Halkalı Halı Yıkama Beylikdüzü Halı Yıkama Bahçeşehir Halı Yıkama seocu

Without Economic Growth, Democracy is a Myth

Remittance of Nigerians living abroad was $22 billion in 2017. In 2018, the same remittance saw a 14 percent growth to $25 billion. This is 7 times the size of foreign aid ($3.359 billion) to Nigeria.

The $25 billion remittances represent 6.1 percent of the country’s Gross Domestic Product (GDP) while the Foreign Direct Investment (FDI) was $2.200 billion.

“PricewaterhouseCoopers, PWC, noted that the amount translates to 83 percent of the federal government’s budget in 2018 and 11 times the Foreign Direct Investment (FDI) during the same period.”

With an average remittance fee of 6%, Nigerian generated US$ 1.5 billion in fees for the money

transfer corporations. A fraction of this in the form of investment will boost our economy and lead to better governing. The $1.5 billion is almost 70% of the Foreign Direct Investment. Nigerians in Diaspora can assist in turning the country into a self-sufficient economy without the need and dependency on hand out (foreign aid).

Remittances are an important share of foreign reserves for countries, but their impact on development

and economic growth is minimal if they are only spent on consumption. The remittances have done the right thing by first, giving the person a fish and banishing their hunger; the next step is to teach them to fish.

If every Nigerian in the diaspora with the means to remit average of $300.00 a year contributes/invests twenty dollars (the remittance fee) or just 1% – 2% of the $1.5 billion and pool their own resources, the country could move from charity case to wealth creator. The benefits of this minimum investment would be profound.

Africans must lift themselves up by their bootstraps and move from charity case to wealth creator. But to achieve this shift, Nigerians must think like Investors/Entrepreneurs.

In his 2006 book, The White Man’s Burden, William Easterly estimated that between 1956 and 2006 more than $2.3 trillion in aid flowed to Africa. We cannot and must not be content with being fed fish we must learn or teach ourselves to fish.

“The aid business is the only industry in which if it’s done right the people fire themselves. Who is going to do that?” “They have people who have never been in business, never built a business, never sold a thing in their lives — these are the people who are now supposed to come and help poor farmers write a business plan for growing something and selling it.” – Magatte Wade

If you agree with the above quotes, why then are you trying to duplicate it?

Aid and foreign donations including remittances are top-down approaches. The authorities (the donors) treat recipients as passive beneficiaries of aid rather than as active participants in the process; they tell people what they need rather than think to ask what is needed or required.

We are suggesting an investment platform that is a bottom-up /participatory action in contrast to top-down approaches. Participatory action involves collaboration across all stages of the program, from identifying the issues of concern, designing, and implementing the mutually-agreed upon changes.

With your minimum of $20.00 investment, you become a co-owner in the corporation. You can suggest and contribute ideas and programs needed/required in your state, town, local government or village. Implementation will be based on needs and economic viability. This is not an aid organization this is a business enterprise.

Entrepreneurs are the key to a prosperous nation. Nigerians do not need to wait for the world to come to our rescue. We have the resources, capacity and the capability we need right here at home to develop our nation. After so many decades of dependence on foreign funding, it is time that wealth and not poverty dictates how our country develops. By our own bootstraps, Economic Opportunity & the Dynamics Income Distribution is attainable.

Our mission is to utilize these private contributions (US$20.00 minimum) and develop an Equity Firm into a large scale investment firm that develops and expands economically viable businesses that will provide dividend income, capital appreciation, and interest income to the investors.

With the contribution of 6.1 percent of the country’s Gross Domestic Product (GDP) and the equivalent of”83 percent of the federal government’s budget in 2018”, Nigerians in the diaspora already has the economic strength. All that is missing is the political strength.

Once the Nigerians in the diaspora are able to cast their votes in all elections, they will/can easily secure/obtain the political strength. To have a firm political strength, the economic strength must be strongly rooted hence the proposed minimum investment as the beginning.

Source: thenigerianvoice

Nigeria’s Total Debt Stock Rises to N24.9 Trillion

Nigeria’s total debt stock rose to N24.9 trillion (US$81.2 billion) as of the end of March 2019. This is revealed in the latest report released on Wednesday by the Debt Management Office (DMO).

According to the latest report released by DMO, Nigeria’s total debt portfolio hits N24.9 trillion as of March 31, 2019, compared to N24.3 trillion in December 2018. That is, quarter on quarter, Nigeria’s total debt stock rose by 2.3% or N560 billion.

Breakdown of debt stock: Nigeria’s debt stock category for the first quarter of 2019 shows that the country’s total external debt is estimated at N7.8 trillion (US$25.6 billion), constituting 31.5% of total debt for Federal government, Stated and the FCT.

  • The total domestic debt rose to N17 trillion (US$55.6 billion) or 68% of total debt stock within the quarter.
  • The Federal government’s domestic debt was put at N13.1 trillion or US$42.7 billion
  • All the 36 states accrued domestic debt of N3.97 trillion or US$12.9 billion as of the end of March.

States’ debt stock hits N3.97 trillion: A Further look into the breakdown of debts accruable to states in Nigeria revealed that states’ debt profile increased by 3% within the last quarter.

