BUSINESS
Residential Mortgage Contributions Hit N7bn in Six Months – Agudah
By Tony Obiechina, Abuja
The Chief Executive Officer (CEO) of the Pension Fund Operators Association of Nigeria (PenOp), Mr. Oguche Agudah on Thursday disclosed that a total of N7,887,611,972, 93 equity contributions for a residential mortgage were approved between March -September 2023.
Mr. Agudah who disclosed this at a virtual Media Parley organised for the Pension Correspondents Association of Nigeria (PENCAN), Abuja Chapter said, the amount may double in the coming year as many people are jostling to have their own homes.
Recall that the National Pension Commission (PENCOM) last year issued guidelines on how to access a retirement savings account (RSA) balance towards payment of equity contribution for a residential mortgage.
That was as a result of the window created by the Pension Reform Act 2014 (PRA 2014) which made provision for RSA holders to use part of their retirement savings as equity contributions for residential mortgages.
Based on the guidelines, a maximum of 25 percent of the total RSA could be used as equity contribution for residential mortgage purposes.
The PenOp CEO also disclosed that a lump sum of N1.63 trillion was paid to 443,000 Retirees as a life annuity in the last 15 years.
He noted that the amount increased from N1.51 billion paid to 331 applicants in the Third Quarter of 2011 to N665.13 billion paid to 111,708 applicants in the Second Quarter of 2023.
Speaking further on the gains, pains, and way forward for the industry as it prepares to mark 20 years in 2024, Agudah said, the industry has grown from 2,543,178 clients in 2007 to 10, 023,314 in July 2023.
Agudah said the 2004 Pension Act has sanitized the pension industry in Nigeria, adding tha a recovery of outstanding pensions of N24.8 billion was made by PenCom in the Third Quarter of 2023.
On Death Benefit, he said, a total of N356.32 billion was paid to 91,214 beneficiaries in the Second Quarter of 2023.
He also disclosed that a total of N208.86 billion was paid to 475, 000 Nigerians who lost their jobs from the 25 percent RSA balance.
The PenOp boss said, the investments made by the Pension Fund Administrators (PFAs) in the equity market have grown from N344.69 billion (15.36%) in the Third Quarter of 2011 to N1.54 trillion (8.88%) in the Third Quarter of 2023.
According to him, the PFAs’ investments in Corporate Debt have grown from N69.32 billion (3.09%) in the Third Quarter of 2011 to N1.86 trillion (10.70%) in the Third Quarter of 2023.
On plans for 2024, he said, apart from the celebration of 20 years of the PRA, there would be a greater focus on Micro Pension, adding that the 1 million target of the Micro Pension Plan (MPP) was not achieved because of Covid-19.
He listed other targets for next year to include revision of investment guidelines, more applicants and approvals for RSA mortgage, possible kickoff on Offshore investment and infrastructure consortium.
Also in her remarks, the PENCAN President, Mrs. Nana Musa thanked the PenOp for the parley.
She said, the micro pension scheme is underreported therefore, there is a need to create more awareness about the scheme in the coming year by consistently reporting it.
By Tony Obiechina, Abuja
The Infrastructure Concession Regulatory Commission (ICRC) says it will henceforth issue Outline Business Case (OBC) Certificate of Compliance and the Full Business Case (FBC) Certificate of Compliance within seven days.This follows the charge by President Bola Ahmed Tinubu to the Director General of the Commission, Dr Jobson Oseodion Ewalefoh “to accelerate investment in National Infrastructure through innovative mobilization of private-sector funding”.
