By Esther Agbo

Lagos State Commissioner for Housing, Honourable Moruf Akinderu-Fatai has said that the state faces a significant housing shortfall, with an estimated gap of 2.3 million homes.

This revelation was made at the Stanbic IBTC Home Ownership Summit, held on Tuesday where the Commissioner was represented by the Permanent Secretary of the Lagos State Ministry of Housing, Engineer Abdulhafiz Gbolahan Toriola.

The summit emphasised the urgent need for collaborative efforts from both the public and private sectors to address the housing deficit and foster home ownership as a pillar of economic stability in Lagos.

During his keynote address, Engineer Toriola underscored the escalating demand for housing in Lagos and the consequent business opportunities in the sector.

“In Lagos, the demand for housing is ever-increasing, and the importance of facilitating home ownership cannot be overemphasised, considering the 2.3 million housing gap that requires strategic attention from governments across board and stakeholders across the value chain,” he said.

The Lagos State government has made strides to address this deficit, delivering over 10,000 flats across 39 state-owned estates, with ongoing projects expected to add nearly 2,000 more units.

“In bridging this gap, the state government via direct intervention has delivered 39 estates across the state, amounting to 10,060 flats, with ongoing projects adding approximately 1,938 more flats.

“Lagos State has launched multiple affordable housing schemes to cater to people with different incomes, we have the low, medium, and high. The Ministry of Housing takes care of the low and medium, while the LSDPC takes care of the high.

“The program aims to provide housing at subsidised rates and enables more Lagosians to enter the property market. It includes the allocation of 40 per cent rebate for civil servants. There is the open balloting for private workers where people apply online,” Toriola noted.

The summit, themed “Building Wealth through Home Ownership,” also featured insights from the Chief Executive of Stanbic IBTC Bank, Mr. Wole Adeniyi.

Adeniyi highlighted the critical role of home ownership in financial stability and wealth creation. He said, “As access to affordable housing remains a pressing issue, our Home Loan solution offers hope. With competitive interest rates, flexible equity contribution, and personalised guidance, our bank aims to bridge the gap and make home ownership attainable for our stakeholders.”

Additionally, Prince Adeniyi Aromolaran, an Executive Director with the Lagos State Development and Property Corporation (LSDPC), proposed home ownership as a strategic approach to staff retention. “I have proposed this as a staff retention strategy. To hold a staff for five years is now very tough, but if a company were to acquire a property and say, we want to build for our staff at this level.”

“The land belongs to the organisation, but we give the apartments to individuals. If you work with us for five years, we tell you from the get-go, an amount is set every year, so that by your fifth year, when you celebrate long service award, we give you a certain amount towards house ownership,” he said.

By Esther Agbo

Lagos has witnessed significant shifts in its real estate market over the past few years, driven by economic, demographic, and infrastructural factors. Known for its vibrant economy and status as a major business hub, Lagos continues to attract local and international investors, leading to a generally upward trend in property prices.

The real estate sector in Nigeria is forecast to grow to $2.26 trillion in 2024, of which residential estate will contribute $1.93 trillion or 85.4 percent. Analysts who made the forecast observed that the growth would occur despite challenges such as a weakening currency, inadequate infrastructure, multiple taxes, high construction costs, and other issues affecting the sector.

Lagos real estate market has mirrored the city’s economic health. During periods of economic prosperity, particularly when Nigeria’s oil sector flourished, the city experienced a substantial rise in real estate prices. High demand for both commercial and residential properties, fueled by the influx of businesses and individuals seeking opportunities, drove these price increases.

However, during economic downturns, such as times of political instability or global economic recessions, the market showed resilience, although the growth rate slowed. Lagos’ ability to recover quickly compared to other regions in Nigeria can be attributed to the constant demand for housing and commercial spaces in the ever-expanding city.

Comparing current real estate prices to those a decade ago reveals a significant increase. This rise is due to inflation, higher construction costs, and the growing demand for properties in a city experiencing rapid population growth and economic expansion. Currently, the real estate prices in Lagos show either stability or moderate increases, varying across different parts of the city and types of properties.