Specifically, as of December 2018, total debt accruable to states was estimated at N3.85 trillion, while the figure rose to N3.97 trillion in March 2019.


Analysis of the data shows that Lagos State posted the highest debt stock as of March 2018 with a whopping N542.2 billion. Other states that make up the top 10 highest indebted states in Nigeria include;

  • Rivers – N225.5 billion
  • Delta – 223.4 billion
  • Akwa Ibom – N199.7 billion
  • Cross River – N167.2 billion
  • FCT – N163.5 billion
  • Osun – N147.7 billion
  • Bayelsa – N133.3 billion
  • Kano – N121.7 billion
  • Ekiti – N118 billion

Debt stock

States are in debt trap: It is no longer news that close to 30 states in Nigeria have been described as insolvent. Recall that the federal government dished out bailout funds to assist almost 30 states in the past year to pay up workers’ salaries at respective states.

While the federal government has come out to indicate no more bail-out to states governments, trouble may soon unravel as the organized Labour Union is bent on the implementation of the new N30,000 minimum wage from states whose revenue sources have plunged over time with rising debt.

Fresh concerns about Nigeria’s rising Debt: In recent months, Nigeria’s debt has gained wide criticisms both within the domestic and international spheres. For instance;

  •  The African Development Bank (AfBD) recently revealed that Nigeria spends more than 50% of its revenue on debt servicing.
  • The World Bank has claimed Nigeria’s debt is not sustainable
  • The former Central Bank of Nigeria’s Governor, Sanusi Lamido, recently declared that Nigeria is “bankrupt and the country is heading to bankruptcy”
  • With Nigeria’s rising debt closing down on N30 trillion mark, the calls for fresh concerns in the country.

Source: nairametrics

Profitability of Nigerian Banks Under Threat—Fitch

Earlier this month, the Central Bank of Nigeria (CBN) directed deposit money banks operating in the country to ensure 60 percent of their deposits are offered as loans to customers or risk severe punishment.

The apex bank had explained that it was taking this step in order to propel the nation’s economy through lending to small business owners as lenders were in the habit of using their deposits to mop up government securities to boost their profits.

In 2016, Nigeria slipped into recession, which affected almost every parts of the economy except the banking sector, which churned out huge profits during the economic downturn, which lasted almost a year.

Though the Africa’s largest economy is out of recession, it is still struggling to regain full recovery and in order to make this happen, the CBN said banks have till September 2019 to raise their loan to deposit ratio to 60 percent or would have to deposit extra unremunerated cash reserves, equal to 50 percent of their lending shortfall, at the central bank.

Reacting to this new development, renowned global rating agency, Fitch Ratings, said this new requirement could have an adverse effect on the profitability of Nigerian banks.

In a report obtained by Business Post, Fitch said it would be credit-negative for the banking sector, because it would push some banks to significantly increase lending to riskier borrowers, potentially with looser underwriting or underpricing of risk.

“Achieving the new LDR requirement in such a short timescale will be very difficult for some banks given their lending levels, particularly if customer deposits continue to grow at present rates. The sector’s overall LDR was 57 percent at end-May, according to CBN data. This is low relative to many markets, and reflects banks’ concern about the risk to asset quality from Nigeria’s often volatile operating environment. Nigeria’s largest banks, with the exception of Access Bank, have LDRs below or close to 60 percent and will be among the most affected by the new requirement,” the rating firm noted.

According to Fitch, “It is unlikely that there is sufficient demand from good-quality borrowers for banks to meet the target without relaxing their underwriting or pricing standards. Banks continue to struggle with high impaired and other problem loans, which is partly the cause for muted lending since 2016. The present operating conditions are not conducive to loan growth, and rapid lending during the fragile economic recovery could increase asset-quality problems in the future.

“Chasing loan growth could also weaken banks’ profitability if they cut margins to attract customers, and because of the need to set aside expected credit loss provisions under IFRS 9 when loans are originated,” it posited.

The CBN is incentivising banks to focus on SME, retail, mortgage and consumer lending in particular, by assigning a weight of 150 percent to these segments when computing banks’ LDRs for the 60 percent target. The SME and retail segments tend to be riskier for banks, and Nigeria’s mortgage market is in its infancy.

It said despite the difficulty of sourcing rapid loan growth and the risks it entails, “We expect banks to make a big effort to achieve the 60 percent target given the severity of the penalty for missing it. Depositing cash at the central bank is highly unattractive for banks as they receive no interest on it, in stark contrast to the high yields they can earn by holding Nigerian T-bills and government bonds.

“We will monitor how lending develops in 3Q19 at the sector level and at individual banks. Fast loan growth, particularly relative to the market average, or other signs that a bank’s risk profile may be deteriorating, could lead to negative ratings actions.

“Asset quality and capitalisation are key rating sensitivities for Nigerian banks, and could deteriorate as a result of fast loan growth. Most Nigerian banks’ Issuer Default Ratings are constrained by the country’s operating environment and ‘B+’/Stable sovereign rating.

