Otunba Alaba Bamidele Charles is the President of the Real Estate Managers Association of Ondo State and Chief Executive Officer of Allebay Engineering Services Limited.
In this interview, he speaks on the impact of the Ondo State Anti-Land Grabbing Law, challenges in the real estate sector, investment prospects and the need for ethical practices among practitioners. He also commends the implementation of the law championed by the administration of Governor Lucky Aiyedatiwa, and enforced under the supervision of Dr. Kayode Ajulo, SAN.
Excerpts:
How would you assess the impact of the Ondo State Anti-Land Grabbing Law on the real estate sector since its enforcement began? In what ways has the law improved confidence among property investors and landowners in Ondo State?
The Ondo State Anti-Land Grabbing Law has come to stay. It came at the right time to bring sanity to the lawlessness that real estate practitioners had been facing in the state. We have seen arrests and prosecution of perpetrators, and I can say emphatically that there is now a halt to the activities of land grabbers.
Before now, it was common for one faction of a family to sell land, only for another faction to claim ignorance and resell the same land. That practice created a lot of uncertainty for investors. Today, the law is taking its course and we are pleased with the development.
The law has significantly reduced incidents of multiple sales and illegal takeovers. This is particularly important for investors in the diaspora who purchase land from abroad. Nobody wants to buy land only to discover later that another person is laying claim to it. The law is restoring confidence and making Ondo State more attractive for investment.
What were some of the challenges your organisation and practitioners faced before the law came into effect?
One major challenge was multiple sales of land. I have personally experienced situations where land purchased for clients was later resold by another faction of the same family, claiming they were unaware of the earlier transaction.
So, you see, it’s a very big one. How do you explain to your client that it’s not even within the country, that the land you bought for him hasn’t been taken over by someone else. So, the law is really working, and it’s taking care of what it should take care of.
In some areas in Akure, especially at the back of SIB in Alagbaka, There are so many issues around there. One part of the family claims they sold, another part of the family are claiming sole ownership. You hear a lot of land grabbers, they do whatever they like.
One part sells, the other part will come, they will go and resell. So, there are more cases in court.
The government of the day is really putting my head to the police officers, because I want to see if this is not taken care of. How do you want those in the diaspora to come and invest?
You guys are sitting there in Nigeria, you are in Akure, you buy a land right before your nose, and somebody came around and claim the ownership. What do you do?
Such incidents damaged the credibility of practitioners and discouraged investment, with several cases ending up in court.
Without legal protection, it was difficult convincing investors, especially those abroad, that their investments were safe.
Do you think the current legal framework is sufficient to protect new property investors?
Definitely, the current legal framework is sufficient to protect genuine property investors. We have seen similar laws work effectively in Lagos State, where incidents of land grabbing have reduced significantly. At least, What used to be a common occurrence in Lagos is no longer business as usual because the law has addressed a large percentage of those illegal activities.
Before we use to hear ‘Omo-Onile’ and the likes but today the story is changing
The Ondo State Anti-Land Grabbing Law is capable of providing adequate protection for investors who are genuinely interested in acquiring property. Investors can now enjoy government backing and support from the relevant committees established under the law.
The legislation also regulates the activities of practitioners in the real estate sector and places them under close scrutiny. It ensures that unethical practices are curtailed. For instance, agents are expected to operate within approved professional charges and standards, rather than imposing arbitrary and excessive fees on clients.
I’m telling you emphatically that very soon, no agent would be allow to operate outside the law. Even as we speak, every practitioners is under the armpit of the law and they are not to take more than the stipulated percentage – not that somebody will come around to rent an apartment for N1 million. Statutorily, the agent is entitled to just 10 percent of the amount. But some agent will say the total package is N2,500,000.
However, beyond the existence of the law, public enlightenment remains very important. Citizens must be adequately informed about their rights and obligations. When people understand the legal framework and know what is permissible, it becomes easier to eliminate exploitative practices and build a transparent, investor-friendly environment.
Ultimately, the combination of effective law enforcement, ethical practice among stakeholders and continuous public awareness will help create a clean and reliable property market that encourages more investments in Ondo State.
