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Government must play a major role for the mortgage sector to thrive – CEO, Abbey Mortgage Bank

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The Managing Director/CEO of Abbey Mortgage Bank has given an overview of the mortgage bank industry in Nigeria, what inspired the establishment of Abbey Mortgage Bank, and the challenges encountered on the way.

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Speaking during the Nairametrics’ Business Half Hour, Madu Haman gave a brief background of his journey into the financial industry.

“I graduated from the university in 1982, started my banking career in 1984 with the then Bank of Credit & Commerce, which was later converted to African International Bank (Afribank). In 1990, I joined the merchant bank now called the New World Merchant Bank. Then in 1992, I left New World Merchant Bank to join Abbey Building Society, which is now Abbey Mortgage Bank,” he said.

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According to Mr. Madu, what motivated the establishment of Abbey Mortgage Bank was the Mortgage Institution Act that was enacted in 1989. It was an opportunity to provide housing finance to Nigerians. So, in 1992, they got licensed and since then, the business has grown.

He continued by saying that currently, their aim is to replicate in Nigeria what is obtainable in a more developed economy like the UK, where housing finance is affordable and available to everyone.

During the session, he stated that nothing came easy, especially when it came to establishing a business, so, they had their pitfalls during inception though they were able to scale through, with the help of the initial promoters who had experience in banking.

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Speaking about funding, Mr. Madu noted that their initial capital when they started in 1992 was N5,000,000, which the promoters were able to gather from friends. Since then, they have gradually been increasing the capital. In 2005, they became a public limited liability company and got listed on the Nigerian Stock Exchange in 2008, which gave them a wider market for raising capital.

Abbey Mortgage Bank, according to Madu, is in partnership with private sector providers, most of whom are real estate developers who provide the houses for them to grant mortgages on. He noted that the partnership is with credible developers, who have the type of houses that meet the requirement of customers. The bank is also in partnership with notable cooperatives, whose members want to access housing finance.

According to him, Nigeria’s patronage of mortgage banks is very low. He said even at the African level, Nigeria is way below when it comes to a mortgage. He stated that currently, the mortgage sector constitutes just about 2.5% of our GDP compared to the United Kingdom where the contribution is 80%, while South Africa contributes 50% to 60% of their GDP, and Ghana has close to 30% GDP contribution. In other words, Nigeria needs to step up her game when in the mortgage sector.

He said for this to be feasible, the Government has a major role to play in terms of providing the right environment for the mortgage sector to thrive. Speaking further, he said there are many challenges that affect the mortgage sector, most of which have to do with the government. For example, the Land Use Act, which makes the process of land acquisition very difficult and expensive. Speaking further, he stated that what made land acquisition difficult are the processes one must undergo, such as:

1.    The process of getting the Governor’s consent

2.    The bureaucratic process of registering the mortgage

3.    The cost of registration being exorbitant.

During the session, Haman noted that the government could assist in reducing some of these challenges. The plan to address the various challenges facing the mortgage sector started as far back as 2001 when the then President, Olusegun Obasanjo, formed a presidential committee to review the legal framework around the mortgage sector, especially amending the Land Use Act and other issues concerning the smooth operation of the mortgage sector.

However, before the approval of such an amendment, another government took over which automatically led to starting the process all over.

Furthermore, he said they had to establish an advocacy association for the mortgage Industry called the Mortgage Banking Association of Nigeria and their work is to take care of these issues that the mortgage sector is facing. He said they also have other institutions, like the Nigerian Mortgage Finance Company, which is partly owned by the participating banks and partly owned by the Federal Government (the Federal Ministry of Finance and CBN are also involved). The role of this institution is advocacy, i.e., trying to address the challenges facing the mortgage sector.

Also, they have been talking to state governors to see how each state can amend some of their laws to make it easier and smoother for mortgage sectors. However, he noted that some states like Lagos and Kaduna have been very cooperative. More so, the engagement continues with various other states that are willing to participate in the provision of housing for their citizens.

Additionally, he clarified the issues some Nigerians encounter when it comes to accessing NHF loans. He said the Federal Mortgage Bank is a custodian of the National Housing Fund, so for a contributor to be able to access facilities from the National Housing Fund, they must approach a primary mortgage bank which then processes their request and forwards it to the Federal Mortgage Bank for approval. He added that before NHF can give out a loan, it will have to check out the following:

·         The property involved.

·         Does it have a proper title?

·         What is the applicant’s source of income?

