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‘Lagos Govt is Committed to Affordable Housing Delivery’

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  • ‘Lagos Govt is Committed to Affordable Housing Delivery’

The Lagos State government has concluded plans to deliver 20,000 housing units in the next three years. This is aside the 4,355 housing units that have been commissioned across the three senatorial districts in the state. This, according to the government, will reduce the housing deficit gap and improve Lagosians‘ access of to affordable housing.

This was the submission of Governor Akinwunmi Ambode last week at the celebration of the World Habitat Day in Lagos. The governor, who was represented by his deputy, Mrs. Idiat Adebule, said the effort was connected to the overall objective of making the state liveable, especially its urban renewal and slum upgrading/regeneration.

According to the Ambode, this year’s celebration, themed: “Housing Policies: Affordable Homes,” is an integral part of the “Lagos @ 50” celebration to showcase the administration’s achievements in regeneration and urbanisation of the state.

He further stressed that with this year’s theme, the United Nations (UN) was calling the attention of governments around the world to the need to make housing within the reach of the common man.

“Shelter is one of the basic needs of man. The challenge before us is to explore innovative ways by which this can be achieved through public private part Wcontent in the construction of houses, ensure efficiency in land utilisation, as well as develop a financing system that is convenient, reasonable and economical,” the governor noted.

He said his administration’s position on affordable housing has been demonstrated through the Rent-to-Own scheme and Rental Housing Initiative, which are specifically designed with the low income and middle income earners in mind. Under both schemes, Ambode said, apart from reducing the initial deposit requirement from 30 per cent to five per cent, a larger proportion of 80 per cent of the total stock of housing units under this programme is dedicated to the Rent–to-Own scheme, which is targeted at the low income group.

He listed some of the projects the state is implementing under this include the redevelopment of Adeniji Adele Phase I-V, comprising 720 housing unit, into a residential mixed use development of 2, 500 – 3, 500 housing units and the redevelopment of Isale Gangan Phase I leading to the construction of 11–floor structure, which comprised 48 serviced luxury apartments. The second phase of this project, planned to be a 13-floor structure, is under construction.

“As we strive to provide the enabling environment for investment in the housing sector, we are open to new ideas, new technology and new methods, the private sector remains our key partner in ensuring the delivery of decent, functional and affordable housing in the quantity that will match the increasing demand across the state,” Ambode remarked.

Commissioner for Physical Planning and Urban Development, Mr. Anifowoshe Abiola, said making housing available and within the reach of the common man is one of the most critical issues in the socio-economic well-being of the people. This, he explained, is the reason the ministry is ready to partner more than ever before, with all stakeholders in the built environment in order to realise and bridge the gap of the housing stock deficit.

The guest speaker at the event, Mr. Fola Arthur-Worrey, maintained that the citizens have a responsibility of paying their taxes to make the implementation housing policies and actualising same to happen. He advised that people should have a clear cut idea of what they intend to use a house for before embarking on its ownership because owning a house is not necessarily a must.

“The reality is that majority of people cannot afford a home by themselves, hence, the reason for informal houses,” Arthur-Worrey said, while urging government to intervene in the unhealthy relationship between landlords and tenants, especially as it concerns incessant increase in rent.

Commissioner for Housing, Mr. Gbolahan Lawal, argued that to make houses affordable, there is a need to scale up the income of the citizens. He also advised the Federal Government to reduce interest rate on mortgage so that transaction cost will be reduced and that more people can come into the mortgage net.

In a similar vein, the UN Habitat programme manager in Nigeria, Kabir Yari, commended the state for consistently hosting the World Habitat Day and for being the only state in the country to be doing so.

He said affordable housing is a challenge that has made a lot of Africans live in slums, including about 60 per cent of the population living in informal settlements without water. He disclosed that this year’s Habitat Day is used by the UN to reflect on the state of towns and cities, and on the basic right of all to adequate shelter.

“Housing policies: Affordable homes, promotes one of UN-Habitat’s focal areas such as inclusive housing and social services. A safe and healthy living environment for all. The UN Sustainable Development Goals (SDG) number 11 target is that by 2030, everybody should live in safe and affordable houses; I have no doubt that Lagos State will continue to do the right thing,” Yari submitted.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Business

Nigerian Artists’ Spotify Revenue Surges by 2,500% in Seven Years

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Nigerian musicians have experienced a shift in their fortunes on the global streaming platform Spotify with revenue surging by a 2,500% over the past seven years.

This meteoric rise shows the growing importance of digital platforms in propelling the country’s vibrant music industry onto the international stage.

According to Spotify’s annual report titled “Loud & Clear,” Nigerian artists collectively earned N25 billion from the platform in 2023 alone.

This figure represents a doubling of earnings compared to the previous year and a jaw-dropping increase of 2,500% since 2017.

The report further highlights the widening reach and impact of Nigerian music, revealing that more artists than ever before are now reaping rewards from their streaming activity.

In 2023, three times as many Nigerian artists earned over N10 million compared to 2018, reflecting the growing appetite for Nigerian music both at home and abroad.

Jocelyne Muhutu-Remy, Spotify’s managing director for Sub-Saharan Africa, hailed the growth in royalties earned by Nigerian artists on the platform as a testament to their talent, creativity, and global appeal.

