Victor Adekunle Alonge is a chartered surveyor, property valuer, and enterprise govt with over 30 years of expertise in actual property, overlaying asset administration, improvement, and funding consulting. He’s the twenty sixth President of the Nigerian Establishment of Property Surveyors & Valuers (NIESV) and an Unbiased Non-Govt Director at NGX Actual Property Restricted. Alonge holds levels from Obafemi Awolowo College and Heriot-Watt College, with extra certifications from the College of Studying and RICS/IMC. He started his profession within the UK, rising to Govt Director at Willmotts Chartered Surveyors, earlier than returning to Nigeria in 2006 as Senior Accomplice/CEO of Nelson Thorpe Alonge and CEO of Willows Tasks Restricted, delivering main actual property tasks and serving to set up Nigeria’s first Valuation Requirements. On this unique interview with the Abuja BusinessDay staff led by John Osadolor, Managing Editor; Onyinye Nwachukwu, Abuja Bureau Chief; and Present Wada, Advert Govt, Alonge explains how Nigeria’s actual property market stays essentially the most dependable retailer of worth and hedge towards present financial headwinds whereas talking passionately about NIESV.

You’ve been the President of NIESV for a few 12 months. What particular reforms and techniques are you implementing to deal with the talents hole and enhance skilled requirements inside the establishment?

Once we got here in, I had a particular agenda captured because the 4 ‘R’ areas to concentrate on.

They embody reforming the establishment, restructuring, repositioning, after which bettering our relevance in society typically. The primary two – reform and construction – are focused at inside, whereas the final two – to reposition and promote larger relevance – are focused on the public. On our reform and restructure objectives, presently we’ve a Constitutional Assessment Committee in place, which has been given particular assignments and areas of focus. That’s what we’re engaged on, however reforming the establishment’s operations has largely been achieved. The very first thing we did was to organise a retreat for our administration, council members and trustees to raised perceive our establishment, the way it must be run ideally, and our tasks as leaders. The retreat enabled us to set the tempo clearly, and that has truly helped an incredible deal. Our secretarial workers, who’re the senior administration and center administration, participated.

To date, we’ve recorded a excessive stage of accountability and accountability to our members and larger transparency in what we do. A significant facet of the reform is definitely being delicate and attentive to our members. That’s vital in any reform as a result of the skilled physique is principally a voluntary organisation, and also you appeal to and retain members via the best way you run its affairs. We now have made the establishment way more reasonably priced and accessible to members. We now have additionally addressed most of their previous complaints. The reforms are ongoing and might be formalised by the overview of our structure to make sure continuity and sustainability. We don’t desire a non permanent measure that might be forgotten when this administration leaves.

When it comes to restructuring, we’re increasing our branches to advertise larger participation of our members in department actions due to the big geographical delineation of our branches. As an example, the entire of Lagos, Oyo and Kaduna States have just one department every. You may think about in Oyo State, for example, anyone in Shaki or Ogbomosho travelling to Ibadan for a two-hour assembly. Even in Lagos, folks in Lekki, Ikoyi, Badagry, and Ikorodu journey to Ikeja to attend a short assembly. This example has constrained a whole lot of our members from collaborating in department actions, even after they want to. The issue is that we’ve held on to the identical construction we began with even when there’s a necessity for a change. Once we have been established in 1969, our membership power was about 70, however now, we’ve about 20,000 members, each professionals, probationers and college students. It’s a main factor we’re engaged on, and within the subsequent couple of months, that must be addressed.

We’re doing loads in restructuring internally, together with the best way we run our funds. Final December, for the primary time within the historical past of our establishment, we had finance and funds coaching for our members and secretarial workers, simply to make sure that we all know what we’re doing. Additionally, membership is now reasonably priced to these certified. We now have additionally eased the method of transferring from affiliate to fellows so long as you qualify. We now have achieved loads. We now have gained inside cohesion and have efficiently resolved all courtroom instances amicably as a result of we’re a household working in the direction of the identical objectives of primarily advancing, not simply the picture of the establishment, however our personal occupation and welfare. We now have achieved a lot externally, when it comes to positioning and relevance. For the primary time within the historical past of our establishment, the Excessive Courtroom appointed us because the directors of the property of one in every of Nigeria’s rulers that died. It’s a mark of recognition and relevance. In advancing the relevance of our establishment, my very own ceremonial investiture was truly achieved on the presidential villa. That was the primary time an expert physique was doing that. That ceremony was graced by a whole lot of dignitaries, together with ministers, on a Monday. The Senate president was the chairman of the event, they usually stayed all via. That alone confirmed how a lot they recognize our occupation.

