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Stakeholders Seek Collaboration on Mortgage Policy, Legislation

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Nigeria Mortgage Refinance Company NMRC
  • Stakeholders Seek Collaboration on Mortgage Policy, Legislation

Stakeholders in the country’s mortgage industry have called for increased collaboration among the executive, legislature and judicial arms of government as well as operators and regulators for effective policy formulation and legislation to engender housing and mortgage reforms.

They noted that it had also become necessary for land registries and land titling processes in all states to be automated for better coordination of activities and information sharing in the industry.

These issues and more were contained in a communiqué issued at the end of a workshop on the model mortgage and foreclosure draft bill for stakeholders comprising speakers from various state houses of assembly, attorney generals and commissioners for land and housing; representatives of the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Governors’ Forum, Mortgage Bankers Association of Nigeria, Nigeria Mortgage Refinance Company, Real Estate Development Association of Nigeria, and the National Housing Finance Programme.

The stakeholders agreed that there was a need for interface between the land and mortgage registries in states and among all concerned.

The communiqué read in part, “There is a need for state governments to see discounts and reduction of statutory fees and rates as an incentive to increase Internally Generated Revenue as well as broaden the revenue collection base of the states. This underscores the need to emphasise the benefits of passing the model mortgage and foreclosure law as an incentive to the states.

“There is a need to consider the financial implication of the legal framework being proposed by the MMFL and the possibility of adopting existing structures to minimise cost and serve as an incentive, rather than a dis-incentive to the passage of the law; as well as a need to address potential conflict of interest between the proposed state mortgage boards and the existing land registry/authority.

“There is a need for operators to be realistic in their projections and models in determining the types of houses built in states and fixing unit prices of such houses to suit the different states and income/salary scale of beneficiaries of housing and mortgage schemes, bearing in mind the housing/mortgage policy that not more than 33 per cent of a beneficiary’s income should be used to service a housing loan/mortgage.”

Participants also agreed that mortgage creation should be simplified and modified to meet modern trends and exigencies of the housing and mortgage industry, while the process for obtaining Governor’s Consent should be made easier by delegating the authority to more than one person in respect of secured transactions; and reassess/streamline the process to eliminate the delay in obtaining such consent so that transactions involving property would be easier and more seamless.

They also urged state governments to provide the necessary infrastructure and social amenities, such as motorable roads, electricity supply and pipe borne water, among others, to make housing estates attractive to investors, developers and potential homeowners.

The Attorney General of the Federation and Minister of Justice, Abubakar Malami, who was represented by Biodun Aikhomu, at the workshop, stated that more than 80 per cent of the nation’s population lived in informal housing arrangements and advocated for reforms that would foster short, medium and long-term solutions to the challenges confronting housing provision.

The Deputy Governor, Financial System Stability, CBN, Aisha Ahmad, represented by the Deputy Governor, Corporate Services, Edward Adamu, said the theme, ‘Creating an enabling environment for the growth of the housing and mortgage sector: The need for land and law reform’, was intentionally chosen to enable participants to share and gain knowledge and insight into the status, challenges and necessary reforms in the housing finance sector.

The Director, Other Financial Institutions Services Department, CBN, Mrs Tokunbo Martins, stated the workshop would enable participants to create an action plan to move the housing and mortgage industry forward.

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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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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