city or rural area can survive as an entity without it. Thus, every person in a nation – the banker, the industrialist, the labourer, the educator, the student, the planner, the farmer- has a vital stake in the country’s land problems and its proper utilization (Acquaye, 1976).

The Land Reform committee in Nigeria is aimed towards enabling the states to be effective managers of land. It is aimed to provide a systematic cadastral survey of land in the entire federation (a political entity called Nigeria). The Term of Reference makes it an essential body to assist both states and local government to carry out the cadastre survey and codify the possessory rights of vast majority of the people access to land and landowners. The Term of Reference necessitate the body to collaborate and provide technical assistance to state and local government in undertaking cadastral survey and to ensure the demarcation of land boundaries and title holdings are demarcated in such a way that communities, hamlets, villages, towns etc are recognized. It was also saddled with the responsibility of encouraging and assisting states and local government to establish adjudication mechanism for land ownership conflict resolution and to make recommendation for mechanism for valuation in both rural and urban areas.

Security of tenure and land rights of citizens is an important foundation for economic development. For many of these, land titles are the main sources of collateralization for obtaining credit from informal and established financial institutions. Consequently, securing land rights and land titles is particularly relevant for all socio‐economic classes in the nation’s economy but especially to the farmers whose pervasive poverty to date derives from not having definitive property rights appropriate to a market economy. Furthermore, fees and taxes on such landed properties are very important sources of revenue for governments particularly at the State and Local Government levels. A national programme that thus sets out to enhance and secure the property rights of all groups in the society can only end up creating a economic empowerment. Funding Land Reform programme should therefore be a national effort to be borne by all three tiers of government in proportion to their capabilities (Mabogunje, 2007).

For a country striving to be one of the twenty largest economies in the world by the year 2020, the situation with respect to land rights and transactions in land still leaves very much to be desired. The World Band publication on “Doing Business in Nigeria 2010” rated Nigeria 178th out of 183 economies in respect of difficulties of registering properties in the country. Mabogunje (2007) attributed this to the following reason “a large share of land in the country is not formally registered [whilst] informal titles cannot be used as security in obtaining loans which limits financing opportunities for businesses” especially small and medium‐size enterprises. If Nigeria is to meet the challenges of competing effectively in an increasingly globalizing world, it is thus imperative that it gives very urgent and sustained attention to promoting its land reform program in all of its ramifications to facilitate property development.

1.2   STATEMENT OF THE PROBLEM Land Titling and Registration is essential for economic development of a Nation. The Nigerian nation had had a multiplicity of land tenure system until the 1978 Land Use Act which harmonized all the systems. The land use pattern in Nigeria estimated arable land to be about 33% of the total land area, permanent pastures cover 44%, permanent crops cover 3%, forest and woodlands 12%, and others 8%. Thus land is still the main asset of the rural Nigerians where over 80% are peasant farmers; however this asset has not been fully utilized for economic empowerment because they do not have proper records and titles that can be used as collateral to raise capital. It is in an attempt to economically empower the vast majority of Nigerians, who are rural dwellers, by turning their land holdings to economic capital, that the current Federal Government of Nigeria initiated the Land Reform Agenda. However, the researcher is providing an overview of land reforms in Nigeria considering the issues and prospects. 1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To provide an overview on the issues of land reforms in Nigeria. To examine the problems of land reforms in Nigeria. To analyze the solution to the problems of land reform in Nigeria.

1.4   RESEARCH QUESTIONS

What are the issues of land reforms in Nigeria? What are the problems of land reforms in Nigeria? What are the solutions to the problems of land reform in Nigeria?

1.6   SIGNIFICANCE OF THE STUDY The following are the significance of this study:

Outcome of this study will educate the general public and students on the issues, problems and solutions of land reforms in Nigeria with a view of identifying the inadequacies. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied, it will go to an extent to provide new explanation to the topic.

