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How Complex Is The Nigerian Real Estate Industry? - Properties - Nairaland

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How Complex Is The Nigerian Real Estate Industry? by DeDonniesHomes: 5:41am On Jun 21
I helped facilitate a client's Building approval. And I think I should share some details about it so that you will understand some of the complexities in the industry.

The amount I paid into government account through remitta, as required by the ministry is just about ₦100,000.

But the amount demanded in cash to go round among them (the staff) is about ₦500,000.

I really wish to share some screenshots, but as usual, one can't tell whose hand this post will eventually get to. So, I'd rather not share too much details.

In a situation like this, you either have the option to comply or let them pull down your structure with a bulldozer.

Twice I went there for that same project, it cost me ₦7,300 and ₦6,650 respectively for both transportation, cyber cafe, commuting within the community from the cybercafe to the bank and back to the ministry. And of course light refreshments.

That's an additional expense of about ₦14,000.

The reason I had to represent the client, who obviously isn't based in Nigeria is because we had some doubts on the architect.

We wanted to be sure he wasn't cooking up figures.

But guess what?

When I appeared together with the architect at the ministry, those guys requested additional ₦150,000 from us.

It would have been better we let the architect do his thing, without me going along to keep him in check.

But if I wasn't there,

How would we believe that someone spent about ₦500,000 in a ministry, but brought a remitta receipt of less than ₦100,000.

We know that there is corruption in the land and labour as well as other real estate practitioners can be sometimes dubious,

But the system, itself, has a lot of complexities.

5 years ago, I requested for just ₦50,000 to help supervise a mini-fence project that will take 4 - 5 days to complete (which is peanut for that length of days), the client refused

As in, are you expecting a full fleshed human with personal, business and family expenses to leave his house daily to supervise your project for free

Who ever is doing it for free is stealing your money.

He is getting 10 times more from the material costs.

He's padding the bills he sends to you.

And you are probably just being penny wise, pound foo.lish (please permit my use of that adage).

Yesterday, I overheard a conversation between a diaspora client and her project supervisor.

She previously stopped her project because someone in same country with her kept feeding her with ill talks about the project and its supervisor.

Now she wants to revisit the project but it will now cost 4 times more the previous budget.

Decking the structure which should cost about 2 - 3 million naira then, will now cost about 10 - 12 million naira now.

Something she would have been done and dusted with.

The process of building a house is not as simple as that of buying tomatoes at the market.

You should be financially and mentally ready for it, especially if you are not based in town to supervise it yourself.

Otherwise, just buy a fully built one to avoid all the back and forth.

But don't forget to do your due diligence before you buy one

~ Donald Karo
~ DeDonniesHomes
~ LagosRealEstateChiefPriest

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