‘How effective land administration can boost real estate’

At every gathering of key players in the real estate and housing sector, the issue of land reforms comes to the front burner for deliberations. Recently, during an agenda-setting dinner organised in honour of the Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, the issue cropped up and the minister promised to make it […]

At every gathering of key players in the real estate and housing sector, the issue of land reforms comes to the front burner for deliberations. Recently, during an agenda-setting dinner organised in honour of the Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, the issue cropped up and the minister promised to make it part of the reforms he would be undertaking.

Experts have said that real estate, more than any other sector, will benefit from land reform which would usher in an effective and efficient land administration and management system.

It’s been estimated that Nigeria has 910770 sq. km, land mass but it has been established that only a fraction of that land is presently in use to boost economic and residential or commercial activities.

An estate surveyor and valuer who is a retired director of lands in the then Federal Ministry of Works and Housing, Mr Godwin Ityoachimin, told Daily Trust that “only five per cent of the country’s housing stock, which is about 13 million units, is in formal mortgage, meaning that 95 per cent of the houses in Nigeria are dead assets. They are neither tradable nor bankable. These dead assets are all together valued at over N307 billion or 81 per cent of all goods and services produced in the country.”

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He said it was in the interest of the government and the people for reforms to be undertaken with the sense of urgency it requires so as to boost the real estate sector which has the potential to transform Nigeria’s economic fortunes.

Ityoachimin said the Land Use Act of 1978 was obsolete and out of touch with current reality and has become a clog in the wheel of development over the years.

The retired director said, “The fact that land is a limited, scarce resource, a minuscule per cent of the earth’s surface, makes it a valuable asset and challenges us to use it sustainably. Going by this, the notion of land in its essence is unique and so processes and policies to maximise it should be strategic and effective. Its availability plays a pivotal role in the development of any economy as it increases investment inflow.

“Besides housing development, land is crucial to industrialization, agriculture, mining, oil exploration and other economic and productive activities that lead to improved standard of living, job creation, and economic growth, among others.

“So it is incumbent on the Nigerian government to fast-track development through effective land administration and management,” he said.

On his part, Murtala Quadri said the major logjam in land administration in Nigeria is finding appropriate geoinformation, the technical cadaster and defining the possessory rights of all land owners.

He said, “The country is poorly planned with large swathes of land remaining unmapped at significant levels—making geoinformation and cadastre—major issues in the land reform agenda.”

He said it was a positive development that some state governments have established geoinformation services which have enhanced land administration in them but that far-reaching reforms were needed to transform the housing sector.

“It is expected that ongoing efforts at alleviating poverty among the masses of Nigerians will be holistic such that those who possess land which previously could not be converted to capital can, going forward do so thus opening a new vista of hope whereby, finally, Nigeria can move to a land market economy,” he added.

He said overall, there was the need to create a topographical database which would be required to drive other development projects in all sectors of the economy and the need to situate the cadastral survey within the context of the existing laws of the country.

Quadri added, “The reforms would also ensure that the land tenure laws, the operational regulations and procedures for land transactions are made uniform, open and ‘business friendly’ so as to facilitate and promote modern economic and developmental processes with minimum bureaucratic hindrance.

“The security of tenure and property rights of citizens are an imperative fundamental for economic development. And so, a national programme that sets out to enhance and secure the property rights of all groups in the country can only end up bolstering investment portfolios, especially in the real estate sector.

“Overseeing a robust land reform programme should be a priority of this present administration of President Bola Tinubu and coordinated by the minister of housing and urban development. Though a national endeavour, it should cover all three tiers of government in proportion to their capabilities.”

He further said, according to the United Nations (UN) and world best practices, effective land administration should cater to all Nigerians and must accelerate the proportion of the population with tenure security; develop confidence and trust, promote security, safety, peace and peace building.

“Besides, this kind of administration will promote efficient and vibrant land market, taking into consideration aspects of land values and land development as well as allow economic development through revenue systems that are equitable and fair and contribute to smart and resilient societies,” he added.