Investing Port RSS Feed All the latest news from Investing Port Demystifying Form 1065: A Comprehensive Guide for Partnerships and LLCs If you are a partner in a partnership or a member of a limited liability company (LLC), then you are familiar with Form 1065. This tax return form is used to report the financial information of your business to the IRS. However, understanding the purpose and requirements of Form 1065 can be daunting, especially if you are filing for the first time. In this article, we will provide you with a comprehensive guide to Form 1065, including its purpose, who needs to file it, and how to do so correctly.What is Form 1065?Form 1065 is an informational tax return form used by partnerships and LLCs to report their profits, losses, and other financial information to the IRS. This form is also known as the "U.S. Return of Partnership Income." Partnerships and LLCs are considered pass-through entities, which means that the income and losses of the business are passed through to the partners or members, who report them on their individual tax returns.Who needs to file Form 1065?All partnerships and LLCs, except for single-member LLCs, must file Form 1065. A single-member LLC is considered a disregarded entity for tax purposes, which means that the owner reports the income and losses on their individual tax return, rather than on a separate business tax return.How to File Form 1065?Filing Form 1065 is a complex process that requires careful attention to detail. Here are the steps to follow to file Form 1065:Step 1: Gather all necessary information - Before you start filling out Form 1065, make sure you have all the necessary financial information, including income, expenses, and deductions.Step 2: Fill out the form - The form consists of several schedules and forms that need to be completed. You can either fill out the form manually or use tax preparation software to do it electronically.Step 3: Attach additional forms and schedules - Depending on your business's specific situation, you may need to attach additional forms and schedules, such as Schedule K-1 and Schedule B.Step 4: File the form - Once you have completed the form and attached all necessary schedules and forms, you can file it with the IRS.Form 1065 is a critical tax return form for partnerships and LLCs, as it allows them to report their financial information to the IRS. By understanding the purpose and requirements of Form 1065, you can ensure that you file it correctly and avoid potential penalties. Make sure to gather all necessary information, fill out the form accurately, attach any additional forms and schedules, and file the form on time to stay compliant with IRS regulations. By following these steps, you can ensure that your business stays on the right side of the law and avoid any potential legal issues.]]> Wed, 22 Mar 2023 13:13:28 EST Understanding Normal Course Issuer Bid (NCIB): Benefits and Risks Normal Course Issuer Bid (NCIB) is a popular mechanism used by publicly traded companies to buy back their shares from the open market. It is a voluntary program that allows companies to purchase a specific number of their outstanding shares over a period of time. In this article, we will discuss what NCIB is, its benefits and risks, and how it affects investors.What is NCIB?NCIB is a share repurchase program that allows publicly traded companies to buy back their own shares from the open market. The program is regulated by securities commissions in Canada, where it originated, and is subject to certain rules and regulations.The program is also known as a "normal course issuer bid" because it allows companies to purchase their shares in the normal course of business. NCIB is typically used by companies to return capital to shareholders, increase earnings per share, or reduce the number of outstanding shares.Benefits of NCIBThere are several benefits of NCIB for companies and their shareholders. First, it can help to increase shareholder value by reducing the number of outstanding shares. This, in turn, can lead to an increase in earnings per share and a higher stock price.Second, NCIB can be an effective way for companies to return capital to shareholders. By repurchasing shares, companies can use excess cash to provide a return to shareholders, rather than paying out dividends. This can be particularly beneficial for investors who are looking for long-term growth and value.Finally, NCIB can also be an effective way for companies to signal to the market that they believe their shares are undervalued. This can lead to increased investor confidence and a higher stock price.Risks of NCIBWhile NCIB can provide several benefits, it also carries some risks. First, companies may not be able to time the market effectively, which means they could end up buying shares at a higher price than they intended. This can result in a loss of shareholder value.Second, companies may not be able to complete their repurchase program within the allotted time frame. If this happens, the company may need to apply for an extension or cancel the program altogether. This can lead to decreased investor confidence and a lower stock price.Finally, companies may use NCIB as a way to artificially inflate their stock price. This can lead to increased regulatory scrutiny and decreased investor confidence.ConclusionNCIB is a popular mechanism used by publicly traded companies to repurchase their own shares from the open market. It can provide several benefits, including increased shareholder value, return of capital to shareholders, and increased investor confidence. However, it also carries some risks, including the potential for market timing issues and decreased investor confidence. Overall, NCIB can be an effective tool for companies to manage their capital structure, but it is important for investors to understand the potential risks and benefits before making any investment decisions.]]