Source: Business Post Ng

Bank stocks sell-off on CBN’s lending order may be overdone

Bank stocks have been selling off since the Central Bank of Nigeria (CBN) announced plans to force commercial banks to maintain a loan to deposit ratio (LDR) of 60 percent, or effectively lend at least 60 percent of their deposits to customers.

Investors, spooked by the potential downside of the July 3 order by the CBN, have largely sold some of the country’s largest banks.

The big lenders are down by an average of 2.19 percent since July 3.

Guaranty Trust Bank has been the biggest loser, after sliding by as much as 6.7 percent since July 3. First Bank follows with a 2.4 percent decline. United Bank for Africa (UBA) and Zenith bank are down 1.64 percent and 0.26 percent respectively.

Access Bank however has been unfazed by the new regulation.

Investors are interpreting the regulation by the CBN as negative for the banks and that has fuelled the sell-off.

Investors are well aware that there is a risk that the new regulation could lead to banks underwriting high-risk loans which could lead to further asset quality deterioration and destabilisation of the industry, at a time when the regulator has limited scope for further bail-outs.

However, Ronak Ghadia, Director of Sub-Saharan African Banks, at EFG Hermes research points out that based on conversation with the management team of some the banks, the LDR will be calculated using gross loans and not net loans as indicated earlier.

On this basis, the impact of the regulation will be even less than earlier estimates.

Access, FBNH and Zenith’s LDR ratios were already above 60 percent as at the First Quarter (Q1) of 2019, while GTB and Stanbic’s (Q1) 2019 LDRs were moderately below the threshold.

“UBA is the only bank with an LDR significantly below the regulatory threshold. Likewise, GTB and Stanbic would have to grow their loan book by a modest 1.5 percent and 0.5 percent respectively to meet the 60 percent LDR threshold while UBA would have to increase its credit portfolio by 8.8 percent, hefty but manageable,” Ghadia said in a July 9 note to clients.

On the upside, the sell-off could also serve as opportunities for bargain hunters to take advantage of the low price of bank stocks and take positions.


Nigeria attracted $7bn deals from African Investment Forum — AfDB

Nigeria accounted for $7bn of the $38.7bn inflows that were secured for the African continent at the maiden edition of the African Investment Forum, which held in South Africa in November 2018, the African Development Bank has said.

The Senior Country Director for Nigeria at AfDB, Mr Ebrima Faal, disclosed this in Abuja on Tuesday at a roadshow to promote the second edition of the forum coming up in South Africa in November.

He disclosed that the AfDB would be increasing its average investment in Africa from about $600m every year to about $1bn per annum in the next three years.

Faal said that transactions at the forum that were designated for Nigeria accounted for 14.9 per cent of the deals that were closed at the investment market, which the bank conceived to expose bankable projects on the continent to investors from across the globe.

He said, “The Africa Investment Forum aims to change the face of investment in Africa by bringing together members with a vested interest in Africa’s growth and development through business transformation.

“It is a multi-stakeholder and multi-disciplinary collaborative platform for international business and social impact investors looking to invest on the continent. It is a highly-transactional marketplace dedicated to advancing projects to bankable stages, raising capital, and accelerating the financial closure of deals.


“Sufficient to say now that it convened over 2,000 participants representing 87 countries, including eight heads of governments in 2018. Deals worth a total of $46.9bn were discussed with 49 deals valued at $38.7bn secured.”

The AfDB boss added, “At the 2018 Africa Investment Forum, West Africa accounted for 36 per cent of the deals that were closed. Nineteen projects worth $16.1bn were presented, of which 16 projects valued at $13.1bn secured investment. Our region grossed the highest value in deals, followed by the host region accounting for 22.7 per cent.

“Nigeria was very visible. Out of the 63 boardroom deals presented at the forum, Nigeria had five deals worth $7bn. This represents 14.9 per cent of the total deals accounted for the continent, and 43 per cent of the deals accounted for the region; we can do better.

“This year, it is paramount that we not only maintain our place as a pacesetter but also collectively strive to improve on the quality and quantity of deals closed.”

Faal said that the Africa Investment Forum offered a unique opportunity to exhaust numerous options for sound, innovative and economically viable growth for the continent and especially for Nigeria.

According to him, even with gross international reserves of about $45bn and a pension fund of about N8tn, Nigeria will need a considerable amount of private finance to bridge its cumulative infrastructural needs of about $3tn by 2024.


He added that Africa continued to demonstrate economic resilience with an expected Gross Domestic Product growth of four per cent in 2019, signifying growth above expectation.

Faal said that the signing of the African Continental Free Trade Agreement by President Muhammadu Buhari had now made Africa the largest market in the world in terms of value and numbers.

Africa’s 2 Largest Economies Diverge on Central Bank Policy

Central bankers in Africa’s two largest economies are taking diverging policy stances, even as they get slammed by similar headwinds of low growth and high unemployment.

While Nigeria seems to be combining monetary policy with a developmental bent similar to fiscal policy, South Africa just made a fresh vow to erect an impenetrable wall between the two to ensure they never collide.

The South African Reserve Bank and finance ministry issued a joint statement Thursday where both institutions vowed to respect each other’s independence.

