THE NATION TUESDAY, SEPTEMBER 13, 2011
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PROPERTY/ENVIRONMENT
Tenancy Law stirs controversy in Lagos •Continued from Page 25
He argued that the piece of legislation is by no means a new way of thinking as far as tenant/landlord relationship is concerned in the state. Ipaye said what people seem not to realise is the wisdom behind the controversial law. He said when a prospective tenant is seeking accommodation and he is made to pay advance rent, he would squeeze his family and acquaintances to raise the initial sum and, henceforth, may not be able to pay leading to altercation between the parties. He said in such a situation, only a good and thorough lawyer can get reprieve for the property owner; and without that, a tenant may stay perpetually in a property that he is not paying for, if left unregulated He said: “If you can build a house with N50 million, is it the two years rent that will enable you offset the cost of your building? People are ready to pay the initial sum and then go to court afterwards; this enables tenants stay on a property though they are in default because they exploit the various loopholes in law. In any case, laws have several composite laws which are made to test standards of behaviour so that in willful contravention penalty will be meted”. Ipaye disagreed with the notion that the law will hamper development in the real estate sector, saying there is no rationale behind it. He stated that the landlord can engage in whatever parameter he likes in dealing with his tenant. He cited a case where a tenant stayed in a particular house for 15 years without paying to his landlord, exploiting the lapses in the judicial system due to stay of execution which deprived the landlord the use of his property. He said: “For a tenant wrongfully evicted, the children and wife are affected, this is part of the basis of the law which serves to protect the weak. The argument that the weaker part is the tenant, does not hold water. The law often times gives latitude to the tenant to deprive a landlord of his property.” He defended the portion of the law that stipulates that the party that engages a professional should pay for the services, wondering why a tenant should be encumbered with such fees. He also dispelled fears that the law may be thwarted by landlords lumping the professional fees with the rental figure making the tenant to pay indirectly. Ipaye said government deliberately exempted certain class of property, especially those occupied by banks and other commercial outfits from the tenancy law, as well as those in Ikoyi, Victoria Island, Lekki, Apapa and Ikeja GRA, saying those living in such areas have higher bargaining power. He said the Governor, Babatunde Fashola, has promised to unveil his administration’s plan on housing by
•From left: Adediji, Fatoki and Ipaye at the event
the end of the month, and the institution of a virile mortgage system in the state. A surveyor, Adebayo Belo, said not much work was done before the law saw the light of day. Principal Partner, Kola Akomolede & Co, Chief Kola Akomolede, while disagreeing with the contents of the law, said some people may be willing to pay for fieve to six years in advance for security of tenure and will go ahead to make improvements on the property if they are allowed to pay for the number of years they desire. He wondered why it should be considered illegal and frowned at, criminalising property ownership. The General Manager of NIC Properties, Samuel Ukpong, said the tenancy law in Section C tends towards the protection of the tenant against the landlord, wondering why the law is skewed against property ownership. He warned that the legislation will effect the real estate sector as developers may divest fearing that their investments may not be safe. In his welcome address, Chair-
man, Nigeria Institution of Estate Surveyors & Valuers (NIESV), Lagos branch, Sola Fatoki, said though government has a right to make laws, such laws must, however, be acceptable to the generality of the people. While cristicising the poor performance in housing, especially for the low income earners, Fatoki, said: “This law may further worsen the situation for the low income earners which it seeks to protect. It should be noted that rent control in the state since the time of Brigadier Mobolaji Johnson (rtd) in the 70s and that of Brigadier Buba Marwa in the 90s, though well intended, did not achieve the desired purpose because the demand for housing is usually higher than supply.” Fatoki stressed the need for government to provide a conducive and an enabling environment for housing developments in the state which, he said, could be achieved through adequate land acquisition process, easy and non expensive title documentation system, prompt building approval process, access to mortgage through the Lagos State
PHOTO: BADE DARAMOLA
Building Investment Company (LBIC) as well as provision of infrastructure, among others. He advised the government to reduce the cost of obtaining certificate of occupancy, consent and building approvals which acts as a disincentive to housing development. He called for the streamlining of the approval process as it would invariably bring down the high rents in parts of the state. Fatoki said: “If government provides houses for the poor masses under its social contract with the people, and there are enough houses at reasonable prices, private developers would be forced to review their prices. The Lagos State Development and Property Corporation (LSDPC) should be used for this as done by the Jakande administration in the 80s.” Managing Partner of Laide Osikoya & Associates, Mr Laide Osikoya, said while he shares the concern of the state government in wanting to give succour to prospective and sitting tenants and sympatise with tenants for the rigours sometimes experienced while leasing properties, it is sad to note
‘If government provides houses for the poor masses under its social contract with the people, and there are enough houses at reasonable prices, private developers would be forced to review their prices. The Lagos State Development and Property Corporation (LSDPC) should be used for this as done by the Jakande administration in the 80s’
Jonathan for Archibuilt 2011
T
HE 22nd edition of the yearly Archibuilt exhibition organised by the Nigerian Institute of Architects (NIA) will be flagged off by President Goodluck Jonathan. Archibuilt 2011 will take place from Saturday and end on Thursday at the Ladi Kwali Hall, Sheraton Hotels and Towers, Abuja. Vice-President, Namadi Sambo, will be the chief guest of honour at the event. Archibuilt is sub-Saharan Africa’s largest building materials, urban development and construction technology expo. As usual, it will feature a threeday international workshop with experts from across the world sharing insights and perspectives on the theme Cities, urbanisation and development.
