Traditionally, a rural area with mostly civil-service workers, Kwara State is rapidly developing into a bonafide business destination. Property developers have also turned their attention to the state as a location for residential and commercial developments. The state has made the buying and developing of property much easier through the liberalization of the Certificate of Occupancy (CoO). The CoO is essentially lease-hold title, previously notoriously difficult to obtain. In the past, potential investors had to wait for long periods for CoO to be issued, but because of recent reforms the document can now issued in as little as two weeks. 

These enabling measures have greatly encouraged private developers to partner with the state government in property development. A part of efforts to further stimulate investment, an embargo on the issuance of Certificate of Temporary Occupancy has also been lifted. The state government is attaching particular importance to the public-private partnerships in property development, especially in the area of housing delivery. The administration realizes that government lacks expertise when it comes to business and therefore wants to tap the private sector’s skills and experience. 

Residential property
There is a large demand for housing in Nigeria, and Kwara State is no exception. The state government, often together with private-sector partners, has completed a number of housing developments which have been well received by the local population. It is hoped that the recent establishment of the Kwara State Housing Corporation will further accelerate the construction of housing units.

Mandate Estates
Mandate Estate I, II, and III have been constructed across the three senatorial districts of Kwara State. Mandate Estates I and II have been financed solely by the state government, while the state partnered with the private sector for the construction of Mandate Estate III. The houses were built for permanent secretaries and political office holders.

Harmony Estate
Harmony Estate in Ilorin will consists of 500 units of two and three-bedroom bungalows. Developed as a public-private partnership between Detroit Nigeria Limited and the Kwara State Government, the project made use of cost-effective building technology from Hydra-form, a South Africa company. The first 100 two-bedroom units were recently completed.

Royal Valley Estate
Royal Valley Estate Phases I and II, in Ilorin, comprise 250 units for medium-income earners. The entire project is fast nearing completion. 

Emirate Estate
Emirate Estate in the Oloje area of Ilorin is a workers’ estate with 1000 one-, two- and three-bedroom units. The project is expected to be completed during 2010 and the units will be sold to civil servants through a National Housing Fund loan. The total project cost is N2.5 billion.

Commercial Property
Nigeria’s commercial real estate market is moving in a direction of increased sophistication. Kwara State is attracting more and more businesses which are boosting demand for commercial property. The opening of the Ilorin branch of the Nigerian Stock Exchange, for example, has led to a number of stock-broking businesses opening offices in the state capital. Kwara State has many hotels and guest houses, most notably the legendary Kwara Hotel with its various facilities. Guthrie Nigeria Limited recently redeveloped the old Satellite Motel in Ilorin, which was upgraded to a three-star facility with 100 chalets. The project was also a public-private partnership with Guthrie as the core investor with a 70% stake, while the remaining 30% was retained by the state government. The total cost of the redevelopment was N625 million.

In the area of retail developments, some of the phases of the Ilorin Ultra Modern Market have been completed. The idea behind the market was to bring under one roof all unorganized trading points scattered across the Ilorin Metropolis. Further opportunities for the construction of state-of-the-art retail centers exist.

One of the biggest problems with property development in Nigeria is the lack of proper facilities management. This is an area that holds great potential as Nigerians start to adopt a maintenance culture. International giant WSP Group has invested in this area, as well as South Africa-based Broll Properties and the JHI Group.

Investment Opportunities In Property Development

Housing Development
Private developers have the opportunities to partner with the state government in the provision of affordable social housing. Although a number of housing estates have been constructed in recent years, there is still a significant housing shortage.

Asa Dam Development
The state government is inviting local and foreign investors to invest in a mixed-use development at Asa Dam outside the state capital Ilorin. An area of 250 hectares has been identified for the project – 200ha on the east bank and 50ha on the west bank. Planned facilities for the development include a conference centre, a signature golf course with residential units, a shopping mall, a holiday resort and an amusement park.

For more information, Contact
Fela Ibidapo, Special Assistant to the Executive Governor on Investment.
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TradeInvestNigeria:
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Opportunities for investors in housing
Private-public partnership in housing development in Kwara State offer excellent opportunities to private investors

Kwara State Government is actively looking for private-sector investors to partner in the provision of housing. A simple procedure has been developed for private investors to follow should they wish to invest in property development in Kwara (see below). Investors stand to recoup their investment based on the modality agreed upon with the housing beneficiaries. The selling price will be determined by cost of the project plus the profit margin.

A number of private companies have already started work on providing housing in public-private partnerships. These companies include International Business Bureau (Royal Valley Estate, Kulenda), Delnot (Harmony Estate, Akerebiata), TY Bamidele (Amoyo) and Greenaco (Airport Road).

Kwara Geographic Information System (KWAGIS)

In line with the global best practices or computerization of land records, the present administration has successfully installed a computerized land record system with survey digital equipment through KWAGIS. This has made the documentation process very efficient and accurate. Issuance of Certificate of Occupancy (CoO) with its unique security features has since commenced.

The state government is ready to make land available to investors and issue Certificate of Occupancy within four weeks to attract more investors to Kwara State.

Investment Opportunities in Housing and Urban Development

New Government Residential Area (GRA)

The master plan for the new GRA, which is located at Budo Osho along NNPC Pipeline, Tanke, Ilorin, has been prepared. The project involves the provision of 1308 plots with good infrastructure. A financial institution has been engaged that is ready to partner with the state government as a form of equity share. Yolas Consultant has been commissioned for the supervision of the phase A1, comprising some 35% of the available plots. Opportunities now exist for investors to partner with the state government in financing the infrastructural facilities of the remaining plots.

Provision of housing
In its efforts to meet the housing needs of the populace, the Kwara State Government embarked on the direct construction of Mandate I, II and III housing units. In addition, private housing estate developers have also been involved through a public-private partnership initiative.

The state government is ready to partner with investors in the provision of houses in the new GRA.

Property development requirements
The Kwara State Ministry of Lands and Housing has prepared a step-by-step qualification procedure for prospective developers wishing to invest in property development in the state.

Requirement to be submitted by prospective developers:

• Application form (N1000) to be completed by developer
• Certificate of Incorporation
• Current Tax Clearance Certificate
• Site Plan of the proposed site
• Feasibility and Viability Report
• Environment Impact Analysis Report
• Financial plans and proposal for source of funding
• Company profile, including previous experience in housing delivery
• Prototype building plan of the proposal and layout plan
• Evidence of financial capability such as letter of commitment from credible financial institution(s) showing their willingness to fund or partner in the funding of the proposal.
• Evidence of registration with Federal Mortgage Bank and primary financial institution.
• Evidence of membership of the Real Estate Development Association.
• Plans for the provision of affordable housing with due consideration of the social and financial position of average Kwarans.
• Identification of at least three suitable sites for the proposal. Location and site plans of such plans of such sites to be submitted to the Ministry.