DIASPORA INVESTMENT: NIGERIA FAST LOSING OUT TO RWANDA, SOUTH AFRICA IN REAL ESTATE; OLAMIDE ADELEYE CALLS FOR IMPLEMENTATION OF REGULATION
By Oki Samson, Trek Africa Newspaper
Principal Counsel, YBA and Co. Solicitors, Barr. Olamide Adeleye
While many Nigerians in the diaspora are willing to invest in the multi-million naira real estate industry in Nigeria, they fear doing so because of lack of regulation or where available, they are not implemented. This is making Nigeria’s economy to lose much-needed foreign currency to other African countries like Rwanda, South Africa, among others.
It is against this backdrop that Trek Africa Newspaper had an exclusive chat with Olamide Adeleye, Principal Counsel, YBA and Co. Solicitors, a law firm which has special interest in commercial law and real estate/property law.
With 95% of clientele base as Nigerians in the diaspora and conducting 90% of its business practice is in the Nigerian real estate sector, YBA and Co. Solicitors participated in the just-concluded Lagos State Real Estate Regulatory Authority (LASRERA) Real Estate Stakeholders Forum held in conjunction with the Construction Projects and Infrastructure Committee of the Section on Business Law, Nigerian Bar Association (CPIC, NBA-SBL).
The Principal Counsel, Olamide Adeleye provided deep insight into the vast Nigerian real estate industry.
Trek Africa: Give us your overview of this Conference?
Olamide Adeleye: It is quite applaudable and meritorious that Lagos State Government has decided to take this step. It is high time because a lot of policies must be put in place to instill confidence in real estate investment especially for Nigerians outside.
A big thank you to the Lagos State Government and NBA-SBL.
Principal Counsel, YBA and Co. Solicitors, Barr. Olamide Adeleye
Trek Africa: What are the implications of the lack of policies in the industry?
Olamide Adeleye: When the sector is not well-regulated, it discourages people in the Diaspora and at the end of the day, the government loses revenue. Nigerians are going to Rwanda and South Africa because the sector is well-regulated and they have more confidence over there.
By putting together this forum, the government is actually taking a huge step to build credibility and instill transparency which at the end of the day brings confidence for those within and outside the country. Many people have bitter experience when it comes to issues of real estate transactions.
Trek Africa: Practicing in this sector, what will be your no. 1 advice to investors?
Olamide Adeleye: Never get into real estate transaction without involving a lawyer and the lawyer you are involving must ensure that they are doing due diligence. The due diligence you do for a property that has C of O or Deed of Assignment will be different from one that is excised.
You need social due diligence, go into the community, find out the family, meet the Baale to ensure the person you are buying from is the authentic person who has mandate to sell. Due diligience is very key. Don’t be pennywise, pound foolish.
Trek Africa: On the issue of rental payment, what applies in other climes and what do you suggest to be done?
Olamide Adeleye: In advanced societies, tenancy is on a monthly basis. It works in that society because the judicial system works really well in case a tenant defaults, it doesn’t take 2 weeks to get the tenant out but here our eviction process is cumbersome and complex.
In recent times, government has made improvement on that which is applaudable but they have to continue to look for ways to encourage the property owners and the tenants. Coming to this conference, I have learned that there is an insurance scheme.
The fundamental reason why government is doing this is because people earn salary on a monthly basis not annually so if they earn monthly, why should they be made to pay annual rental. The fact that it is the government that carries majority of the risk is a good starting point. We move from stage to stage. I am looking forward to how this will play out.
Trek Africa: Moving forward, what should the government do?
Olamide Adeleye: I will ask the government not to stop doing this because times are changing and the way we do business all over the world is changing. So we need to keep learning because when we stop learning, we stop growing. We need to keep learning so that we can encourage people and grow the real estate sector and reduce the housing deficit.
