THE KEYNOTE SPEECH BY H.E BABATUNDE RAJI FASHOLA, SAN AT THE EKITI STATE UNIVERSITY ALUMNI ASSOCIATION 2021 GENERAL ASSEMBLY AND CONVENTION LECTURE

Ladies and Gentlemen,

Let me start my speech by thanking you for inviting me to be your guest speaker at your convention for this year.

I sincerely hope that this year’s convention is not only successful but extremely rewarding of the efforts that have gone into arranging it.

The history of Alumni Associations of universities is quite dated and well reported and you have become part of a global network of similar associations who have contributed to enriching the human civilisation worldwide.

I however have some concerns about the negative presumption in the title you have selected, which is “Tragedy of leadership without legacy; Safeguarding the next generation of Nigerian leaders.”

I prefer to always see my glass and that of Nigeria as half full and not half empty.

In this regard, I look for triumphs and not tragedies.

So, let me share with you a triumph and a legacy.

Up until 21st of March 1982, there was no state university in the old Ondo state and there was no Ekiti state as a legal entity. Indeed, the idea that an Ekiti state would one day own a university was not in contemplation.

But all of these changed on the 22nd of March 1982 by the action of Chief Michael Adekunle Ajasin, as the Governor of the then Ondo state, when he created the Ondo State University.

That was an act of leadership, to create an institution of higher learning to prepare the next generation and make them ready to lead.

That action was triumphant and not tragic. 

And it would seem that the then Ondo state university was a worthy legacy that any leader in the public or private sector would be proud of.

But the triumphs and legacies did not stop there.

To the credit of the Babangida Administration and in response to the yearnings of the people of Ekiti who were then part of Ondo State, Ekiti state was birthed as a legal entity in 1996.

It is extremely doubtful that if a referendum were held today to return Ekiti to become part of the old Ondo state, that such a referendum will find majority support if it finds any support at all.

The reason why such a referendum will almost certainly fail, if it ever emanates in the first place, is that the people of Ekiti are proud of their state.

That is a legacy, and I dare say, a triumph, not a tragedy of leadership.

Yes, there are those who at the time did not want the military to remain and I am one of them, but we cannot dismiss something as worthy as Ekiti state, because we dislike those who produced it or the system by which they did it.

It might interest you to find out how the law that finally abolished slavery in America was passed and the efforts of Abraham Lincoln to get parliamentary support for it.

The process by which the support of the law makers was obtained for the Abolition Law are not necessarily worthy of badges of honour, but the abolition of slavery, the freedoms they delivered for the human mind and dignity remain enduring and triumphant legacies of leadership.

Some of you may be aware of the Battle of Normandy. This was the last push of a global coalition in 1944 to stop a German advance on Europe and by extension the whole world.

Recent declassification of military records now reveals that it was not just bravery alone that won the contest.

But the legacies of freedom that the triumph of the coalition forces delivered is with us today.

The aftermath of that effort led to the birth of the United Nations and the prescription of a new global legal order that has regulated the conduct of human affairs till today.

Away from history and back to Ekiti, the triumphs do not end, and the legacies continue.

One of them is the Alumni Association whose guest I am today. Without Ekiti State, and without Ekiti State University, from where would an alumni association of an Ekiti State University sprung forth?

So, to you my dear brothers and sisters, do away with negativity, look for possibilities, acknowledge little and modest successes, and let us work together to build for a better tomorrow.

Those who propel us to think negatively are not only thinking positively and acting positively, they are benefiting from our negativities. Therefore, I urge you to seek to do good things for a good reason not because we want to correct a bad thing.

For too long, our developmental aspirations have been anchored on “correcting what was wrong” when it can be anchored on an aspiration for self-improvement.

As someone once put it, we should not delegitimize in order to legitimize.

So for example, a Government in office, should build a waterworks for the people not because it has never been built before or because the previous government failed to build it, but because water is life, water is good for sanitation and for health care and water promotes wellness.

Therefore, at a recent event where I was invited to speak about the role of private sector in funding infrastructure gap and housing deficit, I modified the subject by removing “gap” and “deficit” from the topic.

I did so for a couple of reasons not least of which is the negativity that I perceived about those words and my subject.

