AfDB Approves EUR 90 million to support Kenya’s Mortgage Refinance Company

The Board of the African Development Bank has approved a EUR 90 million loan to support the establishment of the Kenya Mortgage Refinance Company (KMRC) to aid access to affordable mortgage loans by lower and middle income households.

The AfDB, which announced this in a statement, said the KMRC is a non-Bank financial institution designed to provide long-term funding and capital market access to local lenders, including commercial banks, and Savings and Credit Cooperative Organizations to help consolidate the East African nation’s growing domestic mortgage finance market.

The Kenyan government, through the central bank, is setting up the KMRC as part of initiatives to overhaul and stimulate the demand and supply balance in the housing and mortgage finance market, according to the statement.

It said the Bank’s intervention is in line with its flagship High 5s agenda; specifically the objective of Improving the Quality of Life for the People of Africa. The loan will result in multiplier effects on industries related to the housing sector and creation of jobs in these value chains.

The investment will complement Kenya’s ‘Big 4’ affordable housing national goal, and its plans to develop a self-sustaining affordable mortgage market. It will also promote inclusive finance through KMRC, whilst also assisting in creating new employment opportunities.

Through the Loan, the Bank adds on its initiatives to support affordable housing and development of mortgage finance institutions on the continent. As one of its priority objectives, the Bank supports investments that contribute to the widening and deepening of financial systems in Africa and enabling the private sector to mobilise and access long term domestic currency funding locally.

Source: Thisdaylive

FCDA Explains Why They’ll Not Allocate Lands Without Infrastructure

The Federal Capital Territory Administration (FCTA) has explained why it has insisted that land allocations will not be carried out until engineering designs and infrastructure are provided.

Speaking on some decisions taken by the administration recently, the executive secretary, Federal Capital Development Authority (FCDA), Engr. Umar  Gambo Jibrin, explained that the new order on land allocation in FCT was meant to avoid litigations over land issues.

Jibrin added that the administration’s recent policy changes in land allocation was in the effort to avoiding thousands of land litigation cases imminent after allocations, due to lack of proper engineering designs.

Also speaking, the secretary for Legal Services Secretariat, Muhammad Umar, disclosed that the administration has put in place a land review committee under the leadership of permanent secretary, Mr. Chinyeaka Christian Ohaa.

Umar stated that investors in the FCT need to know about the rules ahead of investment to avail them with the opportunity to be abreast with new unified law He continued, “I can tell you that 50 percent of litigations we lost during legal battles with the allottees were because of unknown land law.

Sometimes lands are double awarded because of non existing policies.” Umar revealed some problems militating against the progress of land allocation in the FCT to include, issues of mass housing allocation and the improper parks, among others.

Source: Leadership

Nigeria to Issue Second 30-year Naira Bond Today

The Debt Management Office (DMO) will today offer to investors the 30-year Naira dominated Bond on behalf of the federal government of Nigeria for the second time.

The note debuted last month and it was oversubscribed by 400 percent, according to the debt office.

Business Post reports that N20 billion worth of the debt instrument was issued in April 24, 2019 at a coupon rate of 14.80 percent and according to a circular issued last week by the DMO on today’s exercise, N30 billion worth of the 30-year paper would be auctioned at the same 14.80 percent.

It was disclosed that a total of N100 billion bond is up for grabs in three maturities; 5-year, 10-year and 30-year, all re-opening, with the settlement date fixed for May 24, 2019.

The DMO said it would offer N35 billion of the 5-year note at 12.75 percent and another N35 billion of the 10-year bond at 14.55 percent.

The debt office said intending subscribers would be expected to pay N1,000 per unit subject to a minimum subscription of N50 million and in multiples of N1,000 thereafter.

