Govt needs to automate land documentation – Tilt Group CEO

In this interview with Dare Olawin, Group Managing Director of Tilt Group, Habeeb Okunola discusses issues affecting Nigeria’s energy and real estate sectors

How did you venture into business?

I got myself into real estate years ago. I worked a bit in London before I came back to Nigeria in 2007 and started a real estate business by buying hectares of land and selling them to cooperatives. From there, we grew up doing business with the governments in terms of civil construction and structural procurement. We started with Lagos State and Lagos State launched us to the world.

Our first project then was for Joseph Odunlami in Ogba. It was a small road. When we were done with that, we were given another opportunity in Alimosho; and then the time came when we took the next level, which was going to Abuja. We started building houses for the Nigerian Air Force; we started doing water barge and fuel barge for the Nigerian Navy. We started doing transmission lines for the Niger Delta Power Holding Company. We did the Visual Art Centre for Kwara State. It is nonstop.

What other things does your organisation do?

Under Tilt Group we have subsidiary companies. We have Tilt Energy, Tilt Construction, Tilt Agro Allied, Tilt Property Rescue and Tilt Production. So, we have loads of subsidiaries under the Tilt Group.

How will you describe the real estate business in Nigeria?

Globally, Nigeria is one of the places where you find out that the cost of houses and the value of houses are way too high. Nigeria is growing from the basics to the luxury in terms of real estate now, but the only thing is too pricey. Then, marching it to what is happening with the economy now; I think the real estate market might slow down a bit because of the high cost of living, high cost of materials and other things going on. So, we foresee the real estate business not being on the average side. Checking out what is going on globally in terms of recession, we have nothing but to make sure that we still strive regardless of the economic situation.

Don’t you think this will widen the housing deficit gap in Nigeria?

The present government led by President Bola Tinubu, at the moment, is building mass houses in every state under the Ministry of Housing. I’m aware of the 100 housing scheme he has just started less than one year into the government. In Oyo State, for example, they have started the 100 housing, fully paid for. They have engaged the contractor and mobilised them to the site and other states. So, for a President, who is trying to close up the gap, what I think is, other investors that are in the private sector should try to support him to achieve the closure of these deficits.

We have been having cases of building collapse, what do you think should be done to address it?

The governments need to create more measures; they need to tick more dots. You find out that the governments are not the problem; people are trying to compromise the governments in terms of doing what they are not supposed to do. If we should go by the rules and regulations of the government, I don’t think we will have structural damage or collapse of buildings. But you find out that these same developers go back to the government to cut down on the materials needed for a particular building. So, governments are not the problem, the masses are the problem.

If the people are the problem, what should the government do?

The government should create more rules and regulations that will strengthen that particular agency or ministry that will bring in a to-do list that every developer must follow through.

What do you see to the issue of land grabbers and fake land sellers?

I started my career by buying land and reselling it to cooperatives. So, the omo-onile issue is something I believe that the state governments and the state governors should seriously look into. We can have the data of who has bought from whom. So, everything has to be automated into a system so that it will curb fraud, corruption and theft.

You find out that regardless of what you do to the omo-oniles, once they are faced with two or more challenges, they go back to their drawing board and start selling lands. For instance, in Mopo Onibeju, somewhere around Okun Ajah, in 2008, I bought over 200 plots and was paying them in bits; once I sold, I paid them. Before we knew it, some people that have not done their fencing, started encroaching into their land and even mine. I had to take some enforcement group there before they could sit up and we retrieved that property. I must commend the Lagos State Government for trying to automate land, because the moment the automation comes into it, it eliminates fraud. So, the state governments are trying to do something good by making sure these things work.

What should people do before buying land to avoid falling into the wrong hands?

The first thing is proper search. You don’t buy land with just documents. Once you get your documents, try and get a surveyor from the surveyor-general’s office. Let them pick the coordinator and see that the land does not fall into acquisition and that it is an exercised land. It must have a C of O or the governor’s consent or it has a cession. Afterwards, you do your thorough investigation to see which family owns that land. Hopefully, the government would have automated all these things so that there can be collaboration between the government and the family. The moment the collaboration is there, once the family receives the money, they pay what is due to the government and the government can now tick it off and say, “This land is owned by a particular person.” In Lagos, for example, you can go to Alausa and easily know who owns the land.

The solution to land matters is still the government and automation. The moment technology comes in on sales of land; there won’t be omo-onile issue. The first thing the government needs to do is collaborate with the omo-oniles and automate the process of sales. Once that is done there won’t be fraud.

How can the government provide affordable housing through mass housing schemes?

The present government is the most serious in the history of Nigeria. There is nothing as good as a leader that takes ownership and responsibility. In the history of Nigeria, have you ever seen the Third Mainland Bridge as fine as it is now? Raji Fashola was there before; did he do something like that? Now I’m telling you that the man (Tinubu) started a scheme of 100 houses in each state under nine months. So, somebody that is doing this in nine months, what will he do in two to three years? Now going back to whether is it going to be affordable? That is why it is called mass housing. The ones they are doing now are bungalows, just to make it affordable. Yes, it will be affordable and there will be a payment plan. Once you have a guaranteed income, you have a salary that they can debit every month; they can give you 25 to 30 years to pay.

Are you also into politics? You’ve been talking like one

No, but when people do what is right let’s commend them so that we can get more from them. I’m not into government; I don’t have a government interest. We need to encourage the government so they can do more. We see on social media how people speak ill of the government. Now when somebody saw the Third Mainland Bridge, he came with his drone and said, ‘This is Lagos’. In case we don’t know, social media bridges the gap between China and Nigeria. The world is looking at us. The way we portray our country is how they see us. If we don’t showcase the good things about Nigeria, then how will investments come? We need to embrace and embark on showcasing our country in the right way.