The Reserve Bank will focus on the primary mandate of any central bank and steer clear of interfering with fiscal policy matters while the finance ministry will not meddle in areas of monetary policy.

The South African arrangement which shares similarities with the structures in place in developed economies has little semblance with the arrangement in neighbouring Nigeria.

In Nigeria, the central bank is gradually taking the role of a de facto development bank that is stimulating economic growth and employment.

“Central banks can occasionally provide support for fiscal authorities but this should not be seen as the norm,” a research head at a Lagos-based pension fund who pleaded anonymity told BusinessDay. “In our case, it has gone on for four straight years and shows no sign of slowing.”

The source said that the CBN runs the risk of becoming an extension of the Federal Government.

“The problem is the Senate has not tried to plug that gap. How much is the CBN lending to the FG? The Senate should be auditing the number every year because the CBN would have to curtail the pressure it is facing,” the person said.

But the Central Bank of Nigeria’s new burden has been borne out of necessity, Johnson Chukwu, founder and CEO of Cowry Asset Management Limited, posited.

“The reason we are seeing this in the Nigerian economy is that the fiscal authorities have been relatively silent and nature abhors vacuum,” Chukwu said.

He explained that although the resources of the monetary authorities are being stretched, the availability of a finance minister active on carrying out the fiscal mandate would allow the CBN return to its core function.

The apex bank has since 2014 devoted itself to programmes such as the Anchor Borrowers’ Programme, Real Sector Support Facility (RSSF), Electricity Market Stabilisation Facility, Creative Industry Financing Initiative and several others.

The bank regulator, which has become more intent on interventions in key sectors to grow the economy, facilitate job-creation, and create credit, says the pursuit has been in a bid to “ensure that the CBN is more people focused”. Godwin Emefiele, CBN governor, said this in June while outlining the apex bank’s policy thrust over his second term.

The central bank would still remain committed to the same over the next five years. But the situation though with its perks is not without downsides.

Experts warned that central bank’s development mandate could crowd out the real sector.

“What happens is there is distortion in the market when the CBN has to lend at single digit to certain sectors while official interest rate is at double digit to curb inflation,” a BusinessDay source said.

The central bank last Thursday released the guideline on regulatory measures to improve lending to the real sector of the Nigerian economy. The policy mandates all Deposit Money Banks to maintain a minimum Loan to Deposit Ratio (LDR) of 60 percent by September 30, 2019.

The bank said it would penalise non-compliance with a levy of additional Cash Reserve Requirement (CRR) of up to 50 percent of the lending shortfall of the target LDR.

Although the policy aims at boosting real sector growth by making credit available to businesses, experts fear the unintended consequences of increasing banks’ bad loan books as infrastructural challenges which have been a drag on company performance remain.

Source: businessdayng

Over 100,000 Nigerians Re-Enter MMM Ponzi Scheme as Poverty Bites

Mavrodi Mondial Moneybox (MMM) Cooperation, the Russian Ponzi scheme that had many Nigerians’ monies trapped about two and a half years ago, is back.

The financial pyramid scheme reopened its operation in Nigeria in the past six months, according to BusinessDay findings, and participants are being offered between 30 percent and 50 percent returns per month. The administrators said their “goal is to destroy the world’s unjust financial system”.

MMM Cooperation is a Ponzi scheme because it lures participants and pays high returns to earlier participants with funds from more recent participants. The scheme leads greedy victims to believe that returns are coming from other means, and they remain unaware that other participants are the source of funds.

This is coming at a time many Nigerians are reeling in extreme poverty. The pyramid scheme targets mostly poor Nigerians as well as middle-income earners who have the get-rich-quick instinct.

About 91.16 million Nigerians were living in extreme poverty as of February 13, 2019, according to the World Poverty Clock, created by Vienna-based World Data Lab.

The World Bank classifies a person to be living in extreme poverty if he/she lives below the poverty line of $1.90, which translates to N693.5 per day.

Over 100,000 Nigerians have keenly reentered the MMM scheme as at the first-half (H1) of 2019. Most of the participants are staking up to a maximum limit of N2.5 million and a minimum of N1,000.

In MMM, participants see themselves “as a community of ordinary people, selflessly helping each other”, or a “kind of the Global Fund of mutual aid”.

How does this Ponzi scheme work? Participants declare their willingness to ‘Give Help’ and ‘Provide Help’. After that their account will be credited with so-called Mavro (internal currency of the system). The said Mavro’s amount will start to grow from the moment of deposit.

“The rate of growth can be slowly or rapidly, everything depends on you and your activity only. Calculation of growth occurs every day. The said sum in Mavro shows how much money the participants earn,” the Ponzi scheme said on its website.

“This is the first sprout of something new in the modern soulless and ruthless world of greed and hard cash. The goal here is not the money. The goal is to destroy the world’s unjust financial system. Financial Apocalypse! Before you join, be sure to be acquainted with our ideology,” it said.

In a warning statement on its official website, the scheme said, “MMM is not a bank, MMM does not collect your money, MMM is not an online business, high-yield investment programme (HYIP), investment or Multi-Level Marketing (MLM) programme. MMM is a community where people help each other.”

