MFBs contemplate on the N10bn national licence ahead of CBN’s new capital requirement

Ahead of the full implementation of the new capital requirement for Microfinance Banks (MFBs) next year, the National Association of Microfinance Banks (NAMB) is planning to float a National MFB licence with N10 billion capital base.

The move is to absorb those MFBs who may not meet the new capital requirement announced by the Central Bank of Nigeria (CBN).

“As soon as we set up the National MFB, we will list it on the Nigerian Stock Exchange (NSE) before the end of the year,” Rogers Nwoke, president of NAMB, told BusinessDay exclusively.

Nwoke said his team was at the NSE last week for a closing bell ceremony where he discussed with the Exchange on how the members of NAMB could come to the market.

But the move by NAMB may also have been informed by the plan by the CBN and the Bankers Committee to establish a National MFB across the 774 local government areas of the country using Nigerian Postal Service (NIPOST) facilities.

According to the National MFB establishment plan by the CBN and the Bankers Committee, the two bodies will utilise the sum of N5 billion as equity from N60 billion Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS) Fund, while NIPOST will contribute its offices across the country.

The CBN in October 2018 increased the minimum capital requirements for Unit microfinance banks from N20 million to N200 million, State MFBs from N100 million to N1 billion, and National MFBs from N2 billion to N5 billion.

The new minimum capital requirement was to take immediate effect for new applications while existing microfinance banks were required to fully comply with effect from April 1, 2020, according to CBN’s directive.

But MFB operators have been raising concern over the new capital requirement, saying it would be difficult if not impossible for many MFBs to meet.

Nwoke told BusinessDay that the existing 886 microfinance banks operating in the country have a capital base of N93 billion.

When contacted, Tokunbo Martins, director, Other Financial Institutions (OFIs) department, CBN, described the move by NAMB as “fantastic”.

Microfinance bank operators had protested the increase in their capital requirement and had written to the CBN for review of the new capital base and extension of deadline.

“We have taken all their requests on board and we are going to look at it,” Martins said.
The CBN had directed that to meet the new capital requirements, existing microfinance banks are expected to explore the possibility of mergers and acquisitions and/or direct injection of funds.

Also, the regulators said the Revised Regulatory and Supervisory Guidelines for Microfinance Banks, Code of Corporate Governance for Microfinance Banks and sector-specific Prudential Guidelines for Microfinance Banks would be issued in due course.

Institutions that meet the capital requirements as well as demonstrate the existence of strong corporate governance in their operations, the apex bank said, would be allowed to open account at the CBN office within their state of operation. Such institutions would also be channels for micro funding activities of the CBN and the Development Bank of Nigeria.


Source: Business Day


Cape Town: Social housing project to deliver over 1 000 housing units

The City of Cape Town has welcomed the start of the Goodwood social housing project, which is expected to deliver 1 050 rental housing units.

“We must continue working towards reversing the legacy of apartheid spatial planning by promoting transport-oriented development,” Malusi Booi, Mayoral Committee Member for Human Settlements, said.

Click here to watch weekly episodes of Housing Development Programme on AIT

“At the same time, we must work towards creating affordable and inclusionary housing on well-located land close to public transport and job opportunities, as is the case with this new project.

“In addition, we must plan and cater for a wide range of income groupings to respond to the increased demands of urbanisation.”

Commenting on the Goodwood train station site development, Booi said: “It demonstrates social housing in action and what is possible when partners in government and the private sector work together.

“Social housing, which offers affordable rental units for families with a combined monthly income of between R1 500 and R15 000, is one delivery model that we are driving hard as a City.

“This is a partnership between the City, the Western Cape Government’s Department of Human Settlements, the social housing institution DCI Community Housing Services, the Passenger Rail Agency of South Africa, Intersite Asset Investments and the National Housing Finance Corporation, among others. The government subsidy contribution to this social housing project is approximately R280 million.

