From Juliana Taiwo-Obalonye, Abuja
Billy A. Azigbo, MD/CEO GOFA & Associates Nigeria Limited, is the developers of the Plain View Court Jahi, Abuja; Gofa Valley View Estate, and Hillcrest Shopping Complex, both at Lokogoma District, Abuja FCT; and Ring Way Housing Estate, Osu, Ghana.
In this interview with Sunday Sun, he speaks on the challenges of estate development and why low cost housing needs a realistic focus, and not mere lip service. Excepts:
What’s your journey into the building industry, especially the real estate subsector? What motivated you to venture into it?
Firstly, I would say my father. I was fortunate to have an entrepreneur as a father who was a renowned miner in Jos, Plateau State. He also was a real estate investor with several property in Jos and neighbouring towns, Lagos State, Delta (former Bendel) State and in the United Kingdom. At an early age, I used to help organise his files and so I had records of lots of his property. So, that’s when my interest in business in general and real estate in particular was ignited. However, it was the need in the real estate sector from a user standpoint that eventually got me into starting a real estate development company. I lived in two estates in Abuja and experienced the poor quality of both materials and labour in full display. Apart from the inconveniences of always patching walls, the inability to hang things as simple as photographs on the walls, etc was irritating. The most unpleasant experience was the health menace caused by wet walls. My kids started having respiratory health challenges and we had to be using nebulizers to help them breathe properly and also dehumidifiers to suck out the excess moisture from the atmosphere.
What’s your assessment of the sector in Nigeria?
The prospects are enormous. The opportunities are vast, and if well harnessed can provide a bedrock to our nation’s economy. Realistic focus not mere lip service needs to be given to the low cost housing sector! That will provide not only economic empowerment to a greater number of Nigerians in every locality by building financial equity as a homeowner, but most importantly provide social benefits and build trust in the government. Guess what? This will lead to security as community members would work together to ensure the safety of their property and their lives. Real estate development empowers a wide range of businesses and people. From the formal to informal sector: the suppliers, professionals, labourers, security personnel or companies, etc.
What particular challenges do investors in the real estate subsector face in Nigeria?
A hostile political environment, lack of adequate policies in the sector, lack of political will or sheer laziness to implement some of the good policies we have. Difficulty in accessing funding, high interest rates, etc. Also, corruption not necessarily by public officials only, but by other players in the sector; from developers who want to cut corners for different reasons, to suppliers of fake building materials, to the actual workers who were to use 10 bags of cement for a task that would find a way to use six or seven and sell the rest for additional income. The challenges are present at different stages of the chain, but they all have solutions!
Do you think governments at all levels have provided adequate incentives to stimulate growth in the sector?
No. The Federal Government has made an attempt, but let’s be clear, it can’t be done by them alone. Secondly, even the programmes initiated by the Federal Government like low cost housing, mortgage through the federal mortgage bank, etc needs constant re-evaluation and improvements to meet ever changing needs. The Federal Capital Territory, through the FCDA has done some good work notably from the early 2000s. There are specific programmes designed to provide land ownership to individuals without “under the table” lobbying. Also different programmes for developers like the mass housing scheme. Also some other good programmes like the Land Swap programme (designed to address infrastructural deficiencies) exist, but I am not sure they have all yielded on their promises for some of the same reason I listed earlier. If the Land Swap programme has an Act that protects investors (as funds required for such infrastructural development are enormous-estimated years ago at about N1 trillion), it will help provide vital infrastructure. Today, we have situations where developers are responsible for so many infrastructural elements thereby adding to the cost of houses. By and large, the FCDA has done a commendable job in my opinion, and just needs to build on what they have. For example, resolve the AMAC land issue once and for all. I don’t know what is the status quo in other states about initiative for stimulating growth, but from what we see largely across the county, there’s not much regulation of the real estate development sector, nor long-term strategies and policies that can be said to be going on in the states.
Do you think there is a need to amend the existing legal framework to attract more investments in the sector as well as meet the goal of bridging the housing deficit in the country and the FCT?
