Connect with us

BUSINESS

Non-interest capital market to facilitate housing development — SEC

Published

on

The Securities and Exchange Commission (SEC) says non-interest segment of the capital market is capable of financing the housing sector and lead to better well-being of citizens.

A statement by Commission in Abuja on Wednesday, said its Director-General, Mr Lamido Yuguda, said this in Abuja on Wednesday.

Yuguda said the country’s capital market provided the platform for mobilising long-term funds for real estate investment to complement the mortgage funding sources by commercial banks and others.

”The capital market creates investment opportunities to enhance the flow of low-cost, long-term funds to the real estate sector.

”This can be done through investment vehicles such as Real Estate Investment Trust Schemes (REITs) and mortgage-backed securities.

”These instruments are usually traded on recognised exchanges.

“I am delighted to inform you that some corporate entities have started taking advantage of the non-interest capital market.

”In 2021, Family Homes Funds Ltd., a social housing initiative, issued a N10 billion Sukuk to finance residential houses across the six geo-political zones of the country.

”It was oversubscribed by over 200 per cent.

”This development was a strong indication of the readiness of the market and corresponding investors’ appetite for non-interest mortgage instruments,” Yuguda said.

He said that operationalising non-interest Pension Fund (Fund VI) would increase the quantum of low-cost, long-term investible funds to the mortgage industry by unlocking the untapped capital.

The statement also quoted the Managing Director of the Federal Mortgage Bank of Nigeria, Mr Madu Hamman, as saying that non-interest financial products had gained interest by investors in the country.

Hamman said that non-interest financial products could also expand the frontiers of home ownerships.

sun news

Ginika Okoye

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.

Comments
Shell Digital Plan RESPONSIVE600x750
Shell Digital Plan RESPONSIVE600x750
GTB
JoinOurWhatsAppChannel

Website Designed By DEBORIAN.COM, a Nigerian Web Designer and Web Developer -