Africa’s richest man and the President of the Dangote Group, Alhaji Aliko Dangote has called for the need to adopt proper mortgage financing and consumer credit in Nigeria.
According to him, the availability of proper mortgage financing and consumer credit is important in tackling corruption, alleviating the sufferings of people and reducing the hardship encountered by buyers when purchasing goods in the country.
Speaking during a visit to the National Leader of the All Progressive Congress (APC), Bola Ahmed Tinubu, Dangote said, “I believe what will help us the most is mortgage financing or consumer credit. Most people go into corruption because they are worried about how to get a roof over their head, or how to buy furniture because we live in a society where everything you’re buying you pay cash.”
He cited an example whereby if one has a job and needs to purchase goods and services like a car of 5 million naira, instead of paying it at once, there should be provisions for the individual to pay like N50, 000 or N100, 000 every month. This means that once you have a job, you should be able to afford most things comfortably.
The business tycoon had previously stressed the need for the Central Bank of Nigeria (CBN) and commercial banks to develop consumer credit products in order to encourage low-income earners to engage more in loan taking.
What you should know: Over the years, experts have insisted that mortgage finance is central to the nation’s economic development but it is yet to be given proper attention by the government. This reduces its contribution to the national Gross Domestic Product (GDP). Nigerian mortgage banks are known to charge between 19 to 24% or maybe higher, depending on the risk volume.
Therefore, Dangote called for the assistance of the government in making mortgage financing and consumer credit more accessible in the country.