1.7   SCOPE/LIMITATIONS OF THE STUDY This study on land reforms in Nigeria will cover all the issues and problems of land reform in Nigeria. It will cover the activities of the regulatory framework and the accessibility of land to Nigerians for use.LIMITATION OF STUDYFinancial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.1.8   DEFINITION OF TERMS Reforms: make changes in (something, especially an institution or practice) in order to improve it. Land: the part of the earth's surface that is not covered by water.REFERENCES Mabogunje, A.L. (2007). Development as Societal Transformation and Empowerment. Lecture Delivered at the Retreat of the People’s Democratic Party, Abuja, January 8. Dale, Peter. 2007. “Good Land Administration – It’s Role in the Economic Development” Keynote Speech on Land Administration in Transition International Workshop, Ulaanbaatar, Mongolia. June 27 -29. Solomon, A.O. (1991): Title to land in Nigeria; An inaugural Lecture delivered at Obafemi Awolowo University, Ile-Ife, On June 1991. Osei-Bonsu. S.N. (1983): Alternative Approaches and strategies to Rural Development Studies Vol. 3 Nos. 1 page 31-32. 

INFRASTRUCTURE RENEWAL PROGRAMS: A REMEDY TO LAGOS MEGACITY CHALLENGES

BACKGROUND TO THE STUDY  

The population of Lagos is at present in excess of 18 million. A megacity status is conferred by the United Nations on cities with a population of 10 million and above. Building and preserving a model mega city comes with great challenges. Providing a sufficient amount of infrastructure and other necessities that would accommodate the needs of over 18 million people could be daunting (Ayeni, 2008).

By 2025, officials and population analysts agreed that the number of people in the city and in the surrounding communities, especially, in Ogun State axis, would leap to 30 million. Prominent among the challenges are housing, infrastructure and transportation, particularly in more than 10 local government areas (LGAs) that made up of the state, excluding local council development areas (LCDAs). Besides, the notorious traffic jams, choking pollution, inadequate supply of potable water, insecurity and absence or inadequate social and economic needs of the people pose more challenges. Apart from series of efforts put in place by government through several urban renewal programs, the uncontrolled influx of people from virtually every states of Nigeria, including neighboring countries, such as Benin Republic, Togo, Ghana and others, is heightening the fear that the next few years would provoke a daunting task for the authority (Tim, 2003). It has been observed that in some houses in Lagos metropolis, septics are channeled directly into the drain. The government is, therefore, challenged to invest heavily in the protection of the environment through urban renewal programs in order to avert environmental abuse and its consequences. People migrate from villages to the city-centre, without adequate understanding of reality on ground. Here, culture comes into play, such as open defecation as being done in the village, spreading of clothes publicly and cooking exercise in any open place, among others which is frustrating the efforts of the state government at transforming the city through urban renewal programs. Official admitted that planned urban renewal is a major challenge in an emerging model city like Lagos (Batley, 2003). Prior to the current urban regeneration efforts by the government, Lagos used to be referred to as a jungle of various emerging slums. However, a systematic urban development and slum renewal programme, in partnership with several development agencies, has since been put in place to reverse the trend being a major remedy to combat the menace characterized by urbanization. Consequently, various model city plans that included Ikeja Model Plan, Victoria Island/Ikoyi Model City Plan, Lekki Comprehensive Land Use and Infrastructure Master Plan have been completed while Mainland Central Model City Plan Badagry Draft Master Plan and Alimosho Master Plan have been concluded, while others are at various stages of execution. However, in order to give the urban renewal programme a legal backing, the Lagos State Model City Development Law was enacted in 2009 while the State Urban and Regional Planning Law were signed on July 7, 2010.

According to Lindan (1993), certainly, a megacity requires a stronger financial base. The sheer size of funding required in sustaining a megacity is beyond what a government could provide on its own. To this end, Kadiri was of the view that both federal and Ogun state governments should support Lagos in her efforts to sustain the challenges involved as a result of its mega status through the urban renewal programmes. According to Ogunleye, for the fact that many of the old slum areas are not in hidden locations make it easier for government to incorporate them in its urban renewal programmes. The formation of new slums is prevented but people’s influx is however not controllable in Lagos State, knowing full well that no legislation that frown against migration to the city. But government will do well if it opens up new settlement with the necessary infrastructure put in place. Although, government has embarked on infrastructure renewal projects that include the execution of on-going projects such as the light rail scheme from Orile to Mile 2, the redevelopment of the Lagos-Badagry expressway into ten lanes incorporating BRT lanes and light rails, on-going reconstruction of the Mile 12-Ikorodu road incorporating BRT lanes, the recently commissioned Ejigbo- Ajao Estate link bridge, recovery and redevelopment of loops hitherto used by criminals as hide-outs among others could only become feasible with a sustained system of funding. Notwithstanding the profoundness of these projects, it appears that much still need to be done to meet the need of millions of commuters on daily basis.

