PATRICK AGBAZA
Mr. Patrick Agbaza is the managing director of Pazino Homes and Gardens, a fast-growing housing and real estate development firm. Agbaza speaks with Adedayo Adejobi on the challenges confronting operators and stakeholders in Nigeria’s housing sector and importance of government in policy direction and financing as well as how Pazino is creating value in the industry and helping to entrench an eco-friendly environment
What is your assessment of the housing and real estate business in Nigeria?
The housing and real estate development in Nigeria cannot be separated from one another, because of the nature of what both is. Let’s first look at housing. Housing obviously preceded real estate. When we talk about housing, we are talking about shelter, where human beings mostly retire to at the end of the day. Housing is not limited only to Nigeria, and I’m sure it started from creation of this world. But to put it very clearly, in Nigeria, the housing development has metamorphosed. Over the years, a lot of development has taken place. If you look at how it was 20-30 years ago and looking at where we are today, you will agree with me that it’s taken some level of development, even when we know that it could have been better. But then, if you look back from where we were coming from and where we are now, we know that the future is going to be rosy.
Over the years, you know life is dynamic, life is unique, and the only thing in life that is constant is the dynamic nature of life. So the housing development came as the real estate. Real estate comes with some level of modernisation in terms of housing. Some years ago, housing was not regulated- we had a lot of irregularities here and there, with structures scattered all over the place. In short, there was no regulation and no proper and decent living. The challenges gave rise to the real estate industry. If you look at modern-day housing structure in Nigeria, it’s now defined in a given environment, unlike before where people just build houses without regulation. But now the real estate developers have decided to come into the picture to restructure housing and in doing that, they’ve brought in some amenities. It has become well-structured and regulated with infrastructure like the drainage, the road, security house, light, green areas and an eco-friendly are just to name a few. So a real estate can also be a sub-structured to housing.
In life, we have the basic needs of man are food, shelter and clothing. Talking about shelter, for a long time, there has been a huge housing deficit. What is Pazino’s value proposition to bridge the gap?
Yes, you are very right. The truth of the matter is that the housing deficit in Nigeria is very alarming. If you say high, it is an understatement to me, it is extremely alarming and from the way things are going, it is going to get worse, if we do not do the proper thing. It then begs the question as to what is the essence of government. It is to put in place policies that will have effect, not only short time, but in the long run.
Over the years, there will be population explosion because of the birth rate. Three to five years ago, we were looking at a population of 130-150 million people. Just another five years or thereabouts, we are 200 million. What will now happen in another five to10 years? In all of this, is the government responding to this anticipated population explosion? No. So that is why till today, you still have a situation. Because of the nature of our business, our ears are always within the areas of the housing. Take the statistics, go through the 36 states and even the FCT. Look at the plans for the past five to 10 years and look at the plans that the states and federal government has, it’s close to zero. As we speak, you need to see how many Nigerians are sheltered.
The government has failed woefully, even on its own trying to come out with ideas that will ameliorate the situation, as if that is not enough to make the situation worse. One would have expected that the government would have executed a lot of mass housing schemes all over the place, by not only providing low cost housing, but also encouraging the private sector by creating an enabling environment, making it more friendly; providing loans with little or no interest facilities to drive the private sectors to complement what the government is doing; but what happens today is that you have a situation, whereby government comes out with some funny policies.
Moving forward by way of solution, we expect the government to be to more proactive rather than be more reactive. We want to see a situation, where government can come out with holistic plans that can help towards taking Nigeria to the next level, not only the housing needs of now, but also the housing needs of Nigerians in the next 20 years through the national planning.
The government should encourage the private sector. I’m a realtor, thousands of us are all over the place, encourage us by coming out with good things. It could be facilities, policies. Government can acquire some lands in 36 states of Nigeria, make available finances, monitor them, and set up agencies, which will help real estate developers in making some of those schemes a reality. Government can also help in establishing companies that will manufacture building materials.
Let’s give kudos to companies like Dangote, but the truth of the matter is that even Dangote alone cannot supply the cement for the average Nigerian. When we are talking about housing what really come to mind, the land itself, cement, iron rods, asbestos just to name a few of that; by now we expect the government to rather setup more of those factories producing such materials, because the more we have more of them, the cheaper their prices would become cheaper. Because as it is today, there is no market that sells for the rich, there is no separate market, it is that same market everybody buys from. If the government does not know what to do, they should take a trip to the countries like Malaysia where it has succeeded and bring it back home. If you ask me after food, the next one is shelter so those are the steps that I think the government can come in to solve the housing problem.
