Surveyors Blame Housing Problem on Short Mortgage Tenure

Chairman of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos Chapter Monday identified short mortgage tenure practice as a major obstacle to effective  housing delivery in Nigeria.

Orimalade told the News Agency of Nigeria (NAN) in Lagos that only few primary mortgage institutions in the country practised mortgage tenure beyond 10 years, saying, “financial institutions in the country offer loans not mortgages”.

He said the mortgage tenure as practised in many countries is beyond a minimum of 20 years, and urged that such a practice be adopted in Nigeria.

“In other countries, the mortgage is given out at low interest rate to enable affordability and profitability, but in Nigeria, mortgage is being given on short-term tenure with high interest rate. As a result, people are discouraged from applying for mortgage loans,” he said.

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Orimalade said the substantial reliance on short-term credit to fund projects with long gestation period such as  housing project, as obtained in Nigeria, had made it difficult for low and middle- income earners to own property.

“In the United States and United Kingdom, where mortgage scheme is vibrant, low-income earners own property because repayment is spread over 20 years at single digit interest rate,” he added.

According to him, housing is a long-term investment and should be financed with long-term loans to enable investors to recoup their investments.

The NIESV chairman urged that, for the mortgage scheme to be cheap and affordable, its funds should be sourced from the capital market or the pension fund.

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“But in Nigeria, majority of housing corporations, mortgage institutions and agencies source their funds from commercial banks at high interest rates. The consequence of this is the high cost of housing currently being suffered in the country,” he said.

He said housing finance was central to the nation’s economic development, claiming that lack of adequate attention by government, however, hampered access thereby reducing its contribution to the gross domestic product.

“Currently, Nigeria’s mortgage banks charge between 19 per cent and 25 per cent interest rate. This could go higher, depending on the risk volume; this has affected the real estate’s potential as a goldmine for investors.

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“If government really wants to stimulate the economy, a reduction in the interest rate on mortgage loan will be a masterstroke, and more people will embrace mortgage loan to buy and build houses, leading to increased activities in the construction sector,” he said.

Orimalade blamed the high mortgage interest rate on economic factors and the rate at which banks lent money to mortgage bankers, noting that when inflation rose over a single digit, mortgage rate did not come down.

According to him, there is the need for reduction in the inflation rate, and the Monetary Policy Rate (MPR) if the mortgage interest rate should come down.

Source: Blueprintng

KMRC A Positive Step Towards Addressing the Housing Finance Shortage

During the week, the National Treasury launched the Kenya Mortgage Refinancing Company (KMRC).

The KMRC is a non-bank financial institution, incorporated as a limited liability company to provide affordable long-term funding and capital market access to primary mortgage lenders such as banks and financial co-operatives.

KMRC has so far mobilized 37.2 billion shillings, meeting the minimum core capital requirement of at least 1.0 billion shillings for operation according to the Central Bank of Kenya (Mortgage Refinance Companies) Regulations 2019.

The facility has received funding support of 25 billion shillings from the World Bank, 10 billion shillings from the African Development Bank (AfDB), and 200 million shillings from Shelter Afrique.

These funds will be applied towards enhancing access to affordable housing finance, strengthening KMRC balance sheet, and providing requisite credit enhancements to support KMRC issuance of mortgage-backed bonds in the capital market.

According to analysts from Cytonn Investments, the launch of the KMRC is a positive step towards addressing the housing finance shortage in Kenya, which has been a key challenge in the housing sector.

Successful implementation of KMRC will, therefore, boost the Kenyan mortgage market and increase home ownership among Kenyans.

Source: Sokodirectory

President’s First-Term Performance Receives Mixed Scores from LCCI

The Lagos Chamber of Commerce and Industry has released a review of the performance of President Muhammadu Buhari’s administration in the past four years.

In the review signed by the Director General, LCCI, Mr Muda Yusuf, the administration scored high in the area of foreign exchange management, intervention in the agricultural sector and business environment policies.

However, the LCCI scored the administration low in the area of debt management, policy implementation and the passage of the Petroleum Industry Bill.

The chamber noted that the high expectations that welcomed the regime immediately sank when it was up to a slow start from an economic perspective.