They will have to approach the following financial institutions for subscription; Access Bank Plc, First Bank of Nigeria Ltd, Standard Chartered Bank Nigeria Ltd, Citibank Nigeria Ltd, First City Monument Bank Plc, United Bank for Africa Plc, Coronation Merchant Bank Ltd, FSDH Merchant Bank Ltd, Zenith Bank Plc, Ecobank Nigeria Ltd, Guaranty Trust Bank Plc, FBNQuest Merchant Bank Ltd and Stanbic IBTC Bank Plc.

The bonds qualify as securities in which trustees can invest under the Trustee Investment Act. They also qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds amongst other investors.

They are liquid assets for liquidity ratio calculation for banks and are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria.

In addition, the bonds would be listed on the Nigerian Stock Exchange and FMDQ OTC Securities Exchange.

Source: Businesspostng

We want Nigeria to become one of easiest places to do business, says Osinbajo

Osinbajo, who made the assertion in Lagos at a two-day 2019 USA Fair, said that Nigeria as a developing country was ambitious in building relations with America, Europe, Asia, Middle East and others.

Represented by the Minister of Trade and Investment, Dr Okechukwu Enelamah, Osinbajo said that Nigeria would continue to be a partner to different countries.

“We want Nigeria to become one of the easiest places for anyone to do business in the world.

“Nigeria does not have the luxury of dealing with just one country. We really want to be a good neighbour to many countries.

“As great as America is, we want to partner with America. We want to also partner with Europe, Asia, the Middle East and other countries of the world,’’ he said.

Osinbajo said that Nigeria and America would continue to be strategic partners, adding that both countries should work together for themselves and the world at large.

The vice president who commended the organisers of the conference and exhibition fair said that the current administration was working to create the enabling environment for foreign investors.

“We are committed to nurturing and building this relationship to its utmost because we want the best for our both countries and the wider world.

“The many sectors that are represented here from America represent areas where Nigeria will be partnering with America for the greater good,’’ he said.

The US Ambassador to Nigeria, Mr Stuart Symington, who described Nigeria as a strange country, said that leadership from Nigerians would drive Nigeria, Africa and the world forward.

Symington enjoined business owners not to see every opportunity as one for making a profit, but also an as opportunity at making the whole world a better place.

“No doubt that there is a need in Nigeria, but never think of Nigeria alone. Think of West Africa, think of America, think of Africa, and think of the world.

“See every opportunity as one for Nigeria, one for America and one for the world. It should all be how to make the world a better place,” he said.

(NAN)

Stanbic IBTC Wins Regional Awards in Pension, Wealth Management

Stanbic IBTC Holdings PLC’s entities have won the Best Asset/Fund Management Company and Best Private Banking Business in Wealth and Society West Africa at the Global Wealth and Society Awards West Africa 2019.

The awards further validate Stanbic IBTC’s standing as a leading end-to-end financial services organisation with market leadership across segments, including wealth management, corporate and investment banking, pension fund administration, stockbroking, custody, trusteeship and others.

Stanbic IBTC Asset Management Limited won the Best Private Banking Business in Wealth and Society in West Africa, while Stanbic IBTC Pension Managers Limited picked the Best Asset/Fund Management Company in Wealth and Society also in the West Africa category.

The award ceremony was held in conjunction with a Roundtable Dialogue comprised of private bankers, impact investors, and related parties, at the Eko Hotel Lagos. These new accolades complement the numerous recognitions awarded to both companies in 2018.

“Being singled out among peers is gratifying and we are very pleased to have been selected for recognition as the Best Asset/Fund Management Company in West Africa. It is another prestigious award made possible by our esteemed and loyal customers.

“Our customers constantly challenge us through their patronage and positive feedback allowing us to push the envelope in innovative service to ensure they get full benefit of partnering with us,” Chief Executive, Stanbic IBTC Pension Managers Limited, Mr Eric Fajemisin, said.

On his part, Chief Executive, Stanbic IBTC Asset Management Limited, Mr Oladele Sotubo, expressed the firm’s delight for being recognized by such a reputable and credible organisation from a pool that includes some of the industry giants in Africa.