The condition of the environment also constitutes a major challenge to the Lagos megacity city. Lagos, for instance, generates 10,000 tonnes of waste daily, almost three times higher than what the whole of Ghana generates daily. Also, the kind of industrial pollution experienced in Lagos is second to none in the country. Maintenance of law and order is another major challenge of the Lagos mega city. Though a mega city status is conferred on a city as a result of population growth, building and sustaining a model mega city is not a tea party as reflected in the Lagos experience. In the case of Lagos, a major challenge, however, is how to cope with the ever-increasing population of Lagos with its attendant consequences on infrastructure

1.2   STATEMENT OF THE PROBLEM This study considers the solution to the challenges of Lagos mega-cities characterized by urbanization as an effective urban renewal programme. This approach is aimed at providing housing, environmental policies and planning strategies appropriate for facing the challenges of the urban growth and development. A megacity is usually defined according to the United Nation as a metropolitan area with a total population in excess of 10 million people. Some definitions also set a minimum level for population density (at least 2,000 persons/square km). A megacity can be a single metropolitan area or more metropolitan, depending on the definitions and boundaries being used. However, the researcher will provide an overview about urban renewal programme as a remedy to Lagos Mega city challenges.1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To examine the challenges of the Lagos mega city. To identify the urban renewal programmes put in place by government of Lagos State in addressing Mega city challenges. To determine the effectiveness of urban renewal programmes in Lagos State.

1.4   RESEARCH QUESTIONS

What are the challenges of the Lagos mega city? What are the urban renewal programmes put in place by government of Lagos State in addressing Mega city challenges? What is the effectiveness of urban renewal programmes in Lagos State?

1.6   SIGNIFICANCE OF THE STUDY The following are the objectives of this study:

The outcome of this study will educate the general public on how an effective urban renewal programmes can curb mega city challenges. This will also sensitize the policy makers on the need to introduce an urban renewal programme in controlling issue related to megacity problems in their territory. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7   SCOPE/LIMITATIONS OF THE STUDY This study on infrastructure renewal programmes as a remedy to Lagos mega city challenges will cover all the programmes set up by the Lagos State government at tackling infrastructural challenges created as a result of the mega city. This study will also cover the issues leading to infrastructural decay in the State.LIMITATION OF STUDYFinancial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.REFERENCES Ayeni, B. (2008), “Lagos: Problems and Planning in Third World Cities”, St. Martin's Press, New York. Batley, R. (2003), “Political Control of Urban Planning and Management”, Managing Fast Growing Cities: New Approaches to Urban Planning and Management. Longman, London, pp. 176-206. Halla, F. (1994), “A Coordinating and Participatory Approach to Managing Cities”, Habitat International, Vol.18 No 3, pp. 19-31. Linden, E. (1993), “Mega-cities”, Time Magazine, 11 January, pp. 141-2, Tim, M. (2003), “Cairo Megacity“, Travel Guides Hotel Reviews; virtualtourist.com  

IMPACT OF REAL ESTATE SECTOR TO THE ECONOMIC GROWTH OF NIGERIA

 BACKGROUND TO THE STUDY  

The Real Estate sector offers a great potential source of growth for Nigeria. Until now, the understanding of its composition and growth has been somewhat limited to its required use in Nigerian national accounts. Development is a general word that encompasses all aspects of human life, segments and disciplines, which give direction to the state of an economy. Globally, real estate sector is one of the most profitable ventures of every economy and one of the indices of measuring economic growth of a society. It is a sector that mirrors the economic viability and sustainability of an economy and its poverty level. Though there was no accurate data about housing shortage in Nigeria, it was however estimated that the shortage has risen to over 17 million (Ebie, 2005). Successive governments over the years have attempted to resolve these shortages with various policies but rather than reducing, the shortages kept increasing year in year out.

