Govt advised to use seized estates for ministers’ accommodation
Stakeholders in the real estate sector have advised the Federal Government to convert the seized 753-duplex estate into residents for ministers and other senior government officials.
In an exclusive interview with The PUNCH, the Chief Executive Officer of Magnificent Choice Services Project and Engineering Ltd, Jeremiah Akinsele, said the seized houses should replace the housing allowance benefits given to ministers, permanent secretaries and other senior government others.
He said, “This proposal aims to address the ballooning costs of accommodation allowances currently borne by the Federal Government. Instead of allocating significant sums for residential allowances, these duplexes can serve as temporary official residences. Appointees would vacate the premises at the end of their tenure, ensuring continuity and efficient usage for successors.
“Instead of selling these properties, often at significantly undervalued prices and typically to politically connected individuals, they should be retained as strategic national assets. Selling off this property undermines its long-term value and benefits only a few individuals at the expense of the broader public interest.”
He noted that it was better to convert the property into official quarters for ministers, senators, members of the House of Representatives, and other senior government officials.
“By doing so, the government can eliminate the substantial costs associated with accommodation allowances. Currently, these allowances, often ranging from N3m to N5m monthly per official, when multiplied by 450 lawmakers over four years, result in a staggering financial burden on the national treasury.
“Utilising existing property for this purpose would save billions of naira and reduce unnecessary government expenditure,” he argued.
He added that to ensure efficiency and high standards, the management of those quarters should be outsourced to private facility management companies.
He added, “This approach would mitigate the bureaucratic inefficiencies often associated with government operations and guarantee that these assets are well-maintained. Furthermore, these quarters could serve additional purposes, such as hosting official guests, which would reduce reliance on expensive hotel accommodations for visiting dignitaries.
“The government could also extend these quarters to other senior civil servants, such as permanent secretaries, ensuring that public officials have suitable accommodations while serving their terms. These properties would revert to government control once the officials’ terms end, ready for their successors. This rotational use ensures the long-term viability and utility of these assets without permanently transferring ownership.”
In a similar vein, an estate surveyor, Olorunyomi Alatise, said given the nonchalant attitude of the government towards affording housing, allocating the recovered property to government officials to replace their housing allowance could be a pragmatic strategy for reducing Nigeria’s substantial expenditure on housing allowances spent on those officials.
He said, “This approach involves assigning the duplexes from the forfeited estate to officials based on their roles and needs, replacing cash-based housing benefits with direct access to government-owned accommodations.
“Implementing such a strategy would significantly reduce recurrent costs and ensure that property is utilised effectively. To guarantee fairness and transparency in its execution, it is essential to establish clear and robust policies governing the allocation process. These policies should be complemented by mechanisms for public oversight to prevent any form of bias or favouritism. “Moreover, allottees must be explicitly warned against selling, renting, or modifying the property without prior authorisation, as such actions could undermine the integrity and purpose of the initiative.”
In 2023, The PUNCH reported that housing allowances for the newly appointed ministers may cost the country about N343.25m yearly.
With that annual allocation, in four years, the Federal Government would spend N1.37bn on the 45 ministers’ accommodation, according to data collated from a document obtained from the website of the Revenue Mobilisation and Fiscal Allocation Commission.
It covers allowances for accommodation (200 per cent of basic salary), domestic staff (75 per cent of basic salary), utilities (30 per cent of basic salary), and furniture (300 per cent of basic salary).