The review tackled the government on debt management and its excessive borrowing, expressing concerns that 30.7 per cent debt service as a percentage of revenue and 73.8 per cent debt service as a percentage of the capital budget made the current debt profile unsustainable.

“It underscores the high opportunity cost of debt servicing to the Nigerian economy. Besides, the debt profile has the profound crowding-out effect on the private sector. While the banking sector credit to government has been increasing over the past few years, banking credit to the private sector has been on the decline.

“Investments in Treasury bills and Federal Government bonds have become more attractive than investments in the real economy such as manufacturing, agriculture and solid minerals. Even the financial institutions would rather invest in Treasury bills and bonds than lend money to entrepreneurs.

Source: Punchng

Newly Completed 115 Rooms Liaison Office Opened by Nasarawa in Abuja

Nasarawa state government has commissioned a newly completed 115 rooms liaison office complex in Abuja. Speaking at the event on Sunday, the state governor, Umaru Tanko Al-Makura, said the newly commissioned office complex has 115 accommodation rooms; 35 leasable offices; one banquet hall; one exhibition room; one kitchen and restaurant and a governor’s office.

“Government after due diligence re-awarded the construction of the complex to Messrs KCC Construction Limited in 2018 with a completion period of 12 months at the sum of N1,158,397,642.50 only,” he said.

According to him, the complex was conceived in the year 2005 with a completion period of 30 months but was abandoned since the year 2008 at a 60 percent completion.


The event was graced by the former Governor of Nasarawa state, Alhaji Abdullahi Adamu; the state’s Deputy Governor, Silas Agara; and  Governor-elect, Abdullahi Sule.

Source: Dailytrsutng

Estate Surveyors, Engineers Tango over Plant, Machinery Valuation

Ministry sets up panel to probe alleged encroachment
Fresh concerns loomed large in the built environment last week, as estate surveyors and engineers reopened long running battle over whose responsibility is to put value on plant, machinery and equipment.

The lingering feud between Nigerian Institution of Estate Surveyors and Valuers (NIESV) and Nigerian Society of Engineers (NSE) took a dramatic turn, with the publication of a gazette by the Council for the Regulation of Engineering in Nigeria Regulations (COREN Regulations), which was endorsed by the Minister, Power, Works and Housing, Babatunde Fashola.

The crisis was worsened by the circulation of COREN Regulations to Ministries, Departments and Agencies (MDA’s) recently, to give valuation briefs to engineers as it was their mandate to carry out plant, machinery and equipment valuation.

While the engineers believe that since they are responsible for the design, fabrication and maintenance of most plant, machinery and equipment, they are in a better position to determine their value; estate surveyors and valuers claim that they are mandated by law to carry out valuation of any kind.

Specifically, the regulatory body for estate surveyors – Estate Surveyors and Valuers Registration Board of Nigeria, (ESVARBON) wrote to the Minister, Power, Works and Housing, Babatunde Fashola, to alert him on the issues.

In a follow up, NIESV issued a statement signed by the National Publicity Secretary, Mr. Monday Ahiwe, accusing engineers of breach of professional practice. “The COREN Regulations, in a most flagrant manner never seen before in the history of this country, usurped and conferred on engineers all the functions of valuers provided for under the Estate Surveyors and Valuers Registration Board of Nigeria Decree No. 24 of 1975 now CAP E13,LFN 2007 and the gazetted Regulations of 2014 made under it.

“Estate surveyors and valuers remain the only professionals, which by training both in the universities/polytechnics and in practice, that are qualified and trained as Valuers to handle the valuation of properties and other assets in Nigeria.

“Our members have been discharging this responsibility creditably well to MDA’s, Banks, other corporate entities and individuals in the past 50 years.This latest crass affront on our profession will not go unchallenged or un-redressed.

The institution recalled that in year 2002, NIESV appeared with NSE before a mediation panel of Association of Professional Bodies of Nigeria (APBN) at the end of which the engineers were advised to face their core areas of practice in providing technical assistance when needed.”

The Guardian gathered that the ministry has inaugurated a committee to look into a petition made by ESVARBON against COREN.

This is sequel to the petition written by ESVARBON to the ministry against COREN’s Regulations for Engineering Appraisal/Valuation.

 

Subsequently, a committee was constituted from Federal Ministry of Power, Works and Housing to look into the issues raised in the petition. The committee is to determine whether the COREN Regulations have any conflict in respect of who has the mandate for valuation work.

Already, COREN President, Ali Alimasuya Rabiu led a delegation to meet with the committee . The COREN delegation includes Joseph Odigure, Otis Anyaeji, Dr. Charles Mbelede, Dr. C. C. Katchy, Battah Ndirpaya, Engr. Ike Iwenofu and Ahmad M. Yabagi,.

The COREN team took time to educate the committee on the role of engineers in engineering valuation and the need for the committee to look at the issues from the position of the law rather than individuals perception.

Source: Guardianng

BREAKING: Four Escape Death as Two-storey Building Collapses in Owerri

Four persons were critically injured on Sunday when a two-storey building collapsed in Owerri, Imo State.

The incident, which happened at 4:34pm at Number 10, Amaram Extension Street, less than a kilometer from Dan Anyiam Stadium, where the governor-elect held a nondenominational church service ahead of his inauguration next Wednesday, caused pandemonium in the area.

Our Correspondent who visited the scene saw rescue workers, which included policemen and residents, rescuing victims.

A policemen who does not want his name in print told our correspondent that four persons, including a female occupant, were rescued from the debris.

He said, “On arrival, we saw people already on a rescue mission. We quickly swung into action and rescued four persons.

“Two who are critically injured have been rushed to the hospital.”

One of the survivors, who identified himself as Paul, said he had to jump out of the building after he observed a strange noise.

He said luckily for him, immediately he jumped out, it gave way.

An eyewitness said, “This building has remained uncompleted for over 20 years. This highly unfortunate.

“The blocks have soaked water, leading to its collapse. Surprisingly, the owner left this place about 15 minutes ago.”

Source: Punchng

Rainstorms Destroy Hundreds of Homes in North-East Nigeria

Zaynab stands next to the remnants of her home she used to share with her six children before it was destroyed by early season rainstorms that brought strong winds and rain to north-east Nigeria.

“I was in the market in the afternoon when the storm came but my six children were inside the house,” said Zaynab as she prepares a meal to break the Ramadan fast. “We lost everything except for a mattress we found across the camp and a few cooking pots.”

As of Friday, May 24, 2019, 395 shelters in camps and camp-like settings in Borno State, including Zaynab’s, have been damaged or destroyed since heavy rains began at the end of April. A total of 41 camps hosting more than 300,000 internally displaced persons (IDPs) have been classified as prone to flooding; some in hard-to-reach areas like Monguno, Konduga, Bama and others.

The International Organization for Migration (IOM) in Nigeria will respond to the needs of displaced populations through a multi-sectoral rainy season emergency response plan. The Organization will prioritize its interventions toward households with children under five, pregnant women, elderly people and single female households.

IOM teams are being deployed to repair or strengthen shelters in case of flooding, sensitize people to flood risks and conduct shelter and infrastructure maintenance. Other small-scale community-driven mitigation measures include waste management in camps and building or repairing drainage canals.

Zaynab hails from a farming family from Guduf Nagadio in Borno State, the epicentre of ongoing conflict between Nigerian forces and non-state armed groups. Her husband was killed by armed men as they tried to escape violence three years ago. Since then, her family has resided in an IDP camp in Borno State, home to nearly 1.5 million IDPs.

Storms earlier this month displaced Zaynab’s family yet again. IOM’s Camp Coordination and Camp Management (CCCM) team have subsequently relocated them and other families to temporary shelters in the nearby town of Gwoza.

Borno State is affected by strong winds, storms and flooding on an annual basis. Yearly rains often ravage shelters where IDPs live, and cause blockage of water circulation pathways and drainage systems.

CCCM teams have constructed water pumps in the affected displacement sites where water ways or drainage systems are non-existent. Sand bags have been used in flood-prone areas to divert water from flowing into shelters or pathways.

“Preventive measures are key,” said Nadia Tithi, IOM Nigeria Shelter Programme Manager. “Urgent needs remain, and this year, we’re reinforcing more than 3,000 emergency shelters before the strongest rains hit,” she added.

Staff are also repairing structures where IDPs live and distributing nearly 4,000 emergency shelter kits throughout Borno and Adamawa States. The kits serve as a contingency measure and in some cases, have already been distributed to affected households.

With seasonal heavy rains come an increased risk of disease outbreak, particularly cholera, in north-east Nigeria. During the last rainy season in late 2018, the area saw nearly 100 cholera-related deaths. As part of the Water, Sanitation and Hygiene (WASH) programme, IOM is conducting intensive door-to-door hygiene promotion and awareness raising campaigns to prevent the spread of cholera in communities.

IOM Nigeria’s rainy season emergency preparedness is supported by the Office of US Foreign Disaster Assistance, the Directorate-General for European Civil Protection and Humanitarian Aid Operations, the Federal Republic of Germany and the Nigerian Humanitarian Fund. This support enables IOM to attend to the most acute needs of displaced populations. IOM is appealing for further funds to ensure a holistic response to the multi-sectoral preparedness needs in north-east Nigeria.

Source: By By Dipo Olowookere

Pentagon Agrees to Set up Tent Housing near Border for some 7,500 Migrants

Acting defense secretary Patrick Shanahan has approved a request from the Department of Homeland Security to construct temporary tent housing facilities for 7,500 adult migrants to alleviate what the Pentagon described as an ongoing humanitarian and security crisis on the southern border.

Maj. Chris Miller, a spokesman for the Pentagon, said in a statement late Wednesday that the temporary facilities would house “single adult male and female aliens” processed by Customs and Border Protection and turned over to the custody of Immigration and Customs Enforcement.

The Pentagon will loan and erect tents on prepared land identified by DHS, and conduct site assessments over the next two weeks to determine the scope, cost and timeline to construct the temporary housing facilities in Arizona and Texas, Miller said.

“Military personnel will not operate the facilities and will only erect the tents,” Miller said. “Operating the facilities remains the responsibility of DHS.”

Officials will be conducting the site assessments in the Tucson and Yuma sectors in Arizona and near the Tornillo, Donna, Laredo and Del Rio ports of entry in Texas, according to Miller.

DHS is asking the military to erect the temporary housing because the federal agency is facing limited capacity to house the large flow of migrants who are being apprehended by Border Patrol after coming over the southern border into the United States.

The flow of migrants over the southwestern border with Mexico has been spiking, straining an already stretched system for processing and housing those who are apprehended. The influx has led to what officials are describing as an emergency due to the overwhelming number of people in custody.

CBP detained 109,144 migrants in April, a 6 percent increase from the previous month, and the largest number to cross the border in a month since 2007. Nearly 45,000 unaccompanied children have crossed into the United States in the past six months alone.

Source: washingtonpost

Access Bank Threatens to Publish Names of Debtors in Newspapers

The management of Access Bank Plc has given all its delinquent debtors two weeks to pay up their due obligations, emphasising that failure to adhere to this directive would come with severe consequences.

In a publication today on Punch Newspapers, the lender said this warning also goes to debtors of the defunct Diamond Bank Plc.

Business Post reports that in March 2019, Access Bank and Diamond Bank officially merged together to become an enlarged banking entity.

In the notice seen by Business Post, the financial institution warned that if after the two weeks grace period the “incorrigible debtors” fail to comply with this directive, it would be forced to publish their “names in newspapers.”

The bank said “all debtors will be sanctioned by the CBN and banned from participating in the Nigerian Foreign Exchange and Securities Exchange Markets, and registered on the Credit Risk Management Systems (CRMS) Bureau as bad debtors making them, their directors and related entities illegible for any credit in the Nigerian Financial Markets.”

Access Bank said it was determined to take further actions “against such delinquent individuals and companies as we may consider necessary and shall relentlessly pursue full recovery of all our debts.”

Below is the full statement signed by the management of Access Bank Plc.

Please be informed that Access Bank Plc is set to publish the list of all its delinquent debtors, associated persons, directors and entities. This is in line with the directive from the Central Bank of Nigeria (CBN).

All Access Bank Plc (including former Diamond Bank Plc) debtors are directed to pay up their due obligations in order to avoid punitive actions being taken against them. Please note that we shall publish out debtors’ names in newspapers in two weeks.

Similarly, in the event that these obligations are not fulfilled, we shall take such further actions against such delinquent individuals and companies as we may consider necessary and shall relentlessly pursue full recovery of all our debts.

Furthermore, all debtors will be sanctioned by the CBN and banned from participating in the Nigerian Foreign Exchange and Securities Exchange Markets, and registered on the Credit Risk Management Systems (CRMS) Bureau as bad debtors making them, their directors and related entities illegible for any credit in the Nigerian Financial Markets.

For incorrigible debtors, who continue to pose a risk to our system, we will use all means available and collaborate with our colleagues in the industry to ensure that they are excommunicated from the banking system.

Consequently, we hereby advise all out delinquent debtors to take this publication seriously and ensure that all debts are settled promptly.

Source: Businesspostng

UK and Kenya Host Research Symposium on Affordable Housing

In recognition of this, the UK and Kenya co-hosted a two-day symposium on affordable housing and sustainable infrastructure on 21 and 22 May at Strathmore University, supported by the Global Challenges Research Fund and the UK Collaborative on Development Research.

The symposium brought together more than 200 policymakers, leading researchers, business and civil society delegates to explore the potential for new innovative collaboration on affordable housing and sustainable infrastructure.

Hosted at the request of the UK-Kenya High-Level Oversight Board on Science, Technology and Innovation, the symposium showcased how strong partnerships between UK and Kenyan stakeholders are delivering innovations in housing and urban development – from changing how people apply for mortgages, to using technology to turn plastic waste into pavements.

Among those in attendance were the British High Commissioner to Kenya Nic Hailey, Chief Administrative Secretary Ministry of Transport Hon Chris Obure, Housing Secretary State Department of Housing and Urban Development Patrick Bucha and Katherine Muoki Director of Infrastructure, Science, Technology and Innovation, State Department of Planning.

Speaking at the event, British High Commissioner Nic Hailey reiterated the UK Government’s commitment to progress on affordable housing and sustainable infrastructure.

He said:

“The UK is proud to support the Big 4 agenda in Kenya, and to work with the Kenyan Government to address the challenge of delivering affordable housing for all. To deliver on this policy priority, we need to leverage research, technology and innovation, and this joint symposium is doing just that.

Minister for Africa, Harriett Baldwin said:

“Affordable Housing and Sustainable Infrastructure are challenges everywhere, so it is good news that the UK and Kenya are working together to turn world-leading research and innovation into practical solutions to benefit us all.”

Mr. Peter Okwanyo, Secretary Administration, State Department for University Education and Research, Ministry of Education said:

“Research, Science, Technology and Innovation presents a unique platform for the generation of new knowledge to overcome barriers to affordable housing, healthy cities, resilience and affordable urban infrastructure.

Affordable housing is recognized as an enabler to the attainment of Sustainable Development Goals (SDGs) and the UK-Kenya Partnership is a powerful tool for application in the enhancement of their attainment.”

Dr Jaideep Gupte, GCRF Challenge leader for cities and sustainable infrastructure said:

“Ensuring urban residents have access to affordable and adequate housing is one of the big issues in Kenya. Building new houses is only part of the solution which also involves providing access to health and education services, safe public spaces and to the jobs and opportunities that are replete in cities.

Recent GCRF investments support Kenya-UK collaborations doing cutting edge and policy relevant research on issues ranging accessing healthcare to embedding disaster risk management into urban development.”

The symposium was organized by the Governments of the UK and Kenya with support from the UK Collaborative on Development Research (UKCDR), UK Research and Innovation (UKRI) through the Global Challenges Research Fund and Strathmore University. The symposium showcased innovative housing technologies and research from around the world.

A joint statement from the UK and Kenyan Government UK-Kenya Housing Symposium Joint Statement (ODT, 500KB) following the symposium announced a commitment to continue working together on affordable housing and sustainable infrastructure research, policy and practice in Kenya.

Source: Africanews

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