Until you perfect your property title, you might not be better off than someone with no investment. Yes, it’s a pretty harsh reality! If you want to avoid all your money going down the drain, you must understand that perfecting your title is a necessary legal process that helps you establish rightful ownership. For us in Nigeria, the Certificate of Occupancy is the most recognized proof of ownership.

This process is worth following through for real estate investors who are not just focused on making a passive income from property as current assets but on its capital appreciation and the value such property holds in the long term.
Property owners in Abuja were stunned by some policy changes in the Federal Capital Territory Administration on Friday, 24th of November, 2023. Of course, it is no longer news that a new sheriff is in town. The Federal Capital Territory (FCT) Abuja was created in 1976 to serve as the capital of Nigeria, though it officially became so on Dec 12, 1991, replacing Lagos. However, transferring government functions from Lagos to Abuja took several years.

Abuja was designed to serve as the political capital, an economic and administrative hub. It houses many government offices, foreign embassies, international organizations, and headquarters of corporations, and this, in turn, is a strong indicator of its economic and investment prospects. As one of Nigeria’s urban centers, it has continued to grow and develop. With a population of about four million, Abuja symbolizes Nigeria’s aspirations for progress and modernity.

To serve as the 18th Minister of the FCT since its inception, President Bola Tinubu appointed Nyesom Wike on Aug 16, 2023, following his nomination, screening, and approval by the Senate on Aug 21, 2023. This appointment came with the most expectations of performance as Wike is popularly known as “Mr. Projects,” a name bestowed on him by the immediate past Vice President of Nigeria, Professor Yemi Osibajo. True to his name, Minister Wike has been quite active since he resumed duties.

The FCT strategically serves as a revenue generator for Nigeria as a whole. To this day, the construction sector continues to thrive. A recent report by the National Bureau of Statistics (NBS) showed that the construction and real estate sectors contributed about N20 trillion to the GDP in the first three quarters of 2022. While construction services earned N12.9tn, real estate contributed N7tn to the GDP. Therefore, it is a no-brainer that most of the Minister’s policies will directly affect the real estate sector.

The Minister’s most recent policy, which resulted from developers of mass housing estates in the FCT clamoring for Certificates of Occupancy for their subscribers, sets the cost of issuance of Certificate of Occupancy (C- of-O) at N3.5million and N5million for subscribers in mass housing estates and independent properties respectively.
Other notable changes in the land administration process in the FCT include a recertification of all CofOs, pegged at N50,000 for individual applications and N100,000 for corporate applications. While many believed this was an attempt to increase the tax burdens of FCT Residents, The Minister maintained the need to increase the FCT’s IGR if any meaningful development was to be carried out.

While the conversation for rapid development in the FCT is valid, the general feedback is that the policy further increases the burdens of individual and commercial real estate developers. Housing should be seen more as a social good than an economic one. For housing to be affordable, as we all desire, the government should use legal and regulatory frameworks to facilitate and not stifle it. With double-digit inflation in the economy and the high cost of borrowing, the least regulatory policy developers expect is one with increased financial stress.

First Things First
Land property matters are primarily out of our control because the State and Federal Governments have sovereignty over it. Hence, you want to reduce the risk that comes with policy changes as much as possible by perfecting your property titles when the factors are still within your control. Essential matters should not just be dealt with before other things; they should be done quickly. Perfect the title now. Let’s other things wait.

Quality Over Quantity
Except you have a clear roadmap for perfecting your titles, investing in a few properties with perfect titles is better than many with imperfect titles. In the long run, the value is clear. Don’t invest emotionally; be deliberate and have a long-term approach. That is, create all possible scenarios for 5-10-15-20 years and be proactive.

Don’t Waste Your Trust
You don’t need to waste your trust in anyone when transacting business when you can hire a lawyer. Hiring a lawyer can bring many benefits, including expertise and knowledge of the legal system. A lawyer can help you navigate complex legal situations, such as drafting contracts, filing lawsuits, or defending against criminal charges. They can also provide legal advice and guidance, helping you make informed decisions and avoid costly mistakes.

Additionally, having a lawyer on your side can give you peace of mind, knowing that you have a skilled professional working to protect your best interests. Most of the litigations in the Nigerian legal system today are land and property-inclined. This further bolsters the need to ensure that the title to a property is free and clear of any liens, claims, or encumbrances that could affect its transferability or marketability.

Written by Doyin Adewola Founder/CEO Roomeo Construct LTD