- Says Virus Spread Has Made Site Inspection Difficult For Operators, Clients
Builder (Mrs.) Modupe Ndidi Ogunbanjo, Managing Director of BWC Real Estate, Lagos is The New Diplomat’s real estate personality of the month. Ogunbanjo is a member of the Council of Registered Builders of Nigeria (CORBON); Secretary of the Building Collapse Prevention Guild (BCPG) and a fellow of the Chartered Institute of Management Consultants. She has some of her biggest ideas wrapped around the built-environment and how the society can develop a resilient culture to spur on businesses.
Ogunbanjo, in a tell-all interview with The New Diplomat’s Editor, ‘Dotun Akintomide, spoke on the Coronavirus–induced headwinds that the real estate sector is currently battling — the day-to-day realities and shocks — offering pragmatic ideas on how stakeholders in the industry can weather the storm this crisis time.
From real estate to the nation’s dominant political conversation in recent times; Nigeria’s Covid-19 response to the shifting paradigm — ‘New Normal’ thrust upon the human race by the lethal virus, she weighs in on them all with cheer passion.
EXCERPTS FOLLOW:
The last time we met was at the press briefing on Ita Faaji building collapse in Lagos, what have you been up to since then?
The building at Ita Faaji collapsed precisely on March 13th last year and this year we did the builder’s day in memory of the victims of the collapse. We pray for their soul to continue to rest in peace (Amen). When the Ita Faaji building collapse happened, we did our investigation into the building collapse and what led to it and part of the issues we realised is that there is need for them to do some re-organisation because most of these buildings are old and you know the issues of quackery when you have the wrong people parading themselves as developers and they don’t do the right thing. That building particularly was already giving signs that it was going to collapse. The building was overloaded because they added more floors to what the original plan was; the building was serving multi-purpose which was not what it meant to serve, it was serving as a school, imagine the number of children that will be there, There were some tenants in there as well. It was not just the right thing. Too bad that it happened. After Ita Faaji building collapse, we continued with the struggle, there were several building collapses last year in Lagos if you remember. We also had a major one at the Magodo phase one where the cliff caved in from the top of Magodo one into that settlement. Though the settlement was not an approved settlement, it was close to that boundary of the Ogun river. It was a very bad one too as about four people died and properties were lost as well. Afterwards, I just took my time and decided to go back to my first love which has always been project and I ventured into real estate. Sometimes, early this year I started getting involved in real estate and I got employed in BWC Real Estate and what we do basically is that we offer several services in real estate, agency, build and sell, site and services, we have the optional facilities management. We have the options of foundation repairs, we have the option of consultancy when it comes to project planning and control and also we could advice you when it comes to the choice of building either what you desire to buy. So we can advice our client on what would suit you either for retirement, for young couples that just got married, a place to start their lives or for people who are just planning to settle down or people who are out of school and starting a life you know. Generally, our options are wild like we have varieties for people. So far now it is all about real estate.
However, there were times when we went to site for inspection and the clients were running away from us despite having nose mask and hand gloves on, just for the fear you know. They were standing apart and we were also standing apart too with our nose mask, it was funny you know. Usually, you and the client will look at the drawings together. But this time, the client shouted just show me from afar…show me from afar! And I would snap and send to them and atimes zoom the image, it was funny.
What’s in the pipeline for BWC Real Estate as we speak?
We’re about to kick off a major project and it’s going to be a real beautiful one because we’re coming up with some new ideas, a new innovation, something different. Coming up with a new blue chip skill. It’s not going to be too pricey, it’s going to be affordable; it’s going to be something that people would love to buy. Imagine a young guy who necessarily doesn’t have to be a billionaire living in a nicely arranged area with some of the building fully automated, wouldn’t that be nice? And in a choice area. With the rate at which the Lekki Ajah axis is growing, where our own project is coming up in another five years you won’t recognize it, because we have major developers in that area already coming up and developers oftentimes have foresight. They don’t just go any where because there are all about investment so it a viable one, it’s going to be good, that’s our major project for now. It’s going to be an estate.
And when would the end product be delivered?
Give or take, we’re going to be doing this project in phases, so I tell you that maybe in another six months, you should have a standing house and other infrastructures in place. You can buy while we do the services for you and all that which will include our normal infrastructure — road, network and drainage, light, security, electrification and the likes.
