Challenges Stifling Real Estate Sector Entrepreneur, Omoha Nduka
Every sector of the economy has its own peculiar challenges, an the real estate sector in Nigeria is no exception. In a recent interview, real estate investor/entrepreneur and the Group Chief Executive Officer of Prince Luxury Groups, Omoha Nduka John popularly known as “Prince Omoha” highlighted some of these challenges.
In his own opinion guided by four years of experience in the sector, he listed “Environmental change; shifting political climates; volatile markets; rising mortgage rates and evolving technology trends.”
“These are just some of the challenges every developer is facing everywhere. Ask your typical agent for a list of their biggest challenges, and you’ll invariably hear many of the same answers repeated,” he added.
Interestingly, he maintains that these challenges are inherent to the sector almost anywhere in the world pointing out that tax increment is another challenge that can easily be addressed by the government. He said tax increment by the government is making it a herculean task for people to acquire the properties they truly desire.
Hear him :“ Let me share with you : Recently, a client of ours in the real estate sector was in the process of acquiring a piece of property in the Lekki axis of Lagos. The purchase price had already been agreed, necessary due diligence investigations conducted at the land registry, and title over the property was certified to be unencumbered. The prospective seller of the property issued his invoice to our client for the sale of the land and included Value Added Tax (VAT) of 7% to the purchase price. Our Client was startled by the inclusion of VAT and requested to know the position of the law on VAT on property transactions.
“Though Nigeria’s VAT rate of 7% pales in comparison to other countries including the United Kingdom which charges 20%, it makes a difference on large transactions such as property and real estate. The Taxman’s interest in these burgeoning property transactions is not surprising as he seeks to generate revenue for the government. But the question that needs to be asked and answered is: is VAT applicable to property and real estate transactions, or are buyers being made to bear an unnecessary unlawful cost? I think the tax increments should be abolished in the real estate sector to enable interested buyers to be able to afford their dream homes.
Prince Omoha has been in the business of real estate for four years and his company, Prince Luxury Groups specialises in residential homes in Nigeria. So far, they have built about 23 duplexes in Lagos between Lekki, Orchid, and Pinnock Estates. And they have sold about 15 units. According to him, they are also working in Abuja and Ebonyi State which is his own very State because of the new development going on there.
Omoha Nduka John (Alias Prince Omoha) began his entrepreneurial journey back in his hometown of Ezzamgbo area in Ohaukwu local government area of Ebonyi State as early as 2008. He was much like an apprentice back then assisting his father in his motorcycle parts business. He later took over the business but didn’t last as the father transited to other businesses.
Prince Omoha, as he is fondly called, started his own formal business by selling recharge cards. It was not until he came to Lagos to visit his elder that his business life took a dramatic turn for good. After learning under his brother for two years he ventured into mining.
He is a native of Ezzamgbo in Ohaukwu local government area of Ebonyi State. He did his primary education at Practicing School and secondary at Victory comprehensive Secondary School, both in Ezzamgbo before proceeding to Ebonyi State University (EBSU) where he bagged a Bachelor’s degree in political science.