News


Contributors to the Federal Housing Scheme in the Federal Capital Territory have expressed disappointment over Good Homes Development Company Limited’s failure to deliver the project despite collecting N5bn from them over the past decade.

Olusegun Awoyeye (not his real name) had always dreamed of owning his own house to reflect his years of dedication to the country’s civil service. To actualise their dream, he approached a microfinance bank for a N13.5m loan. He was told the loan would attract a six per cent interest rate per annum.  After securing the loan, he added N2m from his wife.

With the N15.5m he was able to pool together, he decided to procure a three-bedroom terrace apartment from a real estate company, Good Homes Development Company Limited, located in the Apo-Tarfyi area of the Federal Capital Territory.

However, a decade later, at the age of 65 and with deteriorating health, Awoyeye’s dream of having a house he could call his has remained a mirage.  Good Homes’ promise to build houses for 166 contributors to the Federal Housing Scheme has disappointed Akinwale and other participants in the scheme.

Recounting his distressing ordeal to our correspondents earlier this year, the retired deputy director, who had served in the Office of the Head of Service of the Federation, lamented that the government had deprived him of the opportunity of owning a house.

“I am not happy at this stage of my life after working for so long and not having anything to show for it. I remember how I had to source the money, running a helter-skelter because we were given six-month grace to make payment as I was not eligible for a housing loan given by the Federal Mortgage Bank of Nigeria.

“The scheme was given wide publicity with the full endorsement of the government and was perfectly hatched. No one had the cause to doubt the scheme,” he told our correspondent.

According to him, subscribers were encouraged to make payments for different units of apartments, ranging from one bedroom to three bedrooms on the basis that the estate was specifically built for civil servants and would be delivered in six months.

“Everything looked real and we had no cause to doubt because we saw important personalities involved in the project and we gave out their all to meet the obligations needed.” He said with a frown on his face.

He asserted that every effort to amicably address the issue had been resisted by the company. Instead, it had requested subscribers pay more due to the rising costs of construction materials.

Awoyeye remarked, “I even possess an allocation letter for my plot, and when we noticed that the project was not progressing as anticipated, I suggested that we should be allowed to continue and finalise the project autonomously. Regrettably, the developer rebuffed this proposal and insisted that I pay an additional N5.4m exclusively for the land, in addition to the N15.3m I had already invested in the house.”

Awoyeye, who was still servicing the loan to pay for the house, expressed frustration with the poor regulation in the real estate sector, which had allowed the people involved in the failed housing scheme to go unpunished.

“It is disheartening because many of the investors have since passed away, and some are now suffering from health issues due to their substantial investments in the housing scheme during their working years. As I speak to you, I still don’t have a proper home in this city. It is hard to believe that after working for 35 years, I can’t even claim ownership of a house in the city. Most of the time, I try not to dwell on the situation too much, as it could seriously affect my health at my age,” he lamented

Genesis of the housing scheme

In 2014, the Federal Government represented by the Federal Capital Territory Authority, Nigeria Labour Congress and Trade Unions Congress signed a Memorandum of Understanding with a property developer, Good Homes Development Company Limited, to deliver 1,000 units of houses to Nigerian workers within one year on 289 hectares of land.

The site is located along the Efab Sunshine Estate after a Malaysian Village, a few metres from the popular Apo Mechanic Village, Abuja-FCT. It was inaugurated on December 18, 2014, by former President Goodluck Jonathan.

To rekindle the memories of residents in the Federal Capital Territory, the former president made a noteworthy entrance, arriving via his official helicopter from the Presidential Villa to lend his strong political endorsement to the scheme.

A promotional flyer for the event, obtained by our correspondent, featured an enlarged portrait of the former FCT Minister, Bala Mohammed, alongside former President Jonathan. The flyer introduced a nationwide housing initiative with the theme “Secure a home in Abuja through the Federal Capital Territory Ministry”, utilising striking architectural imagery to entice and illustrate the project’s designs.

A handout detailing the amenities planned for the housing estate provided pricing information as follows: a 5-bedroom duplex for N46m; a 4-bedroom duplex at N38m; a 3-bedroom terrace duplex for N28.5m; a 3-bedroom block of flats for N12.42m, and a 2-bedroom block of flats for N10.44m.

Following the scheme’s launch, the real estate developer in collaboration with the NLC and TUC, initiated an awareness campaign to encourage Nigerian workers to participate. As a result, many workers subscribed to the scheme, making upfront payments of between 10 and 20 per cent.