·         Would he be able to meet the repayment of the loan?

All these processes are done at the primary mortgage bank-level before being forwarded to the Federal Mortgage Bank for approval, and then the Federal Mortgage Bank also goes through its own process of checking. With all these processes, one might look at the loan request as a difficult one, however, the rate at which you get the facilities is only 6% which is the lowest facility you can get in the Nigerian market right now.

In conclusion, he said that Abbey has a very good pedigree, and they been in the market for almost 29 years now. He continued by saying that Abbey mortgage bank is presently the oldest and the largest mortgage bank in Nigeria and they are currently doing the Right Issues which was opened on the 4th of January for their existing shareholders to invest more on.

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Dana Airline’s Troubled History of Scandals and Safety Concerns

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Dana Airline’s Troubled History of Scandals and Safety Concerns

 

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In the turbulent skies of Nigeria’s aviation industry, Dana Airline has become synonymous with controversy and scandal. From regulatory violations to financial mismanagement, the airline’s history is marred by a litany of transgressions that have raised serious questions about its commitment to safety and integrity.

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One of the most alarming issues plaguing Dana Airline is the recurrent violation of flight crew duty regulations. Reports have surfaced indicating pilots flying over their allowed hours, raising concerns about fatigue and compromised safety standards. Such breaches not only endanger passengers but also erode trust in the airline’s operational integrity.

Financial misconduct further tarnishes Dana Airline’s reputation, with instances of fake telexes being sent to suppliers and staff to deceive them into making payments. In one egregious case, an engine was reclaimed by a lessor due to non-payment, only for Dana Airline to find the supplier bankrupt upon attempting to settle the freight costs. This pattern of defaulting on payments extends across all suppliers and includes the non-payment of staff salaries, painting a picture of financial instability and irresponsibility.

Safety is paramount in aviation, yet Dana Airline’s management has been accused of prioritizing profit over passenger welfare. Instances where the Managing Director overrules safety protocols set by management, coupled with weight and balance miscalculations due to cargo and excess baggage fraud, underscore a disturbing trend of negligence.

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Moreover, the airline’s questionable practices extend to its maintenance operations, where falsified records and quick fixes by Indonesian personnel have compromised safety standards. The turnover of directors in the maintenance department reflects the dire financial constraints preventing proper maintenance procedures.

The lack of proper financial management and qualified personnel exacerbates Dana Airline’s woes, with the Chief Financial Officer’s association with Dana Group, under scrutiny for financial fraud, raising further red flags. Suppliers coerced into lying about amounts due during audits and the circumvention of regulatory payments only add to the company’s litany of transgressions.

Despite previous groundings and regulatory scrutiny, Dana Airline has persistently managed to evade accountability, with reports of political influence being used to circumvent regulatory actions. However, a thorough financial audit, if conducted, would likely reveal the airline’s precarious financial position, potentially rendering it unfit to operate.

In conclusion, Dana Airline’s track record of scandals and safety breaches raises serious doubts about its commitment to passenger safety and regulatory compliance. Unless substantive changes are made to address the underlying issues plaguing the airline, its continued operation poses a significant risk to the flying public.

 

Dana Airline's Troubled History of Scandals and Safety Concerns

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Fidelity Bank Commends Air Peace’s Performance

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Fidelity Bank Commends Air Peace’s Performance

 

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Fidelity Bank Commends Air Peace’s Performance

. Celebrates Airline For The Commencement of the Lagos-London Route

LAGOS – Fidelity Bank Plc has commended Air Peace’s performance since it commenced flight operations about 10 years ago.

 

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Fidelity Bank Commends Air Peace’s Performance

Dr. Nneka Onyeali-Ikpe, the Managing Director, Fidelity Bank Plc gave the commendation over the weekend in Lagos during a special event organised for the airline by the bank to celebrate Air Peace for the milestone of commencement of direct flights from Lagos to London.

According to Nneka Onyeali-Ikpe, who doubled as the host at the event, the airline has upheld the principles of financial discipline and good corporate governance since inception, while it has also been very loyal to the bank.

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She expressed delight that the bank had the airline as one of its major clients since inception, stressing that the Bank was celebrating the airline’s milestone of launching direct flight service to London and other developments it would attain in the future.

The event, which held at the Civic Center, Victoria Island, Lagos, had in attendance several bank Managing Directors, stakeholders in the aviation sector, media personalities and well-wishers of both brands.