Just lately, we inducted the Senate president as an honorary fellow. The profile of our occupation has truly been raised past what we met, and rightly so, as a result of this can be a occupation that cuts throughout all sectors, even individually. Each human being wants this occupation. Housing is likely one of the three fundamental requirements of life. Within the civilised world, actual property professionals are distinguished, revered and recognised. We’re repositioning our establishment, our occupation, to have the ability to play a extra energetic function within the improvement of the nation. We’ve repositioned ourselves, and that’s the reason, for example, the ICORP recognises us – that’s the primary time. We now have achieved quite a bit – to know, restructure and put issues in place for what we’re set to do. We now have majorly concretised our construction; now we’ll be trying on the legal guidelines. We hope to be sponsoring payments within the Nationwide Meeting and dealing with our regulatory physique to have a look at our curriculum to make sure they’re related to present-day wants.

What’s the membership standards of your establishment, and what incentives can be found to members?

Like medical medical doctors and different fields, you’ll be able to’t simply get up and be part of the Nigeria Medical Affiliation. You need to be skilled as a medical physician. The identical factor applies to our physique; you’ll want to have attended tertiary establishments and studied property management-related programs earlier than you could be admitted. Even at that, there are skilled exams that it’s important to take and go to return in as an affiliate. It’s solely then that you simply begin your follow. If you happen to actually need to be an expert property surveyor and valuer, you should be a member of the establishment. It is because it is just property surveyors and valuers which are registered by the Property Surveyors and Valuers Board of Nigeria that may practise in Nigeria. Earlier than you’re registered by the board, it is going to require your membership of the establishment, you’ll have handed the examinations of the establishment, and you’ll have been elected an affiliate. That may be a main prerequisite.

What partnerships or engagements have you ever initiated to reinforce the sector?

The establishment has all the time been in partnership with state governments and company our bodies. Each state has a Ministry of Lands and Housing. Each state has chief land officers and administrators of lands. And in any case, all of the state governors are patrons of our structure. We enhance them. After which the president of Nigeria is our grand patron. By God’s grace, we might be adorning the president throughout our upcoming convention. In selling our providers within the states, our members can be found to assist in the event of the states. There’s a saying that land is the oil of Lagos. And it’s our members which are serving to Lagos to understand that profit.

If you happen to go to the Lands Bureau or varied ministries, you will note our members there. It’s additionally the identical for company organisations. These partnerships assist to advertise the relevance of our occupation in these organisations and state governments.

How is the true property sector adapting to the present financial headwinds like inflation and forex fluctuations?

The impression of inflation and forex fluctuation on our economic system just isn’t peculiar to actual property. However in actual property, it’s even way more pronounced now. It has impacted our trade and likewise our follow. However you could perceive our function. We’re service suppliers. Successfully, what we do is to interpret info. Many individuals accuse property surveyors of really inflating the worth of properties and, by extension, home hire. That’s not true. It’s not doable. By advantage of our follow, we function inside the dynamics of demand and provide, which ends up in worth formation, whether or not in sale or hire. When you have so many properties in a specific marketplace for hire, it’s pure that hire will come down and vice versa. Folks complain that there are such a lot of empty properties, however the query is, the place are the empty properties situated? Sure, individuals are in want of homes, however what number of of these folks can afford a home in Maitama or Banana Island or any of the intellectual areas? Society blames us as a result of they don’t perceive the way it works.

