What Abuja Land Swap initiative means for real estate sector, investors

Once again, investors and the federal capital territory administration (FCTA) Abuja are back to the table following approval for resumption of the ambitious Land Swap Initiative by the federal executive council (FEC) early last week.

The Abuja Land Swap initiated by the Bala Mohammed administration was valued then at N1 trillion. It is the short form of the ‘FCT Land Infrastructure Swap Initiative’ designed to address the infrastructure deficit in the FCT.

In simple terms, the initiative means engaging the private sector to provide infrastructure in exchange for land. The aim, essentially, is to open up new districts in the FCT by constructing and completing access roads to those districts.

Apart from freeing government land for economic activities such as real estate and industrial development, the initiative also solves one of the major problems of urban or city development which is the provision of a good network of roads and associated infrastructure.

It is also an answer to real estate sector development in Nigeria where investors and property developers estimate the cost of infrastructure at 30 percent of total construction cost.

The implication is that the initiative will not only increase housing stock, but also reduce house price, and ultimately bridge the housing demand-supply gap in the country put variously at 17, 20 and 22 million units, depending on who one is speaking to.