Speaking at the event, an elated Dr. Allen Onyema, the Chairman, Air Peace, observed that it was not rosy for the airline to attain its status and expressed gratitude to the flying public, the various aviation stakeholders, the media and the government for the continued support since it launched in 2014.

He specifically acknowledged the pivotal role played by Engr. Ben Adeyileka, the former Acting Director-General, Nigeria Civil Aviation Authority (NCAA), in helping the airline secure its Airline Operator Certificate (AOC).

He further commended Fidelity Bank for the consistent support and stressed that the bank had contributed to the success story of the airline.

“I call it our journey with Fidelity Bank. I did not envisage this day would come when an indigenous institution would be celebrating another indigenous institution. Fidelity supports real business. They keep removing people from the streets of poverty. Let other banks emulate Fidelity,” he said.

He reiterated that Air Peace was set up primarily to create employment, not for profitmaking, stressing that the motivation behind the business was to empower Nigerians economically.

“Air Peace was not borne out of the intent to profiteer, but to create jobs. Air Peace was not established because I wanted more money but because of the conviction that running an airline would create massive job opportunities. That was why we went into aviation”, he remarked.

He restated the airline’s belief in the Nigerian project, maintaining that supporting the airline meant supporting the growth of the Nigerian economy.

Onyema further craved for the support of all Nigerians on the Lagos-London route, which it opened on March 30, 2024.

He explained that the airline needed to sustain the route, stressing that this could only be done through support from Nigerians.

He said: “For every penny you pay to Air Peace, you pay to sustain the jobs of thousands of Nigerians and support economic growth.

“Air Peace flies you from any of our domestic routes to London. So, you can fly from Yola to London via Lagos. From the local airport, you are taken to the international airport free of charge with a seamless luggage transfer.”

He pledged that the airline would continue to fully adhere to the standard of safety and lauded the management and staff of Air Peace for their efforts in realising the London dream.

 

 

 

 

 

 

 

 

 

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Dangote Group is the elixir of Gateway int’l Trade Fair – OGUNCCIMA

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Dangote: NANS Write President Tinubu Over mismanagement Of CTIN Funds (Video)

Dangote Group is the elixir of Gateway int’l Trade Fair – OGUNCCIMA

…Subsidiaries hit Ogun trade fair

 

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Ogun State Chambers of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) has described the Dangote Group as the driving force of the Gateway International Trade Fair.

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This is just as companies under the leading African Indigenous Conglomerate, Dangote Industries Limited, hit the trade fair with their various products as part of strategies to increase market share and deepen customers’ affection.

 

 

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The President of the chamber, Engr. Mike Akingbade, stated this when Ogun state governor, Dapo Abiodun officially opened the 13th edition of the Trade Fair at the M.K.O Abiola Trade Fair Complex, Oke Mosan, Abeokuta

Akingbade lauded the support of Dangote Group in sustaining the Trade Fair, which he noted has led to the prosperity of the state and economic freedom for the people.

“A special commendation must be given to Dangote Industries Limited which has remained the major sponsor of the Gateway International Trade Fair for many years. The committed support of the Dangote Group is the elixir with which the trade fair is activated and OGUNCCINA is eternally grateful for the wonderful gesture of the company,” he said.

He said the 13th Gateway International Trade Fair with the theme: “Achieving Economic Prosperity through Business Connection, Trade and Investment, “is aimed among others, to allow businesses to expand their reach, access new markets, and diversify their customer base. He emphasized that forging robust business connections, participating in trade activities, and making strategic investments will unlock new markets, stimulate economic growth, and enhance overall prosperity.

The Regional Sales Director, Dangote Cement PLC, Lagos/Ogun, Mr Tunde Mabogunje in his goodwill address, assured Ogun state government and OGUNCIMMA of the continuous support of the company, noting that the Group is dedicated to enhancing the prosperity of Nigeria by creating opportunities for Nigerians and businesses in the country.

Mabogunje said visitors to the Dangote Group’s pavilion at the fair will have the opportunity of buying products of these companies at reasonably reduced prices as the Dangote businesses will be selling at discounted prices.

He also hinted that the Dangote Refinery will be part of the next edition of the Trade Fair.

“We want to appreciate Ogun state for bringing us as a partner. We want to assure you that we will be here next year bigger. By next year, our refinery will be part of the Trade Fair,” he said.

Governor Dapo Abiodun who visited the Dangote pavilion immediately after performing the ribbon-cutting ceremony, commended the company and others for supporting the Trade Fair which he noted is aimed at stimulating economic growth.

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