MMM said it gives “a technical basic programme, which helps millions of participants worldwide to find those who need help, and those who are ready to provide help for free”.

“All transferred Bitcoins to another participant are your help given by your own goodwill to another one, absolutely gratis. If you are completely confident and certain in your actions and make your mind to participate, we kindly ask you to study carefully all warnings and instructions first. In cases of any matter regarding the topic our online consultants are ready to help and answer all your questions,” it added.

In 2016, Christmas and New Year celebrations went sour for more than 3 million Nigerians who participated in the popular MMM Ponzi scheme as the promoters of the scheme suspended new payouts to subscribers.

The Lagos Emergency Management Agency (LASEMA) had then issued suicide prevention notice and advised Lagos residents to dial 112 if anyone attempted suicide due to the MMM crash.

The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) had also warned Nigerians about the MMM scheme. The House of Representatives, besides issuing a warning, had also ordered an investigation into the operation of the MMM scheme.

The administrators of MMM Cooperation in a June 26 note to the “friends of MMM family” seen by BusinessDay simply said, “It is past 6 months, and would like to thank all the participants of this family. Everything is going perfectly well, our system is safer every day, because the support of the participants cross all world borders.”

The message to the friends of MMM family further said that donations could be made “in your local currency, and also in crypto-coins (BTC, LTC, ETH)”.

“Actively participate in MMM and receive a high value over your aid. Never forget to do good deeds, help those who need it. You can change the colour of the world with kindness and love,” it said.

In March 2018, the founder of the MMM series of financial pyramid schemes, Sergei Mavrodi, died in Moscow. The former deputy of the Russian Duma (State Assembly) and one of the most prominent fraudsters in Russia’s modern history was 63 years old.

“This system will not end, it’s still the beginning. We are together fulfilling the desires of our deceased friend Sergey Mavrodi. I invite everyone to celebrate this half year together, and let everyone know that our first full year is approaching. The MMM Cooperation has already shown that it is a fair and honest system where the true ideology of mutual aid is applied,” MMM said in a recent statement.

“We are all welcome to the biggest help system, always have the great guiders, always have this administration, because it is honest and so, the success belongs to all of us,” it said.

MMM had ahead of its re-launch introduced Bitcoin, the popular crypto-currency, as part of its mode of payment.

MMM said it only regulates the process and nothing more, adding that all the money is distributed between the participants themselves through thousands and millions of accounts.

“The system completely belongs to people. Without fools! It is a real mutual aid fund, where ordinary people help each other. There is no central account, where all the money flows to (and where it can be easily stolen from. Participants transfer BITCOINS directly to each other, without intermediaries!” it stated.

Source: BusinessdayNg

Housing Market Check-In: 6 Expert Predictions For The Second Half Of 2019

The year has so far been a promising one for would-be home buyers. The seemingly unending rise in home prices started to slow and mortgage rates dipped to unexpected lows. Both were good news for Millennials who—despite the never-settle-down stereotype—are yearning to become homeowners.

Still, despite suggestions that a buyer’s market might be on the horizon, that dream has yet to be realized. “First-time buyers can expect less competition than last year, but it’s still very much a seller’s market in most places,” says Ralph McLaughlin, deputy chief economist for property data firm CoreLogic.

Will that seller’s market continue? Probably. But it’s not all bad news for those looking to jump on the home buying bandwagon. As McLaughin points out, the year “seems to be shaping up as a good time for potential first-time buyers to enter the market, with no current signs of imbalance that would either force them to hurry or cause them to pull back.” In other words, it’s a good time to go about that home search in a thoughtful and deliberate manner.

Here’s what McLaughlin and other industry experts predict for the second half of 2019 and beyond:

Millennials will drive the market.

Consider it the year of the first-time home buyer. More than half of all mortgages originated by Fannie Mae and Freddie Mac went to first-time buyers last year, and with Millennials hitting their prime home buying years, those numbers are only going to grow.

Data from the National Association of Realtors (NAR) shows that Millennials made up 37% of all home buyers last year and 20% of all sellers, and since 2017, they’ve accounted for the largest share of mortgage originations in the country. Last year, they took on 45% of all new mortgages, and in November, even outpaced Generation X on total loan volume by dollars originated. Gen Xers had long held that crown, accounting for more than half of all loan originations by dollar volume in 2013. The older cohort’s mortgage activity has been steadily declining ever since.

“This trend shows no signs of reversing in 2019,” observes Odeta Kushi, deputy chief economist for title insurance and settlement company First American. In short? Millennials will continue to rule the market.

Inventory will improve—but not by much.

Recent data from Trulia shows that inventory is rising for starter homes and trade-up properties—but likely not enough to satisfy demand. According to the real estate marketplace’s recent analysis, starter home inventory was up 3.5% last quarter, while trade-up options rose 4.8%. The catch? The upticks also came with 12.4% and 8.3% hikes in price, respectively.

As LendingTree’s chief economist Tendayi Kapfidze explains, “There has been an increase in supply compared to last year, but levels are still quite low. Supply is particularly lacking at lower price points.”

