The Nation Newspaper

Category: Equities

  • FBN Holdings eyes better returns with less risks

    FBN Holdings Plc, the holding company for First Bank of Nigeria and its former subsidiaries, has started implementation of key growth strategies that are expected to significantly reduce non-performing loans to single digit and simultaneously grow returns to shareholders considerably in the years ahead.

    The management of FBN Holdings yesterday presented the underlying facts of the group’s operations to the investing public at the Nigerian Stock Exchange (NSE). The financial services holding group said the ongoing growth strategies will boost its revenue and shareholders’ value, starting from the current business year.

    Group Managing Director, FBN Holdings Plc, Mr. UK Eke, said non-performing loans (NPL) would reduce to single digit within the next 24 months on the back of active remediation of top exposures. Already, about five per cent of the loan book has been restructured with oil and gas loans constituting 70 per cent of the restructured portfolio in 2016.

    He outlined that the group has set out six key targets that will reinforce the group’s overall performance in the years ahead including a single digit NPL, cost of risk less than two per cent, cost to income to be less than 50 per cent, enhanced revenue, return on equity to be greater than 20 per cent and improved dividend distribution.

    He added that the company is addressing the needs of its customers and stakeholder in delivering structural changes in risk-taking culture, processes and oversight; maintain sustained improvement of cost and capital efficiency; enhanced revenue growth across the group and create digital competency to enhance revenue and service delivery.

    Eke added that the subsidiaries under the Holdings company will execute innovation project to identify new revenue streams, saying there is a plan across the group to grow  20 to 25 million customer accounts within the current strategic cycle.

    He said that the company will focus on improving revenue generation across the group noting that the group’s investment banking and insurance businesses have been showing improved performance with 11.5 per cent and 18.7 per cent growth in revenue.

    He said that the group will draw on its extensive commercial banking retail network to deepen market penetration across the group pointing out that the group has started to reap benefit of its digital banking strategy with increased contribution from e-banking solution.

    The group’s firstmobile/online platform has seen some 900,000 users enrolled since inception in September 2015. With one million digital customers, there were 19.7 million transactions in 2016.

    Eke said one of the group’s priorities is to attract 25 per cent of the bank’s active customer base to digital channels by 2019 and to reach the unbanked and under-banked through agent banking.

  • Oando concludes 396.8m shares debt-to-equity deal

    Oando Plc yesterday concluded a debt-to-equity conversion with the listing of about 396.8 million ordinary shares that resulted from the transaction at the Nigerian Stock Exchange (NSE). The transaction was valued at N3.17 billion at the closing value of the integrated energy group.

    The listing of the conversion shares increased Oando’s outstanding paid up shares from 12.034 billion ordinary shares to 12.431 billion ordinary shares. Oando’s market capitalisation however increased slightly from pre-conversion value of N99.082 billion to N99.451 billion after Oando’s share price dropped by 15 kobo or 1.84 per cent from opening value of N8.15 to close yesterday at N8 per share.

    Oando had doubled its turnover in the first quarter of this year as the indigenous energy group continued to reap from its strategic focus on assets optimization and deleverage.

    Key extracts of the three-month report for the period ended March 31, 2017 showed that Oando Group grew its top-line by 116 per cent to N138.27 billion in first quarter 2017 compared with N63.9 billion recorded in comparable period of 2016. Gross profit also increased by 53 per cent from N8.7 billion in first quarter 2016 to N13.4 billion in first quarter 2017. The company recovered from a pre-tax loss of N461 million in first quarter 2016 with a pre-tax profit of N494 million in 2017. The company also reduced its net indebtedness by 29 per cent from N316.6 billion in first quarter 2016 to N225.9 billion in first quarter 2017.

    Group chief executive officer, Oando Plc, Mr. Wale Tinubu, said that Oando’s strategy of growth across its business operations; deleverage through the divestment of non-performing assets; and Profitability, by focusing on dollar denominated export earnings, has continue to steady the group against global and national economic headwinds.

  • Access Bank, UBA, others hit highs as equities sustain rally

    Several stocks set new highs on Thursday as Nigerian equities continued their rally amidst increased investors’ appetite for bargain stocks across the sectors. Two first-tier banks- United Bank for Africa (UBA) and Access Bank, the two leading agricultural stocks-Okomu Oil Palm and Presco, Seplat Petroleum Development Company and May & Baker Nigeria Plc spiraled to their highest prices in more than 12 months on Thursday.

