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Developers lose N10b as FCTA enforces land use plan

Published by Guardian on Mon, 12 Dec 2011


THE dust raised by the quarrel between the members of the Real Estate Developers Association of Nigeria (REDAN) and Abuja Metropolitan Management Council (AMMC) may have settled but the developers are still counting their losses incured in course of the demolition, which is estimated to about N10 billion.The development control department of AMMC, an agency of the Federal Capital Territory Authority (FCTA) had claimed that some housing projects on the Airport road and part of Bwari Area Council were being built in contravention of existing land use plan, building on buffer zones and without appropriate approved designs.Senior officials of REDAN are lamenting the losses on investment by their members, which would have initially resolved and checked if the AMMC officials had dialogue with body, as such actions will deep the quest to close the nation's housing deficit that stands at about 16 million units. The association recently petitioned the National Assembly and threatened legal action on the matter.AMMC has expressed readiness of the agency to work with the organized private sector, especially REDAN in ensuring sanity in the real estate sector of the FCT as well as urged developers, especially those trying to put up new estates in the Lugbe area to wait for the new layout being prepared by the Urban Regional Planning Department (URPD) before commencing work.But last week, the parties seem to have reached a truce as senior officials of Development Control office and REDAN agreed to set-up of a joint task force comprising both parties' representatives to carry out audit of estate projects that defaulted and to harmonise them with the layout plan.REDAN President, Chief Olabode Afolayan made this known in Lagos last week said that the parties agreed that no demolition would be carried out in the next 60 days. He also confirmed that a joint committee has been set up to explore options for harmonious relationship with the FCTA management.'We have agreed to work with the Urban and Regional Planning Department of the FCTA, which is currently redesigning the entire layout to jointly appraise the entire thing and we are doing that with all the urgency it requires. The problem as identified is a lot on the part of the developers and some on the part of government.'Developers are confronted with numerous hash challenges in their operations, especially in some states and most recently too, Abuja. REDAN is fully aware of this and hopes to address many of the myriad of problems through the National Housing reform committee set-up by the government, which REDAN is a principal member.'We have also tabled our matter with the Minister of Housing, Land and Urban Development just as we will continue to work very closely with the National Assembly Committee on Housing and Habitats to correct some of these anomalies clouding the sector.
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