Our correspondent gathered that the involvement of both labour unions had spurred many workers to subscribe to the initiative.

The News department  gathered that the land for the housing scheme was given to the real estate firm free of charge by the FCT administration and subscribers were only required to pay for the development of the houses.

The widespread publicity given to the housing scheme encouraged an Assistant Commissioner of Police, Richard Ajachukwu, to subscribe to the project and make an initial payment of N12.5m for a 3-bedroom flat.

In a telephone interview, Ajachukwu explained that he decided to invest in the scheme because of his plans to settle his family in the capital city.

He added that his decision to invest his money was made after consulting with friends who were also lured by the media buzz characterised the scheme.

He said, “I subscribed to a mass housing scheme which was embarked upon by the Federal Government through the Federal Capital Territory Administration and executed by Good Homes Limited. I got to know about it through the media because the advert was placed on virtually all platforms in the media space. When I got wind of it, I asked some of my friends who were also in Abuja and they encouraged me to be part of it because at that time I needed to acquire a residential apartment for my family being an employee of the Federal Government.

“Based on advice and encouragement from a few friends I consulted, I was convinced that since the Federal Government through FCTA was involved in the scheme, it was indeed legitimate. So, I subscribed for a three-bedroom flat at the cost of N12.5m. I was required to pay a minimum of 10 per subscription as an initial deposit to qualify for an allocation. I paid N1.25m, which represents 10 per cent of the total cost of the house.”

The law enforcement officer mentioned that he had arranged with the developer, which allowed him to leverage his National Housing Fund contribution administered by the Federal Mortgage Bank of Nigeria.

“The arrangement was that I would defray the cost through a loan that would be processed by the developer through the FMBN. They said package subscribers who were contributors to the National Housing Fund would be given the opportunity to draw a loan as part of funding for the project and the loan would be repaid throughout the remaining years that the subscriber has in service and that was exactly what I did in the beginning.

“After I paid the 10 per cent counterpart funding, I received an allocation paper and I went to the site and saw that work had started. Unfortunately, I made payment in early 2015 but about eight years later, we have yet to realise our dreams. The project has been abandoned. For over five years, there is anybody on site working on that project,” he stated.

Wasted investments

Another subscriber, Yelenbini Maken, currently in her late 40s, also shared her ordeal with our correspondent.

Maken, who is a broadcaster, said she emptied her savings and encouraged her sister to invest in the scheme. She expressed her disappointment when it turned out to be a scam.

She claimed subscribers to the housing scheme were ridiculed and treated with disdain after the company reneged on its initial agreement. She noted the firm had not seen anything wrong about its failure to deliver on the project.

“I was working with a broadcast company and a member of The Radio, Television, Theatre and Arts Workers Union of Nigeria when I subscribed to the scheme. The scheme was all over the news. So, I decided to use all my savings from my office cooperative to subscribe to one unit of a 3-bedroom block of flat with a down payment of N1.25m.

“The journey since then has been very disappointing, to say the least. I made several trips to the Good Homes office at Garki after making part payment to know where the allocation was on the map or physically but it was one story or the other. At one point, sometime in 2017, I was asked to pay an outrageous amount of money to get land in exchange for the money with no room for negotiation, which I blatantly refused.

“It is already 10 years down the line and everything looks like a wasted investment because I could have used the money for something else or bought a piece ofland. I have heard about other dubious real estate companies but didn’t expect a scheme under the watch of the NLC and FCT minister to take this turn. It’s so sad,” Maken remarked.

For Adebanjo-Taiwo Glory, another subscriber, the inability to present the keys to a three-bedroom terrace had made her family double-check figures before involving her in their financial transactions.

She stated that her plan to surprise the family with a three-bedroom flat ended in disappointment as the money invested was removed from her family’s corporate savings. She noted, “Whenever I reflect on that experience, I’m torn between laughter and tears. I had utilised money from our family’s collective savings, and because the developer failed to deliver on the project, my family members lost confidence in my financial judgment. They believed I had squandered the money.

“This situation has been incredibly stressful and draining as I’ve been struggling to claim what is rightfully mine. I paid the initial 10 per cent deposit and was directed to access the property through the National Housing Fund via a primary mortgage, which I did in 2014. I received an offer, but they had consistently refused to allocate the property to me despite my 10 per cent payment as agreed. The project office had relocated, and their members of staff were unresponsive to our inquiries. All I desire is to secure my property.”

