The National President, Estate, Rents and Commission Agents Association Of Nigeria (ERCAAN), Hon. Godwin Alenkhe in this interview with OWOLEYE OLUWAKAYODE has called on Federal government to reduce tax on imported building materials as a way to bridge the gap of housing deficit in the country.
What is ERCAAN all about?
ERCAAN is an association that was formed to regulate the genuine service provider and pursue the call mandate of bringing honesty to real estate business.
The mission of ERCAAN is to work towards creating and recreating a peaceful environment, where genuine real estate thrive and the vision of the founding father is to articulate and bring into commendable ways of transacting businesses.
What was the impact of COVID-19 pandemic on real estate business in Nigeria?
Quite unfortunate, the global pandemic affected real estate business. In fact, only those that have genuine intention to buy and rent home are doing that.
We went through a lot of things. In fact, a lot of people are employees and their income were not regular during that people, due to this government’s decision to shut a lot of investment and enterprise and this really affected business enterprise of our members.
Positively, it has brought us together as an association and made us to look inward to define and design local alternatives that have to do with real estate investments and development, which was our gain during the pandemic lockdown.
What is the drive for investors and developers to invest into real estate business?
The drive for investors to invest into real estate sector is consuming public. The drive again is those that have intentions and believe to patronize Nigeria products. Nigeria is a large economy for real estate investment and we are talking of a country of 200 million.
A country of 200 million is having housing deficit. We have about 14 million housing deficit and genuine investors that have the tenacity to invest will look into real estate business and begin to invest more into building industries. Population is the major driver for investors and developers in real estate business.
How can FG bridge housing deficit in Nigeria?
Unfortunately, building materials including cement have doubled recently. It is quite unfortunate that the global economy and the situation in the country affected the building material industries. For us, what we access locally will be something that doesn’t need increase in prices.
Again, what can we say about transportation moving sand, cements from one part of the country to another?
The haulage that is involved takes a lot in terms of transportation cost and that has come to have adverse effects on products of housing materials.
What we are saying is that government should try to reduce taxes from imported building materials so that Nigerian can have means to gain access of building their own homes.
As an association, we are also advocating that government should subside housing and that is one thing we are trying to champion, believing that everyone living in Nigerian should have a roof over their head.
Under your leadership, how have you been able to correct unethical conducts of members?
As a body that conforms with a vision and mission of the founding fathers that believes as a body that need to correct the decay that is affecting the industry, we have placed before our members different policies implemented successfully.
We have also started the training or re-training our members to bring out good knowledgeable, quality and efficient service providers.
We have done this to the level of enhancing their capacity and ability; we organized seminars and workshops for our members.
‘The ethical conduct’ of the business is really adhered to by our members. The disciplinary measures are in place for any member that defaults and their certificate will be withdrawn if found wanting.
How has ERCAAN restored sanity, integrity and credibility to real estate profession?
As a body that was incorporated in 1991, I was opportuned to run the administration of Lagos chapter for five years before becoming national president last year.
We have never been found wanting in the area of discharging our professional duties.
To us, we always spell it out to our members that any member that is found wanting will have his license withdrawn.
More so, to create that enabling environment, we have put in place so many measures to maintain credibility among members.
We have created platforms for our members to advertise and drive their businesses to the extent of internal business among members. We have our own challenges.
Our challenges depend on the fact that we are not the main body that regulates or controls the activities of real estate in Nigeria.
We are just one of the few bodies recognized by the federal government to control the activities of the service providers but we still have people on the street who are not part of our association.
We feel that government should come and assist to enforce and raid those that are tarnishing the image of the profession and prosecute them. That is the only way that the real estate profession can be standardised.
What is your association doing to curb the menace of dilapidated buildings in Nigeria?
We are a service provider not major players in the building industries. But as a service provider, the onus felt upon us is to also make sure that properties that are habitable are given to our clients and we have partners with some developers, institutions, associations and some companies that are credible and efficient in the industry.
Another thing as an agency is that we are involved in monitoring anything that has to do with Lagos State buildings or properties.
The Lagos State government has allegiance and it is the duties of state housing agency to monitor the industry.
The agency is to be properly structured to meet up with the ideal and agenda of the present administration. We are calling upon the state government to do everything within their power.
What is ERCAAN doing to make housing rent affordable for Nigerian?
To us, there must be a standard. Government must strive and look at the cost of housing. The cost of house rent has gone to outrageous rates that even average income earners find it very difficult to rent home.
What we are advocating for is that there must be some sort of rent fixing.. Government must be able to come out and fix house rent in the country so that those under the certain income limit can be opportuned to rent homes of their desire.
Fixing of rent should be brought back so that it will take care of this issue of exorbitant homes. Government should also look into the cost of building materials and reduce taxes on imported building materials.
Government must also caution local producers on the need to make affordable the cost of cement that are locally produced as it has adverse effects on the rent in the country.
What is your body doing to increase intellectual capacity of members?
ERCAAN has various committees but the most important committee of our association is the committee on Education and Human Development.
The committee is saddled with the responsibility of updating the knowledge of our members in meeting the standard of real estate practitioners globally and that committee has commenced work.
To the glory of God, we are proposing to have Institute of Real Estate which has already been put on the skeletal work, and our partners are coming to invest in that area. Not until we have our institutions of our own to train our members we are yet to get there.
So, we are working towards that but in the mean time, we have taken our members to training and seminars and that has been on for years.
You cannot come into this association without being trained. We will train you before handing you a certificate.