From Geoffrey Anyanwu, Enugu
The Managing Director of AG Mortgage Bank Plc, Mr Ngozi Anyogu has identified unclear property rights/registration as major hindrance to investment.
Speaking at the Developers Forum organized by AG Mortgage Bank Plc in conjunction with COPEN Group and Enugu State Housing Development Corporation in Enugu, Anyogu said that property rights and quality of land registration systems define the way cities are built and financed.
The AG Mortgage boss who spoke on housing production value chain, noted that strong property rights reduce uncertainties while unclear property rights/registration hinder investment.
Describing government as poor manager of public land, he noted that development regulations impede affordability just as permitting procedures are time consuming, uncertain and costly.
Lamenting lack of private institutions to carry long term mortgage loans/risky development loans, under-developed capital market and absence of legal infrastructure to curb credit risk, Anyogu urged the government to open up new land by providing trunk infrastructure and charge developers appropriately and co-ordinate the provision of on-site infrastructure from road to electricity.
Noting that without property rights there would be no investments, he said: “If I am not sure that when I invest with land I will get my governor’s consent, I will be able to use it to multiply my business in terms of leverage, then why should I put my money there?
“If I buy lands that I can’t have governor’s consent, If I buy land and tomorrow the natives come and take over the land, I can’t go to court and seek justice, then there will be no investment, there will be no urge to invest.
“So, this forum today will be challenging the lawyers and our legislators here to speak to this, how do we strengthen property rights so that people can invest? So that we won’t have an administration for eight years, in those eight years no single C of O is signed.”
At the event, where speakers lamented that unclear property rights/registration in Nigeria, especially in most states in the Southern part of the country, Anyogu called for collaboration and synergy in real estate development, stressing that was the way to go to overcome.
Speaking on the theme, “Collaboration and Synergy in Real Estate Development: The Way Forward,” the Group Managing Director, COPEN Group, Ugochukwu Chime, spoke of the identity and roles of parties in the real estate industry, who includes the professionals, developers, government MDAs, Off-takers, financial intermediaries, communities/landowners and technology providers.
He said that the importance and benefits of collaboration and synergy included ease of doing business, defined entry and exit, adding that risks are dimensionable and can be priced.
Also speaking, the General Manager, Enugu State Housing Development Corporation, Hon. Chukwuemeka Agu said that the corporation has achieved 70 estates since the 50s just as it has developed 10 estates under the present administration with the majority being low income.