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  • Writer's pictureAbdulgafar Asimi

The Influence of Real Estate Industry In Nigeria Economy



The role and relevance of the Real Estate and Housing Development Industry of any modern economy can’t be over-emphasized. And Nigerian is not an exception.

Interestingly, the industry in Nigeria has continued to evolve in the entire process of socio-economic development by consistently recording higher levels of growth. For instance the sector has developed and maintained projects, generated employment and added value to the process of economic development.

Worrisome however, is that this important sector has continued to suffer setbacks owing to inconsistencies and failed government policies, high cost of services, inadequate funding and other related issues.

Consequently, the industry has recorded hoe level of patronage which no doubt has adversely affected the economy.

Therefore, questions are being asked: what is the importance of the Housing Development and Construction Industry to economic growth in Nigerian? What is the relevance of Architectural firms? What is the role of government? How committed is the Organized Private Sector? And how is the public concerned?

In apparent efforts to bring the industry back to its glory, operators have been adopting different measures to regain public confidence.


It is in the light of the fore – going therefore, that we are with the official endorsement of the Life Patron of the Estate Developers Association of Nigerian, REDAN = Alh Lateef Jakande, putting together a special, well researched and incisive thirteen (13) weeks TV package on the Real Estate and Housing Industry in Nigeria, with particular reference to its strategic relevance to the growth and development of the economy.

Accordingly, as the Managing Director/CEO of Asgaf Global Concepts limited you have been selected as a special interviewee. To this end, we request that you arrange to receive our TV team in your office on Friday 13th September, 2019 by 10:00am for an exclusive interview.



QUESTION: Give us a brief history of Asgaf Global Concepts Limited.

RESPONSE: Asgaf Global Concepts Limited is a diversified and fully integrated conglomerate. We started business in 2012 with a sole aim to provide local value added services that meet the basic needs of the populace. Our current interest includes Real Estate, Transportation, and Agricultural sector of the economy.

QUESTION: What is the vision and mission of Asgaf Global Concepts Limited?

RESPONSE: Our mission is to deliver excellent services to our customers, given their highest value for their money and contributing to societal development. While we continue to grow its vision of becoming the leading provider of essential services in Real Estate, Transportation and Agricultural sector

QUESTION : What are the core values of Asgaf Global Concepts Limited?

RESPONSE: Integrity, Transparency and customer satisfaction

QUESTION : Can you tell us about the past and present projects you have handle?

RESPONSE: We have engaged in various projects through partnership with some investors and developer. We have a 4units of 3 bedroom tracers at the back of Mobil Oribanwa, there is 6 unit of 4bedroom detached duplexes at Mobil road Ilaje. Also there is proposed estate at Ibeju town named Smart City Estate that we are still working on.

QUESTION: Can you give us an appraisal of the real estate sector in Nigeria so far?

RESPONSE: The Nigeria Real Estate Sector has recorded and unsteady and inconsistent growth over the last four years. And the major driver to this is that the current economy policy doesn’t favor foreign inventors. Majority of the investors are skeptical about investing the money in this kind of unstable economy as nobody wants to take the risk.

QUESTION: What are your thoughts on affordable housing?

RESPONSE: housing is a basic need of man and the ideal of affordability varies. I think for common man in Nigeria. It should be between 15 – 25 million putting creations into consideration. So the government has a lot of role to play here as regard the minimum wage policy. How do you to plan housing for someone collecting N30k with an annual pay of N360k?

QUESTION : How true is it that players in the real estate sector have not been meeting the needs of the changing times?

RESPONSE: I will say No, because there are a lot of property out there. Investors funds are stuck without getting a good value further be it on rentals or sales.

QUESTION: What solutions do you have with the rising challenge of access to mortgage loans?

RESPONSE: Like I said earlier; housing is one of the basic necessities of life, however it needs some level of finance. As a concept which focuses on housing affordability, we have come with a platform that we tag “Real Estate Crowd funding”, with the scheme interested individual will save a minimum of N250k with us in form of investment. The money will be invested on real estate projects on their behalf and the ROI will be sum up to the initial investment. At the end, members of the platform can use the investment plus the returns to own a property in any of our projects or cash out for other purposes.

