A recent narrative on some online platforms, in which the author and other contributors decry exorbitant rent charging by landlords, in connivance with estate agents in Osogbo metropolis and it’s environs practically calls for intervention.
Succinctly put, Real Estate business is certainly a line of business with slow pace of returns, and definitely not in the same line of speed in terms of recoveries on investment with others.
That an investor in the Real Estate is intrinsically in business is not in anyway in doubt, which gives credence to profit-making consciousness and propensity to break even, despite the peculiar snail-like motion of returns .
So, many issues need to be considered before casting aspersions on landlords in the state, knowing fully well that every rational investor is out to make profit no matter what.
Sincerely, the issues surrounding purported exorbitant rent should be analysed creatively from a broad socio-economic dimension and developmental lens of macroeconomic theory known as ‘ Economic Cost Advantage’ (ECA), where it is rational for every country , individual and business entity to concentrate on the lines of business with lowest cost of production per unit of product and attendant maximum profit.
The embedded merit of ECA is that, the economic model prioritises production and sustainable economic template, with multiplier effects on the larger society, which include employment and social security.
Because every surviving and developed economy predicates on production and not consumption or speculation, as it is applicable in the Real Estate business, there is urgent need to look inward and change the old order in the State of Osun.
As a matter of importance , the economic perception of the people must be changed towards greater frontiers of opportunities in order to attain higher purchasing power.
Against this backdrop, every citizen in the state must look in the direction of the propelled economic roadmap of the government to create sufficient wealth beyond mono-economic culture.
The present administration’s efforts in the state to create viable and dynamic economic direction in critical sectors of the economy like : Agriculture, Tourism, Solid State Mineral, and many more must be proactively adopted and passionately adapted into every psyche.
Therefore, since there is conducive economic environment in the state to have reliable economic prosperity, every citizen should have alternative means of income for better standard of living.
Of course, the intellectually-driven summit on economy organised in the last quarter of 2019 was consciously conceived to create this type of virile economic environment for diversification.
Many Development Economists and Management experts have continued to commend the governor on the obvious short and long time positive effects of such convergence of experts of developmental juggernauts.
The government has also moved further to strengthen the security architecture of the state, by setting the pace in community policing arrangement, known as ‘Amotekun Corps’ to complement the federal security formation, knowing fully well that the bedrock of economic growth is safe environment.
This initiative has been widely applauded, considering laudable performance of the corps, especially against the age-long illegal mining activities and incurtion of criminally minded individuals into the state.
Obviously, the state remains an arena of array of tourist sites, in which the rich historical heritage and relative peace in the state should ordinarily attract many world tourists, with huge economic benefits .
There is indeed a global consensus on the inability of every government to unilaterally take control of all stratas of the economy, hence, the brilliant idea of synergy through ‘ Public Private Partnership’ .
In that wise, it is incumbent on the Osun citizenry to key into the economic direction of the present administration in the state and diversify to more sustainable economic path of production rather than suffocating speculative tendencies as estate agents in the state have been accused .
Also, the consistency in the prompt payment of salaries of workers and other emoluments is a product of conscious resolve of the Oyetola’s administration to prioritise the well-being of the people above any considerations, and not the mindset of exploitation to create economic burden for the good people of the state.
In truth and indeed, there is need for concerted efforts from all fronts to create productive economy that will bring about new economic order in Osun, as government continues to give direction to the path of prosperity.
Olaniyi Ajibola is the Chief Press Secretary to Osun State Deputy Governor