Many residents complain about exploitative practices by some agents. What is your association doing to sanitise the sector?
The regulation of agents and other practitioners is already embedded in the Ondo State Anti-Land Grabbing Law. What is required now is the full implementation of the law.
The law clearly stipulates what practitioners can charge and provides sanctions for anyone found violating its provisions. Therefore, the issue is not necessarily about introducing new measures, but ensuring that the existing legal framework is fully enforced.
As an association, as we speak, if you find any agent wanting, and that person is reported or found engaging in unethical practices and we have enough evidence against the agent, he or she will face the full wrath of the law.
Our association played a significant role during the drafting of the law. We made proposals to the Ondo State House of Assembly, particularly on the need to regulate agency activities, and these provisions were incorporated into the law.
In the past, many people operating as agents were simply known as caretakers. Today, the law has clearly defined and regulated their roles. With effective implementation, the excesses and exploitative practices of unscrupulous agents will be curtailed, thereby restoring sanity and professionalism to the real estate sector.
There are concerns about families selling lands before obtaining approved layouts, leading to roads being sold off. What is your view?
Yes, I believe the Ministry of Physical Planning is doing its best. However, I strongly believe that government presence should come first before families begin to sell land.
In many cases, families start selling land even before obtaining approved layouts. As a result, roads and access routes are often encroached upon or sold off, which later creates serious problems.
I am aware of cases where individuals sold portions designated as roads simply because they were not motorable at the time. In one instance, we had to intervene to ensure that construction work on such a road was stopped.
For example, where I currently reside, the land was initially sold to me without a proper layout. I personally visited the Ministry to verify the layout because I knew there had to be a link road connecting the area to the next street. Upon checking, I discovered that there was indeed an approved layout at the Ministry, but the family had failed to comply with it. The amount they collected from me even covered the portion designated as a road. Consequently, I decided to open up the access route myself.
This is why I maintain that government involvement should come before the sale of land. There should also be strict conditions attached to the opening up of new layouts. While families often argue that they need funds from land sales to develop the area, the proper procedure should be for layouts to be approved before any sales commence.
Nevertheless, even where roads have been sold, government still has the authority and responsibility to intervene, regulate the area and ensure that a proper layout is implemented.
Take the SIB Road in Alagbaka, for instance, the road links the Oba-Ile Housing Estate and the Federal Secretariat. Although some of these roads had not yet been tarred, they remain important access routes. Once properly developed, they will provide alternative routes and ease movement within the area. There are several such routes around Oba-Ile and the behind the SIB axis.
Ultimately, the solution is for government presence and regulation to precede land sales. Government agencies should ensure that proper layouts are in place before families begin to sell land. Although families often claim they need funds to develop the land, government still has the responsibility to regulate the process and enforce compliance.
Where people understand their rights and insist on adherence to approved layouts, many of these problems can be avoided.
What recommendations would you offer government in sustaining the Anti-Land Grabbing Law?.
First, I must commend the Attorney General and Commissioner for Justice, Dr. Kayode Ajulo, SAN, as well as Governor Lucky Aiyedatiwa, for their commitment to the implementation of the Ondo State Anti-Land Grabbing Law. Their determination and political will have been instrumental in ensuring that the law saw the light of day.
I must also acknowledge the efforts of Honourable Moyin Ogunwumiju, who championed the law and stood firmly behind it despite several attempts by some interests to frustrate its passage. Without the commitment of these individuals, the law may not have become a reality.
What the Attorney General is doing is akin to putting a round peg in a round hole by ensuring that the right structures are in place for effective implementation. Likewise, Governor Lucky Aiyedatiwa, being a peace-loving leader, deserves commendation for supporting the initiative and recognising its importance to the state’s development.
Our association is ready to collaborate further with the government in sanitising the real estate sector. We are prepared to provide our expertise, lend our voice and offer any necessary support to strengthen the implementation of the law.
Attracting investors depends largely on creating a safe, transparent and well-regulated property market. If investors or their associates fall victim to land-related fraud or disputes, such negative experiences could discourage others from investing in Ondo State. Beyond discouraging investment, this also translates into revenue losses for the state.
