CORRUPTION ON MORTGAGE DEVELOPMENT

THE IMPACT OF CORRUPTION ON MORTGAGE DEVELOPMENT IN NIGERIA

BACKGROUND TO THE STUDY  

Public debates recently in Nigeria have centered on the increasing rate of corruption resulting from inappropriate public finance planning and implementation mostly in some of the developing countries, Nigeria inclusive which in turn reduce the level of growth in every sector of the economy including mortgage development in the country. Corruption made itself visible when the institution of the government was founded due the behaviour of people appoint or elect to manage the government institutions (Anyanwu, 2002; Idomeh, 2006). Corruption has recently become a major issue in foreign aid and Nigeria nation as a whole. Corruption is an ancient practice that has been traced back to pre-biblical time and made itself known in the ancient civilizations of developed and developing countries. Political and social corruption is not a recent phenomenon that pervades the Nigerian state. Corruption is a social problem that has interested many scholars. Ruzindana (1999) sees corruption in Africa as a problem of routine deviation from affordable standards and norms by public officials and parties with whom they interact. The major concern for inter-nation aid policy during the last five decades has been to improve the living condition for the poor in the poorest countries of the world by way of providing affordable housing development schemes. Nigeria has been described by many as a country not lacking in policy formulation, but on implementation. Once a need is said to be detected, the governments swoop into action by constituting a committee to look into the situation. The committee begins to sit, formulates and presents a policy to the government who in turn gives assent to it. This tradition is not peculiar to the mortgage and housing policies alone, but it has contributed in no small measure, to the failure of the housing programmes in the country. Despite the formulation of brilliant policies capable of transforming the housing programmes in the country, yet no significant improvement in the availability of affordable houses in Nigeria.

There was the 1991 National Housing Policy which reeled out so many rules and programmes, that will change the lives of the average Nigeria for the better in terms of home ownership. The policy in and of its own, was supposed to ensure that the average Nigerian has access to decent housing and accommodation at affordable cost by the year 2000, through the provision of long term loans at an interest rate of not more than four per cent per annum. There was also the 2006 National Housing Policy which went the extra mile of partially disengaging the government from involvement in housing programme and including private investors and real estate developers into the national housing programmes, by the end of the day, it all appeared like moving round a vicious circle, as those policy were only good as documents and not in implementation (Anyanwu, 2012).

Mortgage banking in Nigeria is said to have started in 1956 with the establishment of the Nigeria Building Society. According Oduwaye (2014), the society collapsed in the early 70s due to its inability to perform its statutory functions. This led to government injecting N20m and changing its name to Federal Mortgage Bank of Nigeria (FMBN). The FMBN took off in 1977, with a takeoff capital of N20 million from the federal government. The FMBN was unable to meet up with the pressure of demand. According to statistics, in 1970, outstanding application were N223.8 million and available funds equaled N127.0 million, meaning that demand and supply was in the ratio of 2:1. This degenerated to ratio 4:1 in 1986 when the outstanding application increased to N465.8 million and only N105.3 million was available. The bank has never been able to meet up with demand. The failure of the FMBN over the years and acute shortage of housing led to the promulgation of the National Housing Policy of 1991. As can be deduced from the above, since government was never able to address each of the problems at their various stages, they kept degenerating from bad to worse, until the present day situation of 17 million housing deficit, which now appears insurmountable. However, the researcher is examining the impact of corruption on mortgage and housing development in Nigeria.

According to experts, successive governments have never been serious about implementing those policies and have never made adequate budget for mortgage financing with a human face. According to Audu (2014), mortgage policies implementation are very poor because the issue of housing is highly capital intensive, government, both state and federal, do not make adequate budget for housing.

1.2   STATEMENT OF THE PROBLEM The need to study corruption especially on mortgage development in Nigeria has continued to generate passionate commentaries and academic interest due to the level of corruption in the country and its effect on the growth of every sector. In Nigeria corruption is one of the reasons for many unresolved problems that have critically hobbled and reduce housing development (Ayobolu, 2006). International centre for economic growth (1999) states that corruption is a canker worm that has eaten deep in the fabric of the nation which ranges from petty corruption to political or systematic corruption. Corruption has affected mortgage development through poor implementation of policies, diversion of funds etc. the researcher is examining the effect of corruption on mortgage development in Nigeria. 

