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By Brown Chimezie
Ambassador Chukwuemeka Okafor is the Managing Director of Chabond International Nigeria Ltd, Lagos.
Recently, he took a critical look at Nigeria’s economy and lamented the impect of poor government planning is devastating trade and commerce in the country. He speaks further.
Your assessment of the property market
The situation is critical, and business is at its lowest ebb. Multiple tax and high rates of inflation have weakened the purchasing power of most customers, and this has also resulted in low sales for us.
I can authoritatively tell you how it affects me because I deal in plumbing materials. I imports from China, Italy, Dubai, and Turkey. I’m a major player when it comes to issues concerning plumbing materials in Lagos and Nigeria at large. Our plumbing materials are not only in building houses, it also involve giving waterlines to communities. We can sink boreholes, lay pipes, and install overhead tanks for water storage and distributions. Basically, I’m into waterlines.
How government economic policies of government are affecting your businesses
It is affecting it badly. Today, Naira is N880 to $1 dollar. Unstable forex regime will affect importation. If you are importing 40 feet container, when dollar was N600 to $I with this current rate, you will be ran out of business. The high rate of dollar is affecting the clearing of goods. It has also affected freighting. If it is something you are selling 80 naira and you know Nigerians, they would even price it N70 and you come to tell them it is N120 . How can they buy? Automatically, it is affecting property business. Before, building 3 bedroom bungalows could cost 15 million, and you sold for 20 million, but today, the cost of building the same house could rise up to 30 million. so it is difficult to get buyers. Go to Lekki and Ajah. Buildings are up for sale, but no patronage. Property market is at its lowest level, all because of the high cost.
Before, once you finish building, you sell immediately, and as they are selling, investors and developers will embark on new projects, and we in the market would make more sales. we are so much affected that at times in a week, we barely make any reasonable sales.
We are into serious problems because many companies are closing and relocating to neighbouring countries where their exchange rate is stable.
Recently, the government signed executive orders reducing import tariffs by 5 per cent
It is yet to take effect. Tariffs have even been increased. The government often increases tariff secretly. Many Nigerians up till now don’t even know that electricity tariff has been increased because it was done quietly. Now the latest is about meter. People are notified to go and verify their meter,that failure to comply, the meters won’t work again. Can you imagine a meter that you purchased with your money?
Again, you must have heard that car owners are now to pay 1000 naira per anum for proof of ownership.
How closure of land borders, affects business
For sure, it does, because foreigners who are our customers have been barred from coming into the country, this seriously affects our business, especially within the West Africa subregion.
What is your take on cases of building collapse?
Building collapse is mainly due to the activities of contractors who cut corners by failing to use the right quantity of materials.
All products we sell in this market are SON certified.
Regulators like LASBAC should should also take their tasks seriously so as to ensure that approval is given before any structure is erected.
