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CBN to support Micro finance banks

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The Central Bank of Nigeria has promised to invest in some microfinance banks across the country and build their capacity to provide housing finance to aspiring homeowners.

According to the CBN, the initiative, which falls under the ‘My Own Home’ campaign of the Federal Government, is aimed at addressing the housing needs of people who cannot be on mortgage but wish to build their houses in stages.

A Deputy Director at the CBN and Head, Project Administration Team of the National Housing Fund Programme, Mr. Adedeji Adesemoye, said the initiative was in partnership with the Frankfurt School of Management and AFC Consultants International, Germany.

The organisations are expected to build the capacity of the microfinance banks before they can access funding from the CBN.

Adesemoye said the programme, also known as Housing Microfinance, was the third component of the $300m borrowed from the World Bank in 2013, part of which was used to establish the Nigerian Mortgage Refinance Company.

According to him, nine microfinance banks have been chosen across the six geopolitical zones of the country for the scheme.

Adesemoye stated, “Housing microfinance is closer to our traditional sense of incremental construction. Not everyone has money to finance mortgage but under the microfinance scheme, a homeowner can stretch his building plan in such a way that he takes different tranches of loan as he builds.

“Out of the nine banks that have been chosen, one, LAPO Microfinance Bank, has a technical assistance, so it will be financed; but the remaining eight will get technical assistance known as technical agreement cooperation, with us in which we will be able to develop their capacity.”

He added that the initiative was for everyone, and that the CBN aimed to educate the younger generation on the need to start the process of owning homes early.

“We need to educate our people that owning a home with a mixture of equity and debt is not a negative thing; having a home that you will live in the next 50 years does not require you to spend all you have,” Adesemoye stated.

He added that the programme would allow the system to have a larger financial pool for housing construction that would open up the economy and provide jobs.

“The objective is to catalyse the growth of the housing sector through de-risking the housing finance value chain and improving access to finance,” he said.

Source: ( Punch Newspaper )

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Amaechi Apologises For Abuja-Kaduna Train Breakdown

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Amaechi Apologises For Abuja-Kaduna Train Breakdown

Rotimi Amaechi

Minister of Transportation, Rotimi Amaechi, has apologised to Nigerians for the breakdown at the Abuja-Kaduna railway which occurred between November 18 and November 20.

The former Governor of Rivers State stated this at the Moniya rail station on Monday while inspecting the ongoing rail project in Ibadan.

Amaechi pointed out that the Chinese have been called to attend to the problem as the federal government does not expect any mechanical fault at this early stage.

Also Read: $656m Needed To Complete Lagos-Ibadan Railway – Amaechi

Ameachi said, “I want to apologise to Nigerians over what happened at the Abuja-Kaduna rail station.”

“We now have new locomotives, and we’ve called the Chinese because we never expected the mechanical fault at this early stage.”

“On behalf of the Federal Government, the ministry and the Nigerian Railway Corporation (NRC), we apologise to Nigerians, and I’ve instructed the NRC to fix it or invite the Chinese.”

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2020 Finance Bill Exempts Minimum Wage Earners From Tax: Buhari

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President Muhammadu Buhari has revealed that the recently proposed 2020 Finance Bill will exempt workers earning the minimum wage from paying tax.

Buhari disclosed this on Monday in a speech delivered virtually by Vice President, Yemi Osinbajo at the opening session of the 26th Nigerian Economic Summit Group Conference themed: “Building Partnerships for Resilience.”

Also Read: Recession: Nigeria’s Economy On Way To Recovery, Says Osinbajo’s Aide

“We are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax,” he was quoted as saying in a statement issued by the Senior Special Assistant to the President on Media and Publicity, Laolu Akande.

“These provisions which complement the tax breaks given to small businesses last year will not only further stimulate the economy but are also a fulfilment of promises made to take steps to help reduce the cost of transportation and the impact of inflation on ordinary Nigerians.”

 

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Nigeria Will Exit Recession By First Quarter Of 2021 – Finance Minister

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Nigeria Will Exit Recession By First Quarter Of 2021 – Finance Minister

Zainab Ahmed

Minister of Finance, Budget and National Planning, Zainab Ahmed has revealed that Nigeria would emerge from recession in the fourth quarter of this year or by the first quarter of 2021.

Recall that on Saturday, Nigeria officially went into recession for the second time under President Muhammadu Buhari‘s administration.

Speaking on Monday at the ongoing 26th Nigerian Economic Summit organized by the Nigerian Economic Summit Group and the Federal Ministry of Finance, Budget, and National Planning, Zainab said the current recession would be short-lived.

Also Read: Recession: Nigeria’s Economy On Way To Recovery, Says Osinbajo’s Aide

She blamed COVID-19 for the current recession, saying it followed the pattern across the world where many countries had entered an economic recession.

“Nigeria is not alone in this, but I will say that Nigeria has outperformed all of these economies in terms of the record of a negative growth,” Ahmed said.

 

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