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Business News

CBN offers corps members loans for a 7-year tenor

CBN has promised to offer loans to National Youth Service Corps (NYSC) members for a 7-year tenor, for the startup of small and medium scale businesses in an effort to curb unemployment rate in the economy. @cenbank @nysc_ng

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Nigeria’s ratings risk downgrade over rising debt and lower revenue, Godwin Emefiele, CBN, Textile, CBN

The Central Bank of Nigeria (CBN) has promised to offer loans to the National Youth Service Corps (NYSC) members for a 7-year tenor. The loan is intended for the purpose of establishment of small and medium scale enterprises.

This was disclosed by the Central Bank Governor, Godwin Emefiele, in his office while receiving the Director-General of the NYSC, Brig. Shuaibu Ibrahim, in Abuja.

CBN offers corps members loans

CBN Governor, Godwin Emefiele and NYSC Dir-Gen. Brig. Shuaibu Ibrahim

The Aim: Emefiele noted that the loan disbursement was developed out of the need to curb the rate of unemployment in the country. He advised that corps members should attend the bank’s entrepreneurship training centres for skills acquisitions in various vocational areas for economic survival after passing out from the service scheme.

ALSO READ: Nigerian youth empowerment

The CBN Governor added that the loans would be disbursed to the corps members to provide the needed support to the rent of business offices or workshop and also to acquiring working tools.

The Central Bank of Nigeria has expressed willingness to provide further opportunities of self-employment for corps members through its skill acquisition training. The CBN governor explained that upon completion of training, beneficiaries would get the cumulative value which represents a loan that would be repaid within seven years with a two-year moratorium.”

The Central Bank Governor further hinted that an entrepreneurship program “Youth Entrepreneurship Development Program (YEDP)” was launched by the bank in 2016, and has served as a propelling platform to the empowerment of youth corps members and other youths across the country for the purpose of wealth creation and self-employment.

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Emefiele promised that the CBN National Microfinance Bank will support any corps member who is interested in financing their business.

READ FURTHER: CBN to boost exports in the economy

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CBN offers loans to NYSC corps members

Godwin Emefiele at the Youth Entrepreneurship development program.

Collaborative Youth Empowerment: In his response, Brig. Shuaibu Ibrahim of the NYSC said the visit was intended to enhance more robust collaborations with the Central Bank in the area of empowering youth corps entrepreneurs while requesting for the apex bank’s support in providing more skills acquisitions centres across all zones and modern equipment for the NYSC farms located in various parts of the country.

The Bottom line: Entrepreneurship is the driving force of any developing economy. This is why this collaborative effort between the CBN and NYSC is a positive step towards capacity development. It will help to curb the high rate of unemployment in the country.

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Charles Abuede is a graduate of Economics and Statistics from the University of Benin. He has worked as a business correspondent at Voidant Wireless Service (Pryde TV) and Entrepreneurs.ng. He is currently a Research Analyst at Nairametrics. You can reach him on [email protected] or @CharlesAbuede on LinkedIn and @AbuedeCharles on twitter.

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    Real Estate and Construction

    Why rents increased by 60% in Lagos, border towns

    Factors responsible for the hike are rising cost of building materials, lack of transparency between asking and achievable prices.

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    Rents across Lagos (Mainland and Island) and Ogun State have increased by over 60% between December 2020 and April 2021.

    Findings by Nairametrics revealed that while rent had increased by over 30% in some Lagos border towns like Sango-Ota, Arepo and Magboro, property owners across Yaba, Magodo, Ikoyi, and Lekki axis also inflated their rents by about 33% within the same period.

    For instance, rents for one-bedroom (self-contain) and two-bedroom apartments, which are the most sought after in Magboro (one of the Lagos border towns) have increased from an average of N120,000 and N160,000 to N200,000 and N260,000 respectively. This represents a 33.33% and 30% increase respectively.

    Similarly, rents in some key areas in Lagos Mainland are not cheaper. In Magodo phase 2, property owners charged between N1 million and N1.2 million for a 2-bedroom apartment, but now, a potential tenant is required to pay between N1.3 million and N1.56 million as rent (depending on how old the house is), an increase of approximately 30%.

    Though rents appear relatively cheaper in Surulere, especially around Aguda, they also increased within the period under review. While rent on two-bedroom apartments and three-bedroom in Aguda has gone up from N850,000 and N1 million to N1.2 million and N1.4 million respectively, around Ogunlana drive, two-bedroom apartments that were let out at N950,000 now cost about N1.2 million.