According to Ajanlekoko, 2001, the Federal housing agencies located in each state of the federation, were statutorily created to execute public housing programmes for each state of the federation based on the formulated housing policies. Specifically they are to undertake the development of estates by acquiring, developing, holding, managing, selling, leasing or letting any property movable or unmovable in their respective states; provide a home ownership saving scheme in respect of any housing estate or building owned, constructed and managed by them with a view to enabling members of the public purchase or build their own houses; provide sites and services scheme for residential, commercial and industrial purposes for the people of their respective states; construct and maintain modern dwelling houses at reasonable costs for sales to members of the public, undertake the construction of offices, commercial and industrial buildings for letting out to members of the public among other things, engage in other investment activities and opportunities as may be determined by the respective state governments. If there has been effective implementation of housing policies, all these would have significantly benefitted the masses and above all contributed to the growth of the nation’s economy as a result of profit made from sales and rents. Unfortunately however, most of the state housing agencies are under-utilized and have been rendered redundant and could hardly carry out their primary responsibility as elaborated in the respective laws setting up these agencies (Zubairu, 2001). Basically, the problems of housing delivery in Nigeria are rooted in three major factors namely lack of finance, escalating cost of building materials and infrastructural development cost.

These three problems are however peculiar to all housing delivery agencies and somewhat make affordable and mass housing difficult and has however reduced the contribution of the real estate sector to the nation’s economy.

1.2   STATEMENT OF THE PROBLEM Today in Nigeria, most of the housing corporations and the housing estates built by the previous governments merely exist by names (Mailafia, 2005). In some states, housing corporation staffs who are specialists in real estate development and management are rendered irrelevant in their special field while state ministries have taken over construction and in some states they have been merged with the ministries. This situation has relegated housing development to the background and hardly can we see any government owned housing unlike in the second republic. These has drastically affected the amount of income generated though the real estate sector. However, private partnership participation has enable more person to benefit from the business to improve their personal standard of living. However, the researcher is examining the impact of the real estate sector on the economy growth of Nigeria.1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To examine the impact of the real estate sector on the growth of Nigeria’s economy. To identify the factors limiting development of the real estate sector in Nigeria. To determine how the real estate sector can contribute massively to the economic development of Nigeria.

1.4   RESEARCH QUESTIONS

What is the impact of the real estate sector on the growth of Nigeria’s economy? What are the factors limiting development of the real estate sector in Nigeria? How can real estate sector contribute massively to the economic development of Nigeria?

1.5   HYPOTHESIS HO: Real estate sector has not contributed to the economic growth of Nigeria. HA: Real estate sector has contributed to the economic growth of Nigeria.1.6   SIGNIFICANCE OF THE STUDY The following are the significance of this study:

Findings from this study will be a useful guide for the policy makers and the government of the day on how real estate sector can contribute to the nations development and how the housing policies can be implemented effectively to boost economic growth. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7   SCOPE/LIMITATIONS OF THE STUDY The scope of this study on the impact of the real estate sector on the growth of Nigeria’s economy will cover the structure and activities of real estate in Nigeria and its contribution to the nation’s economy.LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview). Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.  

HOUSING FINANCE IN NIGERIA

HOUSING FINANCE IN NIGERIA: ISSUES AND SOLUTIONS

BACKGROUND TO THE STUDY 

Housing has been universally recognized as one of the most essential necessities of human life and is a major economic asset in every nation. Adequate housing provides the foundation for stable communities and social inclusion (Oladapo, 2006). Gilbertson et al. (2008) have observed that there is a significant association between housing conditions and physical and mental health of an individual. People’s right to shelter is thus a basic one and the provision of decent housing to all requiring them should be the hallmark of every civilized society and one of the criteria for gauging development. However, the provision of adequate housing in Nigeria and other developing nations alike still remains one of the most intractable challenges facing human and national development.