“The City has provided development facilitation support and various incentives to contribute to the financial viability and operational sustainability of this social housing development.”

“It is quite symbolic that the site for this development is on the Goodwood train station site. This is fully in line with our strategy of positioning housing developments and social housing opportunities closer to smaller city centres and transport hubs.

Booi added: “We continue to assess City-owned land, including in and near the Cape Town CBD, among others, to determine whether some of these properties could be developed for housing opportunities – be it for transitional, affordable, social housing, or State-subsidised BNG housing.

“There are no quick fixes but we are absolutely committed to building integrated communities with different types of residential developments based on a mix of income groups and circumstances.

“The development and availability of affordable rental accommodation in central areas of the city is pivotal to the future development of Cape Town.”


Why Brian Egan Resigned as Dangote Cement CFO

Dangote Cement Plc has announced the resignation of its Executive Director and Chief Financial Officer, Brian Egan.

The company made the announcement through a company statement signed by the Company’s Secretary, Mahmud Kazaure, and sent to the Nigerian Stock Exchange (NSE).

Click here to watch weekly episodes of Housing Development Programme on AIT

The statement, disclosed that the resignation would take effect on Thursday. According to the company, Egan’s resignation was voluntarily and without pressure.

Reason for his resignation was based on family matter, as Egan seek to return to Ireland to spend more time with his family.

Meanwhile, the company lauded him for his contribution to Dangote Cement’s growth.

Brian joined Dangote Cement as Group Chief Financial Officer on 20th April 2014 and was elevated to the Board as Executive Director, Finance, in July 2017. He has previously been an Executive Director and Chief Financial Officer of Petropavlovsk Plc and of Aricom Plc, both of which were listed on the London Stock Exchange.

Before joining Aricom he was Chief Financial Officer of Gloria-Jeans Corporation, a leading Russian apparel manufacturer and retailer. He has more than 20 years’ international experience in senior financial roles with Associated British Foods Plc, Georgia-Pacific Ireland Limited and Coca-Cola HBC.

He trained as an accountant with KPMG and is a member of The Institute of Chartered Accountants in Ireland.

Source: Fakoyejo Olalekan/Nairametircs


How Dangote Gained $5.8bn in One Day

The total net worth of Dangote Group President, Aliko Dangote, rose to $16.6 billion after he gained $5.8 billion within 24-hours, becoming the only billionaire from one of the 60 poorest countries, a new report disclosed.

Dangote whose wealth had dropped to $9.63 billion on January 1, 2019, from $10.5 billion at the end of last year, 2018, reportedly gained $10.8 billion on Monday.

Click here to watch weekly episodes of Housing Development Programme on AIT

His net worth increased by 23 per cent from $13.5bn on February 26, 2018, to $16.6bn, emerging 64th richest person in the world. He was the only Nigerian on the list of 500 billionaires and retained his position as Africa’s richest person.

Other gainers on the Index

Dangote emerged as the second biggest mover with 58 per cent so far this year, after Andrew Forrest, founder and largest shareholder of Fortescue Metals Group, the world’s fourth-largest iron ore producer. Forrest’s wealth has grown by 59 per cent this year.

Other Africans on the list were Nicky Oppenheimer of South Africa, who was ranked 216th with a net worth of $7.05bn; Johann Rupert of South Africa (ranked 225th with $6.92bn wealth); Nassef Sawiris of Egypt occupied the 228th position with $6.83bn; Natie Kirsh of South Africa (ranked 263rd with a net worth of $6.10bn) and Naguib Sawiris of Egypt emerged 331st with a fortune of $5.12bn.

According to Bloomberg, net worth figures are updated every business day at the close of every trading day in New York, with assets categorised as publicly traded companies, private assets (including closely held businesses, art and real estate), cash and other liquid investments and liabilities.

