Alpha Mead Clarifies Issues on Lekki Pearl, Seeks Government Collaboration on Building Houses for Low Income Earners amidst Experts’ Affordability Questioning

As stakeholders continue the conversation on the affordability of houses being built by private developers across the country, Engineer Femi Akintunde, the Chief Executive Officer of one of the leading Total Real Estate Solutions in Nigeria, said government needs to join the developers in providing adequate houses to the people at the bottom of the pyramid, who are the target of most developers in the country.

Engineer Femi Akintunde disclosed this while exchanging insights on his company’s completed housing units at Lekki Pearl Estate. The estate was unveiled in 2016 by the Alpha Mead Development Company, one of the strategic business units of Alpha Mead Group.

The Chief Executive Officer of Alpha Mead seeks for the support in the midst of the comments from his followers on a professional medium regarding the affordability of the units at the estate. “One common question that many people have raised is about pricing. Well, like I said, the pricing has been made affordable even despite the high quality of the delivery but because of the technology advantage, we are able to sell at low price transfer the savings and value to the customers. Prices vary between 25-50 million or 70-140k USD equivalent for the various types; Apartments, Terraces, Semi/Fully Detached units excluding cost of internal finishing that may vary according to individual choices and taste.”

Engineer Femi Akintunde

Despite the clarification, Mayowa Ademuyewo, a real estate consultant seems not comfortable with the word affordable.  “I do, however struggle to connect the comment on the housing problem in Nigeria being real and the use of the word "affordable" when making reference to 25-50 million. Lest we forget that the minimum wage in Nigeria is N30,000 and the annual cumulative is N360,000. That represents over 70% of the population. Approximately 69 years of repayments (without interest). That's does not seem "affordable".

“How do we commence addressing this issue for the masses?” Mayowa asked. Reacting Engineer Femi Akintunde notes that “High Income are the Luxury apartments and units you see in the highbrow places majorly like Ikoyi, VI, Maitama. They sell around 100m and above. That market is saturated eighth high vacancy level. Middle income earners are those working class with good employment, but no surplus cash in stock. They are the ones that our products are targeted to support either to own to invest for economic return. The last category low income earners that is those  at the bottom of the pyramid who require housing below 10 million naira  is where the highest demand is located but it will be difficult for the private sector developers to cater for this level except the govt come into some partnership due to high cost of land, building materials and finance cost.”

He emphasised that Alpha Mead Development Company is targeting the middle-income housing not high and low housing segments. Emphasising his position, Mayowa points out that there is a need to channel efforts to the low-income segment too. According to him, addressing the deficit in the segment would address a number of other socioeconomic problems as well.

“I am optimistic and mature enough to not be naive by the challenges we endure and I hope that individuals like yourself with powerful voices and influential colleagues would be able to encourage the government to listen and look to the future for the sake of our nation and children.

Infoprations has earlier reported that in Nigeria, a $ 10,000 house would cost $ 715/month, and 177,608 over the term, at an interest rate of 36.0% over 20 years, assuming 20% deposit. This is affordable to 19% of the urban population. It has also been reported that the housing needs of low-income earners in northern and western would reach N381.7 trillion in 2020.