Business News
FMBN has low capital base – MD
The FMBN does not have a strong capital base and this is affecting the availability of low-cost housing in Nigeria.
The Federal Mortgage Bank of Nigeria (FMBN) does not have a strong capital base and this is affecting its ability to provide low-cost housing in Nigeria thereby exposing Nigerian workers to high-end properties within the country.
FMBN’s Managing Director, Ahmed Dangiwa, said government’s intervention was needed to raise the bank’s capital base from N5 billion to N500 billion so that it would be appealing to local and international investors.
According to Dangiwa, out of the bank’s present capitalisation of N5 billion, only N2.56 billion was fully paid up. He said the mortgage bank would be in a better position to request for more funds for affordable homes from the private sector, capital market and international development agencies if FMBN’s capital base was strong.
Application processing timeframe cut: In a bid to reduce housing deficit and applications received for the National Housing Fund scheme, the Managing Director disclosed that in two years, a total of N75.5 billion was disbursed for 3,541 mortgages and 25,242 home renovation loans.
Dangiwa said the bank had been able to drastically reduce the number of applications pending as its processing speed had increased by 45%. He disclosed that the processing time for NHF scheme used to be two years, but in recent years, the management had been able to cut the timeframe down to four months.
[READ MORE: CBN sets N10 billion minimum capital for Mortgage firms)
Speaking on the numbers of application and amount disbursed, Dangiwa stated in a Punch report that, “From 2017 when we came on board to date, we have been able to successfully process and disburse loans totalling N75.5bn. This includes 3,541 mortgages and 25,242 home renovation loans. We have also financed the construction of over 7,286 housing units within this period.”
FMBN not there yet: However, in spite of the improvement in response time, the FMBN boss said the Mortage bank wasn’t at the level it should be.
“We have recorded improvements in the turnaround time of the NHF loan applications. While before now it used to take an average of two years to process an NHF loan, we have been able to bring this down to four months.
“Of course, we are still not where we want to be, but at least we are now moving in the right direction and intend to do more,” Dangiwa said while calling for improvement from primary mortgage banks in their application process for NHF mortgage loans.
Business
FG explains why Lagos-Ibadan rail line was not linked to the sea
The government in its explanation said that the delay was due to disruption by trucks going in and out of the port complex.
The Federal Government has stated why the China Civil Engineering Construction Company (CCECC) Nigeria Limited could not link the final part of the Lagos-Ibadan rail line to the sea.
The government in its explanation said that it was due to disruption by trucks going in and out of the port complex.
According to a press statement signed by the Director, Press and Public Relations of the Federal Ministry of Transportation, Eric Ojiekwe, this disclosure was made by the Minister of Transportation, Rotimi Amaechi, while on a routine tour of the Lagos-Ibadan rail line project on Saturday, April 10, 2021.
The Minister pointed out that the original blueprint for the Lagos-Ibadan rail line project was not adhered to by CCECC Nigeria Limited and TEAM consortium and therefore warned that the master plan of the soon to commence Ibadan-Kano rail line project should not be changed.
The statement from the ministry partly reads, “The Nigerian Government has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.”
Amaechi forewarned that the master plan of the soon to commence project should not be changed as the original blueprint for the Lagos-Ibadan wasn’t adhered to by Messrs CCECC Nigeria and TEAM consortium. The Minister who rode the train from Ebute-Meta to the 8.72 km Apapa Port Spur line, informed the media that the inability of Messrs CCECC Nigeria to link the final part of the rail line down to the sea is rather due to disruption by trucks going in and out of the port complex.’’
The Minister had noted that the Federal Government has paid its share of the counterpart funding of the Ibadan-Kano rail line project and is waiting for China-Exim bank to ratify its side of the agreement for the project to commence.
He also advised the Nigerian Railway Corporation (NRC) to acquire more land around the train stations and the rail tracks for future development adding that this will be near impossible to do in the future as whatever space available now would have been taken over by businesses attracted to the rail line.
In case you missed it
It can be recalled that full commercial train services commenced on the Lagos-Ibadan rail line after train operations commenced on December 7, 2020, with only Lagos, Ibadan and Abeokuta residents enjoying the train services.
This is because other minor and major stations along that route were yet to be completed.
IBADAN-KANO RAIL PROJECT TO COMMENCE SOON – FG
The @NigerianGov has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.
The Minister of Transportation, @ChibuikeAmaechi, while on routine tour of the— Federal Ministry of Transportation (@MinTransportNG) April 11, 2021
Manufacturing
Industrial Index loses -12.39 points, as BUA and Lafarge Cement shares top losers list
The NSE Industrials index lost 12.39 index points in the first trading week in the month of April.
The Nigerian Stock Exchange Industrial Index at the close of trading activities for the first week in the month of April closed on a bearish note, following a 0.66% decrease in the shares of BUA CEMENT and Lafarge.
At the close of trading activities on the Nigerian Stock Exchange on the 9th of April 2021, the industrial index depreciated by 55.01 index points, to close lower at 1,928.18 index points for the week.
When compared to the overall performance of the market, the NSE Industrial index underperformed, noting that the NSE All-Share Index and Market Capitalization depreciated by 0.66% to close the week at 38,866.39 and N20.3350 trillion respectively.
READ: COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says
What you should know
The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.
The index tracks the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.
The overall performance of the companies for the week was bearish, as the index closed on a negative note driven by the decrease in the share price of BUA Cement and Lafarge.
MEYER (19.51) was the only gainer for the week, while BUACEMENT (-1.09%) and LAFARGE WAPCO (-3.00%) were the only losers for the week.
GAINER
- MEYER up by19.51% to close at N0.49.
LOSER
- WAPCO down by -3.00% to close at N21.00.
- BUACEMENT down by -1.09% to close at N72.70.
