Police escort withdrawal exposing developers to danger’

Real estate developers have expressed concern over the Federal Government’s withdrawal of police escorts from Very Important Personalities, saying the policy has exposed them to kidnappers, disrupted housing projects and increased the cost of delivering homes across the country.

The developers, under the umbrella of the Real Estate Developers Association of Nigeria, said the worsening security situation was forcing some of their members to abandon project sites, delay housing delivery and incur additional security expenses that ultimately impact property prices.

Speaking with Sunday PUNCH, the National President of REDAN, Oba Akintoye Adeoye, said the withdrawal of police protection had significantly affected developers operating in remote locations where security threats remain prevalent.

“Some developers can no longer safely access construction sites, making it difficult to meet contractual obligations to homebuyers. There are cases where some developers cannot even go to their sites anymore.

During this period, the government withdrew police security from Nigerians. Some developers who relied on police protection had their escorts removed and, because of that, they can no longer safely access their project locations.

“This is affecting project delivery. Some developers are unable to fulfil promises made to clients regarding timely project completion,” he said.

Adeoye further disclosed that insecurity had forced some residents to abandon completed housing estates, particularly in communities prone to kidnapping attacks.

He cited instances along the Abeokuta-Mowe corridor in Ogun State where residents reportedly relocated due to persistent security concerns.

“There are estates where people have moved out because of insecurity. If you look at the corridor between Abeokuta and Mowe, there are estates where residents have left because they no longer feel safe.

“I know of one estate where kidnappers struck on three different occasions. In one of the incidents, a resident was killed. Incidents like these are affecting confidence in the real estate sector,” he said.

Adeoye argued that the financial consequences of kidnapping and insecurity eventually find their way into housing costs.

According to him, developers who spend significant sums on ransom payments or private security arrangements are often left with little choice but to absorb the losses into their businesses.

When developers spend money on ransom payments or unplanned security expenses, those costs inevitably affect their operations. Part of those additional expenses will ultimately reflect in the cost of housing products.

“It becomes difficult to consider price reductions or incentives for buyers when such unexpected costs continue to increase.

“Our legal adviser was kidnapped in Katsina. We have recorded many similar incidents involving developers and workers in the sector,” he said.

Also speaking, the Chairman of REDAN’s Lagos State Chapter, Tony Kolawole, said insecurity was discouraging Nigerians in the diaspora from investing in the country’s real estate market.

According to him, many overseas-based Nigerians are becoming increasingly cautious about committing funds to property projects because of concerns about kidnapping and violence.

“Most of our clients are Nigerians in the diaspora. When they see reports of insecurity, kidnapping and attacks, many of them become reluctant to invest.

“The level of insecurity is affecting investor confidence and reducing the flow of diaspora funds into the real estate sector,” he said.

He urged the government to strengthen security measures across the country to restore confidence among investors.

The Nigerian Institution of Estate Surveyors and Valuers also expressed concern over the impact of insecurity on property transactions and housing market activities.

The institution’s Publicity Secretary, Ayodele Olamoju, said insecurity was affecting property managers, investors, estate agents and prospective tenants.

“Insecurity affects everyone within the property value chain. Property managers are worried, investors are worried, and even prospective tenants are increasingly reluctant to inspect properties.

“We have recorded cases where individuals pretending to be prospective tenants or buyers invite agents to show them properties, only for the agents to discover that they are dealing with kidnappers. Incidents like these create fear within the market and slow down transactions,” he said.