Previous attempts by all stakeholders, including government agencies, planners and developers to provide necessary recipe for solving the housing problem have yielded little or no success. Teufic and Ural (1978) Ogundele (1989) Agbola (1987) Okpala and Onibokun (1986) recognized finance as part of housing problems but ranked land and building materials higher. Their findings influenced government housing policies and subsequent establishment of some relevant programmes and institutions like the Site and Service Programme and the National Institute of Road and Building Research. The drought of information and working knowledge of housing finance operation is a major problem today. In a tight money market, housing is the first area to suffer, since neither the builder nor the consumer can readily obtain finance for housing. Actually, many builders have difficulty obtaining capital for their projects even in normal times. Two of these problems – the high interest rates that contribute to the high cost of housing and the difficulty in obtaining capital for home construction. According to Onabule (1996) 245 Primary Mortgage Institutions were established under the NHP within 1991-1996. Unfortunately, only 54 are now operating, mainly in South West part of the country and Abuja. According to Abiodun (1999), National Housing Fund collected about 4 billion naira from the Mandatory Saving Scheme. Out of N300 million loan approved by FMBN, only N100million was advanced.

According to Arilesere (1997), Abiodun (2000) and Okupe et al (2000), the history of housing finance in Nigeria had been an appalling one. The sudden leap from Agro-based to Petro-Naira based economy did not help matters. The assertion that “money was not our problem but how to spend it” accredited to one of our Heads of state, is a summary of a Nation that lacked focus in the formative years. This situation together with unprecedented population growth has remained unchecked ever since.

The Housing Sector plays a more critical role in a country’s welfare than is always recognized, as it directly affects not only the well-being of the citizenry, but also the performance of other sectors of the economy. Adequate housing provision has since the early 1970s consequently engaged the attention of most countries, especially the developing ones, for a number of reasons. First, it is one of the three most important basic needs of mankind– the others being food and clothing. Second, housing is a very important durable consumer item, which impacts positively on productivity, as decent housing significantly increases workers’ health and well being, and consequently, growth. Third, it is one of the indices for measuring the standard of living of people across societies. Consequently, programmes of assistance in the areas of finance, provision of infrastructure and research have been designed by governments to enhance its adequate housing delivery. The focus on finance has, however, been very prominent for obvious reasons. This is because housing provision requires huge capital outlay, which is often beyond the capacity of the medium income/low income groups.

A major area of concern has been housing financing, which has often been fingered as one of the most formidable constraints in the housing sector. It is in recognition of the critical importance of finance in housing delivery that the researcher is examining housing financing in Nigeria; issues and solutions.

1.2   STATEMENT OF THE PROBLEM The problem of housing has become an every day discussion in all quarters of the public and private services of the developing countries of Africa especially in Nigeria which is being focused upon in this study. It has become increasingly glaring that most of the urban population in Nigeria live in dehumanizing housing environment while those that have access to average housing do so at abnormal cost. According to Onibokun (1986), Nubi (1991), rent in major cities of Nigeria is about 60% of an average workers disposable income. Ekweme (1979), Iyagba et al (1998) explained that the rate of demand for new houses was in part predicated on the rate of formation of new houses and in part on the rate of replacement of old housing stock. With this challenges of high cost of house financing in the building sector, the researcher will provide an overview of housing finance in relation to the issues and challenges therein in this study. 1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To examine the issues related to housing finance in Nigeria. To identify the solution to the issues of housing finance in Nigeria. To ascertain the level of housing finance by the Nigerian government.

1.4   RESEARCH QUESTIONS

What are the issues related to housing finance in Nigeria? What is the solution to the issues of housing finance in Nigeria? What is the level of Nigerian government involvement in housing finance?