We’re interpreters of knowledge and the market. If the market says this area is $80,000 per sq. metre, that’s what we are going to say. We don’t decide it; we interpret it in an goal approach. When it comes to valuation, once more, we report; we interpret. Once we acquire knowledge via inspection, we analyse the market after which provide you with the worth of a property. In fact, if inflation was at 5 p.c final October and now it’s 10 p.c, the worth of property can’t be the identical. So, inflation is an input-output factor. The price of constructing supplies just isn’t the identical as perhaps final 12 months, January. That impacts the value of homes, and never us making issues up. Inflation, forex, or no matter impacts us impacts our providers, however we are going to nonetheless present these providers. Our job is predicated on knowledge. We don’t predict. We don’t gamble. We glance backwards at what has been bought, interpret and analyse it, after which apply it to the topic property after which arrive at a worth and report it. Primarily based on expertise, data and coaching, valuers may forecast what the economic system would appear like within the subsequent six months and base their valuation on that, which is totally advantageous. Nonetheless, the purpose truly is that valuation should be at that date when projections are made. There might be a distinction in figures of most likely 5% extra or 10% extra, however professionally, valuers are imagined to look again, analyse, and provides an applicable valuation report in case there’s a must go to courtroom; your projections can be seen as goal.

Why is the sector booming regardless of the prevailing financial downturn within the nation?

Actual property funding is one of the best medium of storing worth, one of the best hedge towards inflation. There are two parts to return on actual property funding – the earnings return and capital good points, or capital appreciation. If you happen to hold your cash within the financial institution, you may get a 15 p.c or 20 p.c rate of interest. Your principal is definitely dropping worth daily. However that isn’t the case for actual property. That’s the reason when the economic system is down, inflation may be very excessive, and individuals are apprehensive about securing what they’ve, their best choice is to return to the property market. So whilst you safe your cash, you’ll be having your earnings return. It is probably not as excessive because the deposit fee, however the capital acquire is very large. Folks hold lamenting rising costs of properties, however they should put issues into perspective. The large costs that we’re seeing immediately, in actual worth, have been nonetheless cheaper than in previous years, however due to the overall worth stage, which needs to be sustained. However actual property will proceed to be the primary selection for a retailer of worth.

Just lately, the Federal Mortgage Financial institution of Nigeria raised its mortgage threshold to N50 million in a bid to extend mortgages and assist shut the housing hole. How do you react to this transfer?

We don’t have a purposeful mortgage system in Nigeria. Don’t allow us to deceive ourselves. The Federal Mortgage Financial institution just isn’t a main mortgage establishment; it will possibly’t even lend to people. They’re a secondary mortgage establishment. The N50 million threshold is certainly not focused at civil servants; what number of of them can afford it? We now have Renewed Hope Housing occurring, which is a improbable idea. And I need to credit score the minister for championing it and for this administration for arising with it. However for it to succeed, we have to first repair our mortgage system. How a lot do they promote most of these homes for? They’re out of attain. We have to have a look at governance and coverage improvement and implementation. One vital factor in governance that truly impacts folks is continuity of insurance policies. Each authorities is available in and needs to realize all the things inside a four-year cycle. It’s not going to work. Our mortgage system must be mounted. All people is working away from it as a result of fixing our mortgage system requires time and placing constructions in place. That construction additionally requires that we have a look at the employment scenario and remuneration system and hyperlink them as a result of if we put N30m as a value for reasonably priced mortgages for low-income earners, how many individuals can afford it? What’s the wage of a graduate civil servant? Don’t neglect, he’s not going to spend the entire wage paying for a home. Which means we might want to have a look at his disposable earnings. So how will he qualify for such? The mortgage system is predicated on multiples of your annual earnings. They should issue into consideration your spending and so forth. However we haven’t actually achieved that in Nigeria.

Aside from the NHF contributors that the Federal Mortgage Financial institution has supported via non-public mortgage establishments, there has not been an actual mortgage transaction on this nation. It’s normally money and carry. Sadly, even those that are working our authorities, coverage makers, don’t perceive the distinction between social housing and reasonably priced housing. They’re two various things, they usually attraction to 2 totally different teams. They muddle it up, however there’s a marked distinction. That stated, I believe we’ve a president who actually wishes to drive actual change, however the level is that he additionally wants assist, particularly when it comes to a worldwide view. Those who he has put in cost want to assist him to interrupt issues down and work issues out very correctly. So my response to your query is that I don’t suppose we’re actually severe about our housing scenario on this nation but. There are efforts to at the least scale back it, however are these efforts actually tangible? Time will inform. We want a correct mortgage system which hyperlinks with the costs that we’re speaking about. Social housing just isn’t about costs. It’s concerning the social contribution of the federal government.

