Author: Judith Ratau

By Terungwa Isaac

Abuja — The impact of Covid-19 on the Nigerian economy is profound. Nigeria’s economy was on the path of recovery from the 2016 recession before the pandemic struck. Growth slowly rebounded in 2017 and 2018 in part because of rising oil prices, increase in agricultural production and services. By 2019, Nigeria’s annual Gross Domestic Product (GDP) peaked at about 2.2 percent.

However, efforts of governments to contain the virus combined with the volatility and collapse of global oil prices have put the brakes on economic activity erasing the rebound and modest gains made in recent time.

This development is worrisome. What started as a health crisis has seeped malignantly into every facet of society including the housing sector. The pandemic has significantly weakened national finances and compromised emerging pillars of economic growth.

The World Bank in a recent report titled, “The Nigeria Development Update: Nigeria in Times of COVID-19: Laying Foundations for a Strong Recovery,” predicted that in 2020, Nigeria’s economy is expected to experience its worst recession in four decades. In the baseline scenario, the report says that the economy would contract by 3.2 percent this year.

This assumes an annual average oil price of $30 a barrel. It also assumes that the spread of COVID-19 eases by the end of the second quarter and is contained by the third quarter of 2020.

It added that with the uncertainty of the long-term economic impact of the global COVID-19 (coronavirus) pandemic, the speed, quality, and sustainability of Nigeria’s economic recovery will be determined by the effectiveness of its government’s response.

The broad import of this analysis is that governments at all levels and leaders of institutions that are designed to stimulate growth of critical sectors of the economy must redouble efforts to ensure quick economic recovery.

It is against this background that the ambitious efforts and initiatives of the Federal Mortgage Bank of Nigeria (FMBN) to ramp up housing stock development is so vital.

FMBN Mini Cities

One of the latest of such initiatives is a plan to finance the development of FMBN Mini Cities. The project targets the development of 20,000 housing units annually over the next five years and is to be implemented in collaboration with reputable real estate developers. According to the design, each project site planned to host between 1,000 to 2,500 units per project site. The house types include two bedrooms, 3 bedrooms and some terraces to cater for different income categories of Nigerians.

According to the plan, off takers – that is – persons that are interested in purchasing the houses through loans that will be provided by FMBN, would to be profiled at the inception of each project with strict adherence to the delivery timeframe.

and 2.5 indirect jobs.

The big idea is that the projected increase in housing construction owing to the FMBN housing projects would help to accelerate economic recovery and promote economic inclusion by creating thousands of jobs for craftsmen and artisans such as masons, plumbers, welders, electricians, and painters

The National Affordable Housing Delivery Program

Interestingly, the FMBN Mini Cities project and 5,000 Housing Delivery Plan would build on the momentum of the National Affordable Housing Delivery Program for Nigerian workers, which the FMBN is already implementing in partnership with the Nigeria Labor Congress (NLC), the Trade Union Congress (TUC), and the Nigeria Employers Consultative Association (NECA).

In the first phase of the programme, about 2,600 housing units are being delivered in thirteen (13) states across the six geopolitical zones of the country in addition to Lagos and Abuja, in batches of a minimum of 200 units per zone. House types include finished semi-detached bungalows as well as 1-, 2- and 3-bedrooms in blocks of flats.

Under the phase one, the FMBN sought and received five hectares of land from the participating states, while it provided construction finance to reputable estate developers to carry out the construction work. Potential beneficiaries are workers that are registered with the National Housing Fund (NHF) Scheme and contribute 2.5 per cent of their monthly income.

It is a good thing to note that the second phase of the FMBN and Labour National Affordable Housing Delivery Program for Nigerian workers is about to start as stated by the FMBN MD/CEO, Arc. Ahmed Musa Dangiwa. According to him, the bank is now requesting interested State Governors to provide up to 10 hectares of land for the siting of the expanded housing scheme in their states.

In conclusion, today’s unprecedented crisis will require an equally unprecedented response from the entire Nigerian public sector, together with the private sector. The Nigerian economy is expected to contract in 2020 by at least 3 percent. The slump in global oil prices will slash exports: more than 80 percent of Nigeria’s exports derive from the oil sector. Against this backdrop, the FMBN housing initiatives being planned in line with the National Economic Sustainability Plan (NESP) of the federal governments will contribute towards stimulating inclusive economic growth and driving recovery. It is therefore important that government and relevant stakeholders in the housing industry support the Board and Management of FMBN as they work to achieve these laudable plans.

Terungwa is a policy analyst based in Abuja.

Ishemunyoro Chingwere Business Reporter
The Zimbabwe Miners Federation (ZMF) has signed three strategic partnerships aimed at capacitating small scale miners in their quest to ramp up production in line with the Government’s vision of growing mining to a US$12 billion industry by 2023.

The partnership deals saw the small miners body signing agreements with the country’s largest commercial bank, the Commercial Bank of Zimbabwe (CBZ), Ali Japan786 – a company that is in the automobile industry and the Central Mechanical and Engineering Department (CMED).

CBZ are coming on board as a banking partner and have committed to cover the funding gap that has for long dogged the small scale mining sector.

The Ali Japan786 deal will see small scale miners getting access to motor vehicles and mobile mining machinery on flexible payment terms.

The signing of the deal immediately saw the Japanese investor committing to ship in at least 200 vehicles for distribution to the small scale miners and these will be delivered before the end of this year.

With power challenges identified as one of the biggest challenges bedevilling the sector, CMED are coming on board as a partner in the provision of fuel on flexible terms that will ensure miners can get on with production with minimum disruptions.