Meanwhile, Jeff Bezos, founder of Amazon, remains the richest person in the world with a total net worth of $136bn while Bill Gates and Warren Buffett occupied the second and third positions respectively with $98.4bn and $83bn fortunes.

Source: Fakoyejo Olalekan/Nairametircs


Building more homes is not the solution to the housing crisis,report says

More houses need to be built in the UK to relieve the pressure on first time buyers, but this will not address the growing issue of under-occupancy and the lack of affordability caused by population increases and ageing, according to a new report.

The analysis by the Cass Business School for think tank the Centre for the Study of Financial Innovation (CSFI) explains that while the UK’s housing stock is, on paper at least, sufficient to meet current housing needs, there are a large number of second and empty homes.

Click here to watch weekly episodes of Housing Development Programme on AIT

Using a new concept called the Dwelling Index, the research tracks the big increase under way in the number of older people living alone or in couples. It says that this trend is set to continue for the next two decades and with it the problem of under-occupancy and vacant housing.

It points out that the implications are hugely significant in terms of the UK’s capacity to meet current and future housing needs. Between 2020 and 2030, the number of households is set to rise by around two million to 30.7 million, but 35% of the increase will comprise older households and, of these, 61% will be one person.

The outlook is similar for 2030 to 2040, with further growth of 1.6 million in the number of households to 32.3 million with 38% of the additions forecast to be older households, and 67% of those one person. By contrast, family households are expected to grow by only 1.6% from 6.4 million to 6.5 million between 2020 and 2030 and by 0.5% between 2030 and 2040.

To understand the extent of the mismatch, the analysis compared the type of accommodation available with housing needs, using the Dwelling Index and Government space standards. It found that while 60% of homes have three or more bedrooms, there would be a much closer fit with dwelling needs if only 46% had three. As the population ages, the degree of misalignment will increase, aggravating wealth inequalities between generations.

‘The case for downsizing strengthens as people age, but current policies are having a deterrent effect due to high transaction costs and a lack of suitable properties to downsize into. This area needs urgent attention, whether it is building more attractive age-friendly and suitably sized apartments, or more retirement communities,’ the report says.

The research also predicts a fall in prices in the 2020s due to demographic factors. The most important of these are that baby boomers will start to die out and demand for housing from people of working age will level out. Both will help younger buyers, especially if accompanied by faster rises in average earnings. In the meantime, more new homes are needed, but to avoid a treadmill of ever increasing housing stock coupled with falling occupancy, other measures are required.

It suggests that policies need to be closely aligned so that more efficient use is made of the housing stock. ‘This means building more affordable houses for ownership and rent. House builders and local authorities hold the key to investment decisions, with reform of the planning process playing an integral part,’ the report points out.

‘Central Government has the power to reform the planning system and reduce transaction costs, notably taxes, in a targeted way to encourage downsizing,’ it says, adding that currently housing policy is piecemeal and too focused on first time buyers, addressing symptoms rather than the underlying causes.

‘We recommend that attention should also focus on last time buyers to ensure that downsizing plays a bigger role in the solution and the role of financial services is crucial. The industry controls mortgage lending, including equity release, and can also provide housing backed insurance to cover future care costs,’ the report adds.

Reacting to the report, Nick Sanderson, chief executive officer of the Audley Group, said that the Government must prioritise incentives and schemes to support the building of specialist retirement properties and encourage downsizing.

‘The onus shouldn’t sit solely with the Government. The whole housing sector, including mortgage lenders and homebuilders, must be more innovative to support older home buyers. If done correctly the entire country will reap the societal and economic benefits,’ he said.


London Mayor Warn of Brexit Impact on Housing

The Mayor of London, London Councils and the G15 group of London’s largest housing associations have sent an open letter to the Secretary of State for Housing warning of the potentially catastrophic effects that a no-deal Brexit could have on affordable housing delivery.

In the letter they say they are ‘profoundly concerned’ about the impact that a no deal Brexit, or Brexit deal that is bad for the capital, would have on Londoners and say that both scenarios would have a major impact.