Inexpensive housing must also be outlined. In England, for example, a developer that involves the native authorities with a planning utility will submit the designs, the variety of models, the realm, and many others. The native authorities will have a look at it and say, Okay, you need to construct 500 models of homes and flats in Maitama? They may assess and approve underneath one regulation. They name it a Part 106 Settlement, which says that for each improvement – and that’s for social housing – a share of it, which is reviewed periodically, might be 15 p.c, is reserved. That doesn’t belong to the developer. That’s reserved for the federal government to allocate. They allocate these homes largely to lecturers, nurses, college students, civil servants, and people who ordinarily can’t afford the home. They don’t give them freed from cost, although, however at a reduced fee. So with that, in each group, say in England, regardless of how prosperous that group is, you will note lecturers, nurses, and firefighters residing there. However what number of lecturers stay in Maitama, in Banana Island, Lagos? These are the form of issues we discuss after we name for clear insurance policies.

Inexpensive housing in civilised nations is definitely pushed by subsidies, not when it comes to the federal government giving cash to builders. It’s within the type of a tax rebate. As a developer, you set out your plan and report again. It’s audited, and then you definately get your subsidy. However right here, after we say reasonably priced mass housing, even the lands, we give them to folks freed from cost and largely via connection, after which they find yourself promoting them at excessive costs. We now have nice alternatives on this nation, however we should be compassionate, particularly our leaders. They should put folks of their footwear and empathise in order that we are able to do the correct factor. Our housing scenario is a disaster, and we have to discover a approach out.

What sort of invoice do you plan to sponsor to drive wanted change within the sector?

A few of them are about our upkeep tradition. We don’t have a nationwide regulation on upkeep, and that isn’t adequate. We now have a federal authorities coverage on upkeep. What we don’t have is a regulation that truly makes certain that the non-public sector has a way of upkeep after which easy methods to implement it. What regulation guides varied estates and facility managers? None! You see builders profiting from residents, not understanding that whenever you develop an property and promote these to people, you’re now not the proprietor. However you continue to see them dictating and arbitrarily forcing insurance policies on them, which is improper. These are the kinds of issues that we need to be addressed. There are additionally some legal guidelines about land administration as nicely which are being developed. We need to additionally work with legal professionals and financial institution associations to see how we are able to truly develop legal guidelines that might be helpful and sustainable. The following 12 months might be very busy for us as an establishment.

What’s your establishment doing about quacks/non-professionals doing the roles of property administration and surveyors?

Our occupation is regulated, however there are unqualified professionals who function within the sector. That stated, quackery just isn’t restricted to our occupation; even in medical follow, you may have quacks. That’s to not legitimise it, although. I believe it’s extra pronounced in our trade as a result of the impression is straight away felt if one thing goes improper. Sure, we’ve skilled property surveyors and valuers; nonetheless, the consumer has the discretion. When folks need to hire out a home, they could name us, however typically we realise the owner himself needs to be the one to hire it out. We can not legislate towards that; we are able to solely encourage. And that encouragement will come from the purpose of power of creating use of an expert so that you’re not penny smart and silly. That’s simply what we are able to do.

In England, for example, you don’t must be an property surveyor earlier than turning into an property agent, however the distinction there’s that, earlier than you’ll be able to practise as an property agent, the regulation is there which specifies what you’ll want to do when it comes to registering your organization, your accounts, workplace, all the things. If you happen to meet all these necessities, you go, arrange and practise, and then you definately additionally must commonly file returns. So there’s a system of really regulating those that will not be actually professionals in these nations. We don’t have it right here. That is likely one of the issues we may even be . I believe prior to now, what we’ve tried to do as a occupation is to assist these quacks arrange the Property Brokers Affiliation of Nigeria. Encourage them to hitch, after which we prepare them, which we’ve been doing for the previous 15 years since we registered it. However once more, it’s a voluntary factor, and the membership in comparison with the bigger inhabitants of quacks is insignificant. So I believe we’d like a much wider nationwide regulation to truly regulate it. I agree, we have to do extra. One other factor we’ve been doing to fight quackery is encouraging our members to ship high quality service in order that the consumer is aware of the distinction of taking the chance of patronising quacks as a substitute of coming to an expert. That’s what we are able to do. And we’ve a really strict disciplinary code in our occupation. If any of our members messes up and is reported, we’ve sanctions. That’s the reason we’re an expert physique.