Absolutely! I am aware of a committee set up by the FCT in collaboration with the National Assembly recently on how to come up with policies that would help address the housing deficit in the FCT. I am not sure if it’s being implemented yet, but it’s a step in the right direction. I am also aware of something similar in Lagos state by the office of the governor. What is important is that the Federal Government, state governments and the FCT, local governments, NASS, state assemblies, Real Estate developers, judiciary, technocrats, and all relevant stakeholders need to come to the table and review existing frameworks relevant to the present times, and projections for the future (20, 40, 60) years from now. Hopefully, we can arrive at something that is implementable and that meets both the economic and social needs of citizens. With that, local and international investors can invest without fear of what happens when there’s change in government as these legal frameworks/policies would be enacted as laws of the land, thereby safeguarding investments. Also, prioritising the speedy resolution of disputes that inevitably arise where transactions exist, will be essential. We have the Investment and Securities Tribunal (IST) that adjudicates issues emanating from securities investments within 90 days! There’s nothing stopping us from having such or maybe reviewing the existing industrial court to handle such, but there must be real estate experts on that board! The importance would be that investors would flood the sector knowing that if anything goes wrong, it would be resolved within a very short period of time. Buyers wouldn’t be too worried to buy as well. Hence we would have a robust housing market with affordable housing in every part of the country.
What should the next administration do to tackle the challenges of ensuring that citizens quest for provision of affordable housing in the FCT and indeed across Nigeria?
Douse political hostility. Provide national security. Immediately begin the process of fixing the problems associated with the Naira and forex. Review existing policies in the real estate sector and improve on them. Set out short and long-term plans that are workable. Strengthen relevant government regulatory agencies through human resource capital investment and adequate funding. Strengthen the federal mortgage bank to provide realistic mortgages to Nigerians to assist them in owning their homes. Provide basic infrastructure like roads, drainage systems, electricity, etc. Encourage Diaspora participation in the housing sector (annual remittances from Nigerians in Diaspora is estimated to be about $20 billion yearly).
What would you consider high points in your career as businessman and industry leader in the real estate sector? What was the big break?
My high point will be when I am able to provide millions of Nigerians homes, and commercial property of high quality at an affordable rate!
However, my first major break is an interesting story. I had invested in other people’s real estate businesses for years, participated during the sales of Federal Government houses by the Olusegun Obasanjo administration, I also played the role of a realtor briefly. But I decided to take the bull by the horns and get into it! I had insisted to my wife when we first got married that we should live in an Estate. She didn’t want that because the estate we were considering at the time seemed far from town (Mbora). I explained to her that I want us to build estates in the FCT and all over the world. So, living in an estate will keep that dream fresh in my mind. It’s what you see that you can conceive! It’s so important to use our minds to see possibilities even in difficult times! At this point in our lives we were paying rent of about N400,000 per annum and it was a big deal! However in the N400,000 per annum house I could see myself owning estates all over the world! Long story short, we are living that dream today. The big break for me would be my first major development that I conceived from start to finish. It was a joint venture partnership for a huge commercial real estate. I had been looking for a joint venture for years. On this particular day I was on my way home from another day of inspecting property, having meetings that weren’t quite successful. I had an accident at Berger roundabout. I continued on my way and on the Road between Area 1 and Games village, I got hit twice from behind. When I was able to park, I came down to check the damage, looked to see if the person that hit me was okay, got into my car and drove home without saying a word! Something in me told me I was experiencing all that because my break was near! In that same period, I got a call from a friend about a joint venture project that was quite sizable and would provide property ownership to middle and low income earners quite easily. We got to work on it and eventually by God’s help I was able to raise the N30 million as part of the premium for the investment and got it going! So, I believe that’s my first major break in real estate.
Any advice for the would-be investor that is getting ready to venture into the sector? What are the success recipes from your experience that may make a difference for them?
Get knowledge. Ask questions. Serve others if you have to. Learn everything you can. Don’t be in a hurry. Know it’s a marathon not a sprint. Focus on solving problems and not just making money. Do not compromise quality! Not necessarily aesthetics (aesthetics is very good) but quality is crucial as the health, well-being and lives of the people we serve are at stake! Lastly, don’t forget the three golden rules in real estate: location, location, location!