> Wed, 22 Mar 2023 13:03:30 EST Abdulsamad Rabiu - The Remarkable Life and Career of a Nigerian Business Magnate Who is Abdulsamad Rabiu?Abdulsamad Rabiu is a renowned Nigerian businessman, investor, and philanthropist who has made a name for himself in the Nigerian business sector. The 62 year old business mogul is the founder and chairman of BUA Group , a Nigerian conglomerate that has interests in cement production, sugar refining, and real estate. Rabiu was born on August 4, 1960, in Kano State, Nigeria. He is known for his astute management skills, entrepreneurial spirit, and business acumen.Early Life and EducationAbdulsamad Rabiu was born in Kano State, Nigeria, to a prominent industrialist and businessman, Khalifah Isyaku Rabiu. His father was the founder of the prestigious Rabiu Kwankwaso Group, a prominent conglomerate that dealt in textiles, food, and real estate. Abdulsamad Rabiu grew up in a business-oriented family and was exposed to business at an early age. He attended Capital University, Columbus, Ohio, United States, where he earned a bachelor's degree in economics.Business and CareerAfter completing his studies, Abdulsamad Rabiu returned to Nigeria and joined his father's business. He quickly rose through the ranks and was appointed the CEO of the company at the young age of 24. Under his leadership, the company grew rapidly and diversified its business interests into cement production, sugar refining, real estate, and other sectors.•BUA GroupBUA Group is one of the largest Nigerian conglomerates with a presence in several African countries. The company has invested heavily in the Nigerian cement industry, and its cement factories are spread across several Nigerian states, including Sokoto, Edo, and Adamawa. BUA Group has also ventured into the sugar industry and is one of the largest sugar refiners in Nigeria. The company's sugar refineries are located in Lagos and Port Harcourt. Additionally, BUA Group has a significant presence in the Nigerian real estate industry and has developed several high-profile residential and commercial projects across the country.•Procuring Nigerian Oil Mills LimitedNigerian Oil Mills Limited was obtained by BUA after a period of time. This company is the leading processor of edible oil in Nigeria.Starting from 2005, BUA Group initiated the establishment of two flour-milling factories, one in Lagos and the other in Kano.BUA made a significant positive impact on the Nigerian sugar industry in 2008. They built the second-largest sugar refinery in sub-Saharan Africa, disrupting the monopoly that had existed for eight years with only one refinery as the sole supplier.In 2009, BUA group procured a share in a Cement Company located in Northern Nigeria. Subsequently, they started constructing a cement plant worth $900 million in Edo State, which was completed in early 2015 after six years. Family LifeAbdulsamad Isyaku Rabiu, is a family man who is married and is a proud father of four children. His children include Isyaku Rabiu, Junaid Rabiu, Rukkayah Rania Rabiu, and Khadijah Rabiu.It is noteworthy that Rabiu comes from a large family of 42 siblings, a common occurrence in the past, particularly among wealthy individuals who could afford to have multiple wives.Net Worth And Achievements Abdulsamad Isyaku Rabiu currently holds the position of Chairman and CEO of BUA Group. Forbes has ranked him as the second wealthiest entrepreneur in Nigeria, fourth in Africa, and 245th in the world.He has a net worth of USD 8.3billion and has won notable awards both inside and outside Nigeria.Some of these awards include; •The honorary title of Commander of the Order of the Niger (CON) by the Nigerian government in 2011. •The following year, in 2012, The Sun Newspaper recognized him as the Business Person of the Year. •In 2013, Rabiu received the White Dove Excellence Award and the Best Corporate Steward Award by CSR Nigeria Awards. •The West African Regional Magazine presented him with the Business Conglomerate of the Year award in 2015, while Vanguard Newspaper honored him with the Lifetime Achievement Award in the same year. •In 2017, Rabiu was awarded the Silverbird Extraordinary Business Achievement Award. Also in 2020, Rabiu was recognized as the Person of the Year by the CSR Reporters Philanthropic Awards. There are more awards and titles, Check the Full list here Properties and Cars One of his assets includes a London house located in Gloucester Square, valued at almost $16 million, and a penthouse worth $12.6 million at The One & Only Hotel in Cape Town.Among his list of cars are: •Armored Mercedes Benz G wagon• Mercedes Benz S class•Toyota Prado SUV•Range Rover SportIs Abdulsamad Rabiu the richest man in Nigeria?Abdulsamad Rabiu is second only to Aliko Dangote in Nigeria.As of March 2023, according to Forbes, the richest man in Nigeria and Africa is still Aliko Dangote, with a net worth estimated at around $14.1 billion.Abdulsamad Rabiu’s Philanthropic ActsAbdulsamad Rabiu, who is incredibly wealthy and has access to all the material possessions money can buy, has generously given back to society through various philanthropic initiatives.Through the BUA Group, a 7,000-square-meter paediatric ward was constructed at the Aminu Kano Teaching Hospital. Additionally, the BUA Group provided funding for the creation of the Centre for Islamic Studies at Bayero University Kano.In collaboration with the Rotary Club of Gbagada South, BUA Group sponsored free ears, nose, and throat clinical screenings for students at Araromi and Kinniun-Ifa Primary School in Lagos.Furthermore, the BUA Foundation has made significant contributions to the medical sector, providing medicine and healthcare equipment to the Cancer Centre in FCT, Abuja. The foundation also donated medical equipment to the Daniel Ogechi Akujobi Memorial Foundation in Ogun State.Abdulsamad Rabiu's entrepreneurial spirit and business acumen have made him one of the most influential figures in Nigeria's business sector. His leadership of BUA Group has transformed the Nigerian cement, sugar, and real estate industries, creating jobs and driving economic growth. With his continued commitment to investing in Nigeria's development, Rabiu is sure to remain a major force in the country's industrial revolution.]]> Wed, 22 Mar 2023 12:20:05 EST Top Companies in the Finance Field - A Comprehensive List When it comes to the finance industry, there are a plethora of companies to choose from. From large multinational corporations to small, specialized firms, the finance field is home to a diverse range of companies that offer a variety of products and services.If you are looking for information on the top companies in the finance industry, this article provides a comprehensive list of the most prominent companies in the field, their specialties, and the services they offer.JPMorgan ChaseJPMorgan Chase is one of the largest banks in the United States and offers a wide range of financial services, including investment banking, wealth management, and credit card services. With assets totaling over $3 trillion, JPMorgan Chase is a major player in the finance industry.Berkshire HathawayBerkshire Hathaway is an American multinational conglomerate holding company that owns a diverse range of businesses, including GEICO, Dairy Queen, and BNSF Railway. The company is also known for its significant investment in companies such as Coca-Cola and American Express.Goldman SachsGoldman Sachs is a multinational investment bank that offers a range of financial services, including investment banking, asset management, and securities trading. The company is also known for its involvement in mergers and acquisitions and for its strong focus on risk management.BlackRockBlackRock is a multinational investment management corporation that offers a wide range of financial services, including investment management, risk management, and advisory services. The company is also known for its significant investment in technology and for its focus on sustainable investing.Wells FargoWells Fargo is one of the largest banks in the United States and offers a wide range of financial services, including banking, investment, and insurance products. With over $1.9 trillion in assets, Wells Fargo is a major player in the finance industry.American ExpressAmerican Express is a multinational financial services corporation that offers a range of products and services, including credit cards, payment solutions, and travel-related services. The company is also known for its strong focus on customer service and for its rewards programs.VisaVisa is a multinational financial services corporation that specializes in electronic payment solutions. The company operates in over 200 countries and offers a range of products, including credit cards, debit cards, and prepaid cards.JLLJLL (Jones Lang LaSalle) is a multinational professional services firm that specializes in real estate and investment management. The company offers a range of services, including leasing, property management, and investment advisory services.MetLifeMetLife is a multinational insurance corporation that offers a range of insurance and financial services, including life insurance, annuities, and retirement planning. The company is also known for its focus on customer service and for its strong financial ratings.State FarmState Farm is a large insurance and financial services company that specializes in property and casualty insurance. The company also offers a range of financial products, including banking and investment products.In conclusion, the finance industry is home to a wide range of companies that offer a diverse range of