According to Kushi, total housing stock is well below the nation’s pre-recession average, and though an upward trend in starter home inventory may help, its mostly higher-priced markets that will benefit—particularly those along the West Coast, like San Jose, Los Angeles and Seattle.

Home prices are headed up.

Prices have been on the rise since 2012, outstripping their pre-recession peaks early last year. While the trend hasn’t yet reversed, it did lose steam in recent months. Last March, for example, prices jumped 7% over 2017. This year, they were up just 3.7% annually. The slowdown in price appreciation is helping improve affordability for many would-be buyers, especially as wage growth finally accelerates.

Still, experts warn that house prices aren’t done rising yet. “Across the nation, home buyers are benefitting from lower-than-anticipated mortgage rates, rising wages and a relative slowdown in house price appreciation,” Kushi said. “Despite the affordability boost, rising demand against limited inventory of homes for sale means acceleration in house price appreciation may be on the horizon.”

The most recent Home Price Index Forecast from CoreLogic supports this theory, predicting a 5.6% uptick in home prices by May 2020.

Mortgage rates will stay low.

Mortgage rates hit their lowest point since late 2016 last month, averaging 3.80%, according to Freddie Mac. The decline caused a surge of refinancing in late June, when refis accounted for more than half of all mortgage activity in a single week.

Experts expect this trend to stick around. In fact, rates could go even lower.

As Doug Duncan, chief economist at Fannie Mae explains, “The Fed has moved to a bias toward easing, as global economic activity has slowed. Interest rates have fallen as a result and could move lower if the Fed acts to lower rates as insurance for economic growth.”

Fannie Mae, Freddie Mac and the Mortgage Bankers Association all predict the 30-year, fixed-rate mortgage rate will finish out the year between 3.9% and 4.1%—lower than 2018’s full-year average of 4.54%.

Buyers can take their time.

Despite an influx of younger buyers, competition isn’t going to be as stiff as in years past. Data from real estate brokerage Redfin shows that just 15% of offers in April sparked a bidding war—down dramatically from 60% at the same point last year. Even hot markets like San Francisco have seen big declines, with bidding wars dropping from 75% of offers to just 22% in May.

According to Duncan, buyers simply aren’t in a rush—and they don’t need to be. “We expect the overall inventory of available homes to remain stable this year, but buyers shouldn’t feel as though they need to get a deal done quickly to avoid missing out on an opportunity.”

Fannie Mae’s recent Home Purchase Sentiment Index proves as much, the number of consumers who think now is good time to buy a home is up 13 points over last month. As Duncan explains, “Potential buyers are in no hurry, because house price appreciation has moderated and the Fed is giving them no reason to think that mortgage rates should be expected to increase significantly.”

Some places will be better bets than others.

Overall, the signs aren’t overwhelmingly pro-buyer or pro-seller. Industry experts don’t foresee an extreme dip or a major spike in prices or rates. And at the end of the day, housing conditions vary by market. While the conditions might look good nationally, some areas offer more opportunities than others—especially for first-time buyers.

“As the surge of Millennial demand begins to hit shore in 2019,” Kushi says, “Millennial first-time home buyers may want to consider cities that offer a greater supply of affordable homes.”

According to the recent First-time Home Buyer Outlook Report from First American, these spots include places like Memphis or Oklahoma, where the average first-time buyer can afford 71% of homes for sale, or Pittsburgh, where 69% of homes are within reach.

Source: forbes

Reasons Why CBN Directed DMBs to Loan out their Deposits Revealed

For any country to survive, it economy must boom, and for this to happen, there must be a transformation made possible by the creation of conducive and enabling environment for businesses to thrive, as well as formulating goal-oriented policy initiatives to make the country an economic hub.

This was what the Central Bank of Nigeria (CBN) had in mind when it directed all Deposit Money Banks (DMBs) to lend out a minimum of 60% of their deposits. This move, according to the apex bank, is also to improve lending to the real sector of the country’s economy.

In a letter to all banks titled, “Regulatory measures to improve lending to economy”, signed by Ahmad Abdullahi, CBN’s Director, Banking Supervision, the apex bank made known that its new directive would take effect from September 2019.

Consequently, DMBs are required to maintain a minimum loan to Deposit Ratio (LDR) of 60% by September 30, 2019. This ratio, the Central Bank said shall be subject to quarterly review.

CBN, however, warned that failure of any DMB to meet the minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50% of the lending shortfall of the target LDR.

The letter read, “In order to ramp up growth in the Nigerian economy through investment in the real sector, CBN has approved the following measures: All DMBs are hereby required to maintain a minimum Loan to Deposit Ratio (LDR) of 60% by September 30, 2019. This ratio shall be subject to quarterly review.

To encourage SMEs, Retail, Mortgage and Consumer lending, these sectors shall be assigned a weight of 150% in computing the LDR for this purpose. The CBN shall provide a framework for classification of enterprises/businesses that fall under these categories.

Failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50% of the lending shortfall of the target LDR.”

Why this matter: With an average LDR around 40%, it would not be erroneous to assert that Nigerian banks are some of the most reluctant lenders in major emerging markets. According to a data compiled by Bloomberg, the average ratio across Africa is 78%. South Africa tops the chart with 90% while Kenya Kenya is at 76%.