Everyone has got his/her Covid-19 story. From the time we had the total lockdown in Lagos till date, is there any low point or defining moment you would like to share?
Well, I must be honest, did I really have a low point? Not really because for me even though the covid-19 was out there, I still found a way round it. However, there were times when we went to site for inspection and the clients were running away from us despite having nose mask and hand gloves on, just for the fear you know. They were standing apart and we were also standing apart too with our nose mask, it was funny you know. Usually, you and the client will look at the drawings together. But this time, the client shouted just show me from afar…show me from afar! And I would snap and send to them and atimes zoom the image, it was funny. So it made it difficult and we had to come up with an idea that instead of doing this why don’t we take pictures of this site, take video with the drone system and then when you want to come we give you the video and pictures. If you still want to come and have a look physically that’s fine, but then, it is explained in the video to minimise contact. It was a funny experience. It’s still on. They don’t want to come, they’re afraid even though they still want to buy. But I must be honest, we’re afraid of them too, nobody wants to contract the virus.
I think what they should do in the real estate now is what we call step pricing. What I mean by step pricing is you increase your price gradually until the system comes back to normal. At this point, we should be looking at making things relatively affordable for people such that your investment is cash-backed but maybe not too much profit.
It’s no longer news that Covid-19 has disrupted global economy, what has changed in the Nigerian real estate industry?
For now, importation has affected the real estate a lot. For instance, there is a property that we’ve been trying to market now. The project has been completed but it’s meant to have a boom system, it’s like a lift system because it’s an estate that has a lot of considerations for the elderly, so that they can be comfortable even when they’re old. For space conservation, they’re elongated building so they could be five bedroom duplex but it’s elongated. It has got like three floors you know. It’s modern, very nice and fully automated. The issue is that the lifts are not ready. Ask me why? It’s due to importation because the boom system is coming from Canada and Canada is saying until there is a vaccine they’re not doing anything. So it’s a major problem now. Now the project is on a standstill until we fix it. Except somebody who is ready to live in it without that facility you’re good to go, but for those who need that facility, the project is on a halt for now.
Mainly in construction in Nigeria you know that we import a lot of things from the tap to the fitting. Sometimes some people even import the cement, some kinds of cement they use like the addictives and all that. It’s that bad. But now you would wait forever for that, it slows down your project, it increases the cost of your project and so many other factors. Generally, the economy is dead and it’s not business as usual.
According to IMF’s latest projections, Nigeria’s GDP will contract by 5.4% during the 2020 fiscal year, while the World Bank forecasts 3.2% GDP contraction. The real estate is expected to take its own hit. What should be the new thinking for operators to sustain activities and probably not get too deep into the waters?
I think what they should do in the real estate now is what we call step pricing. What I mean by step pricing is you increase your price gradually until the system comes back to normal. At this point, we should be looking at making things relatively affordable for people such that your investment is cash-backed but maybe not too much profit. Because now so many issues, many have lost their jobs. Imagine those who were doing this planned payment over time and suddenly there is no more job to continue. That’s a serious problem. Now, many have been asked to start receiving a part of their salaries, pending when the system comes back in different organisations and it cuts across. But so many organisations including multinationals have had to cut down salaries just to meet up so that people don’t end up going home to do nothing. We must all realise that it’s a collective battle we’re fighting and the only way we can win this battle and remain in business is to come down and that way so long as you don’t come down below what your investment cost is, you should be fine. For now, that’s why I said step pricing gradually. There should be a lot of promos to attract people, so that at least with the little they’ve, they can still come and buy into real estate.
We’re seeing many vacant properties at the supply end of the real estate market and the mortgage system in Nigeria has failed to lift up over the years. Some have suggested that the mortgage system should be reworked upon to mop up vacancies. But we’re still in the middle of a pandemic with the global economy contracting, can the timing be right for that?
