Stories by Omodele Adigun
“If you want to buy a home for yourself in Nigeria, you can take advantage of mortgage loan,” says Samantha Taylor , a community mentor of MortgageFit .
Writing on an online platform, Financial Freedom Inspiration, Taylor explains steps to obtain housing loan in the country:
‘You can get loan from different banks, with different loan terms and conditions. Prior to going to a lender, you can find out how much mortgage you can afford, by using online home mortgage calculator.
Mortgage loans are offered to Nigerians through accredited mortgage lending organisations and banks across the country. The Federal Mortgage Bank of Nigeria (FMBN) issues home mortgage loan through banks and raises fund for the loans through the National Housing Trust Fund (NHTF).”
Requirements for mortgage loan
‘You need an introduction letter from your current employer to ensure that you are a permanent employee of that company. ‘You need to have copies of documents related to the property you want to purchase. ‘You need to produce a valuation report of the property where the purchase is from an original allottee. The valuation report should be accompanied by photographs, taken from all angles of the property.
‘You need to give a cash flow projection on repayment of the loan, where the processing fee will be 0.25 per cent annually, management fee will be 0.5 per cent quarterly, annual interest rate will be 15.75 per cent and at least 2.5 per cent of the loan amount will include fee towards perfection and sundry charges.
‘You have to produce salary stubs of last three months, to prove that you have a good steady income and you can afford to repay the loan amount. ‘You have to produce your bank account statement of last six to 12 months. ‘You need to produce an offer letter from the agent confirming your interest to purchase the property.
You can also take advantage of NHTF mortgages, even if you are a non-resident Nigerian. In that case, you will need to have a National Housing Trust number, to be eligible to get the loan. However, the interest rate of the loan will be higher, so, you can use an online home mortgage calculator, to find out whether or not you can really afford to take the loan.’
National Housing Fund (NHF)
The NHF scheme, according to the Federal Mortgage Bank of Nigeria (FMBN), is for Nigerians in all sectors of the economy, particularly those within the low and medium income levels such as civil servants, traders, artisans, commercial drivers etc. who cannot afford commercial housing loans Any intending beneficiary must be registered contributor and up to date with his/her contributions.
The 2.5 per cent of monthly basic salary contribution qualify you to access the loan. The pool of funds created by the contributors nationwide becomes available to any contributor to borrow from, after contributing for a minimum of six months.
A contributor interested in obtaining NHF loan applies through a registered and duly accredited mortgage loan originator like Primary Mortgage Institution (PMI), who packages and forwards the application to FMBN. The loan amount is determined by the applicants affordability. This entails his/her income level that will enable repayment of the loan. Documents required to process a loan include: Completed application form, Photocopy of title documents. Current valuation report on the proposed house to buy or bills of quantities (BOQ) for the house to build. Three years tax clearance certificate.
Evidence of NHF participation Copy of pay slips for the previous three months.Equity contribution or personal stake of 30 per cent, 20 per cent or 10 per cent depending on the loan amount applied for.Mode of repayment
NHF housing loan are repaid on monthly installation from the monthly income of the beneficiary. This mode of repayment has the advantage of being both affordable and convenient.
Collateral The only collateral is the property in question. No any other collateral is needed to secure the NHF loan.
A contributor is eligible to access a maximum loan amount of N15million repayable over a maximum period of 30 years at an affordable interest rate of six per cent.
Can I obtain NHF loan to purchase a piece of land to build a house?
No. A prospective applicant who wishes to obtain a loan to build a house is expected to have his/her land as well as an acceptance title to the land prior to the application for NHF loan.
Can I get loan as an individual to build a house or must I buy a government owned estate or a private estate developer?
Yes. You can apply as an individual for NHF loan to develop a land or buy directly from government consort estate or private estate developer.
Ecobank launches mobile app to promote cashless economy
By Job Osazuwa
Ecobank Nigeria has launched its mobile application, an instant way of banking through the mobile telephone.
At the launch in Lagos, Ecobank Nigeria’s Managing Director, Charles Kie, said Lagos is a growing hub for entrepreneurship and technology. He explained that the enormous prospects in the state was what informed the bank’s decision to choose Lagos to unveil the mobile application.