products and services. Whether you are looking for banking services, investment management, insurance products, or electronic payment solutions, there is a finance company out there that can meet your needs. With this comprehensive list of the top]]> Wed, 22 Mar 2023 11:49:28 EST Mortgage Banking in Nigeria Explained in Details In Nigeria, mortgage banking has grown in recent years due to the growing demand for affordable housing. Despite the potential benefits, mortgage banking in Nigeria faces various challenges that hinder its growth and development. In this article, we will discuss the overview, challenges, and prospects of mortgage banking in Nigeria.What Is Mortgage Banking, and How Does It Work in Nigeria?Mortgage banking is a specialized form of banking that provides financing for the purchase of homes or other real estate properties. In Nigeria, mortgage banks are financial institutions that provide long-term loans to individuals or organizations for the purchase or construction of residential and commercial properties. The loans are secured by the property, meaning that if the borrower defaults on the loan, the mortgage bank has the legal right to seize and sell the property to recover the outstanding debt.The borrower provides a down payment, and the mortgage bank provides the remaining funds necessary to complete the transaction. The loan is usually repaid over a period of several years, with interest and other fees added to the total amount owed.In Nigeria, mortgage banks are regulated by the Central Bank of Nigeria (CBN) and are required to meet certain standards and regulations. To qualify for a mortgage, borrowers must meet certain eligibility criteria, such as having a stable source of income, good credit history, and providing sufficient documentation to support their application. The mortgage bank may also require the valuation of the property being purchased to determine its value and ensure that the loan amount is appropriate.What Are the Benefits of Mortgage Banking for Homeowners in Nigeria?Mortgage banking can provide several benefits to homeowners in Nigeria, including:Home ownership: Mortgage banking provides the opportunity for individuals to own their own homes without having to pay the full amount upfront. This allows individuals to spread the cost of the home over a longer period and make home ownership more accessible.Affordability: Mortgage banking can make homes more affordable by providing financing at lower interest rates than other forms of credit.Longer Repayment Periods: Mortgages generally have longer repayment periods than other forms of credit, which allows individuals to spread their payments out over a longer period, making it easier to manage their finances.Tax Benefits: In Nigeria, mortgage interest payments are tax-deductible, which can provide homeowners with significant tax savings.Property Appreciation: As the value of a property appreciates over time, homeowners who have taken out a mortgage can benefit from the increase in the value of their home.Equity Build-up: As homeowners make mortgage payments, they are building equity in their property, which can be used for future investments or as collateral for other loans.What Are the Different Types of Mortgages Available in Nigeria?In Nigeria, there are several types of mortgages available to home buyers, including:Conventional Mortgages: These are traditional mortgages where the borrower puts down a down payment and pays the remaining balance, plus interest, over a fixed period of time.Fixed-Rate Mortgages: These mortgages have a fixed interest rate for the entire term of the loan, which means the monthly payments will remain the same.Adjustable-Rate Mortgages: Also known as variable-rate mortgages, these have an interest rate that can change periodically based on market conditions.Buy-to-Let Mortgages: These mortgages are designed for individuals who want to purchase property for rental purposes.Islamic Mortgages: These mortgages are designed to comply with Islamic law, which prohibits the payment or receipt of interest. Instead, they use a system of profit-sharing.Home Equity Loans: These loans allow homeowners to borrow against the equity they have built up in their property, typically with a lower interest rate than other forms of credit.What Are the Eligibility Criteria and Documentation for Obtaining a Mortgage in Nigeria?The eligibility criteria for obtaining a mortgage in Nigeria may vary depending on the lender and the type of mortgage being applied for. Below are the requirements to obtain a mortgage in Nigeria:Age: The borrower must be at least 21 years old and not older than 60 years at the end of the mortgage term.Income: The borrower must have a stable source of income to repay the mortgage.Employment: The borrower must have a stable job and be employed for at least 3 years.Credit Score: The borrower's credit score will be evaluated to determine their creditworthiness.Property: The property being purchased must be approved by the lender and meet certain standards.Down Payment: The borrower must be able to make a down payment, typically between 10% to 30% of the property's value.Documentation Required for Obtaining a