Business

10 Benefits of Joint Property Ownership in Nigeria by Dennis Isong

Published

1 month ago

November 17, 2024

10 Benefits of Joint Property Ownership in Nigeria by Dennis Isong

Owning property together with someone else can be a smart move in Nigeria. This is called joint property ownership. Let’s look at ten good reasons why people choose to own property together in Nigeria.

1. Sharing the Cost

Buying property in Nigeria can be very expensive. When you own property jointly with someone else, you can split the cost. This makes it easier for many people to become property owners.

Imagine you want to buy a house that costs 20 million Naira. If you buy it alone, you need to pay the full 20 million. But if you buy it with a friend, you might only need to pay 10 million each. This makes it much easier to afford the house.

Sharing the cost doesn’t just help when you’re buying the property. It also helps with other expenses like:

– Repairs and maintenance

– Property taxes

– Insurance

When you share these costs, owning property becomes less of a financial burden.

2. Easier to Get Loans

Banks and other lenders often prefer giving loans to joint property owners. This is because there’s less risk for the bank when there’s more than one person responsible for paying back the loan.

If you apply for a mortgage loan alone, the bank might worry about your ability to pay it back. But if you apply with a co-owner, the bank sees that there are two incomes to rely on for repayment. This can make it easier to get approved for a loan and might even help you get better loan terms.

3. Sharing Responsibilities

Owning property comes with many responsibilities. When you own property jointly, you can share these tasks with your co-owner. This can make property ownership less stressful and time-consuming.

For example, if the property needs repairs, one owner might handle finding a good contractor while the other deals with the paperwork. If it’s a rental property, one owner could handle finding tenants while the other manages the finances.

Sharing responsibilities can lead to better property management because each owner can focus on what they’re best at.

4. Potential for Higher Returns

When you pool resources with a co-owner, you might be able to invest in better properties. These properties often have the potential for higher returns, either through rental income or when you sell the property later.

For instance, you and your co-owner might be able to afford a property in a prime location that you couldn’t buy alone. Properties in good locations often increase in value faster than those in less desirable areas.

5. Risk Sharing

Property ownership always comes with some risks. These might include:

– The property losing value

– Unexpected repair costs

– Legal issues

When you own property jointly, you share these risks with your co-owner. This can make the risks feel less overwhelming. If something goes wrong, you’re not facing the problem alone.

6. Tax Benefits

In Nigeria, there can be tax advantages to joint property ownership. For example, if the property generates income (like rent from tenants), the tax burden is split between the owners. This might put each owner in a lower tax bracket than if they owned the property alone.

It’s important to note that tax laws can be complicated and change over time. It’s always a good idea to talk to a tax expert about your specific situation.

7. Estate Planning Advantages

Joint property ownership can make things easier when it comes to inheritance. In many cases, when one owner dies, their share of the property automatically goes to the other owner(s). This is called the “right of survivorship.”

This can simplify the process of passing on property to heirs. It can help avoid some of the complications and delays that often come with settling an estate.

8. Flexibility in Ownership Structure

There are different ways to structure joint property ownership in Nigeria. You can choose the structure that works best for your situation. Some common options include:

– Joint Tenancy: All owners have equal rights to the property.

– Tenancy in Common: Owners can have unequal shares of the property.

– Partnership: Often used for business properties.

This flexibility allows you to set up the ownership in a way that’s fair and makes sense for everyone involved.

9. Learning Opportunities

When you own property with someone else, you have the chance to learn from each other. Your co-owner might have skills or knowledge that you don’t have.

For example, one owner might be good at negotiating with contractors, while the other is skilled at budgeting and financial planning. By working together, both owners can learn new skills and become better property managers.

10. Social and Emotional Benefits

Owning property together can strengthen relationships. Whether you’re co-owning with a family member, friend, or business partner, working towards a common goal can bring people closer together.

There’s also an emotional benefit to knowing that you’re not alone in this big financial decision. Having someone to share the ups and downs of property ownership with can make the experience more enjoyable.

Things to Keep in Mind

While joint property ownership has many benefits, it’s important to be careful when choosing this option. Here are a few things to consider:

– Choose your co-owner wisely. Make sure it’s someone you trust and can work well with.

– Have a clear agreement. Write down how you’ll share costs, responsibilities, and profits.

– Plan for the future. Discuss what will happen if one owner wants to sell their share or can’t pay their part.

– Get legal advice. A lawyer can help you understand all the legal aspects of joint ownership.

Joint property ownership in Nigeria can be a great way to get into the property market, share costs and responsibilities, and potentially earn better returns. It offers financial benefits, practical advantages, and even social and emotional rewards.

However, it’s not a decision to be taken lightly. It’s important to carefully consider your options, choose your co-owner wisely, and set up a clear agreement. With the right preparation and partner, joint property ownership can be a rewarding experience that helps you achieve your property ownership goals in Nigeria.

Remember, every situation is unique. What works well for one group of co-owners might not be the best choice for another. Always consider your own circumstances and goals when deciding whether joint property ownership is right for you.

Business

Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

Published

6 hours ago

December 19, 2024

Sahara Weekly

Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

In a bid to ease financial burdens during the holiday season, Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) to N899.50 per litre. This follows a previous price cut to N970 per litre on November 24. The move is aimed at reducing transportation costs for Nigerians as they prepare for festive celebrations.

Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, disclosed the development in a statement, highlighting additional benefits for consumers. Beyond the price reduction, the refinery is introducing a special credit offer. For every litre of PMS purchased on a cash basis, consumers can buy an additional litre on credit, supported by a bank guarantee from Access Bank, First Bank, or Zenith Bank.

“To help reduce transport expenses this holiday season, we’re offering PMS at N899.50 per litre and providing a credit option for additional purchases. This is part of our commitment to making high-quality petroleum products accessible to Nigerians,” Chiejina said.

The refinery also reaffirmed its commitment to providing premium-quality, environmentally-friendly fuel, while ending Nigeria’s dependence on substandard imported products.

With a capacity of 650,000 barrels per day, the Dangote Refinery is the largest single-train refinery in the world, capable of meeting Nigeria’s entire refined petroleum product demand and generating surplus for export. As the festive season approaches, the company expressed gratitude to Nigerians for their support and pledged continued efforts to ease their economic burdens.

Business

Setting the Record Straight: Clarifying NNPCL’s Role in the Dangote Refinery Investment

Published

20 hours ago

December 18, 2024

Sahara Weekly

General Buratai Urges Dangote Not To Succumb To Marketers Blackmail, Reveals Why

Setting the Record Straight: Clarifying NNPCL’s Role in the Dangote Refinery Investment

We have received numerous inquiries from the media and concerned stakeholders seeking clarification regarding a recent report attributed to the Nigerian National Petroleum Company Limited (NNPCL). The report suggested that NNPCL’s decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote Refinery during liquidity challenges.

We wish to categorically state that this narrative is a misrepresentation of the facts. The $1 billion referenced constitutes just about 5% of the total investment in building the Dangote Refinery.

Our partnership with NNPCL was established based on their strategic importance as the largest offtaker of Nigerian crude and, at the time, the sole supplier of gasoline into Nigeria. As part of this agreement, a 20% stake in the refinery was valued at $2.76 billion. Of this amount, NNPCL agreed to pay $1 billion upfront, while the remaining balance was structured to be recovered over five years through crude oil supply deductions and dividends.

If we had been facing liquidity challenges, such generous credit terms would not have been feasible. At the time of the agreement in 2021, the refinery was still in its pre-commissioning phase. Any claims suggesting financial struggles are inconsistent with the structure and nature of this agreement.

Regrettably, NNPCL was unable to meet its commitment to supply the agreed 300,000 barrels per day of crude oil due to pre-existing financial commitments tied to their crude cargoes. Given this, we extended a 12-month period for NNPCL to pay cash for the balance of their equity. However, they were unable to meet the deadline, which expired on June 30, 2024. Consequently, NNPCL’s equity stake in the refinery was adjusted to 7.24%.

It is therefore inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges. Their $1 billion investment secured a 7.24% ownership stake in the Dangote Refinery, a strategic partnership beneficial to their interests.

NNPCL remains a valued partner, and we urge all stakeholders to adhere to the facts and provide accurate information to ensure proper media representation for the benefit of all stakeholders and the public.

Anthony Chiejina
Group Chief Branding and Communications Officer
18th December, 2024

Business

MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

Published

1 day ago

December 18, 2024

Sahara Weekly

MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

MTN Nigeria, the nation’s largest telecom company, pays over N200 billion in Value Added Tax (VAT) monthly, making it the single biggest contributor to the country’s VAT revenue, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.

Speaking at Channels Television’s Town Hall on Tax Reforms, Oyedele highlighted significant disparities in the current VAT allocation system, revealing that all VAT paid by MTN is credited solely to Lagos State, where the company’s headquarters is located, despite the fact that services generating this revenue are consumed nationwide.

“MTN is the largest contributor to VAT in Nigeria,” Oyedele stated. “They pay over N200bn every month, and the gap between them and the second-largest contributor is massive. However, all this VAT is currently allocated to Lagos, even as calls are made across states like Kano, the FCT, Ekiti, Edo, and Kebbi.”

As part of the ongoing tax reform efforts, the committee has proposed a new framework to ensure equitable distribution of VAT revenues based on consumption rather than the corporate headquarters’ location.

Under the proposed redistribution model, Lagos State, which now retains the full N200bn from MTN, would see its share reduced to around 20 per cent. The remaining revenue would be distributed more fairly among other states where the services are consumed.

“This adjustment ensures states where VAT is generated get their fair share,” Oyedele explained. “While Lagos State’s share decreases slightly, every other state stands to gain under the new system.”

The tax reform bill, designed to address inefficiencies and promote fairness in Nigeria’s fiscal policies, has sparked debate among stakeholders. Critics have accused the committee of advancing policies that may negatively impact certain regions.

Oyedele, however, dismissed these claims, arguing that the current system is flawed and in need of urgent correction. “If something is being done wrongly, how can Lagos State or anyone oppose reforms aimed at fixing it?” he questioned.

The proposed reforms, which include provisions for revenue redistribution and efficiency improvements, are seen as pivotal to ensuring fairness and sustainability in Nigeria’s tax system.