1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To examine the impact of corruption on mortgage development in Nigeria. To determine the level of real estate and mortgage development in Nigeria. To identify ways to combat corruption to enhance mortgage development in Nigeria.

1.4   RESEARCH QUESTIONS

What is the impact of corruption on mortgage development in Nigeria? What is the level of real estate and mortgage development in Nigeria? What are the ways to combat corruption to enhance mortgage development in Nigeria?

1.5   HYPOTHESIS HO: Corruption does not have any impact on mortgage development in Nigeria. HA: Corruption does have impact on mortgage development in Nigeria.1.6   SIGNIFICANCE OF THE STUDY The following are the significance of this study:

The outcome of this study will educate the government and policy maker, law enforcement agents on how to combat corruption as a way of promoting mortgage development in Nigeria through proper policy formulation and implementation. 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 the impact of corruption on mortgage development in Nigeria will cover all the mortgage policies formulated to enhance housing development in Nigeria compared to the level of housing development in Nigeria. It will also cover the corruption issues related to housing development in Nigeria.

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 Mortgage: a legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt. Corruption: dishonest or fraudulent conduct by those in power, typically involving bribery. Development: an event constituting a new stage in a changing situation.

REFERENCES Anyanwu, J. C. (2002). Nigerian Public Finance: Joaneel Publishers, Onitsha Audu, B. S. (2014). Corruption, insecurity threaten economic growth in Nigeria. Punch newsonline. March 2014 Oduwaye, E. O. (2014). The effect of corruption and economic reforms on economic growth and development in Nigeria. Journal of Social Sciences and Finance, 2(1): 15-25 Ribadu, M. N (2003). Economic Crime and Corruption in Nigeria: the Causes, Effects, and efforts aimed at combating these vices in Nigeria. Paper presented at the Monaco World Summit 5th International Summit on Transnational Crime Monte Carlo 23rd and 24th October 2003 Ruzindana. G. (1999). “Corruption Remains Nigeria's Long Term Challenge”. The Daily Independent Newspapers Tuesday, 24 April 1999

LAND USE ACT ON SUSTAINABLE HOUSING DEVELOPMENT

THE EFFECT OF LAND USE ACT ON SUSTAINABLE HOUSING DEVELOPMENT IN NIGERIA

BACKGROUND TO THE STUDY  

Land use regulations and controls are used to restrict the rights of private land holders in the use of land. The regulations are used to protect public interest in the use of private land. The regulations stem from the need to provide public amenities, to increase the efficiency of land-use, to limit urban sprawl and unnecessary encroachment on agricultural land, and to achieve economies of scale and least-cost production of public services (Courtney, 1983).  The regulations are also used to ensure the availability of land to all groups, and to ensure that the benefits of development go to the community as a whole.

Today, if you buy land in Nigeria and you do not have the Certificate of Occupancy (C of O) from the government, it is not yours, all you have is a lease, that is, you never have a freehold. You cannot even have access to any loan or do anything tangible if you do not have fund of your own, not even the National Housing Fund which was set up by the government to render such assistance. Yet the Certificate of Occupancy is even more difficult than getting the land itself. All efforts by some State Governments especially the Lagos State government to ease the procedure and collection have been described as mere gimmicks. We have heard series of cases where Governors wield their powers to revoke legally acquired rights of occupancy in the interest of the public, whereas it was obvious that they were done on political reasons especially against oppositions. The former President of the federation who was the author of the Act when it was promulgated during his first military administration had to reassure Nigerians on 26th of September 2001 in Abuja that “no government owns land” and that “land belongs to the people”. This statement was made when he was condemning the excesses of the Governors. As stated above, since it is a known philosophy that laws are made by men for men and are operated, implemented and enforced by human beings through various legal institutions, our concern is how the Act has affected sustainable housing development schemes in Nigeria.

