REDAN as catalyst to rejig the economy

Real estate development plays a crucial role in the economic growth of any region, and Africa is no exception. The Real Estate Developers Association of Nigeria (REDAN) and similar organisations in other African countries contribute significantly to providing housing, commercial spaces, and infrastructure necessary for economic development. 

The new REDAN under the leadership of Prince Barrister Akintoye Adeoye, and his very vibrant Excos have the capacity, if given the right platform, to rejig the economic state of the country. Today, Nigeria is experiencing urbanisation and population growth, leading to an increased demand for housing and infrastructure. Government and private sector players are collaborating to address these challenges and foster sustainable real estate development.

Housing is a major requirement for everybody to maintain serenity and be useful to their environment and society. Housing and housing construction jobs also create multidimensional job opportunities for both direct and indirect labour.

In a dynamic real estate sector, REDAN is a catalyst for positive change. Their active role in policy formulation, regulations, and strategic land-use planning, shapes the foundation for responsible and sustainable development not only in Nigeria but in Africa at large. 

As Nigeria continues to grow, policies crafted by bodies like REDAN play a pivotal role in defining the character and resilience of its built environment. In a continent where the demand for affordable housing continues to outstrip the supply, the Real Estate Developers Association of Nigeria (REDAN) should stand at the forefront, poised to make significant strides in fostering accessible and affordable housing across the nation.

The housing deficit in Nigeria is a multifaceted challenge, driven by rapid urbanisation, population growth, and economic factors. Affordable housing, a key element of sustainable development, has become an urgent need for millions across the continent. Nigeria now faces an estimated 28 million housing deficit as against the previous 17 million deficits.

Some experts even suggest today that the housing deficit in Nigeria may be well over 50 million, depending on the indices of data collection, not to mention other African countries. To effectively reduce the housing gap in Nigeria and across Africa, there is a crucial need for REDAN and similar associations in other African countries to implement strategic actions and policies.

Imagine a nation where the government creates an enabling environment for REDAN by collaborating to provide affordable housing across the country, this will have a ripple effect on the economy.

One of the primary ways the Association can foster affordable housing is through strategic partnerships. Collaboration with both public and private entities can unlock resources, streamline regulatory processes, and facilitate the implementation of large-scale affordable housing projects. By working together with governments, financi al institutions, and international organisations, the Association can play a pivotal role in addressing the housing challenges. 

The government needs to re-engineer the modalities and template of the renewed hope housing strategies to produce the desired result.

REDAN should also acknowledge the importance of collaborating with professional bodies and actively engaging in advocacy for industry-friendly policies that affect not only Nigeria’s real estate sector but Africa at large. 

The Association must collaborate with existing professional bodies to foster a more inclusive regulatory framework.

This collaboration should extend beyond the industry to engage with the government on policies conducive to real estate development, as well as bodies of realtors, architects, engineers, surveyors, and others. By working together, countries across African nations can share expertise, address challenges, elevate professionalism standards within the sector, and provide affordable housing.

Specifically, if the government partners with REDAN, they won’t spend money instead, this will produce government benefits. There are several billions of naira locked up in property registration and administration across the country and until the government sparks the round peg in round holes, nothing will be done to raise money without putting the Nigerian public under pressure.

REDAN, as a Self-Regulatory Organisation (SRO) in Nigeria, has diligently undertaken a series of initiatives to establish platforms for a pragmatic approach to alleviate the substantial shortage in housing production. However, these efforts have encountered persistent challenges due to misconceptions and a lack of political support from key decision-makers.

The challenges stem from the necessity of involving the government in real estate transactions, given the existing laws on land registration and administration. A notable example is the outdated Nigeria Land Use Act of 1978, which requires urgent review by the National Assembly. 

Advocating for the removal of the Land Use Act from Nigeria’s constitution becomes a crucial step in achieving proper Land Administration and Management. The current linkage of a document meant to be flexible and reviewable to a rigid and infrequently amendable constitutional framework poses significant obstacles to the growth of the sector in Nigeria.

It is worth mentioning that the future of real estate in Nigeria is beginning to look brighter. On January 16, 2024, the  Minister of Housing and Urban Development, Arc. Ahmed Dangiwa, inaugurated the Land Reform Task Team. The team is chaired by Rev. Dr. Surv. Ugochukwu Chime, a Past President of the Real Estate Developers Association of Nigeria (REDAN), under the Renewed Hope Agenda of President Bola Ahmed Tinubu. The Minister also pledged to implement housing and urban sector reforms in the country.

During the inauguration, Rev. Chime expressed gratitude to the President and the Minister on behalf of the National Land Reform Team and all four Sector Reform Teams. He highlighted the significant national assignment and emphasised that extensive evaluation, revitalisation, and energisation of land administration transaction dynamics have been initiated to ensure alignment with the nation’s socio-economic growth goals. I hope their report and recommendation will be properly implemented.

Similarly, REDAN’s outgoing president, Alh. (Dr.) Aliyu Oroji Wamako, was also sworn in as a member of the Housing Institutions Reform Task Team. This initiative, led by the Federal Ministry of Housing and Urban Development, deserves commendation for the minister’s recognition of REDAN and its pivotal role in the sector.

Given this development, it is crystal clear that, in the dynamic realm of real estate, REDAN has a unique opportunity to drive innovation and foster real development and financial growth not only in Nigeria but in Africa at large.

Based on experience, REDAN has the potential to pioneer innovative financing models tailored to the African context. This could involve exploring alternative funding sources, such as impact investments, housing bonds, or public-private partnerships. In the realm of providing affordable housing, innovative financing models are crucial. However, the cutthroat nature of business in Africa has not only caused a lag in most industries but has also thwarted significant changes. 

Osilama, an Estate Suerveyor, is REDAN, VP North Central and Group Chairman/CEO Nuel Osilama Global.