The Peninsula Estate 98% completion
Apart from food and clothing, shelter stands as a fundamental necessity of life, always emerging as a critical focus for both individuals and governments alike. In Nasarawa State, Governor Abdullahi Sule has underscored the significance of addressing this need by prioritising the establishment of housing units for low-income earners. LINUS OOTA reports that this initiative is being pursued through a strategic public-private partnership, aiming to facilitate accessible and affordable housing solutions for the residents of the state
In the past four-and-a-half years, the Nasarawa State Government has evolved new approaches to tackle the housing crisis, particularly for low-income earners. Shelter, alongside food and clothing, stands as a fundamental human need. Its provision has emerged as a paramount concern for both individuals and governments, often serving as a litmus test for governmental performance at various levels.
This imperative is underscored by Section 16 (1) (d) of the 1999 Constitution, which mandates the state to ensure suitable and adequate shelter for all citizens within the framework of fundamental objectives and directive principles of state policy. Despite the longstanding aspiration for affordable mass housing, particularly for civil servants, realising this vision has seemed elusive. Without bold housing policies, the prospect of homeownership remains distant, even for senior-level public servants, let alone those in mid and low-cadre positions.
The absence of comprehensive housing policies has led to Nigeria’s staggering housing deficit, currently estimated at 17 million, with an annual increase of 900,000, as highlighted by former Finance Minister, Mrs. Kemi Adeosun. In a notable departure from this trend, Governor Abdullahi Sule took a decisive step in May 2021 to address the issue head-on. His administration initiated the construction of the Peninsula Hills Housing Estate in the Karu Local Government Area, marking a significant stride towards providing affordable housing for the residents of Nasarawa State. Governor Sule said the housing estate represents a strategic public-private partnership with Affinity Reality, effectively alleviating the burden of substantial equity contributions traditionally placed on the public. This initiative stands as a beacon of hope, demonstrating the potential for innovative collaborations to mitigate housing challenges and enhance the quality of life for citizens.
“Two hundred and seventy hectares of land were marked for the project, but for a start, the government had given approval for only 100 hectares to be used for 4,400 houses. Aside from providing land, we have been able to construct some roads and other necessary logistics for the smooth execution of the projects,” he said.
Governor Sule has emphasised that providing housing units stands among the paramount objectives of his administration, aiming to uplift the living standards of the underprivileged. His commitment to ensuring affordable housing for workers underscores the significance of this venture. The impetus behind this initiative gained momentum notably during the current administration, despite its inception dating back to 1992. This progress was catalysed by the Nasarawa State Government’s strategic partnership with Affinity Continental Royalty Limited, a prominent player in the real estate sector. This partnership breathed new life into the Peninsula Estate project located in the Karu Local Government Area, which was originally initiated by the former Plateau State Government.
The Peninsula Project, as outlined by Mr. Sonny Agassi, the Director-General of Nasarawa Geographic Information Service (NAGIS), was conceived in 1992 as a pioneering public-private partnership venture. Mr. Agassi, who oversees the Peninsula Estate under his agency, also chaired the sub-committee established by the state government to oversee the solicitation and selection of investors for the development project. This collaborative effort exemplifies the power of public-private partnerships in driving transformative development initiatives.
The history of the Peninsula Estate project traces back to its inception in 1992, under the auspices of the then Plateau State Government. In 1993, the project transitioned to the Plateau State Government’s administration, and upon the creation of Nasarawa State in 1996, it became part of the assets inherited by Nasarawa State. The state assumed full control of the project in 1997. However, significant progress was only glimpsed during the administration of Senator Umaru Tanko Al-Makura. Recognising the project’s economic potential and its capacity to bolster the state’s revenue, Al-Makura’s administration embarked on developing critical infrastructure across the sprawling 100 hectares of the Peninsula.
Despite awarding contracts for site layout during the preceding administration, progress remained stagnant, primarily due to the focus on site and services, which entailed allocating land back to individuals for gradual development. Even after the infrastructure was put in place, the land remained largely undeveloped. The advent of the Sule administration heralded a turning point in the project’s protracted journey. With a committed investor pledging a substantial investment of N30 billion, the trajectory of the Peninsula Estate project took a decisive shift towards completion.