Several controversies that were created by the Act have been well documented in different reactions and write-ups (Mabogunje (2007; 2011) and Aluko (2007; 2009; 2010) dealt excessively on the gory state of affairs about the housing situations in Nigeria in general and how it could be sustained. In this research study, we try to examine the effects that the Land Use Act has had on sustainable housing provision in Nigeria. Since one of the major areas of the Act is to control future uses and open new land for the needs of Nigeria’s growing population especially in urban areas, yet there is still the outcry of the people to affordable housing provision. In Lagos State for example, the municipalities (local governments) have no say in the issue of Certificate of Occupancy as all lands in the State has been declared urban and are all under the control of the governor. Whereas in the commencement of the Land Use Act 1978 No. 6 on 29th March, 1978, it was stated that “whereas it is in the public interest that the rights of all Nigerians to the land of Nigeria be asserted and preserved by law”. And that all lands comprised in the territory of each State in the Federation are hereby vested in the Governor of the Stat. The Act also provides that “all land in urban areas shall be under the control and management of the Governor of each State”.

1.2   STATEMENT OF THE PROBLEM The concern of the researcher in this study is not really another criticism of the Act but an in-depth evaluation of how it has achieved its aim in the mass provision of housing to the people. However the hope of the Nigerian masses lies in the Act with the current wave of high cost of acquisition of land. It should be noted that one of the cogent reasons why the Act came into existence was because of the nature of trusteeship of land in the past. It was difficult for anyone to get access to land. It is important for the researcher to examine if the Act has made it easy for Nigerians to get land for housing development. Ownership of a house starts from the acquisition of a piece of land. That is to say the intending house owner must first of all have access to land. In urban areas access to land is not quite easy and that is why one of the objectives of the Land Use Act is to ensure that land is made available promptly to all those who need it in the interest of the economy. Having regards to the fact that housing is one of the best indicators of a person’s standard of living and of his place in the society, it also serves as a place in which man seeks shelter, comfort, security and dignity among other things, it is important to examine the effect of Land use Act of sustainable housing development in Nigeria. 

1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To examine the effect of land use acts on sustainable housing development in Nigeria. To investigate the influence of land use act on ease of land access by Nigerians. To identify the factors limiting sustainable housing development in Nigeria.

1.4   RESEARCH QUESTIONS

What is the effect of land use acts on sustainable housing development in Nigeria? What is the influence of land use act on ease of land access by Nigerians? What are the factors limiting sustainable housing development in Nigeria?

1.5   HYPOTHESIS HO: Land use act has no significant effect on sustainable housing development in Nigeria HA: Land use act has significant effect on sustainable housing development in Nigeria

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

Findings from this study will educate the general public, government, students on the state of housing development in Nigeria and also enlighten them on land use act and its impact on sustainable housing development in Nigeria. 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 the effect of land use act on sustainable housing development in Nigeria will cover all the existing housing development and schemes by government and how the land use act has affected the ownership of land for housing development.

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.1.8   DEFINITION OF TERMS Housing: houses and flats considered collectively. Land: the part of the earth's surface that is not covered by water. Development: an event constituting a new stage in a changing situation.

REFERENCES Aluko, Ola. (2007). Renal Sub-sector and Housing Delivery System in Nigeria a paper presented at the National Workshop on Private Sector Driven Housing Delivery; Issues, Constraints, Challenges and Prospects organized by University of Lagos, Department of Estate Management in collaboration with Real Estate Developers Association of Nigeria (REDAN), at Main Auditorium, University of Lagos, between (July 30-31). Aluko, Ola. (2009). The role of the professionals in the built environment, in Aluko, Ola Editor (Eds.), Introductory Course in Environmental Sciences. Ibadan: Kins. Aluko, Ola. (2010). Housing Provision and Development in Nigeria: The Dashed Hope of the poor, paper presented at the National Conference and Exhibition on Challenges of Sheller and Environment for Nigeria in the coming Decades (CEENACON) organized by College of Engineering and Environmental Sciences, Imo State University, Owerri (April 6-9). Courtney, N. (1983). Cases and Materials on Nigerian Land Law (pp. 1 - 49). Mabochi Books. Mabogunje A. L. (2007). Developing Mega Cities in Developing Countries, being text of a lecture delivered at a Colloquim organized by the 2007 Graduating Class, Department of Geography, University of Lagos on Wednesday (September 12). Mabogunje, Akin L. (2011). Promoting Good Governance: What Can We, The People, Do? Paper presented at 4th Anniversary Public Lecture of the splash 105.5 FM, Ibadan on Friday (July 8).