How is NIESV selling using know-how, akin to GIS and digital instruments, to modernise property surveying practices?

Expertise has come to remain, and it’s not solely in actual property. Each sector of the economic system is affected by know-how. It drives effectivity and effectiveness. So far as our occupation is anxious, we’ve gone far in adopting a few of that know-how in our follow, just like the GIS, when it comes to location evaluation, as proven in our experiences. As a matter of reality, viewing properties can truly be digital now. However one factor we have to perceive, not simply in our sector however typically, is that our economic system is considerably labour-intensive, and we have to have a look at the impression of a sudden widespread adoption of know-how, particularly when it comes to the unemployment fee. In developed nations, the place know-how is being speedily adopted, they’ve a transparent social safety system that takes care of unemployment and the much less privileged. We don’t have it in Nigeria. You don’t need to rush into rendering folks unemployed as a result of you haven’t any provision for them. There’s a whole lot of discuss adopting know-how, synthetic intelligence, GIS and all that, however in relation to implementation, there’s resistance which is justified as a result of we don’t have a system to soak up the impression of adoption. The implication of that’s elevated crime and insecurity. However in actual property, we try to deploy know-how, however I don’t suppose it has moved the best way it ought to, and understandably so.

What have been your challenges since assuming workplace because the Nationwide President of NIESV?

One factor that has lessened the burden on me is the truth that I’ve been within the system for lengthy. I used to be second vp and first vp earlier than turning into president. And previous to that, I had been on the regulatory board. I’ve been chairman of the Skilled Observe Committee on the board and vice chairman of the board as nicely. So on each side, whether or not valuation professionalism or the regulatory physique, I’ve been concerned. I do know the system out and in, and I don’t suppose there has ever been any president of the establishment that has had this privilege of serving on this method earlier than turning into president. That gave me that distinctive platform. I knew what I used to be coming in for. And I knew that my job was minimize out for me. It wasn’t going to be enterprise as common, and that I’ve achieved. It’s taken a whole lot of my time, nevertheless it’s been satisfying as nicely. Seeing us attain out to folks in positions to companion, patronise, or assist us, and seeing how they reply positively, offers me a whole lot of pleasure. It’s been fantastic. It’s a whole lot of work, however I cannot complain as a result of I knew earlier than I utilized and obtained the job. So I’ve to do it.

What key reforms or tasks ought to we count on from NIESV within the coming months, and what legacy do you hope to depart behind?

We’re going to reform our department community and our inside construction for extra effectiveness and relevance. These are issues that we’ll be specializing in. Internally, we guarantee that we make use of know-how when it comes to service to our members, their continued improvement, and really delivering efficient service to them, encouraging them and being extra clear as nicely. These are the reforms we’ve began. We are going to full and guarantee implementation.

What can be your recommendation for younger Nigerians who need to keep profitable and even be part of the occupation?

I all the time inform those who there are two international professions on the earth, accounting and actual property. All international financial crises have revolved round these two professions. The final one was attributable to asset mispricing and valuation. The one earlier than that was merely subprime. So, these two professions are completely very important to financial improvement. For many who need to be in property administration, they should perceive the enormity of accountability that this occupation locations on them in the event that they need to actually follow. Not all property surveyors and valuers perceive the enormity of our accountability. Some individuals are within the occupation only for each day bread. However you’ll want to perceive your place inside the financial area and your function. Think about that each financial institution facility requires collateral and that about 80 p.c of collaterals are actual property. And earlier than the financial institution can truly settle for that collateral, there should be a valuation. You may think about that primarily based in your valuation report, the financial institution is definitely advancing credit. That’s main in any economic system. Younger individuals who need to are available must be ready and decided to be true professionals, abide by the ethics of the occupation, and be able to develop themselves in order that they’ll reap the advantages. This, to me, is one of the best occupation on the planet. There are alternatives in all places, however to understand them wants crucial abilities and experience to take up the problem and be taught daily. Purchasers are way more subtle now; you’ll be able to now not bamboozle them. So that you keep forward. With the web, the shoppers have the knowledge, however we do the interpretation, utility of that info, and recommendation. And you can’t interpret or apply in case you don’t develop your self.