ByYinka Kolawole & Favour Nnabugwu
Real Estate Developers Association of Nigeria, REDAN, has signed a $200 million (about N32 billion) pact with Pan African housing finance institution, Shelter Afrique, for development of housing units in Nigeria within the next five years.
Director Business Development, Shelter Afrique, Mr. Mouhamadou Gueye, disclosed this when he visited REDAN office in Abuja, following the signing of a Memorandum of Understanding, MoU, between the two organisations last month in Nairobi, Kenya.
He commended the existing relationship between the company and the association while pleading for a stronger synergy in order to help boost housing delivery in Nigeria. “We have some strong relationship with REDAN which has been formalised in the MoU signed in Nairobi last month. We will continue to implement the MoU and strengthen our relationship.
Shelter Afrique is spread across 44 countries with a commitment to provide affordable mass housing to middle and low income people. We are committing $200 million into housing units in Nigeria within the next five years.
“Also our mission is to actively support Nigeria’s government’s programme of building 10,000 housing units and we cannot do that without the support of REDAN.
Shelter Afrique believes that Nigeria is one of the strong markets to help the government in the implementation of the 10,000 housing units. We believe that in this project REDAN is one of our main partner that will help in the implementation of this project in Nigeria and that was why they were in Nairobi last month to sign the MoU. We are focusing on affordable and mass housing development. Those are our two key aspects of our strategy in Nigeria,” he stated.
REDAN President, Chief Emmanuel Afolayan, in his remarks, said the association will render the necessary support to the finance institution in housing development in the country. He said it is required for any institution or individual willing to participate actively in housing development in the country to be a member of the association to enjoy all the benefits, support and cooperation that will speed up collective growth
“Except you are a member of REDAN, you cannot take Estate Development Loan, EDL, from Federal Mortgage Bank of Nigeria, FMBN. We are working with EFCC and the Financial Reporting Standard to make sure that our members abide and comply with rules and regulations of real estate business in Nigeria except you are a member of REDAN.
We don’t dabble into individual business operations, but we guide them in such a way that they will not abuse the system and as a member of the association, it is mandatory and obligatory for us to provide our members with all the assistance required of us.
We believe that the survival of individual members of the association is paramount and the development of the sector is based on the financial institutions that are providing financial leverage for members in the sector hence it is a collective growth,” he stated.
Afolayan disclosed that REDAN groups its members according to their financial muscle and capability. “The categorisation is basically an appraisal of classifying developers in line with their financial capacity and capability. We have the category A which are the lower cadre class of developers who are just coming on board hence the need to encourage them.
Then we have the category B, who are people with capital base of less than N100 million. Categories C are people that can do transaction between N300 million and N500 million, while Category D is the highest of them all, they are people with huge financial capacity. These are the class of people that can develop houses in thousands,” he declared.