According to Adebanjo-Taiwo, subscribers met with the former NLC chairman, but nothing came out of the meeting. “We are in desperate need of intervention from the FCT minister. The owner of ‘Have Good Homes’ has changed the project’s name multiple times and has been selling the land to others. I initially invested in the project due to its affiliation with the NLC, as it was supposed to benefit workers,” she declared.

Real estate fraud

According to a report by omonilelawyer.com, over 500,000 land scams worth N5bn occurred in Lagos and Ogun State in 2022, forcing cases of mediation by security agencies.

In Lagos State alone, 50 cases of fraud were adjourned for further mediation in 2021, while 40 were referred to appropriate agencies, with five cases in courts in locations such as Ketu, Ajah, Ikorodu, Gbagada and Yaba.

It also stated that more than 500 people were allegedly defrauded of N8m each by a real estate firm in the Abijo area of Lagos, after buying a fake plot of land without titles in 2021.

The fraudsters exploit the desperation of intending homeowners and tenants to have roofs over their heads and secure cheaper accommodation.

According to some stakeholders, the poor regulation of the estate sector creates opportunities for fraudulent developers and other operatives to swindle the unsuspecting public by offering unrealistic discounts.

The Executive Director of Housing Development Advocacy Network, Festus Adebayo, said non-regulation of the real estate sector had made it easy for fraudulent developers to swindle unsuspecting home seekers.

Adebayo said, “Fake estate developers are the cause of the problem. It is time for our government to create laws that will protect consumers of real estate products. Many people in the diaspora and Nigeria are becoming victims.

“Who is protecting the real estate consumers? Who is regulating the sector? We need answers if we must bring sanity to the activities in the sector.

“Housing scheme was to help civil servants own a home of their choice but it is like it was not properly planned to achieve that objective. No land, no funding and few fraudulent characters used it to dupe some innocent subscribers.“

Many failed promises

According to the subscribers, many of whom preferred to speak on anonymity due to public service rules lamented that real estate firms utilised a bait-and-switch method to lure prospective customers with mouthwatering discounts only to shortchange them.

They said it was hard to phantom how hardworking individuals entrusted their hard-earned money to developers who consistently breach their agreements with zero consequences.

Many public officials, whom The PUNCH interviewed separately, asserted that Good Homes Development Company promised to complete the project within six months.

They claimed that if the total amount of N348,965,600.00 paid by the subscribers was kept in a dedicated account for 10 years, it could have yielded a cumulative interest of about N5.9bn.

Investigations by News department also revealed that the 289 hectares of land the developer got for free from the government was now worth N70bn as a plot of land currently costs N15m in the area.

Copies of allocation letters, shared with our correspondent, outlined the terms and conditions for the housing scheme, as well as the penalties for defaulting subscribers, but there was no penalty for the company.

It read, “We refer to the above subject matter and wish to inform you that one unit (Block 15, Flat 3, Zone D, Phase 1) of 3 (three) bedroom block of flats in the Apo Site has been allocated to you at the cost of N12,420,000 following your indication of interest by your deposit. We solicit your strict compliance to the terms and conditions of payment contained in your chosen and mutually agreed payment plans, that is, Mortgage (commercial or NHF), milestones or phase payment or outright payment.

“This letter of allocation is provisional and does not confer on the bearer, total proprietary rights. Therefore, non-compliance or breach of any of the conditions stipulated in the preceding offer letter would lead to an automatic revocation of this allocation.”

Another letter sighted by our correspondent titled “Provisional letter of allocation”, dated October 28, 2016, and signed by the Group Managing Director of  Good Homes Development Company, Daniel Nwokedi, encapsulated the terms and conditions.

The conditions read in part, “You are expected to accept any of our specified and mutually agreed payment plans/terms stated below, on or before the expiration of 14 days from the date this letter is collected. Any applicant wishing to use the National Housing Fund to pay for his/her preferred house will be required to make an initial deposit of 30 per cent of the value of the house being applied for to Good Homes Development Company Ltd. The balance of 70 per cent must be paid on or before six clear months of the building’s practical completion and a final allocation letter would be handed to the applicant.

“Default of payment/late payment at any stage would attract a payable interest which would be duly negotiated by the management of Good Homes Development Company. A refund of the deposit would be subject to an administrative default charge of 5 per cent) of the total sum due to be refunded to the allotee. This payment plan is guided by set terms that must be mutually agreed upon by the Purchaser, Developer and Bankers where applicable.”

Project site

When The News department visited the project site after three failed attempts to locate the large expanse of land, the surface of the buildings had started washing away, reflecting signs of abandoned structures. Further investigation also revealed that the one-time lush greenery in the environment had been reduced to a bushy area laced with excreta.