    With exactly three advancers to every decliner, the benchmark indices at the Nigerian Stock Exchange (NSE) indicated an average gain of 0.77 per cent yesterday, equivalent to net capital gain of N87 billion. The average year-to-date return also improved to 22.56 per cent, providing equities investors with positive inflation-adjusted returns.

    Several other stocks in the banking, industrial goods and consumer goods also continued to trade around their highest prices in spite of recurring profit-taking transactions that seek to convert and lock in capital appreciation.

    Seplat, the highest gainer for the second consecutive trading session, recorded a gain of N39.13 to close at N425 per share, its highest price in more than a year. Seplat is riding on the back of the lifting of Force Majeure on Forcados export terminal, which is expected to boost production volumes, forward earnings and cash flow of Seplat. Okomu Oil Palm recorded the fourth highest gain of N2.88 to set a new 52-week high of N60.63. Presco followed with a gain of N2.83 to close at a new high of N59.53.

    Also, May & Baker Nigeria continued to ride on its new domestic vaccine production partnership with the Federal Government, adding 23 kobo to close at a new high of N2.59. United Bank for Africa rose by 38 kobo to a new 52-week high of N8.84 while Access Bank consolidated its tier-one capitalisation with a gain of 70 kobo to close at a new 52-week high of N10.27.

    Overall, aggregate market value of all quoted equities at the NSE rose from its opening value of N11.300 trillion to close at N11.387 trillion. The All Share Index (ASI), the benchmark index for quoted equities, appreciated to 32,937.98 points as against its opening index of 32,686.72 points.

    There were 45 gainers to 15 losers. Sectoral indices showed widespread positive sentiment. The NSE Oil & Gas Index rose by 4.9 per cent. The NSE Banking Index appreciated by 3.0 per cent while NSE Consumer Goods Index rallied 1.3 per cent. On the negative side, the NSE Industrial Goods Index declined by 1.0 per cent while the NSE Insurance Index slipped by 0.2 per cent.

    Other top gainers yesterday included Forte Oil, which rose by N5.41 to close at N58.33; Total Nigeria added N4.49 to close at N279.50, International Breweries rallied N2.71 to close at N29.24, UAC of Nigeria gathered N1.70 to close at N18.53, Nigerian Breweries chalked up N1.49 to close at N156.50 while Cadbury Nigeria rose by N1.31 to close at N14.22 per share.

    Total turnover stood at 528.69 million shares valued at N4.84 billion in 5,603 deals. Banking stocks remained atop activities’ chart. Access Bank was the most active stock with a turnover of 81.82 million shares valued at N832.43 million. FBN Holdings followed with 71.42 million shares worth N471.73 million while United Bank for Africa placed third with 67.13 million shares worth N586.54 million.

    On the downside, Dangote Cement recorded the highest loss of N3.97 to close at N205. Julius Berger Nigeria followed with a loss of N1.86 to close at N38. Guaranty Trust Bank dropped by 15 kobo to close at N33.55 while Lafarge Africa lost 11 kobo to close at N52.64 per share.

    “While the equities market is expected to ride on the positive developments in the economy, we note that that the run of gains over the past weeks may have limited the upside for some stocks. Nonetheless, we still maintain the market may be set for a “year round bull run” following the improved flexibility in the administration of foreign exchange and anticipated strong second quarter earnings season,” Afrinvest Securities stated in a positive review of equities outlook.

  • Shareholders approve Lafarge Africa’s N140b rights issue

    Shareholders approve Lafarge Africa’s N140b rights issue

    Shareholders of Lafarge Africa Plc yesterday authorised the board of directors of the cement company to raise new equity capital up to N140 billion in a major move to deleverage the cement group.

    Lafarge Africa plans to raise the new equity fund through a rights issue, implying that only existing and qualified shareholders will participate in the new issue. The shares will be pre-allotted to shareholders on the basis of their shareholdings as at a predetermined date.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent, has indicated it will subscribe fully to its rights. LafargeHolcim will pick up its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    With the approval by shareholders, the rights issue is expected to be launched in late September and finalised by the fourth quarter.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    He noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

    Balogun said the company has been positioned for better performance in the years ahead as benefits of the turnaround plan launched in the third quarter of 2016 were already counting in the fourth quarter of 2016.