I did so in part because I am aware that every part of the world is committing to building more infrastructure and housing because it helps the economy, and it creates jobs and not because they want to fill the “gap” or bridge a “deficit.”

I did so also because I know that President Buhari’s investment in infrastructure and housing is not meant to fill a gap or bridge a deficit; but to grow the Nigerian economy to global competitiveness and to invest in the Nigerian people.

Therefore, we must not only acknowledge what has been done by those before us, we as the leaders of today must embrace our responsibility to safeguard the next generation of Nigerian leaders.

We must then ask ourselves what we can do, to improve on the triumph of the legacy of Chief Michael Ajasin, in order to prepare the future for our children and our children’s children.

In this regard, we must be aspirational, forward-looking and ready to take responsibility for what happens in one generation. 

If we keep looking backwards, we will be looking for who to blame. The energy spent in looking for “scapegoats” and there are none, can be spent visioning and planning for tomorrow.

So let us look at today and what we have, in order to possibly project what we will need and prepare how to do them.

In this regard I can only offer suggestions as I do not profess to have all the ideas or answers.

But a good starting point is to accept that our world is changing and will continue to change. Therefore, we must prepare to adapt in order to safeguard the next generation.

At the onset of the industrial revolution, the subsequent discovery of crude oil and its amenability to being refined was the Holy Grail of that period.

It birthed a new economy of high-powered petrol and diesel driven machines that created global prosperity.

That is going away now as the world commits to a Net Zero carbon world from around 2050 and beyond. That is one generation away and we must prepare.

We must prepare by getting ready to acquire skills that will be useful to thrive in a Net Zero carbon environment and build our prosperity away from the carbon environment.

Another area is financial services. When last did you write a cheque? That was the ultimate symbol of financial inclusion or the ownership of a passbook, for those with savings accounts.

All of that is gone, many jobs have been lost with the disappearance of cheque books and replaced, but we still undertake financial transactions using different skills.

Bitcoins, cryptocurrency and of course our E-Naira are the new faces of financial transactions. To quote a popular saying in an adapted form - What will we think of next and how ready are we?

Of course, I cannot but discuss my personal passion which is Sports.

In about two generations, a pastime has become a profession that supports lives and livelihoods across the world among young people in the main, who are now professional sports men and woman.

A massive economy has been built around it including innovation, research and development for equipment, medicine, nutrition and officiating.

The sports that our parents told us was for “never do wells” is not only a major income earner globally, it is a source of projecting global sovereign strength.

Our plan for the next generation must include preparing our children to proudly deploy their skills in a professional way in the sporting arena.

While sports has struggled, the other sides of the talent based vocation such as music, dance, theatre and arts are prospering in varying degrees.

We must prepare the next generation to multiply the gains and consolidate on the success of today.

There are many things that we need to do and this occasion and the time permitted, do not lend themselves to an exhaustive consideration of those things.

But one thing that this occasion lends itself to, and which time permits us to do, is that this convention can (and I recommend that it must) be used to liberate our minds.

We must at this convention resolve to unshackle our minds from negativity, and embrace positive and aspirational thoughts.

After all, we can only do things that we can think of.

Therefore, the greatest bequest we can give the next generation is a gift of a belief in possibilities. If we do not believe how can we pass it on?

I do, I believe in the endless possibilities of Nigeria. What about you?

I acknowledge the triumphs and legacies of many who came before me, and even if I criticize some of their choices, I do not disown the foundations they contributed to where I stand today.

I am resolved to improve on what I inherited and pass it on to those who will come after me. This in part explains why the Federal Government through the Ministry of Works and Housing is undertaking repairs and reconstruction of internal Roads in 44 Tertiary institutions and the list of beneficiaries is growing.

What about you? What are you prepared to do to improve on what you inherited?  

Thank you once again for inviting me. Thank you for listening.

Babatunde Raji Fashola, SAN
Honourable Minister of Works and Housing

SPEECH DELIVERED BY H.E BABATUNDE RAJI FASHOLA, SAN AT THE 10TH MEETING OF THE NATIONAL COUNCIL OF LANDS, HOUSING AND URBAN DEVELOPMENT AT THE MARRIOTT HOTEL IKEJA LAGOS ON 21ST OCTOBER 2021

Ladies and gentlemen, let me start by thanking the Government, the Governor and people of Lagos, my home state, for accepting to host this 10th meeting of our National Council and for the top-class facilities they have placed at the disposal of the Council for this purpose.