By Okwy Iroegbu Asst. Editor
The sub-themes for this year are: Sustainability and Livability, Rural-Urban Migration, Urban Renewal Initiatives, Sustainable Urban Transportation, Power and City Development as well as Urbanisation and National Development. This year’s workshop is meant to build on the success of last year’s theme which was “The Development of Mega Cities in Emerging Economies.” Last year’s workshop attracted seasoned professionals from within and outside the country. This has led to the Nigerian Institute of Architects’ council’s approval of this year’s and subsequent Archibuilt workshops as a CPDP credits awarding pro-
gramme of the institute. This makes the workshop even more compelling and attractive for practicing architects. President, Nigerian Institute of Architects, Olatunji O. Bolu, in his remarks said: ‘’Archibuilt 2011 will provide a platform where the best names and minds in the built environment industry will be on spectacular display for the benefit of stakeholders including government at all levels, professionals in the building and construction in-
dustry as well as the general public. Archibuilt has over the years attracted good visitor participation with a cumulative of about 350,000. It has evolved into a veritable tool which the institute utilises to contribute to national development by creating a framework for the infusion of international ideas and a cross fertilisation of local public opinion towards the success of the national agenda. Chairman of Archibuilt Commit-
‘ It will be recalled that last year’s workshop attracted seasoned professionals within and outside the country’
that the implementation of the new law may be hampered in that the state government failed to consult widely with the stakeholders before enacting the law. He said: “In the present situation where demand for housing far outstrips supply, control measures such as the new law will achieve very little. “What the government should have done, as a first measure, is to regulate the practice of estate agency which had been greatly infiltrated by quacks. Afterall, most of the problems which the government seeks to redress emanate from these quacks. “The practice of estate agency should be brought nationally under the control of the Nigerian Institution of Estate Surveyors and Valuers (N.I.E.S.V). Recently, I read of an innocent prospective tenant charged 40 percent agency fee by a quack. No estate surveyor will do that as we have our approved scale of professional fees. It is such sad and ancillary experiences that propelled government to enact the law. “NIESV has a learning centre which can train and certify anyone who wishes to practise estate agency while the government should clamp down on quacks. For a long term solution, the government should introduce measures that will improve the supply of housing, such as mass housing, relaxed import duties,” he said. President, Nigeria Institution of Estate Surveyors & Valuers (NIESV), Mr Bode Adediji, regretted that the tenancy law had no input from his members whose contributions would have proved invaluable to the objectives and intendments of the Act. He hinted that the state government must have enacted the law out of desperation to confront the hydra-headed monster which the housing crisis has become since previous efforts had proved inadequate. He said: “Unless we confront housing shortages by way of addressing all the factors which are responsible for the pathetic situations, the newly enacted law would merely turn out to be a diversionary tactics.” Adediji said housing shortage should be addressed by identifying factors responsible for the pathetic situation the housing sector has found itself. He observed that a number of issues militate against housing development, such as finance, access to land, escalating cost of building materials, lack of specialists entrepreneurship and absence of well-defined and implementable housing policy. Adedeji said without concrete efforts by the public and the private sector in building more homes, the housing crisis will escalate rather than abate regardless of any legislation. He warned that the nation may unwittingly be re-primitivising a crucial sector of the economy if the tenancy law is upheld.
tee, A. S. Abubakar, is optimistic that this year’s event will deliver tremendous value to participants which include major players in the industry, from public sector, decision makers, architects, specifiers, contractors, manufacturers, urban designers and the end users with the combined objective of creating a better built environment for the Nigerians, explore new frontiers in business and expand market share. He noted that Archibuilt has been getting better with every new edition. This year’s edition is, therefore, going to be the most spectacular edition yet, he added. He enjoined those who love a perfect built environment not to miss the golden platform provided by the event.