Why land swap policy won’t work – developers

Those who are involved in the implementation of housing policies are doubtful about the workability of the land swap policy enunciated by the Federal Capital Territory Administration (FCTA).Managing Director/Chief Operating Officer of Aso Investment and Development Company Mrs Isoken Omo told our reporter that the cost of providing infrastructure is overwhelming.She gave reasons that are […]

Those who are involved in the implementation of housing policies are doubtful about the workability of the land swap policy enunciated by the Federal Capital Territory Administration (FCTA).
Managing Director/Chief Operating Officer of Aso Investment and Development Company Mrs Isoken Omo told our reporter that the cost of providing infrastructure is overwhelming.
She gave reasons that are holding back the new policy.
“Land swap is not free, you have to pay N350 million in a dedicated bank account for you to access it and then you will have to build all the infrastructure before you will be given the documents. Do you know how much it costs to build infrastructure for a district? You are talking nothing less than N100 billion – you call that free?”
She said a thing like the land swap policy was done elsewhere differently from the way it is done in Abuja.
“I did a development in Cross River State where the government gave us the land and also provided infrastructure – that was free. The houses were sold for N1.8 million. I handed them over last year [2012].
“If government provides the land and infrastructure, then houses will be free, but in a situation where the private sector is expected to provide infrastructure, houses can’t be cheap,” Omo expressed.
Another developer, Chief Chyna Iwuanyanwu who described the policy as being like trade by barter – we give you land, you give infrastructure, said he stayed away from it “because when there’s a new system like this, you watch because somebody else will come and revoke it”.
Iwuanyanwu who is Chief Executive Officer of Sun Gold Estate Limited has built estates in Abuja, Lagos and Owerri.
He explains why the new policy is dicey: “There’re issues with the Gbagyi people. The land owners are complaining.
“Some people don’t understand the system. The banks don’t understand the system and the political environment-some people are alleging that it’s the same people that are using the opportunity to acquire land. When you hear a policy that is not clearly defined you don’t jump into it.”
According to him, the thing is complicated because many people who get land are not developers.
“They get the land at peanut but the developer pays 200 or 300 percent. All these costs are eventually transferred to the house owners. Most of the time, they don’t give to developers who have the capacity, the resources, it’s agents, middlemen…” he stated.
The developer wondered if the risk in land swap is really worth taking because building a road alone can overwhelm a developer.
He said, “The cost of the road, water, electricity will eventually be transferred to the consumer of the houses. It’s very risky situation. If you go do land swap in a place like Lugbe, you have to build road, electricity, water…it’s something that should be cautiously looked at.”
Meanwhile, the original inhabitants of the territory who describe the policy as fraudulent are spoiling for a fight. They have staged protests against land swap.
Recently, the FCT indigenes ordered their traditional rulers to boycott government activities to protest the policy.
During a meeting in Karshi, a satellite town in the south-eastern part of the main city, the indigenes maintained that they will thwart implementation of land swap policy.
The indigenes who came together under the banner the Original Inhabitants Development Association (OIDA) stated, “We know what they are doing on the land swap policy. There is nothing good in the PPP they say they are implementing where 80 percent of the proceeds on developed land go to the developer and investor and 20 percent to government without anything for the land owners.”
OIDA president Pastor Danladi Jeji said the land swap policy is a fraud because the land is not acquired legally from the owners.
“With 60 or 70 percent going to the investors and 30 percent going FCTA, what is the percentage going to the land owners. No compensation has been paid since 1978, this is unacceptable,” Jeji said.
Galadiman Karshi, Dr. Abdullahi Santali said the indigenes and their traditional rulers would not attend government events when some people in government are taking actions and implementing policies harmful to the people.
District Head of Karshi, Alhaji Ahmed Douka, who represented the Sarkin Karshi, Alhaji Ismaila Danladi, said the land swap policy is not fair and should be stopped, adding that the people are fully supporting the OIDA activities in that regard.
Both the media aide to the FCT minister Mr Nosike Ogbuenyi and the Chief Press Secretary to FCT minister, Muhammad Sule declined to confirm if government takes money from the land swap developers.