By Akanimo Sampson
To create a clement environment for businesses, including real estate development to thrive, the Nigerian military says it needs a huge budget of not less than $6 billion in three years to effectively tackle the growing security crises across the country.
This is what the Defence Headquarters is asking for in spite of past questionable handling of defense funds in the country.
However, foremost housing development advocacy group, Housing Development Advocacy Network (HDAN), has been warning that the undying spate of insecurity in the country is hitting the real estate sector of economy real hard.
Alarmed by the security situation, the group warned that the sector will soon be grounded if nothing is urgently done to tackle the menace by the Federal Government.
Executive Director of the group, Festus Adebayo, a lawyer said in an interview in Abuja, Nigeria’s capital city said that ‘’all is not well with our country’s economy. At the moment,foreign investors are shunning our real estate sector because of the level of insecurity.’’
According to the housing development advocate and owner of the popular Housing Development program on AIT and TVC, ”Twitter took its regional headquarters to Ghana, ignoring Nigeria with the largest Twitter community in Africa because of insecurity.
”As you are most aware, the United States has warned its nationals against traveling to Nigeria. As an organization, we are worried that insecurity is adversely affecting the real estate sector, the highest employer of labour and contributor to the GDP in the industrialized countries like canada and USA
”We are strongly of the view that the Federal Government, elder statesmen, and state governments should come together and tackle the serious security challenges facing Nigeria. We are urging that in the interest of real estate development, and the economy as a whole should be addressed overtime.”
Going by the HDAN testimony, the festering insecurity in the country is threatening the real estate sector of Nigeria’s economy. The investment climate to attract investors does not appear to be quite clement.
The level of insecurity in different parts of the country, according to the group, has negative effects on real estate development in Nigeria. Amidst the security challenges is the persistent housing deficit Nigeria currently experiences.
”We are of the view that with the perpetuation of the security challenges, the housing deficit of 22 million as at 2019, may worsen as real estate investment dropping due to the crisis”, the HDAN chief says.
For DHQ’s Director of Production, Air Vice Marshall M. A. Yakubu, the country will have to budget not less than $2bn annually and consecutively for at least three years to be able to make the Armed Forces efficient.
Yakubu made this known in Abuja on Monday at a public hearing organised by the House of Representatives Committee on Defence, on the Armed Forces Support Trust Fund (Establishment) Bill, 2021.
Yakubu said even the sources of funding which the Bill specifies would be inadequate to tackle the problem.
The House had introduced the bill over the growing security crises across the country. It seeks to “creatively make funds available through deductions from statutory receipts of the Federal Government as well as voluntary donations” for five years, subject to extension.
However, Yakubu stated the annual N100bn being projected to be an additional fund to the Armed Forces would still leave them underfunded.
According to the military chief, ”the last time – about two weeks ago, we had a brief discussion of what we intend to generate from this. We are estimating something in the range of N100 billion per annum.
”Convert that to dollars because virtually all the equipment is imported. This will go nowhere! And it would not address the problem we are seeking to address unless we expand the sources.
“Nigerians, I know, are tired of being asked to pay for something. The level of poverty is severe. However, nobody wants to sleep with only one eye closed. Everybody is scared of traveling on the road because of insecurity.
”Therefore, I would urge that all stakeholders must educate citizens to understand the need to sacrifice because if we do not do that to address this problem, sincerely speaking, it would continue to be a mirage.”
Adding, Yakubu argued, ”if we are not able to raise a minimum of $2bn per annum in the next three years for a start, subsequently maybe we can begin to taper down the percentages; but for a start, we need a bulk sum because many of these manufacturers of equipment require 100 per cent down payment to even start production.
”So, you cannot sign a contract, for example with the US manufacturers, and pay 15 per cent mobilization as required by the Procurement Act. Nobody will look at you. Their terms must be followed.
”Many times we are asked to pay 100 per cent. An example is the Super Tucano. This one is on a government-to-government (basis). They insist on 100 per cent payment within 30 days.
No budgetary allocation will fund that.”
He noted that he was conversant with procurement and logistics in the military, with his experience of being a Defence attaché with the United States from 2014 to 2017, Director of Procurement at the headquarters of the Nigerian Air Force for another two years, and Chief of Logistics also at the headquarters of the NAF for another two years.
”Every year, how do we get our budget, capital budget specifically? An arbitrary envelope is simply thrown at us. This year, for example, your budget cap should be N20bn. It does not take into consideration what the actual needs are; what do you need to meet those needs? Now that is one.
”Secondly, we are all aware of the exchange rate fluctuations. We have run into problems where even working with approved budget envelopes, we have gone ahead to sign contracts for procurement of equipment and suddenly, the exchange rate collapses on us and we are unable to fund it.
We have found ourselves every year running back to the Federal Government for interventions. This is not sustainable”, he said.
