The President of Real Estate Developers Association of Nigeria (REDAN) Ugochukwu Chime has charged its members to cooperate with the government in curbing issues around money laundering and terrorism financing that are executed through the real estate sector.
He made this known to Africa Housing News on Thursday in Abuja at the opening ceremony of the training on emerging trends in real estate development in Nigeria organised by the real estate developers association of Nigeria (REDAN).
Chime said that the rating of the real estate sector as a medium high risk area for money laundering and terrorism financing is very dangerous and worrisome. He therefore called on the urgent support and collaboration of all well-meaning Nigerians in curbing the menace.
‘’We must support government in fighting criminality and our members must comply with extant laws. That is why our Code of Conduct is tailored towards ensuring compliance with AMICFT rules.
‘’As Developers, we should be concerned about two things: risk and returns. This training, is to give us insight into the realms of how best to do our business with less stress, risk and to impact positively to the development of the economy. This training event is part of the process of dimensioning and de-risking the real estate value chain and operating environment,’’ he said.
REDAN according to the report of Nigeria National Risk Assessment on Money Laundering and Terrorism Financing 2016, is recognized and referred to as the self-Regulatory Organization (SRO) of the Real Estate Developers in Nigeria. It was further stated that the Real Estate sector in Nigeria is a DNFBPs and regulated by SCUML under the ML. (P) Act 2011 (as amended).
Chime said that the 5th leadership of the body of which he is president believes so much in collaborative efforts and consistent development of the minds and institution for increased productivity.
He expressed his excitement about the formation of the Nigerian Real Estate Data Collation and management Programme (NR-CMP), which initially started as a discussion between the Central Bank of Nigeria (CBN) and the Real Estate Developers association of Nigeria (REDAN towards the collation of Property Price Index.
‘’The understanding of the need for collaboration led to the meeting of fourteen (4) organizations coming together and working lo collate real estate data across the spectrum of the country. These institutions are: Central bank of Nigeria, Federal ministry of Power, works and Housing (FMPWH), Federal mortgage bank of Nigeria (FMBN), Mortgage Banking Association of Nigeria (MBAN), Nigerian Mortgage Refinance Company (NMRC), Federal Ministry of Health, National Bureau of Statistics (NBS), National Population Commission (NPopC), Building Materials Producers Association of Nigeria (BUMPAN). Value Chain Project Consultants Limited, Pison Housing Company, The World Bank / Growth & Empowerment Project (GEM), Gesellschaftfür lnternationale Zusammenarbeit (GlZ),’’ he said.
The Real Estate Developers Association of Nigeria (REDAN), serves as the secretariat for the umbrella body – NRE-DCMP.
The aim of the NRE-DCMP involves collation of data in respect of business survey, housing condition survey and general mining of relevant data.
Speaking on what REDAN is doing in the real estate industry, The President said REDAN is involved in capacity building of all practitioners in the sector, ranging from those in the soft (finance process) and hard (construction) business of the housing value chain.
‘’The artisans and other direct home construction personnel need be trained and retrained to increase their competencies in constructing durable homes. This is being done in collaboration with the Construction Skills Training & Empowerment Programme (C-STEmp), the Centre for Housing Studies of the University of Lagos and other institutions to train our Members.
‘’We are engaged with Hydraform to synergise, develop and deploy a strategy for the building of housing units in each of the 774 LGAs in Nigeria. This will help stem the current high rural to urban migration.
‘’REDAN is working with Shelter Afrique. We are also working with Family Homes Funds to develop a financial training hub in the oncoming REDAN house for sustainable development of the skillset of the stakeholders in the sector,’’ he said.
Tangential to the above and to consolidate on the drive to ensure credibility and integrity of housing development in Nigeria, REDAN, according to him, initiated Endorsement program targeted at enhancing the quality of estate products and its processes in Nigeria; also aimed at building public trust on products of its members.
The public, he said, will be guided on the products and estates that have met REDAN requirements In terms of processes, standards and other characteristics, and at the same time create a mutual beneficial scheme for the Association, its members and off-takers.
This process, he said, will instil more confidence in the buyers of such products, guarantee value to purchasers, encourage stakeholders involved in the value chain to ensure and upscale standards, and give credence to the public to patronize such endorsed products.
He advised members who want their products endorsed to formally apply to REDAN, and this applies to both building materials and estates.
He said that the Association and its Members must work with Ministries, Departments and Agencies of governments (at the Federal, State and the third tier-the LGAs) to ensure that housing development has a contiguous development and impact positively on the citizenry or Nigeria.
‘’A part of the strategy to actualize this mandate, we are working on a proposal for our members to use basic Hydraform Technology to build at least 10-50 housing units in all of the 774 local governments of the Federation. This will entail the cooperation of the States and Local Governments to provide lands in well located areas to our members to ameliorate housing deficit in the country.
‘’If we achieve this, and the State Governments also partner with REDAN, we shall have a systematic housing development that will be in tandem with our desire to increasing our potentials in real estate sector for job creation for our youths, enhanced socioeconomic growth, increased GDP/1GR, improved security amongst others, inclusive economic growth, Fulcrum to reversing economic downturn in most climes, to be an engine of growth that propels development in other sectors of the economy.
‘’For effective housing development across the nation, there is the pertinent need for interface between governments who design policies for the economy blend their thoughts with those of us – the real estate practitioners.
‘’I strongly believe that collectively we can change the narrative in the housing and real estate ecosystem in Nigeria.’’
