How new legislators influence Abuja property market
Charges were too high.” These were words of a supporter of one of the legislators that took oath of office in Abuja last Tuesday. The supporter came from a distant land hoping to have a feel of what Abuja appears to be. Apart from poor facilities, some of the guests who sought to be accommodated […]
Charges were too high.” These were words of a supporter of one of the legislators that took oath of office in Abuja last Tuesday. The supporter came from a distant land hoping to have a feel of what Abuja appears to be. Apart from poor facilities, some of the guests who sought to be accommodated were simply told No Room. Though followers of the lawmakers had it rough being accommodated, their pricipals had their rooms booked for them ahead by management of the National Assembly.
The National Assembly management booked rooms in Sharaton and Chelsea Hotels five days for the Reps. It started the night before inauguration lasting through last Friday. They were provided meals: breakfast, lunch and dinner for the whole five days. For senators, it was the Transcorp Hilton.
A legislator from Ebonyi State said the normal house rent given to lawmakers was yet to be paid them. A new Rep from Zamfara State said, “Actually, I don’t have any information with regards to that. But I will inquire. They are yet to talk to us about that [rent].
When asked when the lawmakers will be paid, the National Assembly Director of Information Adamu Dibal said, “They’re on recess now. Find out from the clerks of the two Houses. I’m not in a position to talk about what arrangement is there for them now. I don’t know.”
Hoteliers’ challenges
Chief Executive Officer of Nanet Group of Hotels and the National President, Hospitality and Tourism Management Association of Nigeria (HATMAN), Mr Ini Akpabio acknowledged that any time many people come into Abuja like during big political parties’ rallies, hotel facilities are overstreched.
According to him, hotel owners do not give discounts to lessen cost burden on guests because owners have to level costs suffered in keeping the facilities running at the times they were under utilised.
Akpabio said even though tourism facities enjoyed a boom last Tuesday, not much can be harvested from that because most of the visitors have since retuned to the places they came from.
Solution to the problems, he suggested is not the building of additional hotels but proper and effective utilisation of available facilities. “Government isn’t utilitising facilities as it should. Government should drive patronage,” Akpabio suggested.
He advised government to bring international conferences and intercontinental games to Abuja to attract visitors regularly for investment in the tourism sector to be viable.
Managing Director of Hotel Rosebud Limited, Abuja and president of the Federation of Tourism Associations of Nigeria (FTAN) Chief Tomi Akingbogun lamented that many people moved out of Abuja following terror attacks in the city, crippling the tourism sector of the economy. He identified the outbreak of Ebola desease in the West African sub region as one the factors that reduced the strength of tourism.
The result, he said many facilities have been abandoned. He insisted that Abuja has enough facilities to accommodate visitors. The snag however, he noted is lack of proper planning on the part of the guests which creates the impression that there are not enough facilities. He said there are good facilities not only in the down town but also in the satalite towns so if proper planning is done, guests can be spread among them without stress on the ones in the city centre. He advised guests to learn to book for facilities ahead of time.
Akingbogun lamented high cost of managing hotels like hiked electricity tarrif and numerous taxes. He urged government to take special look at the tourism sector, engage stakeholders to draw up the needed roadmap that will help the industry. “It shouldn’t be lip service,” he maintained.
What impact can be made?
It was hoped that with the coming of new political office holders into Abuja, hotel owners will enjoy good patronage for a long time. It was equally expected that the numerous unsold property in the market will be mopped up. However, investigations revealed that these are not to be because many politicians already have their abodes in Abuja. They simply move into them. Even those that appear to be newcomers in the National Assembly might have had some property in Abuja.
Most of them had been suuccessful businessmen/businesswomen before hopping onto the political turf so they already have had their houses in Abuja or they have the means to buy a proprty outright.
Hajiya Salima Makama who is CEO of a real estate firm called Shelter Plus Nigeria Limited and legal advisor of the Real Estate Developers Association of Nigeria (REDAN) said it is true that when new legislators come in town, property sales improve. She however observed that things might not be as positive as thought because of the general turn in the economy. She noted that even as political leaders may take properties in Abuja, property owners may not have it cool because the politicians’ demands cannot match the number of properties in the market.
Makama’s claim can be sustained on the strength of revelation that Abuja has become a money laundering place – too many properties are being developed for sale. Chairman of the Economic and Financial Crimes Commission (EFCC) Ibrahim Lamorde attested to this on January 9 last year when he raised alarm saying Abuja has become a place for money laundering by dishonest persons. Lamorde said EFCC had uncovered money laundering schemes in FCT in which perpetrators disguise the proceeds of crime by investing in properties.
He explained that those involved in this do not buy properties with bank instruments – they pay cash. The laundered funds are frequently converted into foreign currencies through the Bureau de Change before the purchases are made, he said.
The EFCC boss disclosed that such persons do not bother to change ownership after acquisitions, making it difficult to verify the identities of the new owners or the sources of fund. According to him, over 270 cases of land scam were reported that time.
Lull tourism in FCT
Stakeholders said tourism is experiencing a lull in the capital city. Hotels hardly get many guests. Mr Abuo Francis Ojie is Public Relations Officer (PRO) of Social Development Secretariat, Federal Capital Territory Administration (FCTA), the secretariat that oversees tourism in FCT. He said most of the factors crippling tourism in Abuja are national and beyond the powers of the office. According to him, Nigeria’s economy is generally down.
Management of the Nigerian Tourism Development Corporation (NTDC) could not be reached to speak on the matter.