The new platform is said to reduce the need to carry cash, and gives customers the opportunity to deposit money through a mobile transfer.
He added: “This new product will allow customers in Nigeria to grow their businesses by giving them a convenient and secure way of banking. We believe that anything is possible, and with the launch of this application, we are creating a completely different and exciting experience in banking with Ecobank. “
He assured its teeming customers that the mobile application would open up different business opportunities for Nigerians.
While unveiling the application, the Group CEO of the banking group, Ade Ayeyemi, stated that the bank considered its customers spread across 33 African countries while designing the application.
“We give them priority with the way we do business and the bank is present not only in these countries, but in the minds of every single customer,” he stated.
He added that the financial institution is creating a platform that will benefit everybody, enabling them to make transactions and run their businesses effortlessly.
Ayeyemi boasted that it was the first unified application delivered by any institution for use in 33 countries.
“We are focused on linking the ambitions of our numerous customers everywhere and make them a reality, using financial services.
“It is not simply about the 11 million customers we serve, but through robust partnerships, we have brought a coalition in the banking industry. Now, you may not need to be going about with cash,” he said.
According to the bank, the technology is about transforming payment not simply in Nigeria, but Africa in general, for businessmen and women, students and others.
Ayeyemi added that the mobile application opens up opportunities for customers by allowing them to shop and transact businesses without cash.
He informed: “Through its purchasing power and Ecobank’s partnerships with Visa and Mastercard, the Ecobank Mobile App will be an accepted means of payment. With its removal of barriers to entry and affordable price points, the Ecobank Mobile App will empower the consumer to be on the move.”
Leveraging the power of digital banking, the mobile app is predicted to give Ecobank, in the nearest future, the scale and capacity to achieve its 100 million customers target in a profitable and sustainable way.
It was revealed that with a mere click or two on the Ecobank Mobile App, customers can open a new digital account with no paper references.
The Ecobank Group Executive Consumer Banking, Patrick Akinwunta said the launch had fulfilled the bank’s promise of creating relevant solutions for consumers. In his words: “With the Ecobank Mobile App, Ecobank customers can make and receive instant payments across 33 African countries. They can also pay in store with their mobile phones.”
He demonstrated how to make a payment, how to send and receive money to merchants using Ecobank Masterpass QR technology, as well as explaining the process of opening an XpressAccount.
FCMB urges media to embrace creative thinking
To effectively discharge their responsibilities, the media practioners should adopt creative thinking and innovative skills in order to meet the demands of today’s fast-pace age.
According to the Chief Executive of Corporate Shepherds Limited, Mr. Idorenyen Enang, journalists should always ensure due diligence and uphold the ethics of the media profession in line with global best practices.
Idorenyen , who gave the charge at a media parley organised by First City Monument Bank (FCMB) Limited for financial journalists Tuesday in Lagos. The interactive forum, attended by correspondents covering the money and capital markets in addition to other spheres, is part of the bank’s initiatives to promote excellence, build capacity of media practitioners, spur ideas, deepen relationships and appreciate their role in the dissemination of quality and balanced communication within the country and beyond.
Speaking on the topic, ‘Raising the Bar’, Enang, who was the guest speaker, stated that considering the ongoing challenges and reforms in the country, a lot is expected from the media, especially financial journalists, in terms of creative thinking, fact analysis and bringing innovation to bear.
“It is imperative for media practitioners to re-create a mental shift and a transformational mindset that will boost their growth from being ‘just correspondents’ to agenda setters and solution providers’’.
Enang, a former Managing Director of Samsung Nigeria and Marketing Director of Cadbury Nigeria Plc, added that, ‘’it is important to emphasise that boosting creative and innovative abilities takes attentive practice. Creativity is the development of ideas; innovation is the execution of those ideas. So, we cannot be innovative without first learning how to think creatively. Recognizing and honing one’s creative potential is a process’’.
In his comment, the Group Head, Corporate Affairs of First City Monument Bank (FCMB), Mr. Diran Olojo, restated the bank’s commitment to continually engage and impact on the media and other stakeholders in a sustainable manner.