    “We have increased local sourcing of critical materials to lower foreign exchange component of our operational costs. Finally, we are working on a new route to market initiative and improvements in logistics with increased vehicle turn-around and size of fleet of third party providers,” Balogun said.

    Group Managing Director, Lafarge Africa Plc, Mr. Michel Puchercos, said the acquisition of Unicem in 2016 was in line with the group’s capacity expansion plans.

    He noted that doubling of the production capacity of the Mfamosing plant in Calabar to 5.0 million metric tons per annum has contributed significantly to Lafarge Africa’s capacity and footprint in Nigeria as it provides an opportunity to increase the group’s share of the cement market in the South East and South regions.

    He added that the group plans to increase the use of alternative fuel or biomass and locally mined coal to lessen high energy cost and production disruptions due to gas supply shortages.

  • Portland Paints outlines growth plan

    Portland Paints and Products Nigeria (PPPN) Plc yesterday assured shareholders that it would consolidate its growth by implementing strategic initiatives that will boost performance in the new business year.

    At the annual general meeting in Lagos, Chairman, Portland Paints and Products Nigeria (PPPN) Plc, Mr. Larry Ettah, said the company proactively worked on cost reduction and optimization in all areas of its operations to ensure sustainable growth and value creation for stakeholders.

    He said the company will now focus on consolidation of all the initiatives that it launched in 2016 while implementing new strategic initiatives to drive growth in the new business year.

    “In 2017,  your company will focus on further consolidating on the initiatives we started in 2016, expand our distribution network and improve our brand visibility to ensure we deliver on our corporate objectives,” Ettah said.

    He pointed out that the company had recently concluded a new capital raising under which the company was able to raise two-thirds of the offer size.

    According to him, Portland Paints and Products Nigeria will continue to focus on its restructuring push to drive further growth and enable it deliver better value to all stakeholders.

    He noted that the company has started witnessing a turnaround as it reversed a loss of N232.98 million posted in 2015 with a modest profit after tax of N8.6 million in 2016. Turnover however dropped marginally by 9.0 per cent from N2.17 billion in 2015 to N1.97 billion in 2016.

    Portland Paints recently raised about N668.8 million in new equity funds from its recent shares issue. PPPN had in the first quarter of this year launched a rights issue to raise N1.02 billion from existing shareholders through a rights issue of 600 million ordinary shares of 50 kobo each at N1.70 per share. The provisional allotment for the rights issue was on the basis of three new ordinary shares for one ordinary share.

    Regulatory documents showed that a total of 393.42 million shares were validly accepted at N1.70 per share, totaling N668.8 million. The supplementary shares have been listed at the Nigerian Stock Exchange.

    The net proceeds from the rights issue would be used to restructure the company’s balance sheet and support its business expansion programme.

    In June 2013, UAC of Nigeria (UACN) Plc, Nigeria’s largest conglomerate, acquired the majority equity stake of 51 per cent in Portland Paints.

  • Equities sustain rally with N73b gain

    After rallying a whooping N329 billion gain last week, Nigerian equities reopened this week on the upbeat as investors continued to scramble for value stocks in the banking and consumer goods sectors. Benchmark indices at the Nigerian Stock Exchange (NSE) showed a day-on-day average gain of 0.73 per cent, equivalent to net capital gain of N73 billion.

    Most price changes closed on the upside as aggregate market value of all quoted equities at the Exchange rose from N10.048 trillion to close at N10.121 trillion. The All Share Index (ASI)-the value-based common index that tracks prices at NSE rose correspondingly from 29,064.52 points to close at 29,276.59 points.

    With 29 gainers t0 17 losers, nearly all sectoral indices closed positive, underlining the widespread buy sentiment driving trading at the market. The NSE Banking Index recorded above-average gain of 2.2 per cent. The NSE Insurance Index trailed with a gain of 2.0 per cent. The NSE Industrial Goods Index appreciated by 0.7 per cent while the NSE Consumer Goods Index rose slightly by 0.3 per cent. However, the NSE Oil and Gas Index declined by 2.0 per cent.