According to a recent report by the Nigerian Institution of Estate Surveyors and Valuers (NIESV), property prices in Lagos have seen a significant uptick in 2024. The surge is most prominent in high-demand areas such as Victoria Island, Ikoyi, and Lekki, where prices for prime residential properties have increased by an average of 15 per cent compared to the previous year. This rise is attributed to the influx of expatriates and affluent Nigerians seeking luxurious accommodations, coupled with limited land availability in these prestigious locales.

On the other hand, the burgeoning middle-class population is driving demand in emerging neighbourhoods like Yaba, Surulere, and Ajah. These areas are experiencing rapid development, with new housing projects aimed at providing more affordable options for middle-income earners. According to data from the Lagos State Ministry of Housing, housing units in these regions have appreciated by approximately 10 percent in the past year. This trend is expected to continue as developers focus on constructing more budget-friendly housing to meet the needs of a growing urban population.

Prime locations like Victoria Island, Ikoyi, and Lekki, known for their better infrastructure, security, and amenities, have seen the highest growth in prices. These areas attract wealthier individuals and businesses, pushing property values upwards. Meanwhile, the city’s rapid urbanisation and appeal as an economic powerhouse have increased demand for housing in the middle and lower market segments. Unfortunately, the supply of affordable housing has not kept pace, leading to a significant housing deficit and further driving up prices.

Several key factors contribute to these trends, including Lagos economic growth, infrastructural improvements, and its position as a cultural and financial centre. Additionally, speculative real estate investments, where properties are bought with the expectation of selling them at higher prices, also play a role in the rising prices.

Despite the positive trends, the Lagos real estate market is not without its hurdles. Industry experts highlight the ongoing issues of high construction costs, exacerbated by inflation and the devaluation of the Naira. Additionally, multiple taxation and bureaucratic red tape continue to pose significant challenges for developers and investors. The Lagos State Government has been urged to streamline regulatory processes and provide incentives to attract more investment into the housing sector. Addressing these challenges is crucial for sustaining the market’s growth momentum.

Looking ahead, the outlook for the Lagos real estate market in 2024 remains cautiously optimistic. While the sector faces substantial obstacles, the underlying demand for housing, driven by population growth and urbanisation, provides a strong foundation for future expansion.

Analysts suggest that strategic investments in infrastructure and supportive government policies could further enhance the market’s potential as Lagos real estate market is poised for further growth, driven by ongoing infrastructural developments such as the Eko Atlantic City project, road expansions, and improvements in public transportation. These projects are likely to make certain areas more accessible and desirable, increasing property values.

Moreover, continued economic growth, especially in sectors like technology, finance, and entertainment, is expected to attract more businesses and professionals, boosting housing demand.

Be that as it may, several factors could temper this growth, ranging from economic downturns, political instability, or significant policy changes affecting the real estate sector could reduce demand and prices. Environmental challenges, such as increased flooding or natural disasters, could also negatively impact property values in affected areas.

In conclusion, while Lagos real estate market shows a robust upward trend, driven by economic and demographic factors, it remains sensitive to economic conditions and infrastructural developments. The city’s resilience and continuous demand for property suggest a promising outlook, notwithstanding the potential challenges that could impact future growth.

By Esther Agbo

Building collapses in Lagos have become increasingly common as there are frequent media reports of such incidents in major Lagos cities like Lagos island, Lekki, Victoria Island, Yaba etc.

However, Lagos State is making every effort to tackle the issue of building collapses, which are primarily caused by industry stakeholders cutting corners, particularly in obtaining the necessary construction permits.

According to the Building collapse prevention guild, as of 2024, there have been 11 recorded building collapses in Nigeria, with Lagos accounting for five, Anambra three, and Kano, Niger, and Plateau each reporting one incident.

On May 30, 2024, a four-story building on Lagos Island collapsed, trapping an unknown number of individuals. The collapse occurred near the Oba of Lagos palace at Iga Iduganran.

The Lagos State Commissioner for Information and Strategy, Gbenga Omotosho, confirmed the incident on his X (formerly Twitter) account, stating that eight people had been rescued and efforts were ongoing to retrieve two more individuals from the rubble with the assistance of the Lagos State Emergency Management Agency who were actively involved in the rescue operations.

Another collapse also happened when a mosque, struck by an excavator, collapsed in the Papa Ajao area of Lagos State, killing an 11 years old girl and three others.

These are just a few out of many other building collapses in Lagos.

