Brent Mortgage Bank Limited is targeting a large chunk of the estimated $21 billion annual remittances by Nigerians in the Diaspora with its newly developed product, Brent Home Ownership Diaspora Account (BHODA),, its Managing Director/CEO, Kola Abdul, has said.
Speaking during the product launch at the weekend in Lagos, Abdul said the product was created for Nigerians in the Diaspora who desire to own home, or invest in property in their homeland.
“We realised that although Nigerians in Diaspora are working hard and living in decent accommodations outside the country also deserve a decent place of abode in Nigeria. We also realise that many of them have not been able to achieve this dream of owing a home of their choice because of funds diversion, suppression, and conversion by friends and relations,” he said.
Abdul explained that the product would eliminate those challenges, and make home ownership easy for investors. He said the firm had identified some marketing agents in the United States (US), United Kingdom (UK) and Republic of Ireland, who would assist the company in conducting due diligence its prospective customers.
“We simply require completion of our forms on-line with requisite documents attached. The prospective buyer at the onset will state the area where he or she wants the property, type of property, price range and other necessary details. Brent has opened domiciliary accounts with two commercial banks in Nigeria. Remittances would be made into any of these accounts in three different currencies namely, Dollar, Pounds Sterling and Euro,” he said.
He explained that when the local value of the remittances are close to 30 per cent of the value of property of interest, the customer would choose from identified properties and partake in price negotiation with our support. “Brent would conduct legal, physical and general investigations on the approved property before full payment is made and customer takes possession. Mortgage would thereafter be created on agreed rate and tenor while customer repays quarterly. Legal title would be transferred to customer immediately mortgage obligations are fully settled by customer,” he said.
He continued: “We have opted to play in this segment of the market with a view to deepening the mortgage market and managing our business risks more effectively. This is where we have strength and skills. Our franchise covers Lagos State that has about 17 million population, which is about 12 per cent of the country’s population and about 2.4 million housing deficit. It is pertinent to state that the franchise does not preclude us from financing mortgages outside Lagos State.”
He said the mortgage bank has also introduced two other products, Brent Rent to Own (BRENTO) and Brent Retirement Home Plan (BREHOP). For BRENTO, Abdul said customers are expected to meet the firm’s affordability and eligibility requirements, and with the payment of little equity contribution, such customer moves into any of the financed properties. The company will, thereafter, collect yearly payment of lump sum which covers mortgage repayment and interest elements for an agreed period of time ranging from five to 10 years. “When the property amount and interests are fully settled, the customer/occupant becomes the legal owner for life. Interest payable is 10 per cent per annum, which is very competitive,” he said.
According to him, BREHOP customers and prospective ones with regular stream of income, especially salary earners, can take advantage of this product to become home owners before retirement. “An account needs to be opened with us giving details of employment.
There would be 30 per cent equity build up at the earliest convenience of the customer/prospect. The two parties would identify the property the customer has the capacity to repay without pressure on his take-home pay. Interest rate is negotiable and competitive,” he said.
Crude Oil Dips Slightly on Friday Amid Demand Concerns
On Friday, global crude oil prices experienced a slight dip, primarily attributed to mounting concerns surrounding demand despite signs of a tightening market.
Brent crude prices edged lower, nearing $83 per barrel, following a recent uptick of 1.6% over two consecutive sessions.
Similarly, West Texas Intermediate (WTI) crude hovered around $78 per barrel. Despite the dip, market indicators suggest a relatively robust market, with US crude inventories expanding less than anticipated in the previous week.
The oil market finds itself amidst a complex dynamic, balancing optimistic signals such as reduced OPEC+ output and heightened tensions in the Middle East against persistent worries about Chinese demand, particularly as the nation grapples with economic challenges.
This delicate equilibrium has led oil futures to mirror the oscillations of broader stock markets, underscoring the interconnectedness of global economic factors.
Analysts, including Michael Tran from RBC Capital Markets LLC, highlight the recurring theme of robust oil demand juxtaposed with concerning Chinese macroeconomic data, contributing to market volatility.
Also, recent attacks on commercial shipping in the Red Sea by Houthi militants have added a risk premium to oil futures, reflecting geopolitical uncertainties beyond immediate demand-supply dynamics.
While US crude inventories saw a slight rise, they remain below seasonal averages, indicating some resilience in the market despite prevailing uncertainties.
Nigeria’s Petrol Imports Decrease by 1 Billion Litres Following Subsidy Removal
Nigeria’s monthly petrol imports declined by approximately 1 billion litres following the fuel subsidy removal by President Bola Ahmed Tinubu, the National Bureau of Statistics (NBS) reported.
The NBS findings illuminate the tangible effects of this policy shift on the country’s petroleum importation dynamics.
Prior to the subsidy removal, the NBS report delineated a consistent pattern of petrol imports with quantities ranging between 1.91 billion and 2.29 billion litres from March to May 2023.
However, in the aftermath of Tinubu’s decision, the nation witnessed a notable downturn in petrol imports, with figures plummeting to 1.64 billion litres in June, the first post-subsidy month.
This downward trend persisted in subsequent months, with July recording a further reduction to 1.45 billion litres and August witnessing a significant decline to 1.09 billion litres.
August’s import figures represented a decrease of over 1 billion litres compared to the corresponding period in 2022.
The NBS report underscores the pivotal role of the subsidy removal in reshaping Nigeria’s petrol import landscape with the Nigerian National Petroleum Company emerging as the sole importer of fuel in the current scenario.
Despite higher petrol imports in the first half of 2023 compared to the previous year, the decline in June, July, and August underscores the profound impact of subsidy removal on import dynamics, affirming the NBS’s latest findings.
Nigeria’s Oil Rig Count Soars From 11 to 30, Says NUPRC CEO
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has announced a surge in the country’s oil rig count.
Komolafe disclosed that Nigeria’s oil rigs have escalated from 11 to 30, a substantial increase since 2011.
Attributing this surge to concerted efforts by NUPRC and other governmental stakeholders, Komolafe highlighted the importance of instilling confidence, certainty, and predictability in the oil and gas industry.
He explained the pivotal role of the recently implemented Petroleum Industry Act (PIA), which has spurred significant capital expenditure amounting to billions of dollars over the past two and a half years.
Speaking in Lagos after receiving The Sun Award, Komolafe underscored the effective discharge of NUPRC’s statutory mandate, which has contributed to the success stories witnessed in the sector.
The surge in Nigeria’s oil rig count signifies a tangible measure of vibrant activities within the upstream oil and gas sector, reflecting increased drilling activity and heightened industry dynamism.
Also, Komolafe noted that NUPRC has issued over 17 regulations aimed at enhancing certainty and predictability in industry operations, aligning with the objectives outlined in the PIA.
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