In a nutshell, what do you think about life and your role in the world as you mark your 50 years anniversary? Are there things you look back on and you are really proud you did that you won’t mind doing all over again?
I am extremely grateful to God for my family of birth, and my dad, Chief Joseph Karkitie Azigbo, in particular. He was my hero. I admired him a lot and wanted to be like him. I learned later on that he was one of the richest Nigerians in his time, but to me, he was just my dad. My relationship with God. Serving in the church to the best of my ability. The faith I have in God as a Christian. Its teachings, together with my upbringing, have helped shape my life big time! Hence I believe all things are possible with the help of God! Also, I am grateful to God for my beautiful, very supportive and God-fearing wife, Ashi Azigbo and our lovely children. Taking responsibility for my life instead of looking at family background or depending on people. Serving others and my community at every opportunity. It’s important to help people without expecting anything in return. Having a vision for my life and the goals on how to accomplish them with the help of God! I love life! Life is interesting and full of ups and downs. We must have a positive attitude towards life despite the negativity around us. Having a privileged background didn’t exempt me from life’s troubles. In fact, I have had many days where I didn’t want to wake up in the morning just because of life’s pressure. But because I know my existence here is not just to have a good life, but to empower others to do so and live a life of impact, I drag myself up, and keep going. I believe my role in life is to provide socio-economic development in our communities by providing employment, and other infrastructure that would serve mankind from one community to another one at a time. Be a good example for the next generation. Provide mentorship opportunities. To do more corporate social responsibility philanthropic work through our foundation, Gofa Foundation.
Collaborate with people of like minds to create a formidable private sector that meets the true needs of Nigerians, and Africans at large with vital partnerships with relevant governments and government agencies. Africa is ripe to govern itself, produce enough for its people and export finished goods to create an enviable global economy. We have all the needed resources from raw materials to human resources and we have the number to buy what we produce and surplus for export! So, arise Nigeria! Arise Africa!
What were your growing up years like? What type of family was it like and are you able to transfer some values and lessons from years gone by to the new generation?
Oh my goodness! As mentioned earlier my biological family where I grew up is a bedrock to anything I am today! I grew up in an extra large family with the proverbial silver spoon! It’s hard sometimes to say that sometimes because people are more responsive to a rags to riches’ story. I grew up with a lot of wealth and with a father who loved me unconditionally! Who never saw anything wrong in anything I did and who trusted me 100 per cent. I was exposed to money at an early age (8-13). Going to the bank with a cheque addressed to “Self” by my dad who would then call the bank manager authorizing me to cash the funds. Holding and expending those monies on everyday items, medical bills, petrol, mechanic, etc and keeping record of them! I had 17 siblings, I was No.17 and had just one younger brother.
Our houses whether in Jos or Sapele were always like a town! So many people, including external family members and family friends. When I was growing up in Jos in the recent past my house was called ‘the 11 brothers’ I don’t know if it’s because our house number was 11 or they were using the number that makes up a football team on the pitch! Whatever it was, our houses were always full of people. My father particularly taught us integrity and humility. Up till now it’s hard for me to sit on a chair and spread out my hands on the armrest because my dad said that was a posture of an arrogant person.
He taught us that it’s the child of a poor person that’s pompous. He taught us hard work pays, and his life was an example: working as a labourer in the Tin Mines of Jos to becoming the biggest Tin miner in West Africa in the 60s and the first chairman of the West Africa Miners Association during his time. This was a great achievement by sheer hard work and dedication! This generation must first of all admit that we have cultural values that we must uphold. The Internet and western countries cannot be our standard of morals and value. We must greet our elders, be respectful, serve with humility, be our brothers keepers, and have integrity. Work hard. Ask for God’s blessing. When I was growing up, if someone stole anything, he’s marked and avoided like a plague until we see genuine repentance. He’s even embarrassed and can’t speak in the crowd. Today, it’s not the same thing. Values have been eroded and some ‘thugs’ are the ones writing our policies and ruling in some of our states and LGs. Criminals are celebrated today in Nigeria.We need to restore our cultural values from the family, to the larger society.
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