A look into what the LDR entails: LDR is an instrument deployed to assess a bank’s liquidity by comparing its total loans to its total deposits for the same period. In this process, if the ration appears too high, it means that the bank may not have enough liquidity to cover any unforeseen fund requirements, especially if the loan repayments fall short of schedule. Conversely, if the ratio is too low, the bank may not be earning as much as it could from the deposits it had taken at a cost.

Source: nairametrics


12 states reel under N2.1tr debt burden

Twelve states where there was a change of government recently are reeling under heavy debt burden amounting to over N2tr, Daily Trust investigations have shown. Analysis of official data from Debt Management Office (DMO), National Bureau of Statistics (NBS), and various reports of transitional committees revealed that the debt increased under the immediate past governments in the states.

Findings by this newspaper revealed that some of the debts were not captured in the DMO and NBS official data, suggesting the figure may be more. For instance, the DMO data did not include debts incurred using local contractors, suppliers, and consultants. DMO data only covered debts incurred by states through official borrowings such as multilateral and bilateral foreign and local financial  institutions, investment securities like bonds and treasury bills.

These debts rose despite a series of billions channeled to the states by the federal government as federal allocations (FAAC), bailouts, Paris fund refunds, among others. Former Governors Akinwunmi Ambode (Lagos), Kashim Shettima (Borno), Rochas Okorocha (Imo), and nine others increased their states’ domestic debt stock by over 200 percent from N412.98bn as at when they assumed office to N1.37tr as at when they left the office. During the same period, the 12 governors combined increased their states’ external debt stock by 81 percent from $1.75bn as at the inception of their tenures to $2.16bn as at when they vacated their offices. The 12 states combined also recorded total Internally Generated revenues (IGRs) of N1.14tr during the period.

The other ex-governors included Abdulaziz Yari (Zamfara), Ibrahim Gaidam (Yobe), Mohammed Abubakar (Bauchi), and Ibrahim Dankwambo (Gombe), Muhammadu Bindow (Adamawa), Umaru Al-Makura (Nasarawa), Ibikunle Amosun (Ogun), Abiola Ajimobi (Oyo), and Abdulfatah Ahmed (Kwara). The governors borrowing increased their states’ domestic debt stock by over 200 percent and their foreign debt stock by over 81 percent. While Ambode, Abubakar, and Bindow spent four years in office each, the rest spent eight years, except Gaidam, who spent 10 years.

N612bn debt left by Yari, Dankwambo, Ajimobi, Bindow  For instance, four former governors Yari, Dakwambo, Bindow, Abubakar, and Ajimobi have left behind over N612bn debts, according to reports of transition committees. The Zamfara State transition committee said Yari has left behind a debt of N251bn – an amount he denied without giving the actual figures he left. Dankwabo left behind debts of N110bn, while Bindow and Abubakar left N115bn and N136bn respectively. Oyo State Governor Seyi Makinde announced last week that his predecessor, Ajimobi had left behind over N150bn debt. These debts profile released by the transition committees is far above what Daily Trust obtained from the official websites of DMO and NBS.

Data from DMO revealed that Zamfara’s domestic debt stock grew to N59.90bn as at December 31, 2018, from the N12.97bn recorded as at December 31, 2011, when Yari took over. The external debt stock also rose to $33.52m from $26.31m during the same period. Zamfara recorded a total IGR of N32.23bn from 2011 to 2018, shortly before the Yari vacated office. The state also got N188.5bn as federal allocations, between 2013 and 2017. The domestic debt stock of Bauchi State grew to N92.37bn as at December 31, 2018, from the N57.62bn recorded as at December 31, 2015, after Abubakar assumed office as governor. Bauchi’s external debt stock also rose to $133.93m to $85.34m during the same period.

Data from NBS showed that Bauchi State’s IGR from 2015 to 2018 stood at N28.13bn, rising from N5.39bn in 2015 to N8.68bn in 2016 and down to N4.37bn in 2017 and up to N9.69bn in 2018. Bauchi also received N234.9bn as federal allocations between 2013 and 2017. Gombe State also witnessed a rise in domestic debt to N63.34bn as at December 31, 2018, to N7.17bn as at December 31, 2011, while its external debt stock rose to $37.41m from the $28.37m recorded during the same period. Gombe’s IGR from 2011 to 2018 stood at N36.27bn, about double the size of the states’ domestic stock when the governor vacated office. From 2013 to 2017, the state got N172.1bn as FAAC.

Adamawa State State’s domestic debt stock rose to N89.66bn as at December 31, 2018, from N47.20bn as at December 31, 2015, after the governor assumed office. The external debt stock also rose from $97.79m as of December 31, 2018, from $49.06m recorded as of December 31, 2015. The state also recorded a total IGR of N22.64bn from 2015 to the end of 2018, being the last four years under review. Between 2013 and 2017, N213.7bn accrued to Adamawa as federal allocation. The reports of transition committees were mostly made public in states where different parties took over from the outgoing governors. Yari, Dankwambo, Abubakar, and Bindow handed over to governors from the opposition parties.