You are right but can I be frank with you? Everything has an effect on the other things, we’re talking of a global pandemic, it has nothing to do with just Nigeria and this is a country that has been struggling before now, so is it now that it’s going to happen? Hell no! Because they’re broke. Everybody is broke. Who is going to finance them? I maybe wrong, but it’s not going to get better for now. Why? It’s simple you want to give mortgage. I have a job to do, I don’t know my fate tomorrow because the economy is like this, so would you really give me money? Ask yourself, be honest would you give me your money to invest when you don’t know what the system would say tomorrow. Nobody knows because there is no vaccine for this virus yet, we’re just trying to be reckless with it, but we know that we’re in for it. So the pandemic is here we don’t know when it’s going, even if they discover a vaccine, would you be the first to take it? Hell no!
(Cuts in) People are already expressing cautious optimism about the vaccine already…
Honestly, everybody is holding their heads, it’s a wait and see game. So you won’t want to invest in that. So this is not the time I need a mortgage, who is going to give you. It’s going to be rare, so on the average I bet you, you will not get more than 10% or 20% doing it. It’s going to be hard, infact that’s the highest score.
I told you before and I will say it again. Politics is a game of number so whatever you would do to get the numbers on your side is what you should do
Let us digress a little, I know you’re a political stakeholder and you’re in a position to decipher the undercurrents. What’s your take on the recent behavioral patterns we’re seeing among politicians, especially in the ruling party, the All Progressives Congress?
My candid opinion is that it’s about time we stop being used, we must learn to give honour to whom honour is due, we must learn to have respect for our seniors until you remain royal, until you have respect for your predecessor it will not work well with politics. You cannot have somebody place you there, if you knew you didn’t want to be submissive, you should not have allowed yourself to be imposed or to be put in power. So to whom much is given, much is expected. Our politicians must learn to stop being users, they must learn to be honest, they must learn to be loyal. Okay, maybe I was a president before, I put you there, you became vice or you became the president, whatever the case maybe when I start telling you certain things you start to call my bluff, because you think you’re now a president but you must remember that once upon a time, you bought my ideas, we worked together to get you there, so how come we’re now enemies and you don’t want to listen, you want to rock the boat anyhow? They should learn to listen, I’m not saying you should allow your predecessor to control you completely, but to an extent, something brought you together, so you must learn to calm down and listen to the voice of the elders. I do not subscribe to people who fight those who made them. No! For me, I don’t care what their problems are, but I’m of the opinion that if peace can reign, if people give respect to hierarchy, if you give respect those in authority… Where your party leaders have decided on something, then you want to fight? If you can rule alone then you don’t need people. Politics is a game of number, so if you think you don’t need the leaders, then you don’t need to be in the party, it is not a must. There is nothing they’re fighting for. All I can see is greed and disrespect, so now they will see the party leaders as people who just want to control everybody, but once upon a time, you were saying yes sir, if you knew you could be governor on your own why don’t you go ahead and be governor on your own. They should stop misleading the youth. We’re not learning anything good from them by behaving this way. It’s unfair. It’s our future they’re destroying, I don’t appreciate such attitude. We need to consider one another, we need to set good examples. So for me, I’m on the side that whatever the party wants is what should be, nobody is greater than the party decision. I told you before and I will say it again. Politics is a game of number so whatever you would do to get the numbers on your side is what you should do. So if you’re a good leader and you’ve your people with you, hold them well and look after them. They will forever be loyal to you so I don’t see the need for the fight. There is no battle anywhere. It’s about looking for trouble where there is no trouble as far as I am concerned. Before I forget, you see this politics, it can be liken to a barrack, it’s soldier go soldier come. Barrack will remain the same so let’s behave well when we find ourselves in authority.
What’s your summary assessment of how the government has handled this pandemic since it struck Nigeria on February 27?
Well, I will see it from two angles. From the typical Nigerian angle, I will tell you that they have tried, they cannot do more than try, you know that’s how we’re. But in my candid opinion, having talked to many friends who are medical doctors, I feel for people because many have lost their lives. Doctors are running away from people, the hospitals are rejecting them.
And again, the reason why I think that government has not done well is this; you said people should come out at bustops. I don’t know maybe you know, are there hand basins there? With soap and water to wash hands? Have you seen hand sanitizer? In the market place, is there a special arrangement?
Are you worried that more people could have died of other ailments than the number Covid-19 had killed?