He said the awards further demonstrate Stanbic IBTC’s strength and desire to consistently provide best-in-class financial services solutions across all market segments by leveraging on the expertise and rich heritage of the Standard Bank Group, to which Stanbic IBTC Holdings belongs.

“These awards are testament to our capabilities and competences across all business segments, and speak to our unwavering dedication to consistently deliver innovative and robust solutions to our clients,” Mr Sotubo stated.

The Global Wealth and Society programme opened in London in 2018, according to the promoters, out of the belief that wealth can be a force for good. As such we look for instances everywhere in the world where wealthy individuals, institutions and funds were targeted to make an impact in their local communities or the world at large.

The programme is predicated on the belief that the best financial institutions are able to understand and look after their clients’ personal aspirations as well as family and business interests through exceptional service, conducted with integrity, a deep empathy for its clients’ needs, and superior and timely product innovation resulting in the preservation and expansion of the clients’ wealth in their lifetime.

Organizers of the awards, Global Wealth and Society, said recipients of these awards underwent a stringent and comprehensive evaluation process and that the selection of Stanbic IBTC Asset Management Limited was based on three major factors which distinguished the firm among its peers and they are; its being a national pioneer in ethical financial products and alongside its Imaan fund based on Sharia principles, and its Ethical Fund is Nigeria’s first quoted socially responsible mutual fund and accounts for one third of the Ethical Funds Sector in Nigeria.

Stanbic IBTC Money Market Fund is the institution’s most profitable product as well as the largest open-ended mutual fund in Nigeria and Socially Responsible Investment Funds and its customer-centric strategy drove strong Assets Under Management (AUM) growth for firm.

Stanbic IBTC Pension Managers Limited, on the other hand is the country’s largest pension fund administrator, with a proven record of finance tracking and the protection of investments. The company’s Retiree Fund 4 was the best performing fund in its category for 2018, with a YTD return of 15.54% compared to the average of 12.66% for Retiree Fund 4 in Nigeria.

The company currently manages the largest Retirement Savings Account Fund (RSA) in Nigeria and is consistently providing products and services that meet customer, statutory and regulatory requirements. In addition to this, the PFA has continued to attract new clients, recording strong growth in AUM and a jump in high net worth clients in 2018.

Source: Businesspost

CBN Leaves Benchmark Lending Rate Unchanged at 13.5 per cent

The CBN Governor, Mr Godwin Emefiele, announced the decision of the committee at the end of a two-day meeting held at the apex bank’s headquarters in Abuja.

He explained that nine out of the 11 members that attended the meeting agreed to retain the current monetary policy stance.

He said apart from the MPR that was retained at 13.5 per cent, the committee decided to hold the Cash Reserves Ratio at 22.5 per cent.

Also retained are the Liquidity Ratio which was left at 30 per cent; and the Asymmetric Window whic

The CBN Governor, Mr Godwin Emefiele, announced the decision of the committee at the end of a two-day meeting held at the apex bank’s headquarters in Abuja.

He explained that nine out of the 11 members that attended the meeting agreed to retain the current monetary policy stance.

He said apart from the MPR that was retained at 13.5 per cent, the committee decided to hold the Cash Reserves Ratio at 22.5 per cent.

Also retained are the Liquidity Ratio which was left at 30 per cent; and the Asymmetric Window which was left at +200 and -500 basis points around the MPR.

Details later…

Source: Punchng

FEC Extends CBN’s Power Sector Interventions to GenCos

In response to challenges in the power sector, especially in the generation sector, the Federal Executive Council (FEC) on Monday approved the extension of the current Central Bank of Nigeria (CBN) interventions to the sector.

The extension is in furtherance of government’s continued efforts to support the power sector, specifically the generation arm of the sector, according to Zainab Ahmed, minister of Finance.
The minister disclosed this on Monday while briefing State House correspondents after the extended Federal Executive Council meeting presided over by Vice President Yemi Osinbajo.

