 Welcome back, it's still the breakfast in Placifia, Africa, where Nigeria's largest city, Lagos has been facing what some describe as a housing crisis for some years now, with affordable housing posing a considerable challenge for many residents of Nigeria's mega city. More than 500,000 people move to the city of Lagos every year with an estimated population of 23 million household size of 4.9 people per household and a housing stock of 1.49 million units, that's 1.49 million houses. Lagos has not been able to meet up, if you look at those stats and you crunch the numbers to 50% of her formal housing demand till date. Now with these numbers painting the true picture of Lagos housing deficit, now the question always be how can the housing deficit in Lagos be reduced. We have joining us to discuss this, Mr Tobi Nisso and Degborega, who is the chief executive officer of EcoShotlet. So Tobi Nisso and Degborega, good morning to you. Good morning, good morning, hi it's there, thank you very much, there have not been yet today. Yes, yes, we'll talk about a shortlet business in a bit, because we're interested in that, but let's look at the housing gap in Lagos, it's quite a problem isn't it? Yes, it's a major problem that I think the government could do a lot more with making housing very accessible to the average man in Lagos, so it's quite a big problem. I mean one of the issues if you look at why housing is not accessible to residents of Lagos is that it's a cost. Yes, you know you look at okay in one bedroom, two bedroom, three bedroom, four bedroom, five bedroom, it costs a lot. So for me as a person I sincerely feel the cost of housing in Lagos is a bit over the hook, so for instance you want a good one bedroom, I mean like if it's one, you're looking at nothing less than three million error, you want a three bedroom, in like you were looking like six billion seven point five million, now how many hybrid legutions can afford such? And again you can't blame the developers as such because the cost of building materials, the licenses and the approvals from Lagos the government, it's a rigorous process, so and for them it's about cash, they just want to finish building, make their cash and leave the table, so like I said earlier on it's something I think the government can do a lot more in making housing affordable, so back then you had Jack on the house in the States, like almost everybody in Lagos could afford Jack on the house in the state because but right now whatever the government is doing, like place like LSTPCS state and all of that, the prices are, it's not something that anybody can just afford as such, so yeah it's, so you're seeing the regulatory bottlenecks are part of, it's a major, it's a some people feel that the agents, you know are also part of the problem, your colleagues are also part of the problem because you want to rent a typical property maybe on the island, you're paying the rent, you're paying a legal fee, you're paying agency fee, you're paying the caution fee, you're paying one commission or the other and then you're paying service charge, I moved to Lagos from Port Hakata, I mean I'm a regular visitor to Lagos, but my baby was in PH, we don't do all that, we don't do all that and sometimes when you go to the house it's where you see okay they say service charge, you ask them what are you servicing me, so I guess that's why they say Lagos is a commercial city, so you cannot compare places like Lagos, like Polakot or Benin of course, what happens to the oil capital of Nigeria, definitely not about that, but Lagos is a commercial, so in terms of those costs, I know video agents will be very flexible, of course the standard fees only is 10%, so I'm able to negotiate, I can only afford the 5%, I can afford the 4%, now this is the challenge, you have very few houses available, so there's one property that's opened up and you have about 10 people on the queue for that property, so it's a law of supply and demand, so exactly, so if I want to get a house and then you say that I have to pay 10% agency fee and I'm trying to negotiate with you to say oh can I pay 4% and there's someone else on the line who's ready to pay 10%, I'll go with him, how lucrative is the shortlet business, amazing, you own the shortlet, you own the shortlet, yes, it's a very interesting one, very lucrative, but then again it is very capital intensive, very very capital intensive, just a good analysis, you want to get a three bedroom now, like if you want to buy, you're looking like 100 to 120 million to buy, now if you want to rent it, you're looking like 7 to 8 million, now for your interior design, just for renting, now if you want to do it, standard interior, for shortlets we sell images, it's the pictures that catches anyone's attention before they're allowed to wear this property locator and all of that, so you want to do a beautiful interior design for a three bedroom, you're going to spend nothing less than 12 to 40 million, so it is very capital intensive, but the long run it makes more business sense to put my property on shortlet than on yearly rental, one of the challenges is there's no housing in Legos, so now in Legos you go to a building where maybe it has about 10 flats and you'll be surprised, everyone in that building, all shortlets, all shortlets, because as a business person with a three bed, if I put it in normal rent in a year, the most I'll make is maybe 7 to 8 million and that's it, if I put up on shortlets I can make as much as 15 to 18 million in a year, so I don't want to put it on shortlets are actually increasing the house, house and deficit, but they're improving business and it's a veritable investment, before they put their money in it. In fact right now, a lot of developers and the lucky access, you see when they market their property they'll say it is very viable for shortlets, so we've gotten to that stage where people now market the sales of the properties to you to say it's good for investment proposed for shortlets, so of course that will cost a huge deficit in normal houses. We have to go, we're out of time, but you give us a lot of information in this short time, we should have you back. That's the size of our package, my name is Kofi Bartels and the news tonight is up next, thank you very much for your time.