Mines and Mining Development Minister Winston Chitando who is also ZMF patron graced the signing ceremony on Friday and said it was a step in the right direction towards addressing some of the biggest challenges threatening the viability of small scale mining.

He said the Government’s wish is to grow their operations to a stage where they can be viewed in the same breath as large scale miners.

“I also wish to recognize the importance of the event we are having,” said Minister Chitando, “One could be tempted not to realise the importance of this event.

“One of the key inputs which have constrained the development of the small scale miners is funding structures for equipment and for working capital.

“And the very important initiative which has been done today between ZMF and the three partners we say is well-done.  It is very important that our mining industry facilitates the growth of small scale miners by size and also for them to graduate from ZMF and join the Chamber of Mines of Zimbabwe when they are now large scale miners.

“With initiatives like what we have today it’s the beginning of a process of that happening and I know it’s a dream which the president of the federation has,” he said.

Minister Chitando also challenged the ZMF president Ms Henrietta Rushwaya and her executive to continue striving to begin partnerships that help to capacitate the small scale miner.

He also announced that the Government will soon unveil other initiatives, in consultation with ZMF, which are meant to capacitate small scale miners.

Speaking at the signing ceremony, Ali Japan786 representative Mr Ali Mohammed said his company sees a lot of potential in the small scale mining sector and is coming in to play a part in the realisation of that potential.

“These are people with a big role in the development of the Zimbabwean economy as highlighted by Minister Chitando,” said Mr Ali.

“So we are coming in as a company to make sure that we support them with logistics in the operation of their business. For a start we will be bringing in a total of 200 vehicles before the end of this year which we will avail to the miners.

“We will be advancing the vehicles on very flexible terms where people can pay in three to six months,” he said.

ZIMBABWE’s agriculture sector – which for many years has struggled to achieve its full potential due to a number of challenges, including lack of financing, research, training and suitable markets – is set for a boost following the launch of AgroFuture, an agribusiness package offered by Steward Bank in partnership with Cassava Smartech Zimbabwe’s business units.

Through AgroFuture, the bank is offering financing to farmers for various tailor-made solutions and services which will be accessed through Cassava Smartech entities.

Steward bank, Zimbabwe’s largest bank by depositors, will leverage on internal partnerships with entities such as Ecofarmer, Vaya, EcoSure and Moovah to provide unique solutions that embody the term ‘smart farming’.

The digitised solutions that the bank’s clients can look forward to include a trading platform for farmers, linking them with aggregators to bring together small-scale farmers and buyers to provide better value, increase profitability and foster inclusion.

The country has been mulling introducing a commodities exchange to ensure that farmers get real value for their products, but the idea has up to now not come to fruition. This has resulted in the majority of small-scale farmers giving away their produce for a song to middlemen who have access to markets.

But now, with AgroFuture, farmers will be guaranteed markets for their crops, ensuing better margins for farmers and increased productivity.

Similarly, to ensure farmers have access to affordable agricultural implements, Vaya tillage services will cater for farmers seeking working capital for land preparation by contracting them through Vaya tractor, while In-App financial literacy tools will assist farmers with budgeting and planning for inputs and services.

Some of the additional and exciting solutions under AgroFuture include crop, livestock and equipment insurance, financing towards sustainable energy solutions and bespoke financing solutions, including Collateral Management Agreements (CMA), Warehouse Financing and Stock Monitoring Arrangements (SMA).

AXIS Pensions Trust Limited has rolled out an educative programme on personal finances to help sensitise the public to the rudiments of proper financial management.

Dubbed ‘Axis Smart Money Talk,’ the programme features a discussion with an expert on finance and is broadcast virtually on the company’s Facebook page.

In a release on the programme, Axis Pensions said the initiative was meant to help answer the “many pressing questions” that Ghanaians had on personal finance.

It said in spite of the pertinent nature of personal finances, not many people were exposed to information that would help them take the relevant decisions to improve their lots and protect their finances.

“The ‘Axis Smart Money Talk’ has been introduced to fill that void,” the statement copied to the Daily Graphic said.

Topics

It explained that the ‘Smart Money Talk’ was an interactive talk show hosted by Axis Pension on Facebook live on facebook.com/axispensiontrust.

It said the programme was designed to empower Ghanaians to take control of their personal finance.

The release explained that the discussion topics included budgeting, debt management, estate planning, saving and building wealth.

Series on housing

It said housing was one critical priority of most Ghanaians and the company had decided to dedicate the entire October to discussing ways people could own homes.

“Securing real estate, either for business or for residential purposes is a huge undertaking.”

“In certain instances, the acquisition of real estate is conducted at the expense of liquidity in old age,” it said and added that the company had partnered with the First National Bank Ghana (FNB) to undertake the series housing.

It explained that the discussions would be interactive and focused on providing viewers with viable alternatives for acquiring property while also planning to retire in style.

It said among other people, the Executive Head of Home Loans at FNB, Mr Kojo Addo-Kufour, and Real Estate Consultant, Madam Dansoaa Adote, would be featuring as guests.

“These experienced and well-resourced experts in the real estate field have been assembled to discuss various related topics including ‘financing my dream home, ‘building wealth through real estate’ and ‘retirement planning and real estate – getting it right.”

The statement advised the general public to take charge of their financial future by joining the discussions to be informed.

It said the discussions would take place on October 7, 14 and 21 at 4pm on the Axis Pension Facebook page.