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Alhaji BASHIR JIMOH Tells City People
Alhaji Bashir Jimoh, is a top real estate player. He has paid his dues in the sector. He is one of the most active property developers with projects in Lagos, Abuja, Asaba etc. He is the Managing Director of Bashmoh Homes, the company he floated over a decade ago to bridge the deficit gap in the Nigerian Housing sector.
The company is also into estate development, mortgage advisory, building engineering and consultation, property leasing and letting, and general land consultation. A few days ago, he spoke with City People’s ISAAC ABIMBADE (08155107955). In this interview, he spoke about what the goverrment is doing for the real estate sector. He also spoke about his company; what they have been doing to provide affordability in the housing sector. Below are excerpts of the interview.
Year 2024 was very tough for many real estate companies in Nigeria. How was 2024 at Bashmoh homes?
Yes, generally, I would like to look at 2024 from two angles. I want to describe 2024 as a year of reality for real estate firms. As I always say, 2024 was a period where huge liquidity in the system was over. The CBN is mopping up liquidity, government is reducing spending, all these have impacted on housing production and housing acquisition in Nigeria. Definitely, most real estate firms could not survive it and it has impact in the general production of homes and houses in Nigeria. Various state governments have tried as much as possible to augment it.
However, safety concerns and documentation requirements make acquisition of homes to be extremely unaffordable by the end of December 2024. I tell you this, in Lagos State, the cost of obtaining building approval has gone up with more than 50% and same is applicable in so many states of the federation. In year 2024, most states of the federation have demolished buildings because of approval issues.
These have scared away a lot of investors in the real estate subsector with the hope that 2025 will be better.
Can you tell us what your company did specifically in 2024?
We partnered with Abuja Property Development, in Abuja. We partnered with Nasu-Unilag here in Lagos. We have partnered with so many big government establishments. I believe that for real estate to survive in 2025 and beyond, that should be the strategic focus. We should start to look at things from long term relationship angle rather than selling between an arm’s length transaction.
You seem to have done well in the last few years. What plans do you have for 2025?
Glory be to God. We can conveniently say we did extremely well last year. We produced over 500 housing units in different parts of the country. We had an expansion into about 4 states as we speak.
Last year we were at 51. We hope to increase our estate to 70 before the end of this 2025. As we speak, we have lands that we have already acquired with various state governments that we are currently developing the paperworks in terms of CofO registration, in terms of building approval with different governments and government agencies. However, specifically for 2025, are partnering with Federal Housing Authority to develop Ashiwaju Ahmed Tinubu Renew Home Ownership Programme.
We are looking at producing well over 600 housing units in Abuja. We are about concluding the paperwork. We are also in top-level discussion with the management of Abuja Property Development Corporation to expand Kachi axis so as to develop houses for middle and low income earners.
It is worthy of note that the current government, is working assiduously to provide affordable and habitable houses for the people. From some information we have at our disposal, more than 31 governors have keyed into this Renew Home agenda. About 60 days ago, the Minister for Housing, made it explicitly clear that these houses would be heavily subsidized through infrastructure.
Are you saying the current government is really supporting real estate?
One of the support system is the concession interest rates for builders that have been offered. One of the support system is because the greatest problem of real estate providers is purchases. If you have 20, 30, 50 houses but nobody to buy, will you want to produce more? So what governments have done is to restructure our mortgage system to ensure that qualified people have access to this affordable interest rates.
The restructuring of mortgage system, before now, you can only register through paperwork. But now, you can do that online. You can do that from your office or in your various homes.
Before now, those that are not salary earners cannot access our NHF. But that also has been removed. Even as a mechanic, even as a vulcanizer, you can register yourself for NHF and have access to government funding.
That has expanded the demand base of houses. So you can produce houses for different sectors and different segments of the economy and you have people that will be willing to buy and they will be structured to pay over 30, 40 years.
Are you saying Bashmoh homes has really benefited from this government policies?
Some of these have brought down the cost of production. And once the cost is reduced astronomically, I can tell you, affordability becomes easy.
So how have you been coping with inflation?
As a result of inflation, dollar volatility has impacted negatively on the cost of housing in Nigeria. And as such, government needs to provide some incentives for those of us that are in real estate. I can tell you this for free, that for 2025 to be successful in terms of housing provisions, there is an urgent need for government to develop a system through which people that are working with the federal government or other private sectors will be identified, profiled and ensured that they have access to more funding. The issue of 15 million being raised from 15 million as the minimum housing cost to 15 million, I think that is the right step in the right direction.
What are you doing differently in the last two years because the company has been growing steadily despite the economic challenges?
You want to grow in a model that you can manage. You want to develop the business so as to safeguard the business from internal and external shocks. Most Nigerians, most Nigerian businesses could not absorb the external shock of 2023 and 2024 because of the devaluation of the country’s currency. Because most of us then have bloated expenses. Yes, bloated expenses.
We noticed that your operation was based on affordability. You perfected that in a very unique way. How have you been able to do that?
We want to give people houses that the prices are real. One of our major partners in Abuja is the Nigerian Air Force. Nigerian Air Force is planning to deliver two, three bedroom duplexes at an average of 50 million and below. And I tell you, within that area, an average of three bedroom duplex goes for 70 million to 100 million.
What we did and we know that affordability is how you see it. And the same way we got it to the Nigerian Air Force, the same things is what we’re doing in Lagos, the same thing we’re trying to replicate in Asaba, the same thing we’re trying to replicate in Enugu. What we always do, is, we know that the cost of houses that is from the foundation to roofing based on block work, is always the same and is always low in term of expenditure.
What increases the price of building is the quality of tiles you want, the quality of roofing sheets you want. The features and fittings are the major elements that change prices of property. So, we’ve learned and perfected delivery at carcass level.
We know that once people can have roof over their heads, to develop from one standard of living to the other becomes much more easy.
Finally, how do you see these current governments and how have they impacted the business?
One of the major beneficiaries of this government is private sector. A lot of people made money in 2024.
The banks made trillions last year. Business people made an average of 100 to 200%.
This shows that this current government supports its business. However, this impacted on standard of living, impacted on cost of living, impacted on poverty level in the country. And I think that is the angle that the current government should try as much as possible to improve on.