1.6   SIGNIFICANCE OF THE STUDY The following are the significance of this study:

This outcome of this study will enlighten the general public on the issues of housing finance as it is widely known that the capital involved in housing development is very huge, this study will educate on strategies that can be adopted in executing housing project with minimal financial problems. The outcome of this study will also sensitize the policy makers on the need to make good housing policies and the government of the day on the need to implement the policies by investing massively in housing development especially in the urban area to meet the accommodation needs of the citizens. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7   SCOPE/LIMITATIONS OF THE STUDY This study on issues and solutions to housing finance in Nigeria will cover the level of housing development in Nigeria with clear identification of housing problems. It will also cover the level of government investment in housing through the mortgage institutions.LIMITATION OF STUDYFinancial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.REFERENCES Onibokun, P. (1985). Housing in Nigeria. Ibadan University Press. Abiodun A. (1999): Housing Finance under National Housing Fund: An appraisal. Paper presented at the General Meeting of the Nigeria Institute of Town Planning. Agboola T. (2000): Housing, Poverty and Environment – The Nigerian situation. A seminar Paper presented at a workshop on Effective approach to Housing delivery In Nigeria. Organized by the Nigerian Institute of Building, Ibadan, Nigeria Arilesere D. (1997): Housing Finance in Nigeria: A paper presented during NIOB Organized workshop on Affordable Housing. Lagos. Okupe L. (2000): The Role of Private Sector in Housing Delivery in Nigeria; A seminar paper on: Effective Approach to Housing Delivery in Nigeria, Organized By Nigerian Institute of Building, Ibadan. Onabule G. (1996): Understanding the role of NHF and Pry. Mortgage Institution in Housing Finance: Paper presented at the Housing Policy Council Seminar on the Implementation of National Housing Policy. Abeokuta. Nubi, T.O. (2002). Financing Low Income Housing in Nigeria Cities: Need for Paradigm Shi. Proceeding of the Faculty of Environmental Design Conference O.A.U. Ile Ife, 340 -345. Iyagba R. and Asumo O. (1997) Housing Crisis in Nigeria Urban and Rural area. A challenge to the construction industry and technology. The Lagos Journal of Environmental Studies Agboola T. (2000) Housing, Poverty and Environment – The Nigerian situation. A seminar Paper presented at a workshop on Effective approach to Housing delivery In Nigeria. Organized by the Nigerian Institute of Building. Ibadan, Nigeria.

MATERIALS MANAGEMENT ON PROJECT DELIVERING

IMPACT OF MATERIALS MANAGEMENT ON PROJECT DELIVERING IN NIGERIA

BACKGROUND TO THE STUDY  

The Nigerian building and construction industry continues to occupy an important position in the nation’s economy even though it contributes less than the manufacturing or other service industries, (Aibinu and Jagboro, 2002). The contribution of the building and construction industry to national economic growth necessitates improved efficiency in the industry by means of cost effectiveness and timeliness, and would certainly contribute to cost savings for the country as a whole. It is also common knowledge that the implementation of the construction project in the industry is usually accompanied with poor quality delivery and delivery time delay and cost increase as well as owner dissatisfaction (Hafez, 2001). Thus, the efficient use and management of material have an importance influence on a company's profit and can delay project construction (Abdul­ Rahman and Alidrisyi, 1993). The researchers will examine the impact of material management on project delivery in Nigeria.

Material management is a planned procedure that include, the purchasing, delivery, handling and minimization of waste with the aim of ensuring that requirement are met (Illingworth and Thain, 1998). According to Culvert (1998), a detailed material schedule and co-ordination of the requisition and order of material are important in assuring material availability. Efficient material planning is a key to high productivity on site. Material planning embraces quantifying, ordering and scheduling-. Productivity will suffer if the material planning process is not executed properly (Kaming, Olomolaiye, Holt and Harris, 1997).

Kwik (1994) stated that another issue (which is sometime beyond management control) is material shortages, for example yearly cement shortages have long been a topic of debate within the construction industry. Bell and Stukhart (1987) investigated a total concept for a Material Management System (MMS), which combined and integrated the take-off, vendor evaluation, purchasing expediting, and warehousing and distribution functions of material. The system resulted in improved labour productivity, reduced material surplus, reduced material management, manpower and cost saving. A1-Jibouri (2002) described a computer simulation model, which helps to solve the problem of order and deliveries of materials in real life by keeping a predetermined list of order and delivery time of all the materials on site. The delivery of each kind of material then takes place automatically at the specified time.

Ineffective materials management for projects can result in significant cost blow-outs and delays in project completion. Such cost inefficiencies will negatively impact global competitiveness, and owner operators and engineering, procurement, and construction companies are trying to streamline work processes for their projects. Inaccurate materials information, such as incorrect bills of materials, inaccurate cycle counts, shipping errors, receiving errors and so on, will also affect the overall project life cycle and increase project costs. Having to deal with subcontractors outside of the materials management process impacts the overall project supply chain as there is an increased risk of data inconsistencies.