The move is part of government’s palliative measures to sustain power generation with the CBN’s intervention.

“This is based on a commitment that we signed into as a country, where we have several guarantees to the generation companies (GenCos) to bridge any gap that they have after the Nigerian Bulk Electricity Trading Plc (NBET) has settled them,” Ahmed said.

“The facility that we got approval for today is to pay the GenCos for any financing shortfall that they have after the bulk trader NBET settles them. So it is a cost on government, it is a loan government will be paying it back to the central bank. The essence is to meet the contract obligations that government signed with the GenCos on the assurance we gave them on off-taking any power that they generate after payment is made from the NBET,” she said.
FEC also approved 0.2 percent import levies on some goods to fund Nigeria’s membership subscriptions in the Africa Union (AU).

“It approved a rate of 0.2 percent as a new import levy on Cost, Insurance, and Freight (CIF) that will be charged on imports coming into Nigeria but with some exceptions. The exceptions include goods originating from outside the territory of member countries that are coming into the country for consumptions,” Ahmed said.

“It also includes goods that are coming in for aid and also goods that are originating from non-member countries but are imported through specific financing agreements that ask for such kinds of exemptions. It also exempts goods that have been ordered and are under importation process before the scheme was announced into effect,” she said.

The purpose of this new levy, she said, is to enable the AU member countries to pay on a sustainable basis their subscriptions to the Union.

“The council also approved that for Nigeria, knowing that what will accrue from this new levy will be more than what is required as subscriptions to the African Union, the balance that will be left will be put in a special account in the Central Bank of Nigeria and will be used to finance her subscriptions to multilateral organisations as the World Bank, African Development Bank, Islamic Development Bank and institutions like that. And if there is any excess left from that in the revenue pool, it will be used to finance the budget,” she said.

“On the AU levy, the African took this decision to enforce this levy and so all AU member countries are to implement this decision. So what we are trying to do in Nigeria is to domesticate and implement this decision that was taken in Kigali on the 27th Assembly of the Heads of State and Government of African Union meetings.

“The decision council took today is that we will open a central bank account for that particular purpose so that all the funds collected by the Nigerian customs will be pooled into that account. And when the AU raises a subscription invoice, we will settle from that account and whatever is left, we can use it also to settle our subscriptions to other multilateral institutions and if there is anything left, the balance is used to finance the budget,” she said.

The minister revealed that FEC also approved the setting up of the steering committee to be chaired by Vice President Osinbajo for the design and implementation of a national single window.

“The national single window is a web portal that would be able to integrate all the government agencies that are implementing in the port business or trading in the port system. The trading platform will enable better efficiency of port operations and we project that it will significantly increased government revenues,” she said.

Source: Businessdayng

NAICOM Raises Capital Base of Insurance Companies by over 300%

The National Insurance Commission (NAICOM) has increased the minimum paid-up capital of insurance companies in Nigeria by over 300 percent.

This was contained in a circular released yesterday May 2019 by the Commission and signed by Pius Agboola, the Director, Policy and Regulation Directorate, for the Commissioner of Insurance.

The circular with No. NAICOM/DPR/CIR/25/2019, titled “Minimum paid-up share capital for insurance and reinsurance companies” the minimum paid-up share capital requirement of insurance and reinsurance companies in Nigeria is hereby reviewed as follows: In the new capital base, life insurance companies will now have a minim paid-up capital of N8bn from its previous N2bn, General Insurance companies will now have to recapitalize to N10bn from N3bn, while Composite Insurance companies will now need N18bn to underwrite businesses from the previous N5bn minimum capital.

The new capital base requirement also affected reinsurance companies who will now have to raise their minimum paid-up capital from N10bn to N20bn if they must remain in business.

The circular said that “the new minimum paid-up share capital requirements shall take effect from the commencement date of this circular for new applications while existing insurance and reinsurance companies shall be required to fully comply not later than June 30, 2020.”