Mortgage in Nigeria Proof of Income: Payslips, bank statements, tax returns, and employment letters may be required to verify the borrower's income.Proof of Identity: A valid government-issued ID card, passport, or driver's license may be required.Property Documents: The property documents, including the title deed, survey plan, and building plan, may be required.Bank Statements: Bank statements may be required to show the borrower's financial history and ability to make mortgage payments.Credit Reports: Credit reports from credit bureaus may be required to evaluate the borrower's creditworthiness.It is important to note that the documentation required may vary depending on the lender and the type of mortgage being applied for. It is advisable to contact the lender or mortgage broker for specific information on the required documentation.What Are the Challenges Facing the Mortgage Banking Sector in Nigeria?The mortgage banking sector in Nigeria faces several challenges that can limit its growth and effectiveness in providing access to affordable housing finance. Here are some of the major challenges and how they are being addressed:Lack of adequate funding: Mortgage banks in Nigeria often struggle to obtain funding for their operations, limiting their ability to offer mortgages at competitive rates. To address this challenge, the Central Bank of Nigeria (CBN) has introduced various initiatives, such as the Nigerian Housing Finance Programme (NHFP) and the Mortgage Refinancing Company (NMRC), to provide funding and liquidity support to mortgage banks and improve access to mortgage financing.High interest rates: As noted earlier, interest rates on mortgages in Nigeria are generally high compared to other countries, which can limit affordability and accessibility for many Nigerians. To address this challenge, the CBN has introduced measures to reduce interest rates and encourage the use of long-term funds in the mortgage sector.Limited access to land: One of the major challenges facing the mortgage sector in Nigeria is the limited access to land for housing development. This can make it difficult for mortgage banks to offer mortgages for affordable housing, as the cost of land can be prohibitively high. To address this challenge, the government has introduced various initiatives to improve land administration and reduce the cost of land, such as the National Housing Programme and the Land Use Act.Lack of adequate infrastructure: The lack of basic infrastructure such as roads, water supply, and electricity can make it difficult to develop housing projects and provide affordable mortgage finance. To address this challenge, the government has introduced initiatives to improve infrastructure development, such as the National Integrated Infrastructure Master Plan.Limited awareness and education: Many Nigerians are not aware of the benefits of mortgage financing, and there is a lack of financial education and literacy in the country. To address this challenge, mortgage banks and other stakeholders in the mortgage sector are increasing public awareness and education campaigns to promote the benefits of mortgage financing and improve financial literacy.What Is the Role of the Government in the Development of the Mortgage Banking Sector in Nigeria?The Nigerian government plays a critical role in the development of the mortgage banking sector in the country. Here are some of the key ways in which the government is involved:Regulation: The government regulates the mortgage banking sector in Nigeria through various agencies such as the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and Federal Mortgage Bank of Nigeria (FMBN). These agencies set standards and guidelines for mortgage banks and provide oversight to ensure compliance with regulatory requirements.Policy formulation: The government formulates policies to support the growth and development of the mortgage banking sector. For example, the National Housing Policy provides a framework for the development of housing and mortgage finance in the country, while the Mortgage Banking Act of 1989 regulates the operations of mortgage banks in Nigeria.Funding support: The government provides funding support to the mortgage banking sector through various programs and initiatives. For example, the Nigerian Housing Finance Programme (NHFP) provides funding and liquidity support to mortgage banks, while the National Housing Fund (NHF) provides long-term funding for housing development.Land administration: The government plays a key role in land administration, which is critical to the development of the mortgage banking sector. The Land Use Act regulates land ownership and allocation, while the government provides incentives for landowners to release land for housing development.Affordable housing development: The government promotes the development of affordable housing through various initiatives such as the National Housing Programme and the Family Homes Fund. These initiatives aim to increase the supply of affordable housing and improve access to mortgage finance for Nigerians.