REAL ESTATE RISK AND ITS IMPLICATION FOR PROJECT VIABILITY

REAL ESTATE RISK AND ITS IMPLICATION FOR PROJECT VIABILITY (A CASE STUDY OF EKEDO RESIDENTIAL ESTATE, UYO)

BACKGROUND TO THE STUDY

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent (Syz, 2008). If these factors are not well understood and managed by the investor, real estate becomes a risky investment. The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency. A similar practice known as flipping is another reason for failure as the nature of the investment is often associated with short term profit with less effort (Clayton, 2007).

Management and evaluation of risk is a major part of any successful real estate investment strategy. Risks occur in many different ways at every stage of the investment process. For instance mitigation strategy for fraudulent sale is to verify ownership and purchase title insurance. Real estate owners often assume risk on their property exposure in response to unavailability of coverage. While risk retention by ‑ financially sound companies may help to reduce their cost of risk, absence of insurance is not always desirable. In many cases, property owners are required under the terms of their loan covenants to maintain full insurance to value, with restrictions placed upon the amount of deductibles they may carry (Fisher, 2005). Additionally, under high-deductible or self-insurance programs, operating companies no longer have a budgeted premium, and payment of unexpected retained losses creates potential cash  flow problems. Finally, property owners or management of companies have no ability to charge the full cost of retaining property risk to their clients. Although real estate markets represent a large proportion of total wealth in both developing and developed countries, the real-estate derivatives markets are still lagging behind in volume of trading and liquidity with has greatly influenced project viability (Black, 1986). Over the last few years there has been increased activity in developing derivative instruments that can be utilized by asset managers to reduce real estate risk. The possibility of financial loss occurring as the result of owing a real estate investment and its implication on project viability will be focused on in this study. Real estate risk might arise from such things as liability, legal issues, partner problems that can force a sale, fire or theft, loss of rental income and purchasing property with an imperfect title.

1.2   STATEMENT OF THE PROBLEM

Real estate management is a particularly difficult challenge because of its tendency towards liquidity. Typically, even published indices in real estate are based on annual appraisals of large properties, not actual transactions. The recent unprecedented recession has resulted in major long term distress across the real estate industry, and has had severe implications for owners, developers, managers and investors alike. Environmental and construction exposures, catastrophic modeling, stricter lender requirements, and complex requirements involving distressed banks are just some of the risks facing the real estate industry. The researcher however will examine the real estate risks and its implication of project viability.

 1.3  OBJECTIVES OF THE STUDY The following are the objectives of this study:

To identify the risks involved in real estate investments. To examine the effect of real estate risk on project viability To identify ways to minimize risk in real estate investment.

1.4   RESEARCH QUESTIONS

What are the risks involved in real estate investments? What is the effect of real estate risk on project viability? What are ways to minimize risk in real estate investment?

1.5   HYPOTHESIS HO: real estate risk does not affect project viability HA: real estate risk does affect project viability1.6   SIGNIFICANCE OF THE STUDY The following are the significance of this study:

Result of this study will educate the general public, investors and estate managers on the real estate risks, how it can be minimized and its implication on project viability. 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 real estate risk and its implication on project viability will cover all the risks an investor is exposed to in real estate with a view of understanding its effect on viability of project.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 Black, D., Success and Failure of Futures Contracts: Theory and Empirical Evidence, Monograph Series in Finance and Economics, Monograph 1986-1. New York University, 1986. Clayton, J. “Commercial Real Estate Derivatives: They‟re Here… Well, Almost.” PREA Quarterly, Winter 2007), pp. 68-71. Fisher, J. D., ‟New Strategies for Commercial Real Estate Investment and Risk Management‟, Journal of Portfolio Management, Vol. 32, 2005, pp. 154-161. Syz. Juerg M. Property Derivatives. (Wiley: Chichester, 2008).