In reviewing the paid-up capital, the Commission noted that “in 2005/7, the insurance industry witnessed its last recapitalisation and despite the astronomical increase in value of insured assets, consequent exposure to higher level of insured liabilities and operating costs of insurers, the same capital continue to rule in the insurance industry.” However, the new capital base doesn’t apply to micro-insurance and Takaful insurance companies.

Source: Dailytrust

Residents, students protest against deplorable Lagos-Badagry expressway

It was a sad tale yesterday for many Lagosians as the early morning rain wrecked havoc in the state causing buildings collapse; fallen poles with many cars destroyed as flood sacked houses and destroyed property. Commuters were not left out, as they groan over the gridlock caused by the downpour. Many roads were submerged in flood, and activities were put to halt in the nation’s capital for several hours.

In a tweet by the Lagos State Emergency Management Agency (LASEMA), it was discovered that no fewer than two building collapsed due to the heavy rainfall. The buildings are located at Abule Egba and Ladipo bus-stop in Oshodi. According to the agency, no victims were trapped and the affected structures were condoned off.

“We are responding to two collapsed building incidents in Abule Egba and Oshodi. Please stay safe out there! On getting to Ladipo, Oshodi, it was discovered that no victims were trapped so the building and the affected roofing were cordoned off. A building consisting of four rooms built on the fence of house 13 Erinjiyan Drive, off Alhaja Mulika Street, had collapsed due to the heavy rain. No update on casualties yet.”

Meanwhile, thousands of Badagry residents and students of tertiary institutions defied the heavy rainfall to protest against the deplorable state of the Lagos-Badagry Expressway, describing it as a road of anguish and pain. Residents blocked the popular Badagry roundabout for hours earlier in the day.

They stormed the roundabout with placards bearing various inscriptions such as: “Fix Lagos/Badagry Expressway. Our businesses are dying’’; “Bad Road, Our pregnant women are having miscarriages’’; and “We are not at war, Remove checkpoints on our road’’; “We are losing man hours.’’

Dr. Joe Okei-Odumakin, the president, Women Arise Initiative, who led the protest, said the road had become a route of anguish and pain. “We are in the rain today not because we like it, but because we want to make some demands; we are moving from Badagry to Mile 2. We are here because the Lagos-Badagry Expressroad has continued to serve as a route of anguish and pain; the state of the road is deplorable.

“We are seeing our economy ruined, we have seen women having still births; we have seen our road becoming a route to the hospital and the mortuary, the time has come for us to rise up in unity. Time has come for us to demand that the government should fix the Lagos-Badagry road; we are here to demand that the road that leads to the economic hub of the ECOWAS sub-region be fixed. It is an eyesore that should not continue. We have endured this for a very long time, and tourism in Badagry is now at its lowest ebb; we know the concession started in 2009 and many years after the road was awarded, nothing serious has been done about it,’’ she lamented.

Source: By Kehinde Olatunji

London house prices: How Brexit uncertainty has hit house prices in every borough

London is “acting as a drag” on the rest of the UK housing market, with prices across the capital falling in the last year, according to new figures from property giant Rightmove.

While some regions in the UK such as the midlands and the north west started to kick the Brexit uncertainty that has gripped the housing market in recent years, Greater London average asking prices fell 2.5 per cent annually.

A sales slump in central London saw average asking prices fall 3.8 per cent annually to £757,773 in inner-city areas, while the average in outer London, including cheaper boroughs such as Bexley, Barking and Dagenham fell 0.9 per cent to £512,726.

This came despite the annual spring surge in prices, which only drove Greater London up 1.2 per cent on a monthly basis.

The slumps compared to a record-breaking year in other parts of the UK, however, as average asking prices in Wales, the Midlands and the north west of England bucked any Brexit blues to hit all-time highs, Rightmove found.

London boroughs

Worst hit in the capital was Westminster, where average asking prices fell 6.3 per centannually – but still clocked in at an eye-watering £1.4m. The same was true of Britain’s most expensive area to live, Kensington and Chelsea, where average asking prices fell 3.9 per cent year-on-year to £1.6m.