Yes, that’s where I’m going, I would love our government to do something. They should empower the private hospitals and partner with them. They should come up with guidelines and let the hospitals know they would be shut down if they fail to meet those guidelines. If you are caught operating then you will pay a fine rather killing people. My reason is this, symptoms of covid-19 are very similar to that of malaria, they’re almost the same thing. There’s nothing you experience in covid-19 that you don’t experience in malaria and typhoid which is the major sickness we treat everyday in Nigeria. Stooling is a sign, up to not being able to taste. It’s a sign that it could be fever, malaria or anything. I think, it is unfair to say private hospitals can not attend to Covid-19 patients. Equip the private hospitals. Even if you cannot equip them, insist that before you can treat Covid-19 patients as a private hospital, you must have PPEs, you must be fully equiped and informed and trained on how to manage this pandemic. And there should be an enforcement team going round to check. If any hospital is found wanting they should be shut down immediately. Then you will now discuss the terms and modalities to open again. You will pay a huge fine and it should be another revenue for the state rather than saying private hospitals cannot treat Covid-19, it’s not sensible. Do they have enough bed space for everybody in government hospitals? Even the isolation centres, how many people can they house? So I think it’s unrealistic, if you treat the private hospitals well they will be able to do the same thing as the same doctors in government hospitals are doing. Equip them and partner with them, you will make money and they will make money. Everybody will be happy, insist any hospital that’s found wanting will pay a fine, shut them down they will comply. I think it’s unfair because people are dieing everyday so in that area the government has not done well to me until they agree and understand that they must partner with the private hospital they’ve missed it. A private hospital should have the same equipment. You can even allow a government official attached to the facility there to test people and trust me, the private hospital will do better with the test kit than the government owned hospitals. That’s the truth, it might be more expensive but they will do better.
With the much talked about ‘New Normal’ and looking at the future of business and interactions at the social level, What are some major changes you would like to see post Covid-19?
I think the truth is we have to learn to be discipline as we’re reckless people, we’re very hard to govern. It’s high time every Nigerian understands that Covid-19 is not a disease for you and me alone. It’s for everybody. It’s not a respecter of class, so we must learn to be disciplined. That’s the main thing, we must learn to listen to those that God has put to direct us on how to manage this health crisis. It is simple, wash your hands as often as possible, ensure you wear a mask, ensure that you maintain social distance and if you feel sick, isolate yourself and get help immediately. And again, the reason why I think that government has not done well is this; you said people should come out at bustops. I don’t know maybe you know, are there hand basins there? With soap and water to wash hands? Have you seen hand sanitizer? In the market place, is there a special arrangement? Is there an enforcement that they should have handwash basin spread around the market? No! Are we really ready to operate the economy? We’re just looking at making revenue, have we really tackled this Covid-19?
I recall the Lagos State government told the NURTW executives that their members should provide sanitizers to passengers and ensure they sanitize their hands before boarding vehicle, while also maintaining social distancing in buses.
So who is enforcing that? That is the problem. Monitoring and control is a major problem, one thing is to make a law and it’s another to enforce that law, who are the people regulating? You say you are the regulating body, are you doing your job? No, why? That is why I said we should change our character and be disciplined. I think the government needs to work more on awareness, it is not enough to carry people along, let people understand what is it. It is not a death sentence but it should be something that you can encourage people to do the right thing. It is so simple. Even our law enforcement officials need to be cautioned too. Atimes, you see them on the road, they will pack themselves like sardines in the name of being law enforcement officials. Are they immune to covid-19? It doesn’t make sense. You gather yourself, flogging people, kicking and touching them, you don’t even know your own status. I honestly think they should train our law enforcement officials. And charity begins at home, let us train ourselves and our children at home too. So I think that way, we will be alright.
Finally, what makes BWC Real Estate stand apart?
BWC Real Estate is the hot cake in town. It’s the new generation real estate company you should look out for. We’re coming out with a lot of fantastic ideas for people and we’re going to give people a beautiful image that they will love and be happy about. So we encourage them to patronize us and we will always meet their needs and give them the best consultancy and advices. We have capable hands and in the end they will be happy with beautiful shelter, beautiful location, conducive place to bring up your kids, conducive place for retirement, conducive place to start your life. So patronize us, we’re good to go.
what we do basically is that we offer several services in real estate, agency, build and sell, site and services, we have the optional facilities management.