“Overall, the government plays a crucial role in the development of the mortgage banking sector in Nigeria, providing regulatory oversight, policy formulation, funding support, land administration, and affordable housing development.”What Are the Approved Mortgage Banks in Nigeria?There are several notable mortgage banks in Nigeria, each with its unique features and offerings. Here are some of the notable mortgage banks in Nigeria and what distinguishes them from one another:Federal Mortgage Bank of Nigeria (FMBN): The FMBN is a government-owned mortgage bank that provides long-term financing to mortgage institutions and promotes the development of affordable housing in Nigeria. It is the largest mortgage institution in Nigeria and offers a range of mortgage products, including the National Housing Fund (NHF) mortgage, FMBN home renovation loan, and FMBN cooperative housing loan.Trustbond Mortgage Bank Plc: Trustbond Mortgage Bank is a privately owned mortgage bank that provides mortgage financing and other financial services. It offers a range of mortgage products, including the Trustbond home ownership scheme, Trustbond home renovation loan, and Trustbond cooperative housing loan.Abbey Mortgage Bank Plc: Abbey Mortgage Bank is another privately owned mortgage bank that offers mortgage financing and other financial services. It provides a range of mortgage products, including Abbey home ownership scheme, Abbey home renovation loan, and Abbey cooperative housing loan.Infinity Trust Mortgage Bank Plc: Infinity Trust Mortgage Bank is a privately owned mortgage bank that provides mortgage financing and other financial services. It offers a range of mortgage products, including the Infinity Trust home ownership scheme, Infinity Trust home renovation loan, and Infinity Trust cooperative housing loan.Imperial Homes Mortgage Bank Limited: Imperial Homes Mortgage Bank is a privately owned mortgage bank that provides mortgage financing and other financial services. It offers a range of mortgage products, including the Imperial Homes home ownership scheme, Imperial Homes home renovation loan, and Imperial Homes cooperative housing loan.What Are the Chances for the Future of Mortgage Banking in Nigeria?The prospects for the future of mortgage banking in Nigeria are generally positive, with several factors likely to drive growth and development in the sector. Here are some of the key trends and factors that are likely to shape the future of mortgage banking in Nigeria:Growing demand for housing: Nigeria has a rapidly growing population and a large housing shortage, which is driving demand for housing and mortgage finance. As more Nigerians seek to become homeowners, mortgage banks are likely to see increased demand for their services.Improved regulation and policy support: The Nigerian government has taken steps to improve the regulatory environment and provide policy support for the mortgage banking sector. This is likely to lead to increased investor confidence and support for the sector.Technological innovation: Mortgage banks are adopting new technologies to improve their processes, enhance customer experience, and expand their reach. For example, digital platforms are making it easier for customers to access mortgage products and services, while data analytics are improving risk management and loan underwriting.Increased competition and consolidation: The mortgage banking sector in Nigeria is becoming increasingly competitive, with new entrants and existing players seeking to expand their market share. This is likely to lead to increased consolidation in the sector, with smaller players merging or being acquired by larger banks.Macro-economic factors: The Nigerian economy is expected to grow over the coming years, with rising incomes and increased urbanization. This is likely to lead to increased demand for housing and mortgage finance, further supporting the growth and development of the mortgage banking sector.How Can Individuals and Organizations Contribute to the Growth and Development of the Mortgage Banking Sector in Nigeria?Individuals and organizations can contribute to the growth and development of the mortgage banking sector in Nigeria in several ways, including:Becoming informed about the sector: Individuals and organizations can educate themselves about the mortgage banking sector in Nigeria by reading industry reports, attending conferences, and seeking out expert advice. This can help them to make more informed decisions about mortgage products and services, and to better understand the challenges and opportunities facing the sector.Participating in the National Housing Fund: The National Housing Fund (NHF) is a government-backed scheme that enables individuals and organizations to contribute a percentage of their income towards building and financing affordable housing in Nigeria. By participating in the NHF, individuals, and organizations can help to support the growth and development of the mortgage banking sector in Nigeria.Investing in mortgage banks: Individuals and organizations can invest in mortgage banks by purchasing shares or providing capital. This can help to support the growth and expansion of mortgage banks, enabling them to provide more products and services to customers.Advocating for policy reform: Individuals and organizations can advocate for policy reforms that support the growth and development of the mortgage banking sector in Nigeria. This may include advocating for tax incentives, regulatory reforms, and government investment in affordable housing.Promoting financial literacy: Individuals and organizations can promote financial literacy by providing education and resources to help people understand the benefits and risks of mortgage finance. This can help to increase demand for mortgage products and services and promote responsible borrowing and lending practices.