Click here to watch weekly episodes of Housing Development Programme on AIT

They tell the Secretary of State James Brokenshire that the Government needs to ensure that it acts now to mitigate any risks to the delivery of housing, particularly affordable homes.

The letter calls for the provision of an emergency grant of an estimated £5.2 billion in the event of a no deal Brexit to de-risk housing association and council housing programmes and support 30,000 affordable homes planned to start over the next 18 months and the conversion of an additional 9,000 homes for social rent.

They also say there must be continued access to development finance and enabling funds, including London’s share of the long delayed Housing Infrastructure Fund and action to reduce the threats to the supply of essential labour and materials for home building.

‘Brexit is already impacting the home building sector in London. It is very frustrating given our success over the last two years in building confidence with our partners, and given Londoners’ need for good quality and affordable homes,’ the letter says.

‘We are committed to doing all we can to keep London building the council, social rented, and other genuinely affordable homes we need, but there is an urgent need for certainty and we urge the Government to step up and take responsibility for addressing these serious challenges,’ it adds.


ICPC Seizes 12 Properties From Construction Firm

The Independent Corrupt Practices and other related offences Commission, ICPC, has seized 12 landed property belonging to a construction firm and its owner.
The Commission disclosed this in a statement by its Public Relations Officer, Mrs Rasheedat Okoduwa, in Abuja yesterday.

According to the statement, the property, which are located in the Federal Capital Territory, Abuja belonged to Mrs Ochuko Momoh, Director, Blaid Construction Limited.
The commission said Momoh is under the scrutiny of the commission in respect of an ongoing investigation.

The statement listed the property to include two duplexes located at 14A, Lungu Crescent, Wuse 2 and 6 Casamance Street, Wuse Zone 3.
Others are a mansion situated at 16 River Niger Street, Maitama; a bungalow at 35, Abidjan Street, Wuse Zone 3; two uncompleted residential estates, located at Plot 618 Mabushi (B06) and Plot 1468 Katampe District.
It also listed “terrace duplexes on Plots 21, 22, 23 and 26, Olympia Estate, Kaura District; a shopping complex on Plot 27, Waziri Ibrahim Waziri Crescent, Apo District; three vacant pieces of land located at Plot No. 1824, No. 1827 and No. 2017 Katampe District and a block of six apartments on Plot 799, Ebitu Ukiwe Street, Utako.
” The statement said the seizure, which was carried out after an intelligence-led investigation, was based on the opinion of the commission that the property owned by Momoh and her firm “are excessive.”
It added: “This is having regard to their past and present emoluments and all other circumstances.
“To this end, the commission will issue public notices of the seizure and shall cause them to be served on the appropriate land registries, ministries and departments, where these property are situated as required by law.”

Zambia: Govt To Construct Three Mega Projects in Kankoyo

The government of Zambia is set to construct three mega projects in Kankoyo.
The Kankoyo Member of Parliament (MP), Dr Brian Mushimba confirmed the reports and said they held their Constituency Development Fund (CDF)meeting and agreed on three important projects that they plan to execute in the constituency, with the new US $502, 000 allowance of the CDF.

Click here to watch weekly episodes of Housing Development Programme on AIT

Dr Brian pointed out that the first project is set to be the construction of a modern mortuary at Luansobe clinic and a mother’s shelter at same location. The second project is set to be completing a rehabilitation of a recreation and skills center at Bufuke in Butondo.

“This will be an upgraded clinic that will serve a large catchment of people in the area who have never had a mortuary. Bodies stay in homes when people die. We can’t continue like this,” said Dr Mushimba.

“This is also something again we campaigned on to try and empower communities, our youths with skills and places to spend time away from beer halls. This will be a nice home away from home to recreate, gain skills and a sanctuary away from beer drinking in butondo,” explained Dr Mushimba.