For Governor Sule, the journey began in May 2019; shortly after he was elected. The vision for his administration was to break away from the traditional site and services and seek for a private developer to realise the Peninsula Estate project. He described the agreement signing as a happy day for his administration, especially for developing the Peninsula Estate located in Masaka, in Karu Local Government Area. “It’s not only in line with the policy of this administration to bring about development in the local government that is our gateway to the FCT, but it’s also in line with what we are trying to do in the state,” he said shortly after witnessing the signing of the joint venture agreement.
According to the governor, the feat being celebrated through the signing of the Memorandum of Understanding (MoU) between the Nasarawa State Government and Affinity Continental was only made possible because of the innovations earlier introduced by his administration to create an enabling business environment. The two key interventions provided the enabling environment to sign the joint venture agreement, thus paving the way for development in Karu LGA.
The setting up of the state Mortgage Board that will regulate mortgages, foreclosure and enforcement in real property, as well as the establishment of the Nasarawa State Investment and Development Agency (NASIDA), which is to serve as a vehicle for promoting, facilitating and coordinating investments were responsible for the success recorded. With this new arrangement where a developer invests in the project, rather than employing sight and services for the Peninsula Estate, Nasarawa State will earn N9 billion in revenue while possessing 30 per cent equity.
“As a businessman, I am not going to come into the same arrangement. It’s one of the reasons we decided to change this and look for a housing developer to come in, with a new concept, new ideas to do that,” the governor said. Governor Sule said if his administration has gone ahead to implement the site and services, Nasarawa will most likely end up with only N2 billion as revenue. “By the time this housing estate is completed, Nasarawa State will now have a revenue of N9 billion, not N2 billion. Instead of getting the N2 billion now, it’s better to wait, develop the place, create employment for most of our people living in the area and create a lasting source of revenue,” he added.
However, the governor was not only concerned with revenues. He expressed concern over the fate of genuine landowners displaced at the site for the project to take place. He took time to explain to reporters the genesis of the number of court cases about the land where the Peninsula Estate is located. “When we came in, we realised a contract had been awarded in May 2019 for the layout of the Peninsula site. The entire land is far more than 100 hectares. I want to emphasise that so that people will understand. We also realised that there were a few cases here and there because different administrations have allocated part of those lands to different people,” he stated.
The governor further explained that his administration completed the layout, with all the structures, the road network, lots of culverts, and semi-bridges while also using the opportunity to kick out some people that were encroaching on the site. He assured the people that even though the site was bigger than 100 hectares, the state government only allocated 100 hectares for the Peninsula Estate project; leaving out about 30 hectares more to be allocated to individuals with genuine claims to land ownership.
“The idea is that once those people who have legitimate ownership come, their issues will be addressed. This is because they are going to be winners in a place where there is exactly no layout, no road network, no value whatsoever, to be given a piece of land,” the governor assured. He, however, warned that people will not be allowed to build houses anyhow on the Peninsula, stressing that they have to comply with specified standards, in line with what is exactly obtainable there.
The process leading to the selection of Affinity Continental to develop the Peninsula Estate took several months of hard work. Mr Agassi appreciated the governor for sharing his vision for the Peninsula with them. “In line with that vision, we set up a committee which I led to oversee that. With other members of the committee, we invited investors, including some of the big names and players in the industry and they made their presentations,” he stated.
Agassi said that based on the number of investors and capacity, Affinity Homes Limited/Urban Shelter was chosen to sign a joint venture agreement with the state government. Given the history of the area, he said, the government wanted to see an organised, sustainable living environment in Karu, instead of what has now come to be regarded as an urban slum. “We hope that with the signing of this agreement, that vision will be achieved with 100 hectares of land provided for Affinity, we are expecting something similar, if not better than Asokoro,” he stated.
The Managing Director of Affinity Continental Royalty Limited, Muhammad Abdulmutallab, assured the state government that his company will execute the project according to specifications, stressing that Affinity Home is willing to spend N30 billion on the Peninsula Estate project. On the scope of the project, Abdulmutallab said the estate would comprise 4,000 units of low-income housing of two and three-bedroom units, together with facilities such as a hospital, schools, worship centres and other amenities.
According to him, Affinity is a consortium, with a world-class team that cuts across various sectors, including experts in construction, infrastructure, finance, and the power sector, which he said are important. Abdulmutallab restated the commitment of Affinity to invest N30 billion in the Peninsula to realise the vision the Nasarawa State governor has for the place. “Our vision as a company is to change the face of real estate. What we have on offer is very unique for this kind of project because, other than just building and constructing, it has a lot of value-adding benefits. Karu as we know it is going to witness a lot of changes, beginning with the Peninsula,” he said.
