The spate of post-construction demolitions across the country has made real estate unattractive to investors, JOSEPHINE OGUNDEJI writes
Real estate was once one of the most secure and lucrative investments in the country. But that is no more, as poor regulatory oversights have made it unattractive to investors, who have suffered significant losses.
The current trend of post-construction demolitions, where completed buildings are pulled to the ground, signposts the reactionary stance of regulatory authorities in the real estate sector. Despite the risks it poses to investors, regulators often remain inert, failing to take decisive actions when the buildings are under construction.
Regulatory bodies, entrusted with the responsibility of safeguarding investor interests, have been said to be hesitant in intervene before construction begins. Whether due to bureaucratic inefficiencies, resource constraints, or a lack of proactive monitoring, regulators often overlook warning signs or fail to enforce compliance measures during the construction phase.
Property owners’ agony
In 2021, the Federal Capital Territory Administration demolished over 473 structures in the Iddo Sarki community in Abuja. During the demotion exercise, no fewer than 137 structures were brought down, including hostels, hotels, shops, kiosks, and make-shift eateries.
The Chairman of the FCT Ministerial Committee on City Sanitation, Ikharo Attah, said the exercise was necessary to maintain the Abuja Master Plan.
The scenes of demolished property, causing anguish among both landlords and residents across various parts of the country, present a troubling spectacle. Structures worth billions of naira had been reduced to rubble as certain state governments moved to enforce building regulations, though often after significant delays.
Experts believe such actions must be conducted strictly within the bounds of the law, without any hint of political vendettas.
In Lagos, demolitions led by the government and the Federal Housing Authority are taking place in different areas of the city.
Reasons cited for those demolitions range from unauthorised construction on designated lands meant for specific purposes to encroachment on drainage channels, and constructions lacking the necessary development permits.
In Festac Town, the FHA had identified 644 houses for complete demolition and 744 others for partial demolition. Similar situations are unfolding in Amuwo-Odofin, Oyingbo, Ebute-Meta, Lekki, Ajah, and other areas.
In some instances, there were allegations of state government officials conniving with landgrabbers to dispossess property owners of their possessions.
Demolition activities are also underway in Kaduna, Imo, and Anambra states.
Recently, approximately 140 houses in the Graceland community of Zaria Local Government Area, Kaduna State, were demolished. Officials from the Kaduna State Urban Planning and Development Agency claimed that the owners encroached on land belonging to the Nigerian College of Aviation Technology in Zaria.
The homeowners, on the other hand, countered that they lawfully acquired their plots and obtained all necessary documentation from the government.
Likewise, in September, the Oyo State Government disclosed plans to demolish unauthorised structures erected on its land in Akanran, Ona-Ara LGA. It cautioned encroachers to vacate immediately as the land was designated for a games village.
Residents of the newly developed Salanta Layout in the Kano metropolis are also under pressure, as the state government has identified some buildings in Salanta Layout for demolition, to “restore” the Kano master plan and reclaim land belonging to the Kano State Polytechnic, which was sold during the previous state administration.
In March 2023, the Anambra State Government resumed the demolition of structures in parts of Awka, the state capital. So far, over 100 buildings have been brought down.
Also, the Ogun State Government demolished a plaza owned by the former governor of the state, Gbenga Daniel’s wife, Olufunke.
The government explained that it took proactive measures by partially pulling down Datkem Plaza, Ijebu Ode.
In a statement signed by the Permanent Secretary, Ministry of Physical Planning and Urban Development, Olayiwola Abiodun, the government said the structure violated the building codes of the state with numerous defects.
He added that the developers ignored several efforts made by the state government to halt further development on-site.
On April 28, 2023, state officials supervised the demolition of not less than 13 structures in Ajao Estate, a residential enclave near Muritala Mohammed International Airport in Ikeja, Lagos State. Also, shanties on the outskirts of the estate were destroyed.
Addressing the media in Ikeja before the demolition, the General Manager of LASBCA, Gbolahan Oki, pointed out a critical issue: “Many property owners lacked the necessary permits from relevant agencies.”
He emphasised the precarious nature of those structures, located both within Ajao Estate and Shasha, another adjacent community, as they were built on a pipeline, heightening the risk of significant fire incidents.