President Tinubu also charged him to work assiduously to boost infrastructure development in Nigeria as part of the renewed hope agenda of the current administration.In view of the above, Dr Ewalefoh-led management team of the ICRC has streamlined the approval processes of the commission to issue its certificates of compliance within seven days. This will accelerate the turnaround time for approvals by the Commission.“In line with the charge of His Excellency, President Bola Ahmed Tinubu, GCFR, and following his Renewed Hope Agenda, we have streamlined and updated our approval processes to issue either of the Outline Business Case Certificate of Compliance (OBC) and the Full Business Case Certificate of Compliance (FBC) to Ministries, Departments and Agencies (MDAs) that meet the requirements within seven days.“This is part of efforts by the current administration to accelerate infrastructure development, bridge the infrastructure gaps and stimulate the economy through investment of private sector funds in Public Private Partnership endeavours.“By streamlining our processes, the Commission is in no way foregoing any of its stringent approval steps or key requirements, therefore, only business cases that are viable, bankable, offer value for money and meet all other requirements will be approved.“The ICRC cannot do it alone, therefore I implore all chief executives of MDAs to match our momentum and align with this charge of Mr. President to accelerate Infrastructure development and ensure that PPP projects are not stalled at any point but delivered within record time.“The Commission is ready to partner and collaborate with all MDAs to actualize this,” he said.In a statement by Ifeanyi NwokoActing Head, Media and Publicity on Monday the ICRC DG in August rolled out a six-point policy direction which among others, focused on accelerating PPP processes, boosting inter-agency collaboration and ensuring innovative financing.The ICRC was established to regulate Public Private Partnership (PPP) endeavours of the Federal government aimed at addressing Nigeria’s physical infrastructure deficit which hampers economic development.
By Tony Obiechina, Abuja
The federal government in the second quarter of 2024 generated a total of N1.56 trillion from Value Added Tax. This is a 9.11 percent increase from the N1.43 trillion in Q1 2024.
According to the National Bureau of Statistics report, local payments recorded were N792.
58 billion, foreign VAT payments were N395. 74 billion, while import VAT contributed N372. 95 billion in Q2 2024.“On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44%, followed by agriculture, forestry and fishing with 70.26%, and water supply, sewerage, waste management and remediation activities with 59.
75%,” NBS reported.“On the other hand, activities of households as employers, undifferentiated goods and services producing activities of households for own use had the lowest growth rate with 46.84%, followed by Real estate activities with 42.59%.
“In terms of sectoral contributions, the top three largest shares in Q2 2024 were
manufacturing with 11.78%; information and communication with 9.02%; and Mining and quarrying with 8.79%.
“Nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organisations and bodies with 0.01%; and Water supply, sewerage, waste management and remediation activities with and real estate services 0.04% each.
“However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82% from Q2 2023.”
By Tony Obiechina, Abuja
Development Bank of Nigeria (DBN) has conferred its 2023 Award for Microfinance Bank with the Highest Impact on Start-Ups on Richway Microfinance Bank in recognition of its unwavering commitment to fostering entrepreneurship in the country.The award also attests to the micro lender’s dedication to empowering small businesses and driving economic growth through innovative financial solutions.
Since its inception, Richway Microfinance Bank has been at the forefront of providing accessible financial services to underserved communities. The bank’s focus on start-ups, particularly in the challenging economic landscape of Nigeria, has set it apart as a leader in the microfinance sector. By offering tailored loan products, savings and investments products with high returns, and business advisory services, Richway has enabled countless entrepreneurs and business owners to turn their ideas into thriving businesses.In 2023, the bank’s impact on start-ups was particularly profound. Through strategic partnerships and an in-depth understanding of the unique challenges faced by new businesses, Richway Microfinance Bank extended its reach, offering critical support to over 500 start-ups.These initiatives not only provided much-needed capital but also helped entrepreneurs and business owners build sustainable business models, manage risks, and scale their operations.Speaking on the award, the Managing Director of Richway MfB, Adenrele Oni, said the “DBN’s award represented a significant milestone for Richway in its sustained efforts to boost Nigeria’s economy and reflected the bank’s role in driving innovation and entrepreneurship, which are key drivers of Nigeria’s economic diversification efforts.”According to him, the award also underscores the importance of microfinance institutions in bridging the financial inclusion gap, particularly for small businesses that often struggle to access traditional banking services.While thanking the DBN’s management on the recognition of the micro lender’s support for MSMEs in 2023, Oni reiterated the bank’s commitment to continuing its mission of empowering entrepreneurs and contributing to Nigeria’s economic development.He assured: “As Richway Microfinance Bank celebrates this achievement; it remains focused on the future, with plans to expand its offerings and reach even more start-ups in the coming years.”
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