Expert calls for establishment of Construction Devt Bank
Mr Bisi Adedire, the Chairman, Nigerian Institute of Town Planners (NITP), Lagos branch, on Thursday called for the establishment of a Construction Development Bank to assist operators in the property industry.
Adedire made the call while speaking with the News Agency of Nigeria (NAN) in Lagos.
He said that the bank would serve as a bank of last resort and would help developers to finance long-term housing projects.
He attributed the poor growth of the local property industry to inadequate funding.
Adedire said that building and construction projects were capital-intensive and required large sum of money to accomplish.
He urged operators in the building construction industry to be more proactive with the plan toward setting up a Construction Development Bank.
He said that it was not reasonable to use short-term loans to finance long-term projects, as the developer would be short-changed in the process since he would not be able to recoup his funds on time.
“This is why we are canvassing for the establishment of the bank because it will provide much relief in terms of funding the sector,’’ Adedire said.
“The amount capital needed for growth and sustenance of the industry is not available locally. Also, there are no viable sources through which operators can source funds.
“There is the need for government to boost property operators’ financial capacity for the industry to grow and to enhance its contribution to the Gross Domestic Product (GDP),’’ he said.
Adedire said that funding long-term housing projects with short-term funds, which was rampant in the industry, was the challenge that hindered the development of the industry.
“Since it has become obvious that the government alone cannot provide the needed houses for the country, it, therefore, becomes paramount for private operators to fashion out strategies to grow the industry,” he said.