The property sector in Nigeria has had its fair share of controversy in the year 2024 as several events and policies impacted the sector in the course of the year.
From government policies to property seizures by the Economic and Financial Crimes Commission (EFCC) as well as several building collapses, the sector has been described as one of the busiest in the outgoing year.
Daily Trust reviews 5 major events that rocked the sector in 2024
Building collapse
Daily Trust reports that the Council for the Regulation of Engineering in Nigeria, the regulatory body governing the practice of engineering has said that Nigeria recorded 22 building collapses between January and July 2024.
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COREN had stated that from January to 14 July, alone, at least 22 cases of building collapse were reported nationwide, with Lagos accounting for 27.27 per cent, and Abuja and Anambra 18.18 per cent each.
The President of COREN, Prof. Sadiq Abubakar, said that Ekiti and Plateau followed with 9.09 per cent each and Kano, Taraba and Niger states accounted for 4.55 per cent each.
Similarly, the Building Collapse Prevention Guild has said that Nigeria witnessed 635 building collapse cases between 1974 and November 5, 2024.
It added that Lagos State recorded the highest cases with over 351 buildings caving in the last 50 years.
The report showed that the 351 collapsed buildings in Lagos represented 55.28 per cent of the total of 635 recorded cases across the country during this period.
The report stated, “Lagos State accounts for 55.28 per cent of recorded building collapse incidents in Nigeria. Abuja follows in second place with 4.25 per cent, Anambra ranks third with 4.09 per cent, Oyo is fourth, and Kano holds fifth place with 3.46 per cent.
“Taraba, Bayelsa, Gombe, and Yobe states each recorded their first building collapse incident in 2022. In Zamfara, Taraba, Yobe, Bauchi, Bayelsa, Sokoto, Gombe, Katsina and Kebbi states, there has been only one recorded building collapse.”
The organisation also stated that from its records, from October 1, 1974, to September 17, 2024, 1,574 deaths occurred in 627 reported incidents of building collapse in the country.
Largest property seizures by EFCC
On December 2, 2024, EFCC announced that it made the largest single asset recovery after it seized 753 duplexes and other apartments in Abuja.
The property is located on Plot 109 in Cadastral Zone C09, Lokogoma District, Abuja, and covers 150,500 square meters.
The property was forfeited to the federal government by a former top government official whose name the EFCC is keeping confidential, although there are insinuations that the official was the former governor of the Central Bank of Nigeria (CBN), Godwin Emefiele.
Experts have reacted to the development, calling on the government to auction the properties to Nigerians at affordable rates under the Renewed Hope Estates Scheme of the federal government.
Demolition in FCT
Another event that rocked the property sector, especially in the Federal Capital Territory, was the widespread demolition embarked upon by the minister, Nyesom Wike.
The minister has been criticised for embarking on a widespread demolition of houses in Abuja without due diligence and proper investigation.
A construction company, Paullosa Nigeria Limited, recently raised the alarm over a demolition notice issued by the Federal Capital Development Authority to demolish its estate in the Lifecamp area of Abuja.
Before then, the minister had ordered the demolition of properties worth N200 billion over the purported revocation of their land allocations.
It was said that the pulling down of houses in the Sabon-Lugbe area of Abuja has rendered over 100 families homeless.
The minister also ordered the demolition of the Ruga community which has sparked wide protest and controversy.
Many developers also accused the minister of land grabbing, which he denied, saying the demolitions were done based on the masterplan of the FCT.
However, in a swift reaction, the Senate asked the Minister of Federal Capital Territory, Nyesom Wike, to suspend the ongoing demolition of structures except those authorised by the court.
The upper chamber also constituted an eight-member panel chaired by the Deputy Senate President, Barau Jibrin, to probe the demolitions since the beginning of Wike’s administration.
The resolution was sequel to a motion sponsored by the Senator representing the FCT, Ireti Kingibe, during plenary.
Kingibe, in her motion, complained that demolition of buildings since the beginning of Wike’s administration was not in line with court processes.
Abandoned projects due to high cost of building materials
The unification of the forex market has, coupled with fluctuation, sent the prices of building materials across the country through the roof.
Findings by the Daily Trust shows that the prices of building materials have increased by over 100% since the coming onboard of President Bola Ahmed Tinubu as a result of forex unification policy of the government.
The materials include doors, cement, iron rods, and windows among others.
Cement
In May 2023, the average price of cement in Lagos was N4,300 per bag. However, by November 2024, the price had risen to N9,000 per bag, depending on the brand, representing a significant increase of approximately 105%.
Doors
The prices of double steel doors in November 2024 ranged from N400,000 to N500,000, a significant increase from the range of N70,000 to N80,000 in May 2023. The price increases range from 200% to 290%.
Windows
In May 2023, a 4ft-by-4ft casement open aluminum window without burglary protection was priced at N50,000, while the same window with burglary protection cost N70,000. As of November 2024, the prices for these windows have increased to N80,000 and N110,000 respectively, representing a 57% to 60% increase over the period.
For a 4ft-by-4ft sliding aluminum window without burglary protection, the price in May 2023 was N35,000, whereas that with burglary protection was N60,000. By November 2024, the prices have risen to N80,000 and N120,000 respectively, representing a 60% to 65% increase.
Iron rods
The price of a 12mm iron rod increased from N8,000 in May 2023 to N55,000 in November 2024. Similarly, a 16mm iron rod rose from N4,800 in May 2023 to N22,500 in May 2024.
Additionally, the price of a 10mm iron rod went up from N3,600 in May 2023 to N16,500 in November 2024, while an 8mm iron rod saw its price rise from N2,500 in May 2023 to N10,700 in November 2024.
These represent over 120% increase in price over the period.
Create intervention fund for real estate – Expert
Reacting to the property sector review for 2024, a real estate expert, Musa Ibrahim, advised the government to create a real estate intervention fund to address challenges inherent in the sector.
He said “With the relevance of the sector to growth and development of the economy, there is a need for an intervention fund to help developers actualize the government’s drive for affordable housing for Nigerians.”
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