    Meanwhile, rents around the Lekki axis have also gone northward, as new tenants are forced to pay more before occupying houses. A 4-bedroom semi-detached house without boys quarters in Lekki Phase 1 and Ajah, which used to cost N3.8 million and N2 million, has risen to N4.5 million and N2.5 million respectively.

    In Sangotedo, rent on three-bedroom flats has also increased from N1.2 million as of December 2020 to N1.6 million.

    Why the rise?

    Industry experts, who spoke with Nairametrics in separate interviews, explained that there are several factors responsible for the development and agreed that some of the reasons are not fundamentally strong.

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    Paul Bamigbola, Chairman, Nigerian Institute of Estate Surveyors and Valuers (NIESV), Lagos Chapter, told Nairametrics that a significant factor responsible for the hike is the rising cost of building materials.

    According to him, property owners now spend more to build houses, as the cost of cement, iron rods, sanitary wares and tiles, among others, have all risen significantly.

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    For instance, the cost of steel, which was sold at N234,000 per tonne as of March 2020, had increased to N380,000 at the end of March 2021. This represents a 62% increase within the period under review.

    Dangote Cement increased from N2,600 to N3,800 (though it is sold at N3,600 in some areas in Lagos), Lafarge Cement and BUA Cement increased from N2,400 and N2,250 to N3,600 and N3,250 respectively within the same period.

    Bamigbola said, “The high cost of acquiring land, including the actual cost of building, also adds to the reasons property prices in Lagos are high.”

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    But when our analyst pointed out to Bamigbola that the hike also affected old houses, he said, “To also increase the rents, most of the owners of the old house renovate the houses a little before letting them out. They do that to increase the rent to about N400,000 if the owners of new houses charge N500,000.”

    Another factor responsible for the hike, especially in Lagos, is the lack of formal housing. With over 3.8 million households in Lagos, up to 2.1 million households are without formal housing. This presents a supply gap of over 55%.

    Chief Executive Officer, Richfield Limited, a real estate company, Samson Odegbami in a recent interview with Nairametrics said, “As typical in every market, excess demand drives up prices. This could make landlords, who frequently get requests for their available spaces, increase the prices and let out or sell the property to the highest bidder.

    Estate Intel, in its report, stated that the lack of transparency between asking and achievable prices was also another factor.

    It added that the multiple agents and developers involved in marketing properties typically list these properties for significantly higher amounts than what they are willing to accept.

    It stated, “We expect developers or agents to aim to achieve the highest possible price, with a window for negotiation, leaving a wider than usual spread between asking and achievable prices.
    A large spread between asking and achievable rent makes average market rent seem artificially high and encourages other developers to hold fast on those artificially listed prices, keeping average rents or sale prices high.”

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    Bottomline

    Based on the experts’ views, the rent prices could be very misleading, especially because most of the properties on the listed platforms in Nigeria are priced well above what is achievable.

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    Business News

    NCC discloses application requirements for Proof of Concept trial license

    The NCC stated that it had been inundated with requests related to trial frequencies for the purpose of verification of certain concepts.

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    NCC Building, MTN, Glo, Airtel, 9mobile, NCC, Acquisition, Teleology

    The National Communications Commission (NCC) has released application requirements for trial frequencies in certain spectrum brands under the Proof of Concept (POC) Trial license.

    This was disclosed on Wednesday, April 14, 2021, in a statement signed by the Director of Public Affairs, Dr Ikechukwu Adinde; and made public on the Commission’s verified Twitter account, @NgComCommission.

    The NCC stated that it had been inundated with requests related to trial frequencies for the purpose of verification of certain concepts.

    The requirements listed by the NCC include:

    • The PoC trial license application must only be granted to Original Equipment Manufacturers(OEMS)/Vendors, or operators in conjunction with their Original Equipment Manufacturers.
    • PoC trial shall not exceed a period of three months effective from the date of approval.
    • Equipment for Proof of Concept must be ‘Type-approved’ by the Commission.
    • Appropriate Spectrum fees must be paid in accordance with the NCC’s regulations.

    In case you missed it

    Nairametrics reported that Nigerian telco giant MTN recently announced its acquisition of an additional 10MHZ spectrum in the 800MHz band from Intercellular Nigeria Limited.

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