Rising debt burden  Data sourced from DMO show that Lagos States’ domestic debt stock rose to N530.24bn as at December 31, 2018, shortly before Ambode left office from N218bn the 218.54bn recorded as at December 31, 2015, shortly after he assumed office. Lagos State’s foreign debt stock also rose to $1.43bn from $1.21bn during the same period under Ambode. Within the same period, data from the NBS said Lagos State generated N1.29tr as IGR. In 2015, the state generated N268.2bn, N302.4bn in 2016, N333.9bn in 2017 and N382.18bn in 2018.

Lagos got N479.1bn as federal allocations between 2013 and 2017. Yobe State’s domestic debt stock increased to N27.77bn as at December 31, 2018, from the N2.09bn recorded as at December 31, 2011, while the state’s externals debt stock reduced to $27.49m from N$31.18m within the same period. Yobe State recorded a total IGR of N23.94bn from 2011 to the end of 2018, shortly before the governor vacated the office.

The state received a total of N216.7bn as federal allocations from 2013 to 2017. While Borno State recorded a total IGR of N27.32bn in the last eight years, the state’s domestic debt stock rose to N68.38bn from the N1.68bn recorded as at December 31, 2011, while its external debt also to $21.62m from $12.96m in the same period. Borno got N263.2bn FAAC allocations from 2103 to 2017.

In Imo State, domestic debt rose to N98.78bn at December 31, 2018, from N25.42bn recorded as at December 31, 2011, while external debt rose to $59.52m from $50.28m during the same period. Imo State’s IGR from 2011 to 2018 stood at N61.32bn, being N37.46bn short of the total domestic stock the governor bequeathed to the state after he vacated office. Imo’s FAAC allocation between 2013 and 2017 is N226.4bn.

Nasarawa State saw a rise in domestic debt stock to N85.36bn as at December 31, 2018, from the N5.34bn recorded as at December 31, 2011, while the state’s external debt stock also rose to $59.18m from $37.06m during the same period. Nasarawa State earned a total of N96.05bn as IGRs from 2011 to 2018, slightly higher than the state’s total debt stock as at the end of 2018. It also received N186.2bn as FAAC between 2013 and 2017. The domestic debt stock of Ogun, Oyo and Kwara States rose to N98.72bn, N91.52bn and N59.14bn respectively as at December 31, 2018, from N30.14bn, N4.81bn and N25.25bn respectively.

During the same period, the external debts of Ogun, Oyo and Kwara States also rose to $103.26m, $104.99m and $48m respectively from $94.58m, $78.09m and $43.99m respectively. The total IGRs of Ogun, Oyo and Kwara States stood at N562.86bn, N136.75bn and N113.55bn from 2011 to 2018. ‘Debts are lifetime burden for states’         Most of these debts were incurred to fund salaries and overheads and therefore, become lifetime burden on the states, Dr Aminu Usman, of the Department of Economics at the Kaduna State University, said.

“When you borrow to finance fiscal operations of the government, then it becomes a lifetime burden on the state. That is exactly what we do,” he said. Dr Usman said another major problem of the debt is that the lenders do not tie the funds to specific projects and even when tied to projects, the lenders do not monitor to ensure that the funds are used specifically to the projects.

He added that external debts are bad for states due to exchange rates instability and states not earning enough foreign currencies. Auwal Musa Rafsanjani, executive director of the Civil Society Legislative Advocacy Centre (CISLAC), a governance tracking organisation, blamed the “state governors’ frivolous and irresponsible borrowing” on “poor legislative oversight of state assemblies.”

He said most of the debts accumulated by states over the years have been siphoned in the guise of project implementation, jumbo allowances for ex-public office holders and corruption in general. What the debt can finance If the N2tr debt profile is to be used for the rail project, the money will be enough to build four standard gauge rail lines across the country, the equivalent of the 386km Lagos -Ibadan modern rail project, which is being built at the cost of N568bn ($1.58bn.)

The debt is also enough to construct another standard rail gauge six-times that of 186-kilometer Abuja -Kaduna, constructed at N314.6bn ($874m). The total debt stock can also fund the 3,050MW Mambilla hydropower project, which includes the construction of four dams and 700 kilometres of transmission lines, awarded by the federal government at the cost of $5.792bn (N2.085tr) to a Chinese consortium.

What states can do over debts – Experts  On the way out of the debt debacle, Dr Usman said “I think any serious governor should not have a retinue of too many aides. Even if it makes political sense, it does not make financial sense because the cost will be overbearing,” he said. He said states need to harness their potentials in IGRs by overcoming the usual political considerations on policies bordering on increasing IGRs. “States need to actually put emphasis on internally generated revenues vigorous. They need to cut a lot of wastes in the way of project implementation, especially the cost of contracts,” he said. On his part, the CISLAC chief said there is a need for laws to restrict borrowings that are unjustifiable, not tied to capital projects and have no direct impact on human development.

Source: Daily Trust

japon seks - ajans seks - esmer seks - public agent seks - seks hikayeleri - sohbet numaraları
Kıbrıs gece kulüpleri