Connect with us

Markets

FMBN Posts N2.7 Billion Operating Surplus for 2016

Published

on

micro-finance-bank
  • FMBN Posts N2.7 Billion Operating Surplus for 2016

The Federal Mortgage Bank of Nigeria (FMBN) has posted operating surplus of N2.7 billion for the year ended December 31, 2016, marking the Bank’s return to profitability for the first time in over two decades.

This was one of a number of highlights at the Bank’s 2016 Business Performance Review Session, in Abuja.Although details were not given, but the return to profitability came as a surprise, especially in the view of the current recession and weakening purchasing power, which have created a lull in the mortgage sector. The fortunes turnaround implies increased subscription to the government’s plan for homes for all scheme for its workers, and that more beneficiaries of loans are repaying, and possibly accompanied with more prudent management of resources by the bank’s management.

Meanwhile, about N9 billion was approved by the Minister of Power, Works and Housing, Babatunde Raji Fashola, for the creation of 1,244 mortgage loans across the country, under the National Housing Fund (NHF) Scheme in 2016.

The Acting Managing Director/Chief Executive, FMBN, Richard Esin, who disclosed this in his opening remarks, said the minister also approved the disbursement of the sum of N1.2 billion to over 1,600 beneficiaries under the Bank’s Home Renovation Loan Scheme. Similarly, there was the disbursement of over N2.72 billion to 22,716 retired contributors as refunds in line with the NHF Act; and the Tripartite Committee of FMBN, REDAN and MBAN, which functions as a clearing house for niggling issues affecting efficient housing delivery.

Esin observed that in a bid to ensure easier access to the NHF Loan Scheme for low income earners, FMBN had secured the approval of the Minister to capitalise equity contribution and perfection fees for mortgage applications of N5 million and below, for the Bank’s funded estates nationwide.

“This means that Loan applicants will now have 24 months to pay the associated equity contributions and perfection fees for loan amounts under N5 million threshold, which would normally attract upfront equity contribution of 10% of the loan amount.”

Esin stressed the need to be proactive in the face of the anticipated increase in the supply of mortgage-able housing stock, which will be brought on stream through various efforts by the Bank and the Federal Government, including the National Housing Model expected to deliver 30,000 housing.

Also, there is a Memorandum of Understanding between FMBN and Shelter Afrique to provide $2 billion construction finance, accessible by members of Real Estate Developer of Nigeria (REDAN), aimed at providing 10,000 housing units annually for the next 10 years.

More so, there is a renewed drive to complete the Bank’s funded estates across the country, which were previously abandoned, capable of supplying over 25,000 housing units, over the next three years.

He expressed optimism that efforts in 2016 will yield the desired results in 2017, and urged the staff to be focused and steadfast in carrying out their functions, adding that staff welfare and capacity development would be a priority for the management.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus

Published

on

Oil 1

Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

Continue Reading

Crude Oil

OPEC Says Uncertainties Remain High in 2021

Published

on

Nigeria's economic Productivity

OPEC Says Uncertainties Remain High in 2021

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday said global uncertainties remained high going forward in 2021 but kept its oil demand forecast unchanged.

In the cartel’s latest oil outlook for 2021, oil demand is expected to increase by 5.9 million barrels per day year on year to 95.9 million barrels per day. The prediction was unchanged from December’s assessment.

However, OPEC and allies, said: “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.

Crude oil rose to $57 per barrel this week after incoming US President Joe Biden announced it would inject $1.9 trillion stimulus into the world’s largest economy.

But the recent rally in the commodity and stimulus announcement is expected to boost US crude oil output and disrupt OPEC+ production cuts strategy for the year.

The 2021 supply outlook is now slightly more optimistic for U.S. shale with oil prices increasing, and output is expected to recover more in the second half of 2021,” OPEC said.

Still, OPEC, in its forecast “assumes a healthy recovery in economic activities including industrial production, an improving labour market and higher vehicle sales than in 2020.”

“Accordingly, oil demand is anticipated to rise steadily this year supported primarily by transportation and industrial fuels,” the group said.

Continue Reading

Crude Oil

Brent Crude Oil Rose to $56.25 Per Barrel

Published

on

oil

Brent Crude Oil Rose to $56.25 Per Barrel

Oil price surged following the declaration of Joe Biden as the President-elect of the United States of America last week after Trump’s mob invaded Capitol to disrupt a joint Senate session.

Also, the large drop in US crude inventories helped support crude oil price to over 11 months despite the second wave of COVID-19 crushing the world from Asia to Europe to America.

Brent crude oil, against which Nigerian Crude oil is priced, rose to $56.25 per barrel on Friday before pulling back to $55.422 per barrel on Monday during the London trading session.

Experts attributed the pullback to the rising number of COVID-19 cases in Asia with about 11 million people already locked down in Hebei province in China.

Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China Hebei province… along with a touch of FED policy uncertainty has triggered some profit taking out of the gates this morning,” Stephen Innes, chief global market strategist at Axi, said in a note on Monday.

China, the world’s largest importer of crude oil, has joined the United Kingdom and others declaring full or partial lockdown to curb the second wave of COVID-19.

Continue Reading

Trending