COLLAPSED 21 STOREY BUILDING: STOP PLAYING THE "BLAME GAME" ON LOCAL BUILDING DEVELOPERS, - DAVID ADENEKAN
#Ìròyìn Òmìnira
4th November, 2021
Lesson From The Collapsed 21 Storey Building At Ikoyi, Lagos State And The Stake Of Local Real Estate Developers In Nigeria
To start with, my heartfelt condolences to all those who have lost their loved ones in the collapsed 21 storey building at Gerald Road Ikoyi, Lagos. May the Good Lord give them the fortitude to bear the irreparable loss. Amen!
However, over flogging the blame game will not give us the desired result we ought to learn from this unfortunate disaster.
Yes, looking at the larger perspective and finding a lasting solution to prevent similar disaster, should be the goal of a responsive and responsible government.
In other words, whatever new rules and regulations that may emanate from this disaster should not be to destroy many good sides of our local real estate developers (local contents) but to encourage and help them to leverage with foreign investors.
Yes, this is just the right thing to do.
The fundamental question to ask at this juncture is; looking beyond this disaster, what is the stake of Local Real Estate Developers in Nigeria?
Methink the zeal and power to encourage our local real estate developers cannot be overemphasized.
It is pertinent to say that, one of the serious economic problems we are facing as a country is capital flight. It is a common knowledge that foreign investors like Juliius Berger will often migrate their assets and money to their foreign countries, particularly in developing countries that the fear of war and political instability are the norms.
Suffice it to say that, the economic implication of capital flight is a decline in our Gross Domestic Product (GDP). In economics it is called Balance of Payment Deficit that will ultimately, deplete our foreign exchange earnings.
Also, this will hinder the ability of our local investors to access funds to develop our local contents.
Frankly speaking, any new regulation to rectify all the anomalies, after a thorough investigation of the collapsed building, should not be to discourage our Local Real Estate Developers but instead, put them in a better position to favorably compete with the world standards.
The overall objective of any visionary and purposeful government in this kind of scenario should be to develop our local contents and keep our wealth in our domestic economy.
Yes, achieving this target goal is a multiplier effects on our economy. It will create jobs and increase our per capital income vis a vis our standards of living.
Though, one will not be surprised if the finding of the panel point to institutional problems at the high profile level such as bribing and corruption.
However, whatever the findings, it should not deter us from helping our local investors to develop our local contents by creating more wealth in our domestic economy.
In summary, we must turn this disaster around to change the face of our local real estate developers to a better and enviable position that will attract other countries to hire their services and migrate more wealth into our domestic economy. It is called balance of payment surplus. In effect, this will increase our foreign exchange earnings and ultimately improve our level of productivity.
Hmmm, what a comparative advantage and multiplier effects on our economy!
Yes, it is sad and very unfortunate disaster but it can also be a blessing in disguise if properly managed.
Only time will tell.
David Adenekan writes from Chicago, Illinois.
davidadenekan5**********.
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- 4 Nov, 2021
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