    Manufacturing stocks led the gainers’ chart. Presco recorded the highest gain of N1.99 to close at N51. Flour Mills of Nigeria followed with a gain of N1.01 to close at N21.24. Nigerian Breweries trailed with a gain of N1 to close at N146. Lafarge Africa appreciated by 55 kobo to close at N48. Guaranty Trust Bank added 52 kobo to close at N35.80. Ecobank Transnational Incorporated rallied 51 kobo to close at N10.80. Nascon Allied Industries appreciated by 40 kobo to close at N8.90. FBN Holdings rose by 39 kobo to close at N5.28. Zenith Bank garnered 37 kobo to close at N19.50 while Access Bank rose by 31 kobo to close at N7.90 per share.

    The market also witnessed significant increase in momentum of activities. Investors staked a total of N7.6 billion on 832.5 million shares. Diamond Bank was the most active stock with a turnover of 194.21 million shares worth N184.75 million. Champion Breweries followed with 83.97 million shars valued at N173.83 million while Guaranty Trust Bank placed third with a turnover of 76.59 million shares worth N2.81 billion.

    On the negative side, Seplat Petroleum Development Company led the contrarian stocks with a drop of N19.50 to close at N370.50. Seven-Up Bottling Company followed with a loss of N5.24 to close at N99.75. CAP declined by N2.20 to close at N32.05. Enamelware lost N1.46 to close at N27.87 while International Breweries dropped by 91 kobo to close at N21.05 per share.

  • Nestle Nigeria plans new investments to boost growth

    Nestle Nigeria plans new investments to boost growth

    Nestle Nigeria Plc is considering new investment proposals to strengthen its nationwide production and distribution networks with a view to driving the growth of the consumer goods company.

    Chairman, Nestle Nigeria Plc, Mr. David Ifezulike, told shareholders at the company’s annual general meeting in Lagos that company was considering a lot of investment proposals that should strengthen the operations of the company.

    He said parts of the investment proposals include expansion of its operations in the South East and South-South regions of the country adding that the company will make public announcement of the new investments at the appropriate time.

    Ifezulike commended government’s economic diversification agenda noting that the focus on non-oil sectors such as agriculture and solid minerals would boost national growth.

    He also commended government’s efforts at ensuring local sourcing of raw materials for manufacturing but urged that government needs to ensure availability of foreign exchange for critical raw materials, which cannot be sourced locally.

    He pointed out that the 2016 business year was a challenging year due to scarcity of foreign exchange, devaluation of the naira and unfriendly economic policies among others.

    Nestle Nigeria’s turnover increased by 20 per cent from N151.3 billion in 2015 to N181.9 billion in 2016 but profit after tax slumped to N7.9 billion in 2016 as against N23.7 billion recorded in 2015.

    Ifezulike said that the scarcity of foreign exchange and devaluation of the Naira led to increase in the company’s foreign loans portfolio.

    He however added that current foreign exchange policy by the Central Bank of Nigeria (CBN) has enabled the company to pay back most of its foreign loans.

    In his remarks, Managing Director, Nestle Nigeria, Mr. Mauricio Alarcon, assured shareholders that the company would continue to work to impact the society positively.

    According to him, every day, Nestlé Nigeria touches the lives of millions of people, from the farmers who grow its ingredients to the families who enjoy its products, to the communities where the company operates, and the rural environment upon which it depends.

    “Driven by its purpose that is: enhancing quality of life and contributing to a healthier future, Nestlé Nigeria is committed to enabling healthier and happier lives for individuals and families, local sourcing, capacity building for farmers and rural development,” Alarcon said.

    He assured that Nestlé Nigeria will continue to stay true to the confidence its consumers place in it to guarantee the highest quality standards in the brands they know and trust for healthy nutrition.

  • Capital market summit calls for economic policies’ review

    Financial pundits and business leaders yesterday called on the Federal Government to undertake a critical review of existing policies to realign both the fiscal and monetary policies to national aspiration for sustainable and inclusive growth.

    At the capital market summit organised by the Association of Stockbroking Houses of Nigeria (ASHON) yesterday in Lagos, economic and investment experts, leading financiers and business executives said there must be an alignment between government policies and national growth objectives.

    The summit under the theme: The Road to Nigeria’s Economic Recovery- The Capital Market Route, brainstormed on the Nigeria’s Economic Recovery and Growth Plan (ERGP) and the 2017 budget and concluded that the capital market remains the most viable linchpin for long-term sustainable economic growth.