She emphasized Spotify’s commitment to supporting African creators and pledged to continue investing in Nigerian artists to sustain this momentum.

Despite these gains, Nigerian artists’ earnings on Spotify still represent only a fraction of the platform’s total payout.

In 2023, Spotify paid out $9 billion in royalties globally with Nigerian artists accounting for a modest share of approximately $28.65 million.

A recent analysis revealed that South Africa remains the dominant force in Africa’s music streaming landscape, commanding a substantial portion of the region’s total music revenue.

However, Nigeria’s rapid ascent signals a shifting dynamic with the country’s music industry poised for even greater prominence on the global stage.

The International Federation of the Phonographic Industry (IFPI) corroborated this trend in its 2024 report, identifying the Sub-Saharan African market as the world’s fastest-growing music revenue market.

The report attributed this growth to the surge in paid streaming services, which contributed significantly to the region’s overall music revenue.

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Business

Naira Depreciation Pushes Import Duty Costs Up by 23%

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Institute of Chartered Shipbrokers

Amidst the ongoing economic turbulence in Nigeria, the depreciation of the Naira has inflicted a significant blow to businesses and importers.

The latest casualty is the surge in import duty costs which have skyrocketed by 23% due to the weakening of the national currency against the United States dollar.

The cost of clearing imports has surged to N1,412.573/$ as of May 8, an increase from the year-to-date low of N1,150.16/$ recorded on April 23.

This sudden spike in import duty costs reflects a 48% surge compared to the rate recorded in January.

The surge in import duty costs comes as a result of the fluctuation in the exchange rate between the Naira and the US dollar.

While the Naira experienced a brief rally in April, providing some relief to importers, the recent depreciation has erased those gains and compounded the financial strain on businesses.

Jonathan Nicole, former president of the Shippers Association of Lagos State, voiced concerns over the destabilizing effect of the fluctuating import duty rates on importers.

He criticized the lack of consistency in Nigeria’s economic policies and said there is a need for stability to attract investments and foster economic growth.

In response to the escalating import duty costs, stakeholders in the business community have called for urgent intervention to mitigate the adverse impact on businesses.

The surge in import duty costs poses a significant challenge to manufacturers and importers, particularly those who had already incurred expenses in anticipation of stable exchange rates.

As the cost of doing business continues to rise, there are growing concerns about the long-term viability of businesses and the potential impact on Nigeria’s economy.

With the economic landscape fraught with uncertainties, stakeholders are urging the government and regulatory authorities to implement measures aimed at stabilizing the currency and creating a conducive environment for businesses to thrive.

Failure to address these challenges could further exacerbate the economic woes facing Nigeria, jeopardizing its path to recovery and growth.

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Appointments

Ebenezer Olufowose Takes Helm at First Bank of Nigeria Limited as Chairman

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First Bank of Nigeria Limited has announced the appointment of Mr. Ebenezer Olufowose as its new Chairman.

This significant change follows the completion of the tenure of Mr. Tunde Hassan-Odukale, in accordance with the Central Bank of Nigeria’s Corporate Governance Guidelines, which mandates a maximum of twelve years for a Non-Executive Director.

Mr. Olufowose, a seasoned veteran in the financial services industry, brings over 36 years of experience to his new role.

He assumes the position of Chairman with a wealth of expertise garnered from his diverse background in Corporate Finance, Project Finance, and Investment Banking.

Prior to his appointment as Chairman, Mr. Olufowose served as a Non-Executive Director on the Board of First Bank of Nigeria Limited, a position he held since April 29, 2021.

He is also the Group Managing Director of First Ally Capital Limited, a reputable investment banking firm headquartered in Lagos.

His impressive career trajectory includes pivotal roles at Access Bank Plc and Citibank Nigeria, where he played instrumental roles in leading and executing corporate finance and investment banking transactions.

He spearheaded Citigroup’s origination, structuring, and execution of various high-profile deals in Nigeria.

Mr. Olufowose commenced his banking journey in 1985 at NAL Merchant Bank Plc (NAL), where he honed his skills in Corporate Planning and Finance.

Armed with a first-class honours degree in Economics from the University of Lagos and an MA in International Economics from the University of Sussex, England, Mr. Olufowose has continuously pursued excellence in his field.

Throughout his career, he has actively participated in numerous management and leadership training programs at esteemed institutions such as the Institute of Management Development in Switzerland, Harvard Business School in Boston, USA, and INSEAD in Singapore.

Also, he is an alumnus of the Harvard Business School and the Lagos Business School, further solidifying his reputation as a seasoned professional in the banking sector.

Mr. Olufowose’s commitment to professional development is evident in his affiliations with prestigious bodies such as the Chartered Institute of Bankers of Nigeria, where he holds an Honorary Senior Membership, and the Institute of Credit Administration and the Association of Investment Advisers and Portfolio Managers, where he is recognized as a Fellow.

As he assumes his new role as Chairman of First Bank of Nigeria Limited, Mr. Olufowose is poised to lead the institution with integrity, vision, and a steadfast commitment to excellence.

With his extensive experience and proven track record, he is well-positioned to guide the bank through its next phase of growth and reinforce its position as a leading financial institution in Nigeria.

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