What does your company do in energy?

Currently, we are working on the Olorunsogo Power Plant. We are repairing the steam turban and exchanging the rotors and the generators in the power plant. We are also embarking on the 330kva transmission lines from Kaduna to Shiroro. It is a huge project. We are currently working in Kastina for the 31kva transmission line. We are also in the oil and gas space under Tilt Energy. In the oil and gas sector, during exploration, they do a lot of exchange of valves, day-to-day exchange of screws. Some assets may call us to supply one thing or the other. We are also part of the marginal bid rounds that went under the last administration. We are quite busy.

How do you describe the oil and gas sector today?

Well, it can be better because the current government has a welcoming spirit. The way the President is even going to reassure investors to come to Nigeria, I think it is going to boom like never before. Look what he said in Qatar that anybody that asks them for money to do anything, should reach out to him. That is a word of assurance for any serious investor to come on board.

But the country’s oil exploration is depleting.

We will do better because investors are coming in and they are having more confidence in us. The way they want to explore our assets, we might also surpass what OPEC has given us. The Qataris are coming in, the Kuwait guys are coming in with their money; the FPSO is on water. Look at Eko Atlantic; in the last administration, not too many activities. The day they brought in this President, the dredger on the water was over eight, they are expanding. The President himself is a business President; he understands business. So, he would create an enabling environment for businesses.

Some are concerned over the divestment of international oil companies like Shell and other multinationals. Are you not bothered too?

That shouldn’t give anybody concern because if you look at Russia, these people don’t exist, and Russia is doing great. So, let’s give other investors opportunities. Ask Shell, what has happened to the Ogoni cleanup? What are they doing to the place they are doing the exploration and making that kind of money? Go and look at the history, have they made money anywhere in the world like they made in Nigeria? Let’s give other people room to work and you will see that Mr C is better than Mr A. Shell, Chevron, MTN, etc. made their money from Nigeria. This is an emerging market where the opportunities are. So, if I bring in a name that is not known from Qatar, but has money, what’s my business with Shell? We need productivity; we need solutions, not big names.

Some said the divestment might be a blessing in disguise for local investors, but there are also concerns that indigenous investors may not be able to match the investing power of those multinationals. What is your take on this?

Collaboration is the new initiative. If I have the right synergy with somebody from Bahrain, I don’t need Shell. We don’t need the big names; we need people with resources and vision.

People also worry about the delay in getting approval for businesses as well as insecurity.

This administration knows how to play the business politics. Investors are gushing in because they believe in President Tinubu. He is tackling insecurity as we speak. Look at the FCT, the minister took action and in less than two weeks, they got the kidnappers. We can also ask other politicians to join the President in moving the country forward. It is not about politics.

Nigerians are complaining of hunger, yet you said the President was performing.

They can do better. It is not only in Nigeria they are complaining. In London, globally people are lamenting. We just need to give the government the room to address the problems of many years. The fact that he communicates means he is aware of the hardship. I believe in no time we are going to fizzle out of this.

You’re also in the power sector, how would you describe the electricity supply in Nigeria today?

Power is very important. The distribution companies have got a lot of subsidies and power is still not working. I know the government is in talks with the Discos to see what solution they want to bring on board. If the power sector is not stable, industrialisation will leave. There won’t be industries in Nigeria. It is something the government is looking into, trust me, it will work.

Do you support electricity subsidy removal?

Of course, I do. I am sorry to use these words, but we Nigerians are being spoilt by the government. This is the country where you find the cheapest fuel. I know how much they buy fuel in Saudi and London. By the time government of the day solves the problem of hardship, and solve the problem of minimum wage, I think the masses should also comply with what the government wants.

The power projects you’re working on, how will they impact power supply?

Olorunsogo, which is a 750MW power plant, by the time we are done, the rate at which they will be transmitting electricity out of Olorunsogo to other parts of the country, will be boosted. The Air Force bases we are building across the country are meant to improve the housing deficit. These things have impacts on the economy and the people at large.

You have many government contracts you are working on, how were you able to get those contracts? Is it by connections?

It is about doggedness. The connection might be there, but a connection without preparedness will fetch you nothing. The only way to tap opportunities is when you are prepared. It is not only about connection, it is about being dogged; it is about the tenacity of purpose, being committed.

I hope you’re not one of those contractors who abandon projects after being paid.

No, we are not. For the ones we cannot do, even if we have been paid, we return the money, because we can’t handle it and we don’t want to go into debt. Sometimes inflation sets in. It is just like people who are into construction now, what the government needs to do is to come to the round table and look at the reality of things, in order not to have abandoned projects. We all know what inflation is saying at the moment.

Are you considering having a modular refinery or something similar?

For now, with our collaboration with the new investors coming in, we don’t know what their demands will be, but we are open to it, so far it will stabilise things in the economy.

Which companies are you partnering with?

We are discussing with some people in Qatar, Bahrain and Kuwait. We are looking at what their wish lists are and the ones that can stand the test of time in Nigeria.

The Federal Government is very emphatic about making gas the transition fuel, are you tapping into that?

Yes, we are. We are seriously looking at that with our partners. There are some things we don’t know of; we try to meet with people who have the expertise and the resources because these are not small investments. We must make sure we have a partner with resourceful capacity and bring in the expertise for us to take advantage of the opportunities.

What is your advice for young investors?

Let us collaborate with the government. Let’s make Nigeria a great place and portray it in a good light because it will also affect us for good or bad soon. We are the young shall grow; let’s synergise more and make Nigeria a great place.