Economy
SEC Sees Huge Untapped Investment Opportunity in Nigeria’s N59.5bn Housing Deficit
By Aduragbemi Omiyale
The Director-General of the Securities and Exchange Commission (SEC), Mr Lamido Yuguda, has said the N159.5 billion investment needed to address the 20 million housing deficit in Nigeria, according to a study by the World Bank Group, provides a huge untapped investment opportunity.
He said this issue could be addressed through the non-interest segment of the capital market, calling on stakeholders to join hands together to bridge the gap.
The SEC chief, who was at the webinar themed the Non-Interest Capital Market as Panacea to Mortgage Financing in Nigeria, said the focus of the programme was timely and relevant.
“I have observed with delight the attention this webinar has generated and come to the conclusion that it is a clear indication of the keen interest in the potential that the non-interest finance segment holds in furthering the development of the Capital Market and the growth of our economy.
“According to a World Bank study, Nigeria’s housing sector requires an investment of about N59.5 trillion to bridge the 20 million housing deficit that is increasing yearly. Undoubtedly, this shows a huge untapped investment opportunity in the Nation’s real estate sector,” he said.
Mr Yuguda stated that governments at both federal and state levels and businesses in Nigeria have been tapping various available sources of financing, including capital market products, for funding real estate developments. The methods of finance have various associated costs, some of which are deemed to be high.
He emphasised that the Nigerian capital market provides a platform for mobilizing long-term funds for real estate investments to complement the mortgage funding sources by commercial banks, primary mortgage institutions, non-governmental organizations, cooperative societies and international finance institutions.
“The capital market creates investment opportunities to enhance the flow of low-cost, long-term funds to the real estate sector through investment vehicles such as Real Estate Investment Trust Schemes (REITs) and mortgage-backed securities. These instruments are usually traded on recognised exchanges.
“I am delighted to inform you that some corporate entities have started taking advantage of the non-interest capital market.
In 2021, Family Homes Funds Limited, a social housing initiative promoted by the federal government, issued a N10 billion Sukuk to finance residential houses across the six geopolitical zones of the country, and it was oversubscribed by over 200 per cent.
“The company also recently raised another N10 billion from the market. This development was a strong indication of the readiness of the capital market and the corresponding investors’ appetite for non-interest mortgage instruments.
“We strongly believe that the operationalization of the non-interest pension fund (Fund VI) and the recent amendment of the pension act to facilitate withdrawals from RSA for down payments of equity contributions for a mortgage will increase the quantum of low-cost, long-term investible funds to the mortgage industry by unlocking the untapped capital in the economy.”
The webinar, he said, therefore, aims to create awareness of the non-interest capital market instruments as a new source of financing for mortgage institutions as well as to facilitate the active participation of the private sector towards positioning the sector to perform optimally and contribute to the overall economy.
Mr Yuguda expressed confidence that the non-interest finance experts at the webinar would evoke the interest and attention of participants and enhance their knowledge on the subject to eventually lead to the birth of promoters and off-takers of new non-interest products in the capital market.
Speaking at the event, the Managing Director CEO of the Federal Mortgage Bank of Nigeria, Mr Madu Hamman, stated that the non-interest financial products have gained a lot of interest from investors in Nigeria and globally and could aid housing finance sources and expand the frontiers of home ownerships through non-interest finance sources.
He stated that the engagement would go a long way in giving the capital market the needed boost to unbundle funds that were hitherto not accessible to Nigerians, adding that it is obvious that the Nigerian economy is on the verge of experiencing a tremendous transformation in this regard.
Mr Hamman said that sourcing non-interest funds from the capital were very necessary for seamless operations as funds sourced from interest-based facilities cannot be leveraged to deliver on non-interest mortgage transactions.
“We are committed to linking the mortgage market with the Nigerian capital market and thereby ensure sustainable long-term funding for the housing and mortgage sector. The non-interest capital market is, therefore, one area for such sustainable long-term funds that can be assured,” he said.
In his remarks, the Managing Director of the Nigerian Mortgage Refinancing Company, Mr Kehinde Ogundimu, said there is no way the nation can meet the housing deficit without having the non-interest services sector actively participating in it and commended the SEC on the initiative.
By Modupe Gbadeyanka
Customers of AXA Mansard in the Micro Small and Medium Scale Enterprise (MSME) sector of the economy will enjoy free exhibition stands at the Made by Nigerians Fair.
The fair is scheduled to take place on Saturday, December 7 and Sunday, December 8, 2024, at the Landmark Event Centre, Lagos.
To support small business owners, AXA Mansard is paying for stands for selected entrepreneurs to showcase their products at the fair, which attracts thousands of people.