He added: “Given the importance of the media, especially financial journalists, this session presents a platform to empower the fourth estate of the realm, highlighting their role as key influencers, and arming them with the requisite knowledge that promotes values of professionalism and ethics. As a financial institution, FCMB is driven by the culture of excellence. We believe that our success as an organisation is hinged on our ability to ensure the long term success of all our stakeholders.
We need the full support of the media to actualize this objective.”
On our part, we will continue to provide constant support for the media in their drive to practise and uphold ethical journalism at all times and in all situations’’.
Mr. Olojo told the gathering that FCMB has continued to deliver cutting edge solutions that provide the best customer experience. He added that the Bank is resilient and focused on sustaining the momentum of its leading retail presence, while supporting customers and sectors that will drive the prosperity of the markets in which it operates and Nigeria in general going by its status as an inclusive lender.
FCMB has continued to transform itself from being one of Nigeria’s leading investment banks to one of the fastest growing retail banks. The financial institution has branches and alternate channels all over Nigeria. This year, the Bank has acquired an average of 53,000 new customers’ monthly and has continued to maintain this steady acquisition momentum.
Over the years, FCMB has organised series of initiatives to boost the skills and capacity of the media. Among others, the Bank in 2015 hosted journalists in the new media sphere to a parley under the theme, ‘’Stimulating Responsible New Media Journalism: A Pathway to International Recognition’’, which had a globally acclaimed journalist, Mr. Inigo Gilimore, as the facilitator, among other seasoned professionals. In 2014, the Bank organized a similar initiative with the theme, “Sustainable Banking in Nigeria: The Role of the Media”. It had the Managing Director of UK-based Sustainable Finance Advisory Limited, Carey Bohjanen, as guest speaker.
First City Monument Bank (FCMB) is a member of FCMB Group Plc, which is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments. Having successfully transformed to a retail and commercial banking-led group, FCMB expects to continue to distinguish itself by delivering exceptional services, while enhancing the growth and achievement of the personal and business aspirations of its customers.
Recession: ‘Microfinance banks critical to family survival’
Chief Executive Officer of a non-governmental organisation, Grooming Centre, Dr. Godwin Nwabunka, has said microfinance banks play a critical role in the survival of families during economic recession.
Speaking at a press conference in Lagos recently to brief journalists of activities to mark its 10 years anniversary , Nwabunka said this can be achieved through their inclusion-driven financial services and loans to small business holders. He expalined that the centre had given out N4.5 million loans since its inception, operating on a model of simple transparency of operation and creating opportunities for females.
He said: “Microfinance institutions and banks become the most active parts during recession. You have to ensure that households survive. There has to be food on the table, children have to go schools, and need access to health, and sanitation. They don’t understand recession. The micro enterprises at the bottom level of the pyramid need to ensure there is food on the table. By empowering those women, Microfinance sector becomes a safety net for ensuring the system doesn’t fail
“At Grooming Centre, we are promoting a simple model of financial inclusion that is based on simplicity of approaches and transparency of operation. In terms of numbers, we have done over 4.5 million loans in 10 years. At the moment, World Bank is working on universal access that is aimed at providing about 20 billion people with loans. In Nigeria, Grooming Centre has been identified as partner in the signing-off taking place November in Washington DC.”
He added that the company started with giving out 15,000 naira loan but has now been raised to between 60,000 and 150,000 naira saying that non-financial benefits in the value being derived from loans.
“But for us the issue is not the volume of money you put out, but the impact it made. How much has it changed the lives of the people? Apart from the financial benefits, what other non-financial benefits are you getting at household levels? How is it impacting on your family cohesion health of you children? Those are the things we want to find out beyond financial benefits.
According to him, microfinance has been able to record monumental achievements including support and recognitions from global institutions, low portfolio risk and over 400 branches across Nigeria because of its global best practices.
Also speaking, the Orangun of Oke-Ila and Chairman, Board of Directors, Grooming Centre, His Royal Highness Oba Adedokun Abolarin, urged the Federal government to partner with the institution to impact the lives of people at the grassroots.
Grooming Centre which was founded in 2006 will be celebrating its anniversary in December 6 with various activities.