In February 2024, in a bid to avert the rising trend of building collapses in Lagos, the Lagos State Building Control Agency (LASBCA) embarked on a vigorous campaign to identify and rectify structural deficiencies in the city’s architecture.

Over the past year, the agency has published a comprehensive list detailing more than 435 buildings with critical structural issues, an initiative aimed at alerting residents and urging them to vacate these hazardous structures.

The Director of Public Affairs at LASBCA, Olusegun Olaoye, reacted to the increasing incidence of building collapses by unveiling the government’s proactive measures to enhance urban planning and regulatory enforcement, and also significantly ramped up its oversight activities, targeting illegal constructions and unqualified personnel responsible for substandard buildings.

According to him, Building collapses often stem from several factors, including the employment of non-professionals, the use of substandard materials, and neglect of building codes. He emphasised that addressing these issues is critical to mitigating the risks associated with old and deteriorating structures.

However, to combat these challenges, LASBCA strengthened its monitoring capabilities, ensuring that construction practices comply with both national and state building codes.

The agency has also been vigilant in preventing the unauthorised conversion of existing structures, which often contributes to structural weaknesses.

Building collapses can occur for various reasons, some of which are human-made while others are natural. While we can often prevent collapses caused by human factors, natural disasters like earthquakes, tsunamis, and floods are beyond our control, though some can be managed.

In Nigeria, we are fortunate to face fewer natural disasters, therefore most building collapses here result from human errors and negligence.

The pioneer President of the Building Collapse Prevention Guild, Kunle Awobodu, has attributed the frequent building collapses in Lagos to weak regulations. He criticised the government’s inability to prosecute and convict those responsible for professional negligence in construction.

Awobodu, who was involved in creating some regulatory agencies, highlighted the inadequate staff strength of the building control agency compared to the vastness of Lagos’s built environment. He pointed out that quackery is a significant issue, as developers often do not ensure that construction is handled by professionals, even after the approval of building plans.

Causes

Building collapse can be caused by so many factors that are not limited to faulty design, negligence, incompetence, poor construction practices, foundation failures, excessive loads, and corruption. Natural forces were also identified as contributing factors. The paper offers several recommendations to address these challenges effectively.

Weak Foundations: A strong foundation is crucial for a building’s structural integrity. When the terrain and soil bearing capacity aren’t properly assessed, it can lead to weak foundations. Over time, buildings on poor soil or shallow foundations can shift as the soil settles.

Poor Maintenance can be another factor as every building requires maintenance throughout its lifespan. Neglecting maintenance can lead to decay, degradation, and reduced performance, eventually causing the building to collapse.

Another important factor is the Absence of Building or Planning Permit. Starting construction without approved plans from the relevant authorities is illegal. When developers skip proper approvals, faulty designs and plans go unchecked, leading to poor construction quality and potential collapse.

Many buildings in Lagos are constructed with inferior materials to cut costs. Developers often use low-quality cement, weak steel reinforcements, and insufficient concrete mixtures, compromising the structural integrity of buildings. Additionally, many construction projects lack proper oversight and adherence to building codes as contractors sometimes ignore architects and engineers specifications. Failing to adhere to these specifications can significantly contribute to structural failures.

The human toll

The human cost of these collapses is devastating. Families have been torn apart, and communities left in mourning. Each collapse scene is marked by the frantic efforts of rescue workers and the anguished cries of those searching for loved ones.

Survivors face not only emotional trauma but also economic hardship. Many victims were breadwinners, leaving dependents in dire straits. The psychological impact on survivors and rescuers is profound, with many suffering from post-traumatic stress disorder (PTSD).

Call for change

The spate of building collapses has galvanised calls for urgent reforms. Civil society organisations, urban planners, and concerned citizens should demand stronger regulations, better enforcement, and greater accountability.

The Lagos State Government has been addressing this crisis. Governor Babajide Sanwo-Olu announced the establishment of a Building Regulatory Task Force to oversee construction projects and ensure compliance with safety standards. The government also plans to review existing buildings and mandate necessary reinforcements for structures deemed unsafe.

However, these promises have been met with scepticism. Past assurances have often failed to translate into concrete action. For lasting change, systemic corruption must be rooted out, and a culture of accountability must be fostered within the construction industry.