Kensington and Chelsea saw a 3.9 per cent annual fall (Source: Getty)

The only boroughs to see an annual rise in average asking price were Bexley and Barking and Dagenham, two of London’s cheapest areas. Bexley rose 0.6 per cent to £408,233, while Barking and Dagenham rose 0.9 per cent to £316,839.

Meanwhile in zones one and two, Lambeth fell 4.7 per cent to £632,590Hackney fell 4.9 per cent to £626,000 and Tower Hamlets fell 6.1 per cent to £559,475.

Jeremy Leaf, north London estate agent and a former Royal Institution of Chartered Surveyors (Rics) residential chairman, said: “London is acting as a drag on the rest of the UK housing market and prices don’t include inflation so have risen or fallen further in real terms.

“The spring bounce is taking place but not reaching to the heights we would have expected and certainly not in the capital.”

Borough

Avg. price May 2019

Monthly change

Annual change

Barking and Dagenham£316,8391.0 per cent0.9 per cent
Bexley£408,2331.2 per cent0.6 per cent
Hammersmith and Fulham£931,1710.9 per cent-0.2 per cent
Sutton£470,6972.5 per cent-0.3 per cent
Southwark£634,232-1.8 per cent-0.5 per cent
Islington£770,1231.1 per cent-0.8 per cent
Hillingdon£492,5851.7 per cent-0.9 per cent
Bromley£530,4920.5 per cent-0.9 per cent
Waltham Forest£481,9260.8 per cent-1.0 per cent
Enfield£457,3980.8 per cent-1.2 per cent
Ealing£555,6110.8 per cent-1.4 per cent
Havering£406,075-1.2 per cent-1.5 per cent
Brent£577,8181.5 per cent-1.5 per cent
Camden£980,2101.2 per cent-1.5 per cent
Newham£407,868-0.3 per cent-1.8 per cent
Merton£645,1162.7 per cent-2.0 per cent
Hounslow£540,484-0.9 per cent-2.0 per cent
Croydon£437,1951.2 per cent-2.2 per cent
Kingston upon Thames£610,0760.4 per cent-2.3 per cent
Harrow£549,6340.4 per cent-2.3 per cent
Redbridge£451,503-0.4 per cent-3.2 per cent
Richmond upon Thames£832,0122.7 per cent-3.3 per cent
Wandsworth£793,014-2.4 per cent-3.5 per cent
Lewisham£464,2001.3 per cent-3.5 per cent
Barnet£639,1920.7 per cent-3.5 per cent
Greenwich£441,287-0.1 per cent-3.5 per cent
Haringey£602,170-0.1 per cent-3.7 per cent
Kensington and Chelsea£1,590,3804.8 per cent-3.9 per cent
Lambeth£632,5900.8 per cent-4.7 per cent
Hackney£626,0950.1 per cent-4.9 per cent
Tower Hamlets£559,475-0.5 per cent-6.1 per cent
Westminster£1,400,270-1.7 per cent-6.3 per cent

The rest of the UK

The rest of the country painted a very different picture, according to Rightmove.

For homes coming to market this month in Wales, the Midlands and the north western England, average asking prices hit all-time highs, as a shortage of demand pushed prices up.

Wales broke through the £200,000 barrier for the first time ever, at £200,386, rising 4.1 per cent year-on-year, while houses in the west Midlands rose three per cent to £232,247.

But for those commuting into central London from outside the capital, prices fell. In the south east of England, the annual average asking price fell 1.1 per cent to £407,239.

Rightmove director Miles Shipside said buyers were largely ignoring Brexit, with buyers spurred into action in the record-breaking regions.

“Despite the ongoing political uncertainty, agents are reporting that the lure of the right property at the right price still attracts good interest. In spite of some of the challenges in the market, interest in property remains very high,” he said.

Source: By Alex Daniel

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