The third project, according to the MP would be the drilling of boreholes in Kankoyo central. He said the water that they drink in Kankoyo central was industrial water.

“We want to stop the challenge of having someone walk long distances in search of water by digging boreholes where people will access natural clean water for their domestic use. As the council begins their tendering processes, I encourage kankoyo contractors and youths to be ready and fully participate in these works,” he added.

Source: constructionreview

Namibia To Commence Construction of $1bn Smart City

Construction of the US $1bn Tsumeb Smart City in Namibia is set to commence in April. This is according to the mayor of the copper town Mathew Hangula.

According to the Mayor, the billion-dollar mega Smart-City investment, will be a significant investment complementing the mining and agricultural sectors, which are Tsumeb’s economic backbone.

Click here to watch weekly episodes of Housing Development Programme on AIT

The Tsumeb Smart City project will include a medical university that will provide an international standard education for approximately 25 000 students, providing them and all the staff with accommodation, complemented with a modern 800-bed hospital.

The Smart-City will also have six hotels, office parks, residential apartments, entertainment and recreational facilities. This will tremendously boost the town’s economy and provide employment to thousands of people from within and outside the town and the Oshikoto Region.

MKP South Africa,a multinational company with a broad business portfolio in construction, banking, tourism and healthcare, will be undertaking the project. Additionally, Hangula said they have attracted another retail investor who is set to construct and open a supermarket, and expected to create more short and long-term jobs for the locals.

“Choppies store will be opening a branch in Tsumeb, and they will start with the construction as soon as we get ministerial approval. Council already approved and passed the resolution,” said Hangula.

Source: constructionreview

Home sales fell in the US in January while supply increased-Report

Existing home sales in the United States fell slightly in January, down 1.2% month on month but it was the third monthly fall in row, the latest index data shows, as only the North East saw sales rise.

Sales are also down by 8.5% year on year and the total for January at 4.94 million were the lowest since November 2015, according to the figures published by the National Association of Realtors (NAR).

Click here to watch weekly episodes of Housing Development Programme on AIT

However, Lawrence Yun, NAR chief economist, does not expect the numbers to decline further going forward. ‘Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low,’ he said.

‘Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months,’ he added.

The index also shows that the median price for all housing types in January was $247,500, up 2.8% from January 2018 and it was the 83rd straight month of year on year gains, but it was the slowest price growth since February 2012.

‘Lower mortgage rates from December 2018 had little impact on January sales, however, the lower rates will inevitably lead to more home sales,’ Yun pointed out.

Total housing inventory at the end of January increased to 1.59 million, up from 1.53 million existing homes available for sale in December, and represents an increase from 1.52 million a year ago. Unsold inventory is at a 3.9 month supply at the current sales pace, up from 3.7 months in December and from 3.4 months in January 2018.

‘Decelerated sales and the increases in inventory will work in favour of potential homebuyers, putting them in a better negotiating position heading into the spring months,’ said NAR president John Smaby.

A breakdown of the figures shows that sales in the Northeast increased 2.9% to an annual rate of 700,000, some 1.4% below a year ago and the median price in the Northeast was $270,000, which is up 0.4% from January 2018.

In the Midwest sales fell 2.5% month on month to an annual rate of 1.16 million in January, down 7.9% from a year ago. The median price in the Midwest was $189,700, which is up 1.4% from last year.

Existing home sales in the South dropped 1% to an annual rate of 2.08 million in January, down 8.4% year on year and the median price in the South was $214,800, up 2.5% on an annual basis.

In the West sales fell by 2.9% to an annual rate of 1.00 million in January, some 13.8% below a year ago. The median price in the West was $374,600, up 2.9% from January 2018.


WP Facebook Auto Publish Powered By :
Translate »

You have successfully subscribed to our newsletter

There was an error while trying to send your request. Please try again.

Housing News will use the information you provide on this form to be in touch with you and to provide updates and marketing.