My appreciation also goes to all the technical staff and resource persons who have worked since Monday the 18th to bring us to this climactic last day.

The unsung and unseen contributors who have worked behind the scenes, whose work is visible but whose faces are rarely seen I thank you for lending your hands to nation building.

To the Government and people of Lagos, I bring the goodwill and best wishes of the Federal Government and President Muhammadu Buhari for outstanding progress and success in your developmental goals and objectives and assure you of the Federal Government’s support.

At this year’s meeting we have decided to focus on how to create more jobs, foster social inclusion and accelerate economic development and this much is obvious in the theme of this meeting which is “Housing development as a catalyst for job creation, social inclusion and economic development.”

This decision is informed by many reasons including the unquestionable need to expand opportunities for Nigerian citizens by collective action of Government and private sector actions.

The decision is also informed by the commitment made by President Muhammadu Buhari on June 12, 2019 on behalf of Nigeria, to attempt to lift 100 million people out of poverty in a decade.

The decision is further informed by the reality that this commitment is a national and not a Federal Government commitment, because the Federal Government alone cannot achieve this objective without the state and local governments.

ALL OF GOVERNMENT ACTION

One reason why this will require an All of Government Action is the fact that land is a critical component of capital formation and it is controlled by the states (not the Federal Government) and I am persuaded that appropriate, targeted and purposeful use of land, such as for the development of housing by the states and private sector, will unleash prosperity in all states that aggregates to national prosperity.

As you know, the Federal Government is undertaking a National Housing Program in all states (except Lagos and Rivers which has not started) aggregating to about 5,000 housing units, and trying to complete an inherited ministerial pilot housing scheme across the states which has a little over 6,000 units.

The Federal Housing Authority and Federal Mortgage Bank are also intervening as federal agencies in respective housing development directly, through cooperative societies and the provision of development loans and mortgage loans.

But all these account for only a small amount of the need across the nation for many reasons not excluding the limited amount of land available to these federal agencies.

These are some of the reasons why I seek to persuade all of you to go back to your states to persuade your Governors to re-commit to housing development.

I said recommit, because I am aware that many states are doing something, but you will agree that there is a scope to improve and scale up.

Lagos, since the days of the LEDB, LSDPC, Lateef Jakande has been and today in the time of Babajide Sanwo-Olu, remains an example of what state governments can do to deepen housing supply and reap the benefits that come with it.

Permit me to reflect on the benefits of some of them.

HOUSING, ECONOMIC DEVELOPMENTS AND JOBS

The first is that most of the land held by the states that is not developed either for farming, manufacturing housing or other use, is idle, less valuable, and therefore dead capital that earns little if any income and generates little if any economic activity.

But from the day a decision is made to build, activity is created, people are galvanized, manpower is required, jobs are created and an economic exchange that leads to productivity starts.

Bulldozers employed in clearing are hitherto idle plant and equipment that get put to use, they require diesel to operate, which has to be bought and supplied, transporters are involved to deliver them just as operators are employed to operate the bulldozers.

But before all this happens, some people have been employed in design, layout planning, soil test and other pre-construction activities.

When construction actively starts, the economic explosion happens, supplies of sand, cement, reinforcements, roofing, plumbing, painting, and other components get to work.

This drives a critical business in all our states, the micro small and medium enterprises who make or supply these building components.

The delivery of building materials engages transporters, drivers and lubricant suppliers, but this is only part of the story.

The final leg is the inclusion of the urban poor, the people who depend on daily or weekly wages, the skilled and unskilled workers, bricklayers, carpenters, welders, painters, plumbers, electricians and others who work the materials into the construction of a house.

Of course, there is indirect employment in vendors who supply food, water and sustenance to the workers daily for months.

This is personal income, that is taxable by the states and Lagos State has shown the example of what is possible not only with personal income tax as a source of prolific internally generated revenue, but also the impact of property tax with the Lagos land-use charge as an example.