Material management is the system for planning and controlling to ensure that the right quality and quantity of materials and equipment are specified in a timely manner. Materials should be obtained at a reasonable cost, and be available for use when needed. The cost of materials represents a large proportion of the cost. A good management system for materials management will lead to benefits for construction. Cash flow has become crucial for the survival of any business, if materials are purchased early, capital may be tied up and interest charges incurred on the excess inventory of material. Material may deteriorate during storage or be stolen; also delays and extra expense may be incurred if materials required for particular activities are not available.

Despite the importance of the materials, very little research has been directed towards understanding the management of materials from order to production; most research is focused upon the management of the design and procurement process and on labour site productivity. Materials management, which includes procurement, shop fabrication, logistics, supply chain management, production on site, and field servicing, requires special attention to achieve cost reduction. The supply chain is a convenient term used to describe a complex web of activities. The use of new equipment and innovative methods of materials handling has influenced changes in construction technologies in recent years.

Modern methods of material management have been embraced by the manufacturers across a wide range of industry sectors outside of construction.

1.2   STATEMENT OF THE PROBLEM Ogunlana and Proukumtong (1996) studied construction delays in a fast growing economy: comparing Thailand with Nigeria and some of the construction delays were attributed to material management: the study blames material shortage on site on unreliable supply from material suppliers occasioned by the general shortage in the industry, although there were specific instances in which poor communication between sites and head office purchasing, planning and co-ordination could be cited. However, much research has not be done on material management and project delivery in Nigeria considering the economic situation of Nigeria and the market full of substandard products. This study will therefore examine the impact of material management of project delivery in Nigeria in terms of quality and time.1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To examine the impact of material management on project delivery time in Nigeria. To examine the impact of material management on project quality upon delivery in Nigeria. To determine the advantages and disadvantages of material management in project construction.

1.4   RESEARCH QUESTIONS

What is the impact of material management on project delivery time in Nigeria? What is the impact of material management on project quality upon delivery in Nigeria? What are the advantages and disadvantages of material management in project construction in Nigeria?

1.5   HYPOTHESIS HO: Material management does not affect project delivery in Nigeria HA: Material management does affect project delivery in Nigeria

1.6   SIGNIFICANCE OF THE STUDY This study will be of importance to building professionals and the general public because it would not only clarify but also create awareness of the extent to which inadequacies in material management can adversely affect project delivery. The study will also help contractors, clients, consultants and all parties involved in construction projects about ways of improving their current method of material management. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.1.7   SCOPE/LIMITATIONS OF THE STUDY The scope of this study on impact of material management on project delivery in Nigeria will cover all the project construction in Nigeria looking at their level of adoption of material management approach considering their successes with respect to project delivery quality and time.LIMITATION OF STUDYFinancial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.REFERENCES Abdul-Rahman,. H. and Alidrisyi, M. N. (1994) “A Perspective of Material Management Practices in a Fast Developing Economy; the case of Malaysia”. Construction Management and Economics, 12, 412-422. Aibinu A.A and Jagboro G.O (2002): “The Effects of Construction Delays on Projects Delivery in Nigeria Construction Industry”. International Journal of Project Management, 20, 593-599. Al-Jibouri, S. (2002): “Effects of Resource Management Techniques on Projects Schedules”. International Journal of Project Management,   20, 627-632 Kwik.K.G. (1994): “Cement and Its Problem in Indonesia”. Kompas October. 10 Illingworth, J. and Thain, K. (1998): “Material Management is it Worth It?” Technical Information Service, The Chartered Institute of Building ASCOT. 93, 1-5 Kaming, P.F, Olomolaiye, P. O., Holt, G.O. and Harris F.C. (1997): “Factors Influencing Construction Time and Cost Overruns on High-Rise Project in Indonesia”. Construction Management and Economics, 15, 83-94 Hafez, N (2001): “Residential Projects Obstacles and problems in Kuwait MS Project”, Department of Civil Engineering, Kuwait University. Culvert, O. (i998): “Correlates of time Overrun in Commercial Construction”. ASC Proceedings of the 40th Annual Conference. Brigham Young University, Provo, Utah, April 8-10.