The Managing Director of Kaduna Market Development and Management Company (KMDMC) Tamar Nandul, has promised that traders will be given priority in the sale of shops in all the 16 markets that are being built across the state.
Nandul reiterated that the traders who owned shops in the markets before there were redeveloped or rebuilt, will be given the right of first refusal as they will be considered before any applicant when the markets have been completed.
Last week, Governor Nasir El-Rufai presented Deeds of Sublease to the Sheikh Gumi and Kawo markets traders, explaining that his administration is supporting this massive transfer of wealth by arranging mortgage facilities for the traders at single-digit interest rates.
According to him, Kaduna State Government is helping traders to own shops, instead of being tenants and this empowerment plan is turning 6,000 traders at the Sheikh Abubakar Gumi from tenants to shop owners.
Speaking on the sale of shops, the Managing Director of KMDMC said that it’s ‘’a social empowerment programme that was conceived in 2019 by His Excellency, Malam Nasir El-Rufai’s adminstration.‘’
She recalled that the Sheikh Abubakar Gumi ‘’ market which has a total number of 6,546 shops with a total open market value of N11bn previously generated an average of N138m annually which represents only 1.25% Return on Investment.’’
‘’Additionally, a landlord system was prevalent in the market whereby the ‘allotees’ who pay an average rent of N20,000 yearly to government, in turn collect as much as N500,000 per shop as rent from actual traders,’’ Nandul disclosed.
‘’In view of this, the Kaduna Markets Development and Management Company sought and obtained approval from His Excellency, the Governor to transfer ownership of all 6,546 shops to traders on an owner-occupier basis using the true sales value of the shops,’’ she added.
Nandul said that KMDMC contracted the services of PricewaterhouseCoopers and Dikko and Mahmood as financial and legal advisers for the transaction respectively, to ensure transparency, accountability and efficiency in the project.
According to her, a total of 2439 mortgage requests were received with a value of N2.93bn and three payment options were provided to buyers, including outright payment of the full amount, installment payment or a mortgage agreement with Sterling and Jaiz Banks.
‘’Upon successful application, Deed of subleases were given to those who made outright payment while others will receive allocation letters instead,’’ she clarified.
‘’Similarly, we have replicated the same process across all markets under our management including Kawo, Kasuwan Bacci, Sabon Gari Market among others,’’ she said.
The MD however said that for Kasuwan Magani and Kwoi markets as well as other rural markets, buyers are expected to make 5% down payment instead of the usual 10% down payment.
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