    Former Governor of Anambra State, Mr. Peter Obi called for a review of the government’s privatisation programme to ensure that the programme realises its key objectives of saving and generating incomes to government and bringing efficiencies to public utilities.

    He described the current privatisation approach as “privatizing profit and sharing losses” as new owners of privatised assets continue to feed on public funds while holding on to the privatised assets without commensurate efficiencies.

    “We are the only country that privatises wrongly. I was in the United Kingdom when Margaret Thatcher decided to privatise British Airways and London Electricity among others. It was a deliberate policy that you have to get investors. In our own case, what we did was to privatise profit and share losses,” Obi said.

    According to him, to straighten the privatisation policy, government should enact a policy that sets limits and allows the privatised entities to be listed and raise funds from the capital market subsequently.

    He called for a discontinuation of government direct funding of privatised entities through financial interventions and institution of a framework that allows privatised entities to explore capital market to raise funds independently from the investing public.

    “Today you sell an asset to Mr. Obi, tomorrow he says the asset cannot work and government will intervene and give him more money. I am saying get these assets and sell them to the public. All the money you put into power assets, for instance, let them go to the capital market raise additional funds. When they are quoted in the capital market, their operations will become more open and efficient,” Obi said.

    The former Managing Director of Fidelity Bank said government should emplace capital market as cornerstone of its economic development programme noting that rather than resorting to borrowings, government should use the capital market for its infrastructural development.

    “Today we are borrowing from China to build airports. Go to South Africa, India, Turkey, they raise funds from the capital market to build infrastructure. These are institutions that are there deepening the market,” Obi said.

    He called for a deliberate incentive policy that encourages companies to access the Nigerian capital market and list their shares as part of efforts to build a sustainable economic development.

    According to him, in most jurisdictions, there are benefits and support for quotation on the stock market.

    The former Governor of Anambra State also called for immediate commencement of a national savings policy to build up savings that could serve as buffer in the period of economic downturn.

    “If there have been savings since we started exploring oil, we would have been in better position. But, forget about the past. It’s gone. So what can be done about tomorrow, we have to start saving now. If we have $100 billion savings today, most of the problems we have today will be solved. You can then tackle inflation and other issues,” Obi said.

    Director-General, Debt Management Office (DMO), Dr. Abraham Nwankwo, underscored the importance of creating and building capacity for wealth creation.

    He noted that the capital market remains a very critical institution to getting Nigeria out of economic recession and building long-term growth.

    Chief Executive Officer, Dunn Loren Merrifield Group, Mr. Sonnie Ayere, noted the need to align monetary policies with national economic agenda of the government pointing out that high interest rates are counterproductive to the development of the real economy.

    According to him, the strategy of increasing rates aggressively in a bid to address inflation concerns at this phase of Nigerian development cycle has become counterproductive to the domestic productive economy.

    “We therefore advocate for the removal of structural impediments and the implementation of an efficient policy shift towards the creation of an enabling productive environment – through a reduction in interest rates which would encourage industrialisation and subsequently create. Banks and Pension Funds will only begin to significantly fund the real sector when the only alternative investment outlets are low single digit rates. It is their search for yield that would bring much needed finance to the productive sectors,” Ayere said.

    He pointed out that it is only by making domestic cost of funds economically viable and creating and sustaining a positive yield curve that Nigeria will be able to direct savings including those of pension funds and bank deposits into the productive sectors of the economy.

  • UPDC optimistic of improved performance

    The board of directors of UACN Property Development Company (UPDC) Plc yesterday outlined ongoing initiatives aimed at repositioning the real estate company for improved performance.

    At the annual general meeting yesterday in Lagos, Chairman, UACN Property Development Company (UPDC) Plc, Mr. Larry Ettah said the board and management were working on repositioning the company to deliver better value to all stakeholders.

    He outlined that a key strategic imperative in 2017 is deleverage of the company, which is being achieved through deployment of an aggressive sales strategy, ongoing rights issue to raise new equity funds and divestment from low yielding investment properties.

    “The fundamentals of the company are strong; and the brand remains positioned to deliver value to all stakeholders,” Ettah said.

    He noted that the real estate sector remains an attractive investment destination for investors to hedge their risks against inflation and devaluation.