How does Pazino intend to take advantage of the housing gap to the benefit of the people? Specifically, what is your firm bringing to the table?
Every problem is an avenue to make money. Those who find solutions to problems are the ones in money. We came into business because we felt that there was a unique gap in the society in terms of housing needs. We felt the area should be revamped. We saw unprofessionalism.
With over 23 sites all over Ibeju Lekki axis and we’re still counting, we have come out with a very robust development pattern that cuts across the Ibeju Lekki axis of Lagos, taken care of the rich, the middle class and the lower class of the society. We have different estate projects that cater for every Nigerian irrespective of their financial standing.
We have also embarked on low-cost housing schemes as a way of supporting government and helping people acquire some cheap plots of land. We also have a lot of schemes that have started in free trade zone area for the lower class in the society. We also intend to do some mass housing schemes to support whatever the government is doing,
We have four housing units presently as we speak and they sell for between N800,000 and N1.5 Million as the case may be. The figure is just for the land itself, which is not for the houses. This is one of the things we are doing to help the people and government in mass housing and we expect that as we speak, with the prototypes, the designs for those houses, it should be as low as N13million, N15 million. At the end of the day, with that amount, someone should be able to have a 2-bedroom apartment to himself, even if it’s not up to the finishing stage, but at least something that is far more than carcass so that you can now finish your structure by himself.
Talking about where you have your foot print, you’ve mentioned Ibeju Lekki in Lagos. What other parts of Lagos or Nigeria do you have your presence?
We are taking a step at a time. We already have over 20 projects and still counting, so it is not just enough. Rome was not built in a day, so for us we are taking it one step at a time when we are done with here, then the next stage is to spread to other areas in Lagos. There have been a lot of calls from Port Harcourt, Abuja. We have offices in those areas and there have been a lot of calls for us to come and start, but we just want to take it step by step, It is within our plan to expand in Nigeria.
What makes Pazino unique among the real estate development companies in Nigeria?
We did not just come into the Real Estate industry because we want to add to the numbers. We are unique. We saw some gap and we’re filling it tremendously
We didn’t come to begin to set up estates. One of the cardinal things that drove us into doing what we are doing now is that prior to when we started we went all over the place, looked at already existing estates and discovered so many flaws like, the poor provision of the infrastructure. The infrastructure is far from what it should be- its dilapidated roads and drainages.
Nigerians have made mockery of what an ideal estate should be. Across the length and breadth of Nigeria, if there are one million estates in Nigeria , 950 to 980 are very far from the standard. An estate should be a home. We don’t use the word estate, we say gardens. When you are done with all activities of the day a man should retire to his home; And what is a home? How do you feel it? As you drive into the entrance of the garden, trees, lush vegetations, tranquility, serenity and all are those things that make it our unique selling point.
As I speak to you we are at the edge of becoming the first real estate company in Nigeria that will be doing what they call over 50 per cent of turning waste to wealth in Nigeria. From the waste, we will generate electricity, gas and much more.
In the area of pricing we have very affordable and competitive and pocket-friendly payment plans spread across as much as 36, 24, 18,12,6 months as the case maybe.
In what ways is Pazino giving back to the society?
Thank you very much, you will permit me to be restrictive of some things. I don’t like blowing our trumpet as it has to do with issues that you just raised now. Because to me there is a verse in the Bible that says, ‘when the right hand does any good the left hand should not make it open.’ But it may interest you to know that we have done so much, we have given back to the society.
Firstly, we have what is called regular orphanage visitation, in terms of there is hardly any week that we don’t go to some of these orphanages to give back, to show love and kindness to the needy. We have also partnered with some programmes within Lagos state government during the last Children’s day celebration at Ikeja Park, where we support the government to host the Children, and we were able to give out lot of gifts on the children’s day; and others that we have done privately that we have not come out. We also continuously support people with serious health challenges, the needy and a lot of churches.
What are the institutions or brands that you are partnering with, firstly for development and brand enhancement?
When you are talking about partnership the first that comes to mind is THISDAY Newspapers. THISDAY Newspapers has been supportive to the brand in terms of publicity. Innocent Idibia, popularly known as Tu Baba just got signed as our brand ambassador and ever since we brought him on board he has been fantastic. The followership, and in fact, he has been a good addition, not to forget Azizat Oshoala, the current African Female Footballer of the Year. There are lots of partners, who have made the business a success.