REAL ESTATE INVESTMENT AND ITS ASSOCIATED CHALLENGES

REAL ESTATE INVESTMENT AND ITS ASSOCIATED CHALLENGES IN NIGERIA

BACKGROUND TO THE STUDY  

Real estate has continued to play a significant role in man’s evolution. It is not a coincidence that food, shelter and clothing believed to be the three essentials that sustain mankind, also have some linkage to land. Food grows out of land while shelter is affixed to it, and man’s clothing is made largely from what grows out of land. Indeed, whether in ancient times or today’s modern system, land constitutes a significant index for man’s wealth, and as economic activities have assumed more sophistication over time, land has continued to play a central role in their development (Lewis , 1994). There is hardly any business venture that does not require to be supported by some form of real estate: from the small business that requires real estate as offices from where its business can be organized, to the major venture that needs it for its factory.

Consequently, through some very robust and well thought out land policies comprehensively address challenges that are encounter in the real estate sector. This is not exactly the situation here in Nigeria and the result is that there is a myriad of problems in the real estate sector (Adewale, 2000). In the course of this study, the researcher will provide an overview of real estate investments in Nigeria and its associated challenges.

Real estate investment is intrinsically connected to the economic development and well being of any nation, thereby necessitating some intervention by prudent governments. Such interventions vary in degrees, depending on the nation. In Nigeria, individual could rarely lay claim to any part of it as owner and therefore could not alienate it without the consent of the head. Proper financing is all-important to successful property/real estate investment and development. Various forms of finance on varying terms from diverse investing agencies are available to the property/real estate market. The principal field where various forms of investment finance are employed is that of development where every loan has to be specially tailored for an individual scheme and the particular stages within the scheme. Since real estate and property development in particular involves huge capital expenditure, finance is therefore an essential input, the nature of which is to provide capital to enable the enterprise operate commercially (Ratcliff, 1999). The cost and availability of finance for real estate development can influence the viability of such project. It is necessary to examine the nature of real estate investment in Nigeria with a view of finding solutions to the associated challenges.

1.2   STATEMENT OF THE PROBLEM In recent times, research on real estate investment has been on the front burner has it is the major source of housing for man. In the hierarchy of man’s needs, housing has been ranked second and as a result of this; housing provision has become a paramount cornerstone of the policies of various governments both at federal and state levels since independence in Nigeria. The consequences of the rapid rate of urbanization are most visible in the rapid deterioration of urban housing resulting in urban housing poverty especially as there is no proportionate increase in the number of housing stocks. . During the period of economic boom in the 1970s in Nigeria, there was surplus capital, the economic climate then was favorable for the development of real estate and the prospect of gain was over blown and so were the rate of development. Due to the recent drop in the prices of crude oil world wide and corruption, government has not been able to invest in real estate. Overpopulation and urbanization has led to massive increase in property development. Financial houses readily obliged developers’ loans, as they perceived minimum risks. Since real estate development requires huge capital outlay, there is always the need for real estate developer to source for fund. However, this study will examine the scope of real estate in Nigeria and its associated challenges with a view of making useful suggestions on the way forward for real estate in Nigeria.

1.3   OBJECTIVES OF THE STUDY The following are the objectives of this study:

To provide an overview of real estate investment in Nigeria. To examine the challenges associated with real estate investment in Nigeria. To identify the way forward for real estate in Nigeria.

1.4   RESEARCH QUESTIONS

What is the level of real estate investment in Nigeria? What are the challenges associated with real estate investment in Nigeria? What is the way forward for real estate in Nigeria?

1.5   HYPOTHESIS HO: Real estate investment has no challenges in Nigeria. HA: Real estate investment has several challenges in Nigeria.

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

The findings from this study will educate the general public on the benefit of real estate investment and its associated challenges which will form the basis for guidance in decision making. 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 real estate investment and its associated challenges in Nigeria will cover the extent of real estate investment in Nigeria looking at the factors that has facilitated or hindered it. It will also cover the challenges associated with real estate investment in Nigeria.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 Investment: an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. Real estate: property consisting of land or buildings.REFERENCES Adewale, J.R. 2000: Real Estate Investment Analysis. Lexington Books. Lewis, M.G. (1994): When Real Estate Becomes Big Business: Mergers, Acquisitions and Joint Ventures. Cahners Publishing. Ratcliff, R.U. (1999): Real Estate Analysis. McGraw Hill, New York.

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.