Similarly, on March 8 this year, security personnel, accompanied by a task force from the Lagos State Building Control Agency, descended upon Hopeville Estate, located in the Sangotedo area of Eti-Osa Local Government Area, Lagos State, with two bulldozers and other heavy machinery for a demolition exercise that left many buildings in the estate in ruins.
Speaking on the development, LABSCA noted that prior notice of the demolition was served to the residents, citing non-approval of building plans as justification.
However, the residents claimed that the notice was insufficient, especially because there was a pending court case. They argued that they were unprepared for the demolition of their homes.
A visit to the estate revealed a scene of devastation, with many buildings reduced to rubble, and debris scattered across the streets.
Faced with the loss of their property, some homeowners have resorted to selling salvaged scraps and materials to scavengers.
As Hopeville Estate grapples with the ongoing demolition, residents are left with uncertainty and the daunting task of rebuilding their lives.
In May 2023, the Enugu State Government disclosed plans to demolish 200 homes in the Centenary Estate in Enugu. It enunciated that landlords had been notified since July 2021 to vacate the premises.
Early this year, residents and owners of over 200 houses worth billions of naira recently demolished by the Enugu State government on January 19, 2024, lamented their losses and called for adequate compensation.
The houses were demolished in Uzamagu Village in the Enugu South local government area of Enugu State.
Due process
Stakeholders in the built industry urged the government to follow due process before engaging in building demolition.
They stated that at an advocacy programme themed “Building Collapse and Application of Punitive Laws in Lagos State”, organised by the Building Collapse Prevention Guild, Ikeja Cell, and the Nigerian Bar Association, Ikeja Branch, which was held in Lagos recently.
Speaking at the event, a Senior Advocate of Nigeria, Femi Falana, said no law allowed the government to demolish buildings without due process.
He said, “Unless a building is going to collapse the next morning, and so you need an emergency, then demolition can occur. However, if you say that somebody’s land has been built upon, this is particularly to the agency in Alausa, Lagos State, called Land Grabbers Unit, to give a notice to whoever has defaulted or has committed a trespass.
“There is an agency in the Ministry of Physical Planning where a complaint can be made. If one loses, there is an avenue for an appeal. If the person loses again, the complainant can go to the High Court. The maximum period for determining the case is 28 days. Hence, let us follow the law when a building is marked for demolition.”
In the same vein, the Managing Director of Fame Oyster & Co. Nigeria, Femi Oyedele, said demolition of the without due process was an unwelcome development in the housing environment.
He said, “This process involves informing the illegal squatters about the intention of the government to take possession and demolish the illegal buildings. This will avail the squatters the opportunity to rescue some of the valuable building parts and look for alternative accommodation.
“Professor Tunde Agbola stated that housing is a bundle of joy. It is the most cherished asset of some people. It is like cutting and dismembering parts of their body when their houses are demolished. The government should respect the rights of the vulnerable people whose houses are being demolished.
“The government should also strengthen its rule of law to ensure prospective property developers follow physical development rules and regulations and the government should have efficient monitoring and control mechanisms to stop illegal construction of houses, especially on government land.”
Property owners build undercover
In separate interviews with The PRIMANEWS, regulators in the real estate sector claimed that most property owners build under cover to avoid detection or oversight.
The Public Relations Officer of Lagos State Building Control Agency, Olusegun Olaoye, said a property would not be demolished if not built to justification, adding that when cases substandard materials are used and pose a danger to other users, such buildings would be pulled down.
He asserted, “We have our officers all over the place. When a stop work notice is issued at the infant stage, these developers leverage the fact that we do not work on weekends, and most times these constructions are done either overnight or on weekends when our officers are not on the ground. In addition, they remove the stop work order and continue building.”
Similarly, the Director of Public Affairs, Lagos State Physical Planning Permit Authority, Abimbola Emdin-Umeh, claimed that the agency does not engage in outright demolition but removes parts of the building as warnings, to discourage further construction.
She said, “The post-construction is carried out because people build secretly at night and during weekends when staff are not working. Hence, sometimes, so many things would have gone on before the district officer in that area would have been able to notice the erection.”