The land that once served as a beacon of hope for civil servants has been taken over by scavengers, and is being utilised for farming and other purposes.

Subscribers are resolute

Despite the difficulties they had encountered while trying to get their houses, subscribers had stated their resolve not to succumb to any intimidation until justice was served and their houses built and handed over to them.

Awoyeye said he would not give up the fight until the keys to his house were handed over to him. “I only want my house, whatever way it will be resolved. I know the government can still do something about it. I worked for that money and I would not want my investment to go down the drain,” he asserted.

Ajachukwu charged the government to ensure the passage of proper legislation to forestall a reoccurrence.

 I am very disappointed and I feel something has to be done to remedy the situation at least if we can’t get back our money. The government can also allocate the land meant for development so that those who can afford can develop it on their own. It is a huge disappointment and I use this opportunity to ensure this injustice is redressed,” he stated.

The affected subscribers also called on President Bola Tinubu; the Minister of the Federal Capital Territory, Nyesom Wike and the Minister of Housing and Urban Development, Ahmed Dangiwa, to wade into the matter and help public officer recover their investments.

Good Homes reacts

In its reaction, Good Homes Limited dismissed allegations of fraud, stating that over 60 per cent of the alleged subscribers had swapped the lands for another land space owed by the company in another area.

A human resource officer in the firm, who blatantly refused to be quoted, said the refusal of the former minister of finance and the Federal Mortgage Bank of Nigeria to release N10bn as directed by the then president caused the failure of the project.

The officer noted that some people had taken advantage of the failed project to blackmail the company.

According to the official of the firm, the monies paid by the civil servants cannot currently finance the project.

He said, “The scheme is a Federal Government initiative and it proposed to use mortgages to finance the project. The then-president gave a directive to the Federal Mortgage Bank of Nigeria to provide N10bn for the project but they didn’t do that before he left office. So, we had to now source for funds. So, the subscribers were required to pay 10 per cent as the plan was to access 90 per cent from a mortgage.

“However, the part of the government to refinance the mortgage failed even though the President mandated the then-Minister of Finance to fund the project. We also tried to source funds elsewhere as we were hoping he would be elected as president for the second term. But since that didn’t happen, we tried to involve the new President using the Nigerian Labour Congress and Trade Union Congress but they failed as well.

“So, even the skeletal structure you are seeing there, the 10 per cent payment by subscribers couldn’t have taken it there. We also had to use our money to build and we have started paying off some of them if not, you wouldn’t have been able to enter this premise.”

According to the official, one of the solutions the firm proffered was that the contributors should pay more money to fund the project.

“We grouped some of them in blocks of 4, 6 and 8 and only one said he had money to complete one block. What are we going to do with the rest? That plan didn’t work, so we met with the FCDA to redesign another phase of the area for them to build at their own pace.

“So, we encouraged them to swap for a new land and build for themselves at their own pace and a lot of them have been doing that. Their files are here and I can tell you that over 60 per cent of the compliant have swapped. Although some of them are just deceiving themselves by following the bandwagon, the majority have swapped already and at a discounted price, if I may add,” he explained.

Refund to begin

He also revealed that the company had kickstarted a reimbursement process to repay interested subscribers who no longer want to continue business with the company.

“For those who are waiting for their refund, we have started a reimbursement process and they will be invited by our account department for refund processing and once we have the money, they will be paid,” the official added.

On the dilapidated state of the site, the official said, “We have abandoned the site for some time. We have actually gone to the FCDA to give us some of their staff so that we can go there to evacuate scavengers and squatters living in the uncompleted building. In the next two months, we are going to fence the place. We are going to take them out and that area will be cordoned off.”

 The Managing Director of Good Homes Ltd, Daniel Nwokedi, blamed the Federal Government for not releasing funds allotted to the project for easy implementation in a telephone interview on Tuesday, in response to the allegation.

Nwokedi said, “Have you ever asked what is stopping and delaying that project? You should have taken your time to write about what the Federal Government is supposed to release to the Federal Mortgage Bank so that the bank can also release this money to us. I think that is what you should write about. The government knows the situation of things. Please, allow me. I have a lot of stress on my head.”, Several calls made to the President of NLC, Joe Ajaero and its General Secretary, Emmanuel Ugboaja by our correspondent were not answered,

Despite attempts to contact them, neither the TUC’s General Secretary, Nuhu Toro, nor the union’s President, Festus Osi, could be reached for comment.

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