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COVID-19 and economic implications of maintenance neglects in Nigeria

One of the public institutions.

By Olumide Adenuga

The fear of lack of bed space for coronavirus patients at isolation centres has gripped the government, now seeking the possibility of home treatment. Government now making appeal to owners of uncompleted buildings or empty property to donate to the government for use when government has many edifices and structures abandoned at different locations in the country, especially in Lagos which is the epicentre of the pandemic in the country.

It is however unfortunate that most of the buildings and facilities (public and private) in Nigeria suffer maintenance neglect which results in huge economic loss for the nation. These facilities, especially those belonging to the Federal Government of Nigeria, continue to lie waste at various locations across the country even when they could be converted to profitable economic assets that could generate income for the nation.

Citing Lagos State as a case study, it is disturbing that since the relocation of the Federal Government from Lagos State to the Federal Capital Territory (FCT) Abuja in the year 1991, over 20 of the buildings which used to be the centre of economic activities of the Federal Government and its agencies have been abandoned. Operations and maintenance activities have been completely withdrawn from these buildings and the buildings have been subjected to accelerated deterioration through misuse and vandalism by miscreants. 

Some of the Federal Government monuments that have been neglected over the last three decades include: The National Stadium, Surulere, Lagos; The Federal Secretariat Complex, Ikoyi, Lagos; The NET Building, Marina, Lagos; The Defence House, Lagos; Former Navy Headquarters Building, Marina, Lagos, Former National Assembly Complex, TafawaBalewa Square, Lagos; Former Supreme Court Building etc.

For instance, the multipurpose stadium was built in 1972 to host the 1973 All African Games and remains one of the biggest stadia in the country with an initial spectator capacity of 55,000. The stadium comprises an Olympic-size swimming arena and arenas for basketball, volleyball, table tennis, wrestling and boxing matches. Constructed to provide expression for the abundant energy of the nation’s youth to excel in most fields of sports, the facility’s main bowl fulfilled that purpose for about three decades, hosting several national and international sports competitions and also serving as a training ground for sportsmen and women. Unfortunately, things began to fall apart in 2004 when the stadium started to suffer neglect, perhaps due to the construction of a new national stadium in Abuja, the Federal Capital Territory at that time.

The facilities of the once-magnificent stadium are now thoroughly dilapidated following the stadium’s abandonment since the year 2004. The main bowl turf has lost its green nature, the seats and roof members have deteriorated and the entire facility is in a state of disrepair. The edifice that was once a national monument has deteriorated into an eyesore, to the embarrassment of a nation that is increasingly incapable of maintaining its national assets. In the past one decade, the facilities have degenerated from providing skeletal sports functions to a religious events centre and now a den of social misfits called area boys, who use it as a hideout for attacking innocent citizens living in the vicinity.

If the stadium facilities are put into productive use, it would provide jobs for a considerable number of the unemployed since sports is known to attract many adjunct economic activities. In quantitative terms, the economic loss to the nation was calculated based on the present 45,000-seat capacity of the national stadium, with the assumption that the facility is used for major sport activities three times a week at 50% capacity and at an average gate fee =N=1,000. , the cumulative potential economic loss to the nation from the neglect and lack of maintenance of this facility was estimated over the years at =N=52.6BN

Sadly, the same fate has befallen all the other national stadia, especially those in Ibadan, Enugu, Bauchi, Kaduna, and Abuja. All of them have become a huge economic waste as a result of operation and maintenance neglect.

The Federal Secretariat Complex, Ikoyibefore its abandonment was a powerhouse for deliberations and implementation of issues that concerned the development of the country. It was an administrative complex built by the Yakubu Gowon-led administration to serve as office accommodation for the country’s administrators. However, since the seat of government moved from Lagos to Abuja on the 12th of December 1991, the building has been neglected. The Federal Secretariat now houses rodents, reptiles and hoodlums who take advantage of its derelict state to perpetuate illegal activities.

In the course of my research work on abandoned assets of the Federal Government of Nigeria, the economic loss owing to the neglect of operation and maintenance of the Federal Secretariat Complex was evaluated. The evaluation was premised on the conversion of the complex to luxury residential apartments as proposed by Resort International Limited (RIL). This proposal was to convert the complex to 480 units of luxury residential apartments following the concession of the complex to the firm in 2006. Sadly, the proposed conversion suffered a setback when the concession award was challenged in court by the Lagos State Government. Assuming the building had been converted to the proposed number of luxury apartments prior to its abandonment and assuming the year 1995 as a base year, the estimated revenue that could have been generated till date is N72 billion.

The estimated revenue loss shown in the table respectively, were computed based on the assumption of the year 1995 base rent of =N=5 million per annum and 10% rent increment every 4 years. Apart from the estimated =N=72 billion naira that could have been generated from the operation and maintenance of the Federal Secretariat, the utilisation of such building would have contributed to reducing the shortfall in the nation’s housing stock.

The Nigerian External Telecommunications (NET) building is known under different names. NITEL and NECOM are two other names that are associated with the building. The tallest building in West Africa and once a national heritage representing engineering strength and innovation, the building and its focus have gone down the drain. NITEL has become a thing of the past and this Federal Government skyscraper is now an eyesore. The building is situated at number 15 Marina, Lagos Island. The building is presently under-utilised and has suffered a significant level of deterioration due to poor maintenance. The 32-storey building of over 160m in height and about 720 Sq.m of lettable space could attract over =N=1.6BN in rent annually if it is well maintained and optimally utilized.

Defence House is a 25-storey building. Originally called independence building to commemorate the country’s independence, the high-rise building was taken over by the military and renamed Defence House. Since then, the story of the structure has been a disturbing one. The heritage of the house and what is signifies is lost to the eyesore that now stands in its place. The building is plagued with numerous building defects due to total operation and maintenance neglect.

The present dilapidated state of these buildings does not only constitute a nuisance to the city of Lagos and its residents but is also a source of economic loss deriving from abandonment and underutilisation of these buildings. I therefore appeal to the Federal Government to take quick steps at reactivating these buildings as well as other buildings that have been abandoned at different locations across the country, especially in this downturn economy.

Buildings, be they residential, commercial or institutional, are powerful economic engines with benefits that often last over their lifetime. This explains why huge investment goes into the development of buildings globally. It is however important to stress that the maintenance of the existing building stock of any nation is as important to the economy as the construction of new buildings.

Prof. Olumide ADENUGA is of the University of Lagos, UNILAG

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