    According to him, regardless of the challenges facing the sector, some positive trends in recent time signpost impending growth in the real estate industry, including housing sector reforms, refinancing of mortgage loans and establishment of the Nigeria Mortgage Refinance Company (NMRC), rise in property, real estate sector transparency ratings, recapitalization of mortgage institutions and others.

    “We expect an improved economic environment in line with the projected recovery in 2017. The fundamentals of the real estate sector are still good given the size of the market and the estimated deficit in the housing sector,” Ettah said.

    He however urged the government to address challenges militating against property investors and developers including cumbersome and time-consuming processes for land acquisition, insecure land title, infrastructure deficiency, underdeveloped mortgage market and absence of reasonable interest rates among others.

    Key extracts of the audited report and accounts for the year ended December 31, 2016 showed that UPDC recorded turnover of N6.34 billion in 2016 as against N5.12 billion in 2015, representing an increase of 24 per cent. The company however posted a loss before tax of N1.78 billion in 2016 compared with pre-tax profit of N55.85 million in 2015. After taxes, net loss stood at N1.52 billion in 2016 as against net profit of N421.77 million in 2015.

    Ettah explained that increase in Monetary Policy Rate, recession, government policies and other un-abating economic vagaries in 2016 had negative impact on the performance of the company noting that the cost of debt for the hugely indebted company increased significantly.

    According to him, growth in the retail development segment of the real estate market slowed down with vacancy rate of between 33 per cent and 65 per cent in the big shopping malls due to uncomplimentary foreign exchange regime.

    He noted that UPDC recorded losses upon completion of certain projects due mainly to high interest costs, effect of the 41 banned items on the Central Bank of Nigeria (CBN) list as well as extended completion date.

  • Federal Govt mulls raising capital for housing

    The Federal Government plans to raise debt and equity capital from the investing public to support the realisation of the national agenda on mass and affordable housing.

    Minister of Power, Works and Housing, Mr. Babatunde Fashola, yesterday at a Real Estate Investment Trust (REIT) conference at the Nigerian Stock Exchange (NSE), said the government would raise additional funds from the private sector through the Nigerian stock market to complement ongoing financing through budgetary provisions.

    He outlined that the proposed capital raisings could combine several instruments including equity and debt instruments as well as hybrid capital issues.

    “In the medium term, we intend to raise more capital outside direct government treasury, working with the Federal Ministry of Finance, through Infrastructure bonds, REITS and other forms of real estate financing instruments, leveraging as most appropriate the platform of the Nigerian Stock Exchange,” Fashola said.

    He added that other funding sources such as pension funds, private equity funds, and the National Housing Fund managed by the Federal Mortgage Bank to finance development and also acquisition will be under consideration for the new capital issues.

    Fashola noted that the government had increase budgetary provision for housing by 1,900 per cent from N1.8 billion in 2015 to N35 billion in 2016, pointing out that government has already commenced construction works on its mass housing plan in the first quarter of 2017 in 33 states that have made land available across the country.

    He said with the momentum now gaining good traction, government intends to intensify its efforts and push harder with the 2017 budgetary allocation.

    He faulted the argument by some that government should get out of housing and leave it only to the private sector, noting that the proponents have however failed to show the proven capacity of the private sector on its own to meet the demand for housing and reduce the deficit considerably.

    According to him, the successful method across the world is for government to lead the way, first by policy, later by regulation and finally by empowerment and enablement.

    “Our programme will not be different. The policy framework for standardization of designs, use of local materials, and registration of developers has already started. These are governmental initiatives,” Fashola said.

    He said in the long term, the role of government will be purely regulatory, controlling designs, quality of finish, construction methods and materials, guaranteeing off-take of any house that private sector can deliver, and strengthening the Federal Mortgage Bank to provide finance to developers and end-users.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said that in spite of the challenging economic headwinds in Nigeria and other commodity based economics, the capital market remains one of the main vehicles to promote sustainable economic development and wealth creation.

    He noted that the conference was in line with the Exchange’s strategic initiative to promote and create the enabling environment for sustainable development of REITs in Nigeria and sub-Saharan Africa.

    According to him, in order to create a more transparent, liquid and accessible market structure in line with global best practices for REITs, the Exchange recently started the process of implementing some changes in terms of reporting and valuation of REITs and other collective investment schemes listed on the NSE.