If we can imagine the picture I am painting we can only see a picture of gainful employment, inclusiveness and income that heralds prosperity as the opposite of poverty.

But the story is not finished. It also leads to furnishing; carpets, beds mattresses, curtains, and other household equipment usually purchased when people move to new homes.

However, let me be clear, not every government can afford to build houses on scale and not all residents want government built homes. So some of the things that the government can also do is to provide infrastructure, roads, connection to electricity and water in site and service schemes, allocated to citizens to build according to their budget but in conformity with the planning order.

CAPITAL APPRECIATION AND PROPERTY TAXES

Apart from some of the benefits that come with building which I have highlighted above, the investment in infrastructure alone adds 30 to 40% to the value of the land which was hitherto of little or no value. Estate surveyors will confirm this to you.

Land that appreciates in value, yields more revenue when property taxes are computed without necessarily raising the rate of taxation.

Every time I visit a housing site that is under construction, I pay particular attention to the people working on site.

They are often happy; they have dignity; they are proud to work instead of beg.

They can go home to their families and put food on the table for their children.

More importantly, they feel included.

But the matter does not end there.

PLANNING/CONSTRUCTION PERMITS AND URBAN PLANNING

I have had the privilege of sitting as a member of the committee set up by President Buhari to facilitate the ease of doing business across Nigeria; a national rather than a federal government business.

One of the parameters where we need to improve upon, and which has hampered our rating as a country, is the number of days and the length of time it takes to get a construction permit or planning approval; and the cost of it.

We in government must consciously improve on the bureaucracy around granting of construction permits or planning approval by taking steps to reduce the number of people involved, introducing some level of automation, such as online submission of applications and reducing the cost of approval.

We must see revenue in a more broader sense, such as reduced income for planning approval, and increased income from consequential construction like income tax of employees on site, and a broader land use charge from more houses built.

Please permit me to make one final point about planning before I leave it.

All over the developed world it is easy to observe sports and tourist facilities connected by interstate highways and interstate rail.

It is not accidental that thousands of people go by train or buses to a sports or entertainment event and return by it. It is the result of planning.

I urge you to take the opportunity as the Federal Government continues to connect the interstate roads and build the national rail network to challenge your land managers and Town Planners to take large tracts of land, plan them for residential and business purposes and set aside land for sports, recreation and entertainment.

You will be investing in the future of prosperity of your states and your indigenes if you do so now.

LAND TITLE AND DOCUMENTATION

It is impossible to address such a gathering of policymakers without touching on title documentations of land.

An untitled land, in the words of Hernando De Soto is “dead capital.”

It is a cause of exclusion, because the land is not formatted into a recognizable way that enables a financial institution identify the owner.

Therefore, untitled land cannot attract credit like a mortgage or development finance because it is not in transferable form to constitute security or collateral.

All states who seek prosperity and inclusion for the people must commit to expeditious processing, GIS mapping and titling of their land.

Lagos state will tell you how much IGR comes from land transactions, but you must find out how much has been invested in GIS mapping, scanning of millions of pages of Land title documents and automation of the issuance of certificates of occupancy.

RENT

My dear colleagues, there is no debate that the world is a place of inequality; among nations and amongst people.

While we cannot make the world equal, we can commit to reducing inequality.

We may not be able to make all people homeowners, but we can reduce the number of those who lack shelter or live on the edge every so often when rent is falling due.

I am sure that our country will be a much better place when three years rent in advance, two years rent in advance or one year rent in advance for middle class and working family residential homes becomes monthly rent, payable at the end of the month.

Why we may not get there immediately, this is an area of immense exclusion that we can remedy by legislative action at state level.

This is a matter in which the Federal Government has no legislative competence. It is a matter for the states, and I urge you not to turn your backs.

Three years rent in advance of monthly salary paid in arrears lies at the heart of affordability of access to shelter.

All state legislators must see this as an important area of representation of their people to make life easier.

So must Governors and Commissioners through Executive bills.

I will close by asking these questions.

If not us, then who?

If not now, then when?

Thank you for listening.

Babatunde Raji Fashola, SAN
Honourable Minister of Works and Housing

Thursday 21st October 2021