However, if we get it right and sustain the implementation of the law, Ondo State stands to gain immensely. The state can become more attractive to investors, increase its revenue base and emerge as a model for other states to emulate.
If properly implemented and sustained, Ondo State can become a pace-setter in real estate regulation and property administration in Nigeria.
What is your outlook for the real estate sector in Ondo State over the next few years?
The outlook for the real estate sector in Ondo State is very promising. The state is experiencing tremendous growth, and the real estate market is expanding rapidly. Property values have appreciated significantly over the past few years, reflecting the increasing demand for land and housing.
A few years ago, prime properties in areas along Oba Adesida Road could be acquired at relatively affordable prices. Today, however, land prices have risen sharply, and investors are scrambling to secure available spaces because of the state’s growing attractiveness and urban expansion.
From my experience, having done business in both Lagos and Abuja, I can confidently say that returns on investment in Ondo State are currently more rewarding. An investor with a given amount of capital is likely to achieve better value and higher returns in Ondo State than in some of the more established property markets.
Several areas across the state are witnessing massive estate development. For instance, corridors such as Ondo Road, Oda, Ijapo and other emerging locations are experiencing rapid growth, with numerous housing estates springing up. Even within already developed neighbourhoods, new estates continue to emerge, indicating strong investor confidence in the sector.
Real estate business in Ondo State is undoubtedly on an upward trajectory. The state is growing, and with ongoing infrastructure development and improved regulation, the sector is expected to continue expanding in the coming years.
Investors who position themselves now and secure strategic locations stand to reap significant benefits in the future. As the state continues to develop, property values are likely to appreciate further, making real estate one of the most attractive investment opportunities in Ondo State.
My advice to prospective investors is to identify and secure viable opportunities early because the market is becoming increasingly competitive, and available spaces are gradually shrinking.
What message do you have for prospective investors?
My message to prospective investors is simple: Ondo State is growing, and this is the right time to invest.
At present, there are still opportunities to acquire strategic properties and secure investment spaces. However, within the next five years, available land in prime locations may become increasingly scarce as development continues across the state.
There are enormous economic prospects in Ondo State, particularly with ongoing major industrial projects and proposed developments in areas such as the Igbokoda axis. Recently, President of Dangote Group, Aliko Dangote, was in Akure, to sign MoU with Ondo State Government on the Free Trade Trade Zone (TFZ). Also the state’s extensive coastline, tourism potential and other planned industrial projects present significant opportunities for investors. Similar investment opportunities continue to emerge, and the future remains very promising.
Beyond industrial development, Ondo State possesses vast tourism assets, including its coastal corridor and beaches, which have the potential to transform the state’s economy if fully harnessed. With the right infrastructure and sustained investment, these assets could significantly boost economic activities and create new opportunities for businesses.
Areas such as Ore and Akure are already experiencing rapid growth and are expected to become even more attractive to investors in the years ahead.
The present administration is creating an enabling environment for investment by promoting peace, improving infrastructure, and supporting policies that encourage business growth. This makes Ondo State an attractive destination for both local and foreign investors.
Therefore, anyone considering investment should take advantage of the opportunities available now. Those who position themselves early are likely to reap substantial benefits as the state’s economy continues to expand.
There are complaints about high house rents in Akure despite the city not being highly industrialised. What is responsible for this trend?
Many people argue that Akure is not as industrialised as cities like Lagos or Port Harcourt and, therefore, should not be experiencing such high rental costs. However, the reality is that the cost of constructing and maintaining buildings in Akure is extremely high.
From my experience and research, the cost of building in Akure is comparable to, and in some cases even higher than, what obtains in Lagos. In fact, some construction materials are currently cheaper in Lagos than in Akure. The prices of cement and other building materials have risen significantly, making property development a very expensive venture.
Given these realities, private investors who commit huge resources to land acquisition and construction naturally expect reasonable returns on their investments. It is, therefore, difficult to expect landlords to charge the same rents they charged several years ago, especially when maintenance and renovation costs continue to increase.