QUESTION: Do you think the government is doing enough to encourage private sector participation in the sector

RESPONSE: I will say No, and my reason is based on the major shortcoming which has been with the ownership rights under the land use Act 1978, which covers ownership of all land to the governors of each states and this is a substantial determent to housing and housing investment.

Actually, the right of occupancy is endorsed with a C of O issued to the recipient. But this process often delays and adds significant cost to the registration. This affects the individuals to acquire landed properties. Take a look at the cost of survey in Lagos and the recent change in the land use charge. Somebody will buy land in Ibeju – Lekki now and be expected to pay 350, 000 to 400, 000 to have a survey.

QUESTION: What specific role should government play to ensure affordability?

RESPONSE: For housing affordability, government should introduce inventive products like housing microfinance, the government can as well renew the policy of low – cost housing estate like that of Abraham Adesanya as well as build more high – risk apartment and satellite town. Government should also review the atmosphere policies & procedures to land registration and titling.

QUESTION: Amid housing deficit, why are houses empty in certain areas in Nigeria and how can we change the narrative?

RESPONSE: I don’t think there is housing deficiency in Nigeria currently; I will rather say there is surplus. It can just be the most people could not afford them due to pricing or location as to nearby to workplace or environment as to flooding or bad road network or power supply. And this is where people try to relocate from one house to another.

So to curb these excesses, government can bring a regulating price policies like 1bedroom in this location should be between so and so range, while 4bedrooms should be so and so range, with this, investors will use this to set his cost of building also users will have no choice than to take the flat that suit their budget.

Investors will not go and use millions of naira to build 1bedroom flat in Epe part of Lagos and expect people to rent it for 700k per annum.

QUESTION How can designs, layout and facility management be improved upon?

ANSWER I think it’s all about professionalism, I am economist by discipline but I chose real estate as a profession through training and internship. There are a lot of road side agents or facilitators out there who are just after client’s money and not to render services. I think having a regulating body aside the NIESV that focuses on surveyor and values should be put in place such that you cannot practice the profession except you are an expert either by discipline or by training.

QUESTION: What innovations are you adopting to counter the hill in the sector?

RESPONSE: Well as the economy is, with a rising construction cost and fewer buyers demanding for their cash, developers find themselves on the short end if the stick af6ter several years of dictating in the market.

Developers should just use what we call “PPMIV”

  1. Product Innovation: this include change of exterior designs, layouts or adding special features like after sales services and utilize the Green Technologies.

  2. Process Innovation: Besides building the end – products, real estate developer must implement the process that can impact the overall business performance such as finance as in the case of Real Estate Investment Fund (REIF), crowd funding, as well as advancement marketing.

  3. Material Innovation: this is a major input in Real Estate Industry. This also need to be considered to improve the environmental objections, durability and the core reductions

  4. Technological innovation: Real Estate players should use this internet era in collecting and analyzing marketing data, tracking construction information and transaction.

  5. Value Innovation: this will redefine customers experience from what already exist in the market. We can achieve this by studying what our clients want.

QUESTION: How are you strategizing against the industry’s data challenge

RESPONSE: I think it is much easier now with the help of I.C.T, we use internet to identify what people are demanding for along with the prices. We also use this same means to identify threading location within the city.

QUESTION: Lastly, tell us about yourself

RESPONSE: I am AbdulGafar Asimi by name, born and bred in Iseyin part of Oyo state. I had my tertiary education at Fountain University, Osogbo where I studied economics & Financial Studies, I graduated in 2011. I have been in business I will say yes from 100level as a card dealer and I was able to be one of these that made life easier if students through selling of basic needs like bread, drinks. E.t.c and I was known as “Asgaf O Yes”.

I also earn a dealership with MTN at Gusau, Zamfara state during my mandatory NYSC with a brand “Asgaf Communication.”

I have passion for any legal business that enhances a better life to humanity.

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