Chief Olusegun Bamgbade, the Chairman of HOB Estate Limited, is the pioneer of HOB Estates in Akure, Ondo State. In the interview with DAYO AYEYEMI, the real estate developer canvasses major reformation of the Federal Mortgage Bank of Nigeria (FMBN) to enhance service delivery. He also speaks on other germane challenges confronting Nigeria, the housing industry and real estate developers, suggesting ways out of the woods.
What is the situation of housing and major infrastructure in the country in the last 61 years?
My assessment aligns with the general view of the populace, that is, the failure of leadership. There’s need for improvement, there is need for seriousness, there is need for sincerity of purpose and there is need for patriotism among the elites and leaders of the country.
If the leaders can jettison nepotism and be fair to all, Nigeria can become great in all spheres.
In what ways have the leadership failed to enhance home ownership among the citizens, especially the low and middle income earners?
The leadership has politicised the issue of housing. Imagine the housing revolution of President Shehu Shagari in the 80s, where the Executive Governor of Oyo State bulldozed the houses built with taxpayers’ money using tax payers’ bulldozers and the taxpayers didn’t see anything wrong in that, because of politics.
The houses built with taxpayers’ money in Owo, Ondo State by the Federal Government during the time of Alhaji Shehu Shagari were abandoned to rot away, all in the name of politics. Shagari Housing Estate in Owo, Ondo State has been taken over by dangerous reptiles and thick forests. This is just to mention a few.
The leadership failed to regard housing as an essential part of good governance. Without infrastructure and good housing provisions, there is no governance. Everyone must have a shelter. Everyone must enjoy a taste of good governance via infrastructures. The leadership failed to realise that absence of good shelter will affect per capita products in the country. When you don’t have a good roof over your head, you can’t have a good rest. When you fail to rest well, you can’t be efficient at work thereby reducing the per capita products.
The leadership should put up good thinking caps and pilot the affairs of the nation right. Time waits for no one.
What are the major challenges?
The major challenges confronting housing and other infrastructural developments in the country are hydra-headed; they are multifaceted, they are numerous. They include corruption, nepotism, partisanship, political foolishness, and so many other vices too numerous to mention.
Some would say its lack of funds, but an intelligent mind knows that funds are not the issue but the foolishness of the leadership on salient matters affecting the citizens. Where there is a will, there is a way.
Why is it that after 61 years of independence, the nation’s mortgage system is still crawling?
The nation’s mortgage system is crawling because of nepotism.
Where you have to place your people whether competent or not to deliver housing that they don’t see as necessary, you have failed woefully. A top man in the housing sector once said and I quote “…..we are not interested in building houses; we prefer to build state offices for the Federal Mortgage Bank….” It is obvious that such a person will personally profit more from building state offices through the award of contracts than building houses for the masses. Self-aggrandisement is fast destroying collective responsibility in the country.
How have the private developers fared?
Most private developers are striving to survive in a harsh economy.
The private developers are being faced with lackadaisical mortgage system operators who don’t care about what happens to housing developments. If their private pockets are filled, the masses can go to hell. Every private developer in this country has a tale of woes to tell in various areas.
What are the ways forward for the nation’s housing, mortgage and infrastructure sector?
The ways forward for the nation’s housing, mortgage and infrastructure developments are clear and simple. The Federal Government should raise a $25 billion fund for FMBN, payable in 25 years at one per cent interest per annum with five years moratorium secured with Sovereign Guarantee.
Government should also mandate FMBN to give Estate Development Loans to real estate developers at two per cent per annum.
It should also compel FMBN to give individual house loans at two per annum.
Besides, the government should mandate FMBN to conclude Estate Development Loans as well as individual house loans within 30 days from the date of application respectively. It should ensure direct monthly payments of house loans by successful beneficiaries via Bank Verification Numbers without necessarily going through Primary Mortgage Banks thereby reducing unnecessary time wastage.
It should initiate amendment procedures at the National Assembly to accommodate the issues raised on ways forward; turn FMBN to a Public Limited Liability Company owned by Nigerians and interested corporate bodies in Nigeria. Government should make FMBN a revenue generating corporation and stop giving the bank subventions. Government should reduce FMBN staff strength by half and inject proficient mortgage operators for efficient housing delivery.
It should redeploy nonessential/idle staff to the relevant ministries, agency or parastatals for efficiency in government. For instance, an agricultural scientist should be redeployed to the ministry of agriculture; a microbiologist should be redeployed to the ministry of health, etc.
FMBN’s operations must be digitised in all spheres to reduce executive red tapism. Audit FMBN’s operations from inception with the intention not to persecute or prosecute any erring officer but to block the loopholes and chat a better way forward.
In addition, the government should start taxing every taxable adult using BVN and Voters Registration as compulsory and essential working tools. Only taxpayers should be eligible to vote. You cannot vote if you don’t have verified evidence of tax payment for at least a year. INEC must disqualify everyone who has no verified tax record. All these nonsense about bogus population figures will die naturally when voters are verified by tax identification. When the voters are serious people, the politicians will be serious with political developments and will therefore be interested in building houses for the masses.