Another factor is the changing preferences of tenants. Today, many prospective tenants demand modern facilities and improved finishing, including POP ceilings, contemporary fittings and other amenities. Providing these features increases construction costs, which are ultimately reflected in rental prices.
Government intervention can, however, help moderate the situation. In the past, government-developed low-cost housing estates, such as Agagu Village, provided affordable housing options and created healthy competition in the market. If government reintroduces and expands low-cost housing schemes, it could help stabilise rental prices and make housing more affordable for residents.
Ultimately, as long as housing development remains largely in the hands of private investors, landlords will continue to seek ways to maximise returns on their investments. A combination of increased government participation, affordable housing initiative and improved infrastructure is necessary to address the challenge of rising rents in Akure.
What advice do you have for youths?
My advice to young people is simple: embrace hard work, remain focused and stay away from unlawful activities.
One of the major challenges facing many youths today is the growing desire for quick wealth without corresponding effort. Unfortunately, some have resorted to internet fraud popularly known as ‘Yahoo’ and other illegal activities in pursuit of easy money. I strongly advise against this path because no matter how long such activities may appear profitable, there are always consequences.
Young people should instead channel their energy into legitimate and productive ventures. Beyond formal education, I encourage youths to acquire one skill or another. Skilled workers are in high demand today, both in Nigeria and abroad, and many are earning substantial incomes from their trades.
There are numerous legitimate opportunities in areas such as fashion design, tailoring, beauty services, crafts, technology and other vocational trades. Many young people who have embraced these professions have successfully built reputable brands and sustainable businesses for themselves.
The world is changing, and opportunities abound for those who are willing to think creatively, work diligently and develop practical skills. I believe that Nigeria can still offer immense opportunities for young people who are prepared to look inward, innovate and persevere.
Ultimately, the key to success remains hard work, discipline and integrity. After hard work, it is still hard work. Young people should remain committed to legitimate endeavours, continuously improve themselves and trust that diligence will eventually yield positive results.
You have commended the state government’s implementation of the law. What additional recommendations would you like to make?
The Attorney General is undoubtedly working in the right direction. As I have said repeatedly, our association is ready to continue collaborating with him and relevant government agencies to ensure the successful implementation of the Ondo State Anti-Land Grabbing Law.
However, effective implementation requires the cooperation of citizens. What the authorities need most is timely and credible information. When victims fail to report cases or submit petitions to the Anti-Land Grabbing Committee, it becomes difficult for the government to intervene. Once the appropriate authorities receive the necessary information, people can be assured that action will be taken and cases will be properly followed up.
I must also commend Governor Lucky Aiyedatiwa for what he is doing in the state. He is performing commendably, particularly in the area of infrastructure development. Moreso, his approval of the 2.38km flyover in Akure metropolis is highly laudable.
The ongoing urban renewal initiatives across the state are visible and encouraging. However, government should also pay greater attention to roads linking emerging urban and semi-urban communities, as these are critical to economic growth and real estate development. We have seen reports of several road projects recently approved by the government, and we are optimistic that significant improvements in infrastructure will be witnessed between now and the end of the year.
Nevertheless, like Oliver Twist, we will always ask for more. Government should also continue to prioritise the provision of basic amenities, particularly water supply, as access to essential infrastructure remains vital to improving living standards and attracting more investors to the state.
Finally, what message do you have for members of your association?
Members, Association of Real Estate, members of real estate managers association for Ondo State, I will tell them that the Land Grabbers Law has come to stay. Yes. There’s no going back about it. If you have not been properly registered, please go and register. It is important you get yourself registered except you want to start duping people.
Whatever you’re doing and you’re not proud of, that is what you run away from. But now, Ondo State Government is interested in knowing who practices.
Those who are genuine have nothing to fear. However, anyone engaging in unethical practices should understand that the era of impunity is over.
So, within the confines of Ondo State, the law states that you must be registered. And you must let the law of the land guide your practice. So, but if you want to do otherwise, you can keep running, but when the time comes, you face the music.