According to the Head of Marketing at AXA Mansard Insurance Plc, Mr Olusesan Ogunyooye, this is another gesture by the company to show that MSMEs can benefit from having insurance.
He described MSMEs as the backbone of any economy, noting that they drive innovation, create jobs, and contribute significantly to national development.
“Our support for these businesses at the MBN Fair reflects the commitment to their growth and sustainability. We are passionate about helping them reach their full potential by connecting them with resources and opportunities that foster success.
“By the very nature of insurance, its benefits are in the future and they are uncertain. That has been a main source of discouragement, particularly to MSMEs. Businesses are geared to making money.
“So, when thinking about insurance, an average MSME would rather invest the money in the growth of his business first.
“The risks that businesses face are also real. There are various types of risks businesses have to contend with today; from burglary to fire, the health of employees, and so on.
“When these risks manifest, they can significantly impact a business negatively. We understand that to get MSMEs to protect themselves and the millions of jobs they create, we must help them strike a balance between growing their businesses and protecting them.
“So, we have come up with different Initiatives to help them grow their businesses. The opportunity to exhibit their products and services to thousands of visitors to the MBN Fair is another in the series of our initiatives.
“We are convinced that for insurance to grow, we need to help people and businesses see it as a strategic lever to grow their businesses, not a cost that takes away from them. If we get this right, it can’t have a massive impact on our economy because, when MSMEs thrive, the economy will prosper.
“We have experimented with this model, and we are particularly excited about the responses from our customers. It is a call for us to do more, and we are committed to Nigerian MSMEs,” Mr Ogunyooye stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.05 per cent gain on Friday, December 6 after the price of Afriland Properties Plc went up by 60 Kobo to settle for the day at N16.60 per share versus Thursday’s closing price of N16.00 per share.
Consequently, the market capitalisation of the bourse increased during the session by N520 billion to settle at N1.056 trillion, the same value it ended a day earlier, as the NASD Unlisted Security Index (NSI) went up by 1.5 points to wrap the session at 3,014.91 points compared with 3,013.41 points recorded in the previous session.
Business Post reports that yesterday, the price of Acorn Petroleum Plc depreciated at the close of business by 15 Kobo to trade at N1.54 per unit compared with the preceding day’s N1.69 per unit.
The volume of securities traded in the session by investors soared by 168.3 per cent on Friday to 199,577 units from 74,381 units, but the value of securities went down by 45.8 per cent to N1.4 million from the N2.7 million recorded a day earlier, and the number of deals grew by 20 per cent to six deals from the five deals executed in the preceding session.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rebounded by 0.10 per cent on Friday as almost all the key sectors closed in green when trading activities ended for the week.
The banking index appreciated by 0.73 per cent, the insurance sector gained 0.55 per cent, the energy counter improved by 0.17 per cent, and the industrial goods space jumped by 0.04 per cent, while the consumer goods sector depreciated by 0.16 per cent.
At the close of business, the All-Share Index (ASI) moved up by 96.64 points to 98,210.75 points from 98,114.11 points and the market capitalisation gained N58 billion to quote at N59.534 trillion compared with Thursday’s closing value of N59.476 trillion.
The bourse finished with 27 price advancers and 21 price decliners, representing a positive market breadth index and bullish sentiment.
Golden Guinea Breweries jumped by 9.98 per cent to N5.40, Japaul improved by 9.30 per cent to N2.35, Sunu Assurances expanded by 9.07 per cent to N5.05, Sovereign Trust Insurance rose by 7.69 per cent to 84 Kobo, and Secure Electronic Technology grew by 7.69 per cent to 70 Kobo.
On the flip side, Eterna lost 4.62 per cent to N22.70, Sterling Holdings depreciated by 4.12 per cent to N4.65, Prestige Assurance fell by 3.85 per cent to 75 Kobo, Consolidated Hallmark shrank by 3.85 per cent to N2.50, and Champion Breweries slumped by 3.50 per cent to N3.86.
Yesterday, investors bought and sold 1.0 billion equities worth N17.5 billion in 7,220 deals, in contrast to the 723.0 million equities valued at N12.8 billion transacted in 8,495 deals a day earlier, indicating a decline in the number of deals by 15.01 per cent and a surge in the trading volume and value by 43.98 per cent and 36.72 per cent, respectively.
On top of the activity chart on Friday was Wema Bank with the sale of 472.5 million stocks valued at N4.1 billion, Fidelity Bank traded 251.5 million shares worth N4.0 billion, FCMB transacted 45.0 million equities for N404.9 million, UBA sold 42.3 million shares valued at N1.4 billion, and Japaul traded 20.7 million stocks worth N46.3 million.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN