BusinessDay 22 Jun 2017

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Thursday 22 June 2017 12 BUSINESS DAY C002D5556 EDITORIAL PUBLISHER/CEO Frank Aigbogun EDITOR-IN-CHIEF Prof. Onwuchekwa Jemie EDITOR Anthony Osae-Brown DEPUTY EDITOR John Osadolor, Abuja NEWS EDITOR Bill Okonedo EXECUTIVE DIRECTOR, SALES AND MARKETING Kola Garuba EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure CHIEF FINANCE OFFICER Folashade Odusanya MANAGER, SYSTEMS & CONTROL Emeka Ifeanyi HEAD OF SALES, CONFERENCES Rerhe Idonije SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire GM, BUSINESS DEVELOPMENT (North) Bashir Ibrahim Hassan GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu Time for solution to housing sector challenges Notwithstanding the many housing sector challenges bordering on poor infrastructure base, long, costly and tortuous property registration process, lack of enabling laws, etc. Nigeria is, arguably, a huge real estate market. Though there are reasonable efforts by public and private sector operators at providing adequate and decent accommodation for the citizenry in line with the National Housing Policy, these efforts are yet to yield the desired results on account of obvious challenges. At the federal government level, there is a new scheme called the Federal Integrated Staff Housing (FISH) being implemented to address the housing needs of civil servants who find it difficult to climb the property ladder. The scheme is also aimed to bridge the housing deficit estimated at 17 million units. FISH is based on the National Housing Policy, which also aims to provide affordable and decent housing for Nigerians and, according to Babatunde Fashola, minister of power, works and housing, the new housing scheme has been put in place to drive the housing policy. We align with the rest of Nigerians who believe that given Fashola’s antecedents while in office as governor of Lagos State, he is just the right candidate to push through progressive policies that will engender the needed solution. We believe too that he understands the business of government in providing an enabling atmosphere for investors going by strategies being adopted in the implementation of the FISH scheme, which, he says, is also part of government’s multi-faceted approach to economic development. The implementation of the new scheme now becomes more urgent bearing in mind that it is part of government’s efforts at creating economic activities aimed at empowering people all over the country. At a time like this when income is dwindling, workers on site will be happy getting paid from contractors as that will enable them to take care of their families and patronise food vendors. It gladdens our heart that, according to the minister, the ministry is training artisans like carpenters and bricklayers to be relevant technically. Again, it is interesting for us to note that many real estate industry players, especially the big names, share the housing provision dream of the minister for the country. At the moment, the country needs almost one million housing units delivered annually to fill its housing demand-supply gap. Nigeria offers high returns on investment, especially in prime real estate, because of its fast growing populations, but it needs to encourage investors by creating the enabling environment. We agree with Fasunwon Deji, managing director, Propertymart Real Estate Investment Limited, who says policy makers need to ensure that access to long-term finance is guaranteed to enable investors. Creating the enabling environment requires closing the gaps in government-run infrastructure to guarantee efficient urban development. Roads, electricity, security, etc are significant areas that the government needs to invest in to ensure that developers employ best practice residential and commercial property standards. We deem it pertinent for government to promote favourable macroeconomic policies which will in turn encourage private sector investors to partner with it in providing low-cost mass housing. These policies, we believe, must result in low interest rates, stable exchange rates and low inflation to encourage investors to move into mass housing projects that could encourage low-income earners to move from rented to their own affordable mortgage-backed homes. It is our hope that these policies, coupled with a broader economic growth stimulation that results in lifting more Nigerians above the poverty line, will make low-cost housing actually affordable for the low-income earner. To make all these happen, we advise that processes for land acquisition, construction permits and property registration must be simplified and automated in line with global best practice. As a country, we cannot continue with a culture that frustrates estate developers and discourages prospective home owners. A situation where prospective property owners have had to wait for years to secure necessary approvals and documentation is, to say the least, anti-growth and unproductive. Like Deji, we want controversial legislations such as the 1978 Land Use Act and the 2012 National Housing Policy revisited to tackle aspects of their implementation that stifle the growth of the real estate sector. EDITORIAL ADVISORY BOARD Dick Kramer - Chairman Imo Itsueli Mohammed Hayatudeen Albert Alos Funke Osibodu Afolabi Oladele Dayo Lawuyi Vincent Maduka Wole Obayomi Maneesh Garg Keith Richards Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Sim Shagaya Mezuo Nwuneli Emeka Emuwa Charles Anudu Tunji Adegbesan Eyo Ekpo NEWS ROOM 08022238495} Lagos 08034009034 08033160837 Abuja ADVERTISING 01-2799110 08116759801 08082496194 ENQUIRIES SUBSCRIPTIONS 01-2799101 07032496069 07054563299 www.businessdayonline.com The Brook, 6 Point Road, GRA, Apapa, Lagos, Nigeria. 01-2799100 LEGAL ADVISERS The Law Union MISSION STATEMENT To be a diversified provider of superior business, financial and management intelligence across platforms accessible to our customers anywhere in the world. 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Thursday 22 June 2017 C002D5556 BUSINESS DAY 13 COMPANIES & MARKETS COMPANY NEWS ANALYSIS AND INSIGHT Sterling Bank to encourage women to be self-conscious P14 ABO Capital acquires school, reinforces new education funding trend …a possible model to bridge Nigeria’s funding gap STEPHEN ONYEKWELU ABO Capital, an Angolan investment firm has acquired Complexo Escolar Privado Internacional (CEPI) in Luanda, Angola’s capital city reinforcing a growing trend among private equity firms in Africa and a possible model for Nigeria. Terms of the deal for the 768-pupil facility were not disclosed. Also known as the Turkish School, CEPI started life in 2007 and enrolment has expanded consistently, reaching 768 pupils in the current academic year. The increase in the size of the student body has forced the school to build new facilities and the investment by ABO Capital will help bring the construction project to completion. The move is a first step in building an educational platform for ABO Capital, which plans to open up three additional schools in Source: Nigeria Budget Office the near future. Recently, AfricInvest, a mid-market private equity firm with US$1 billion in assets, backed International Community School, a private school in Ghana, in a preference share deal. The investment was the sixth for AfricInvest’s third private equity fund, which is now 50 per cent deployed. This is a model that could help bridge Nigeria’s education funding gap and improve both access and quality. Average annual budgetary allocation to education in Africa’s biggest economy in the last four years was N472 billion, 9.36 per cent of an average annual budget of N5.05 trillion. This has left an annual funding gap of 16.64 per cent, that is, N840 billion. United Nations Educational, Scientific and Cultural Organisation (UNESCO) benchmark for education allocation is 26 per cent of national budget. Dalberg, a global development advisory firm estimates that there is a funding gap of over US $1trillion for education in sub-Saharan Africa (SSA) and says there is an urgent need to direct attention towards the education system. SSA has more than 30 million primary and 90 million secondary school children currently outside the system. And with about nine million children out of school, Nigeria has the highest population of out of school children (OOSC) in the world. United Capital lists funds on NSE to diversify investment United Capital Asset Management on Monday listed 2 billion units of United Capital Wealth for Women bond and 100,000 units of United Capital Nigeria Eurobond Fund on The Nigerian Stock Exchange (NSE). The listing followed the successful completion of the bonds’ initial public offering, which achieved subscription level of 52.67 per cent, with over 111 units. The listing followed approval of the allotments for the bond by the Securities and Exchange Commission (SEC). The bond will remain open for subscription due to the openended structure of the fund. Jude Chiemeka, Managing Director of United Capital Asset Management Ltd., said the Eurobond Fund and the United Capital Wealth for Women Fund were to meet the diversified investment portfolio needs of indigenous and global clients. Chiemeka said that the two new funds would further solidify the company’s position as a market leader in the African investment banking space. He stated that the current economic challenges had altered investment interests in the market. He added that “we designed these new products specifically to suit the changing needs of our clients. “The two products would help in deepening the market and increase choice of investing in the Nigerian capital market.” Chiemeka explained that the other newly launched Fund, the United Capital Wealth for Women Fund, would encourage women to imbibe savings culture, provide an avenue for women to be financially independent. According to him, it will also create sustainable foundation for women’s financial empowerment and development in Nigeria. He said that a maximum of 80 per cent of the fund’s assets would be invested primarily in naira denominated fixed income and high yielding instruments. Chiemeka added that 20 per cent would be invested in “carefully selected quoted stocks on the exchange.” L-R: Oscar Onyema, President, African Securities Exchanges Association (ASEA), after signing a Memorandum of Understanding (MOU) with Paul Smith, President/CEO, CFA Institute to foster a better relationship between the two organisations at Nigerian Stock Exchange in Lagos.
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BusinessDay 22 Jun 2017

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