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EFFECT OF BOKOHARAM ON REAL ESTATE BUSINESSES

Insecurity and terrorism have recently been a major challenge for the Nigerian government. The activities of the Islamic Group (Boko Haram) have resulted in the loss of life and property in the country, particularly in northern Nigeria. Some of these activities include bomb attacks, suicide bombings, sporadic shooting of innocent citizens, defenseless people, burning of police stations and churches, kidnapping of school-age girls and women, etc. Kidnapping, rape, armed robbery, political crises, assassinations and destruction of oil.

The militia facilities of the Niger Delta, along with attacks by Fulani herders in some northern and southern communities, pose another major challenge to the insecurity the country is facing. Nigeria is one of the terrorist countries in the world. Many lives and property were lost and large numbers of citizens were displaced. Families have lost loved ones. Many women are now widows. Children have been orphaned with no hope of a future.

This has an impact on national development and real estate. The government has made desperate efforts to address and end these challenges arising from terrorism and insecurity in the country. However, the insurgency and insecurity rate remains alarming.

In addition, the Boko Haram uprising has recently become the major problem facing Nigerians. These groups have orchestrated numerous bomb attacks that have killed millions of innocent citizens in the country and destroyed billions of pounds of public and private property. This is due to his attempt to convince residents of the geopolitical region of northeast Nigeria to take his position on Nigerian Islamic Sharia law.

The prevailing security threats and challenges in the region stem from the relentless attacks on Nigerian citizens, individuals, public and government agencies, kidnappings and property destruction. All these screens of memorials wrapped in Boko Haram operations indicate serious crimes against the Nigerian state that threaten its national security as well as its social and economic activities. This has also been a major challenge to the country’s national security strategy, the main objective of which is to empower the Federal Republic of Nigeria to advance its interests and goals, curb instability, control crime and improve the quality of life for all citizens. Improve Welfare and Eliminate Corruption.

Boko Haram’s activities have essentially alienated social and economic activities by increasing crime and destroying the lives and property of Nigerian citizens. This can be evidenced by the tremendous movement of people living in the north of the country, particularly Maiduguri, the capital of Borno state. This situation made it impossible for the citizens of this region to conduct their legitimate businesses effectively. He also constantly intimidated foreign investors in the country. Due to the severity of the crisis, students had to leave their schools. This has led some governments to pledge not to allow Nigerian students from their state to go to the northern part of Nigeria for free. At Vitality, the cult’s activities also impacted the sending of extradited students from the south and east to the National Youth Services Corps (NYSC) in the north, as parents vehemently refused to send their children north as body parts. .

In an effort to centralize Boko Haram within the walls of participation, its presence can be seen as a fatal blow to the noble goal of the plan, as a unified strategy like state building. Nigeria’s unity is seriously threatened by the activities of the fundamentalist group Boko Haram and is therefore viewed as a major potential terrorist threat affecting Nigeria’s large and strategic regional coastlines, particularly in terms of their social and economic strength. So if it is not limited to the minimum level, the connection and dream of integration seen and cherished by its dead or old heroes will not see the light of reality, that is, in vain.

How are these uncertainties and riots affecting real estate business?

EFFECT OF BOKOHARAM ON REAL ESTATE BUSINESSES

At no point has uncertainty had such an impact on the Nigerian real estate sector as it is now, when it demolishes buildings, reduced housing stocks, deepened the deficit and discouraged new investment.

This widespread insecurity in Nigeria due to general dissatisfaction, particularly among an army of unemployed youth, is a cause of concern and concern at various levels of interest groups.

The federal government, which does not believe Nigeria has a housing shortage and dismisses it as an urban problem, is now grappling with worrying reports from local and global authorities.

A World Bank report shows that since 2009, when the Boko Haram insurgent activities began, around 956,453 (almost 30%) out of 3,232,308 private homes; 5,335 classrooms and school buildings in 512 primary, 38 secondary and two tertiary institutions; 1,205 municipal buildings, local governments or ministries; 76 police stations are affected in one way or another.

Similarly, the United Nations High Commissioner for Refugees (UNHCR) Filippo Grandi says more than 3.2 million people are being displaced, including about 2.9 million internally displaced people in northeastern Nigeria, meaning they are homeless again.

For the population of 200 million, the record shows that the housing stock in Nigeria is between 13 million and 15 million units, while the deficit is around 20 million units in 2019, according to estimates by the Federal Mortgage Bank of Nigeria (FMBN).

However, the government wants proof that there is a gap between supply and demand for housing in the country. “The last time Nigeria took its census was in 2006. We haven’t taken another census since then. Where do we get this number from? Asked Babatunde Fashola, Nigeria’s Minister of Labor and Housing “Where do we get the 17 million housing deficit from?” Fashola wondered, adding, “Some people say it’s from the World Bank. I asked the World Bank and they rejected that figure and said it was not theirs. “

Be that as it may, reports from local and global agencies, as mentioned above, are evidence enough that the insecurity in Nigeria has left the country’s housing sector in dire straits. Many houses have been destroyed and not many new ones are being built to replace them.

The current attacks on schools and kidnappings by bandits and Boko Haram in the north of the country are having a negative impact on life and property. In October 2015, the Nigerian Union of Teachers (NUT) estimated that more than 600 teachers were killed in the north.

By April 2016, Boko Haram had killed 611 teachers and forced more than 19,000 to flee the northeast. The group had also abducted more than 2,000 people, particularly women, from schools.

A 2016 Human Rights Watch shows that Boko Haram attacks destroyed more than 910 schools, forcibly closed another 1,500, and displaced 952,029 students between 2009 and early 2016.

However, there is some positive insight for savvy and desperate investors who see opportunity amid the rubble, meaning uncertainty has both negative and positive effects on the property market in the hardest hit areas, particularly Borno state.

In a media report, Jambil Suyudi, president of the NIESV office in Bauch /Gombe, is quoted as saying that while uncertainty has destroyed thousands of houses and made the population homeless, it has also created opportunities for real estate investors.

According to him, these investors buy these destroyed properties or properties that are in crisis areas at cheaper prices and keep them for speculative purposes.

Suyudi revealed that many people had fled Maiduguri, but many displaced families had also settled on the relatively safer side of the city. He found that this population shift had increased property prices and helped merchants make good profits.

He also noted that people were starting to return to some of the Maiduguri suburbs. “Those fleeing vulnerable areas are selling their properties at a very low price. A house that would normally sell for N3,060,000 could be offered for N765,000.

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