Real estate has continued to play a tremendous role
in the 21st century. Land is inherently connected to the economic development
and well-being of any nation, thereby necessitating some intervention by
prudent governments. Land constitutes a consequential indicator for man’s
wealth and as economic activities have become more urban over time, the crucial
role played by land in development cannot be undermined. There is hardly any
business conglomerate that does not need to be aided by some form of real estate:
from the small scale businesses that need offices, to the large scale
businesses that need factories.
Therefore, it is not arduous to comprehend why
there is a high demand for land. Consequently, against this backdrop, major
economies, through some very thought out land policies, comprehensively address
challenges they encounter in the real estate sector. This is not the exact
situation here in Nigeria and any events similar to Lekki Gardens’ latest
incidence would pose a heavy threat to the real estate industry.
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| Lagos State Governor, Akinwunmi Ambode |
Lekki Gardens and the Lagos state government
Lekki Gardens was established in 2012. It is one of
the very few real estate brands working in Nigeria, despite the unfavourable
conditions and has invested massively in Nigeria’s real estate industry. The
brand, which has won the hearts of so many Nigerians due to its exquisite and
prepossessing houses built across the country, was beginning to change the face
of real estate in Nigeria when tragedy struck on Tuesday the 8th of March 2016.
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| Lekki Gardens CEO Richard Nyong |
The 5-storey building which came crashing down on
Tuesday killed over 30 people. Upon investigation by the Lagos state
government, the collapsed building was discovered to have been served a
contravention notice for exceeding the approved floors and thereafter sealed by
the Lagos State Building Control Agency. Consequently, negligence claimed the
lives of innocent Nigerians.
The
Commissioner for Information and Strategy, Steve Ayorinde, stated upon
preliminary reports and investigation that “In a brazen act of defiance and
impunity, the owners of the building, Messrs Lekki Worldwide Estate Limited,
the promoters of Lekki Gardens, criminally unsealed the property and continued
building beyond the approved floors until the unfortunate incident of Tuesday
which has led to loss of lives.”
The Lagos State Executive Council has decided that
further integrity tests should be conducted on every other construction project
which has or is currently being handled by Messrs Lekki Worldwide Estate
Limited in the interest of the public.
The Lagos State government has, as a matter of necessity,
directed the suspension of work at the site and mandated the Lagos State Police
Command to cordon it off, as it is now a crime scene.
Meanwhile, the governor of Lagos state, Akinwunmi
Ambode, has asked all directors of Lekki Worldwide Estate Limited to submit
themselves for interrogation to the Lagos State Commissioner of Police within
the next twenty four hours, peacefully, in their own interest or face immediate
arrest.
It should be noted that the Managing director of
Lekki Gardens, Richard Nyong, on thursday 11th of March 2016 was arrested by the Lagos State government and
detained at Panti Police Station.
In response to the collapse of one of their
buildings and its generating so much media attention due to the loss of lives,
Directors of the Lekki Gardens company has condoled families whose loved ones
were lost in the tragedy.
A monumental loss to Real Estate in Nigeria
The tragedy that has befallen, arguably the biggest
real estate company in Nigeria, Lekki Gardens, is definitely a big blow to the
real estate industry as a whole. Many Nigerians who have thought of patronising
the company will now be skeptical about such move. It will definitely be a
herculean task for Lekki Gardens to win the hearts of Nigerians, again if and
when they come out of this mess. Other real estate companies might just become
“scape goats,” and as such, whether real estate in Nigeria would rise again is
left to be seen.
Source: Ventures Africa/ Ayomide Thompson
