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‘N126.2b Lost to Abandoned Fed Govt Properties‘

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  • ‘N126.2b Lost to Abandoned Fed Govt Properties‘

The Federal Government has been urged to either concession or sell all its buildings across the country currently not being put to use. The sale or concession should be to private investors in order to forestall further deterioration as a result of continued abandonment.

A Professor of Building Management, Prof. Olumide Afolarin Adenuga, made this call recently during his inaugural lecture which held at the J.F Ade Ajayi Memorial Hall, University of Lagos, Akoka, Yaba, Lagos. He disclosed that since 2006 to date, N126.2 billion has been lost in revenue to the Federal Government properties in Lagos State alone, because the government refused to either sell or concession the assets.

Adenuga listed such wasting assets in the state to include: the National Stadium, Surulere; the Federal Secretariat Complex, Ikoyi; The Nigerian External Telecommunications (NET) building, Marina; the Defence House (formerly Independence Building), and the former NAVY Headquarters building in Marina. Others include: the National Arts Theatre, Iganmu, former National Assembly Complex, Tafawa Balewa Square, and the Supreme Court building among others.

“All these buildings are in deplorable states of structural and decorative repairs because we do not have any maintenance culture, a fact which manifests in the general apathy for maintenance coupled with ignorance on the part of occupiers of the benefits of planed preventive maintenance and care of buildings,” he said.

According to Adenuga, between 2004 to date, the cumulative potential economic loss from the National Stadium alone, is about N52.6 billion, while the Federal Secretariat, which has been overgrown with weeds could have yielded over N72 billion, if it had been converted to luxury residential apartments as proposed by Resort International Limited (RIL) since 2006. Also the 32-storey NET building with about 720 square metres of lettable space, could have attracted over N1.6 billion in rent annually if well maintained and optimally utilised.

He said apart from the loss of the huge revenue which could have been ploughed back into provision of social amenities for Nigerians, the 480 units of luxury residential apartments being proposed by RIL could have contributed to reducing the shortfall in the nation’s housing stock.

“Because of their present deplorable state, these once iconic structures have become a nuisance not only to the city of Lagos and her residents, but is also a source of economic loss arising from abandonment and gross under-utilisation,” he added.

Adenuga lamented that the nation has been hemorrhaging as a result of the neglect of the buildings, warning that the huge economic benefits of these iconic structures would continue to elude the nation if the government continue to ignore the need to restore them to beneficial use for Nigerians.

The university don explained that maintenance was responsible for increased lifespan of structures such as the Egyptian pyramids, the Papal States in the Vatican City, The White House in the United States and other monuments, most of which have been kept in same serviceable condition as they were at the time of their construction.

For him, it is regrettable that many of the nation’s iconic assets, which were pleasant to look at when they were newly built, have been allowed to degenerate due to lack of maintenance and planned repairs that could have reversed the trend and turned them into positive economic assets.

“It is a glaring fact that our buildings are in very poor and deplorable conditions of structures and decorative disrepair, abandoned and reduced more or less to refuse dumps and natural homes for rodents and vermin in spite of billions of naira spent to build and commission them,” he lamented.

To reverse the trend of improper maintenance of public or private properties, Adenuga recommended a formulation and formalisation of regular minimum repair programme, regular and effective inspection of all the fabrics of the buildings, including the surroundings, as well as the comfort of the occupants to detect signs of disrepair, prompt attention to repair needs of buildings in order to keep the buildings in acceptable standards.

The Don also canvassed planned preventive maintenance, which according to him, are best accommodated at the design and construction stages of building development, even as he urged occupiers of buildings to report, as soon as noticed, defects for prompt maintenance even as he charged them to use the property in such a way as to keep them in good tenantable conditions.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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