“Overall, individuals and organizations can contribute to the growth and development of the mortgage banking sector in Nigeria by becoming informed, participating in government-backed schemes, investing in mortgage banks, advocating for policy reform, and promoting financial literacy. By working together, stakeholders can help to support the growth and expansion of the mortgage banking sector and to promote greater access to affordable housing in Nigeria.”FAQsHow Does Mortgage Work in Nigeria?A mortgage is a loan in which real estate or property is used as security. The borrower signs into an arrangement with the lender (typically a bank) in which the borrower receives cash upfront and then makes payments over a predetermined period of time until he fully repays the lender.What Is Mortgage Bank in Nigeria?The Federal Mortgage Bank of Nigeria was formed under the Nigerian constitution to address the housing requirements of all people of the country. It is the country's top mortgage finance institution, and it controls the operations of main mortgage loan originators.What Are the Example of Mortgage Banks in Nigeria?Infinity Trust Mortgage Bank Plc. NationalAbbey Building Society Plc. NationalFirst Trust Mortgage Bank Plc. NationalNigeria Police Mortgage Bank. StateDelta Trust Mortgage Bank Ltd. StateJigawa Savings & Loans. StateCity Code Savings & Loans Limited. StateAG Homes Savings & Loans Limited. StateWhich Is the Leading Mortgage Bank in Nigeria?Abbey Mortgage Bank Plc is Nigeria's leading, largest, and most profitable non-aligned Primary Mortgage Bank. It is one of seven approved national Primary Mortgage Banks (PMBs) by the Central Bank of Nigeria and the Federal Mortgage Bank of Nigeria. (FMBN).How Does Mortgage Bank Work?A mortgage is a type of loan in which real estate or property is used as security. The borrower enters into an arrangement with the lender (typically a bank) in which the borrower receives cash upfront and then makes payments over a specified time period until the lender is fully repaid.What Is the Current Mortgage Rate in Nigeria?The average Nigerian Mortgage Rate is 22.04%.ConclusionIn conclusion, mortgage banking plays a vital role in the Nigerian economy, as it facilitates access to housing finance for individuals and corporate organizations. While the sector has undergone significant reforms in recent years, more needs to be done to bridge the housing deficit gap and make mortgage loans more accessible and affordable for Nigerians.]]> Wed, 22 Mar 2023 11:26:37 EST Nigeria Government Removes 5% Excise Duty from Telecom Sector The Federal Government of Nigeria has finally exempted the telecom sub-sector from the 5% Excise Duty that was previously imposed on it. The decision was made after a committee was constituted by the government to review the applicability of the duty to the sector. The Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, disclosed this during a press briefing held in Abuja on Tuesday.According to the Minister, the issue of the 5% Excise Duty was brought to his attention in August 2022, and he challenged it by writing a letter to President Muhammadu Buhari, demanding that the duty be put on hold and a review committee be set up to look into the matter critically and professionally. The President approved the Minister's request and directed him to chair the committee.The committee, which included the Minister of Finance, the Executive Vice Chairman of NCC, and representatives of the telecom service providers, among others, completed its work in the first week of February 2023. It held a stakeholders forum on 5th September 2022, and after incorporating other people that would add value to the work, it submitted its report for review.The committee argued that there was no need for Excise Duty in the ICT sector, which was already paying 41 categories of charges and levies. It also stated that the sector had been contributing significantly to the economy and cited two African countries that had increased their excise duties on their ICT sectors, which led to the death of the sector in both economies.The committee further stated that: “The telecom sector in Nigeria had set an unprecedented record in terms of contribution to GDP. In Q1 2021, the sector alone contributed 14% to GDP, in Q2 2021 it contributed 17.9%, and in Q2 2022, it contributed 18.44%. In 2020, 2021, and 2022, the sector was rated the fastest growing sector without any subsidy, while other sectors even with subsidies were not doing well”.How Will This Exemption Help?The decision to exempt the telecom sub-sector from the 5% Excise Duty has been welcomed by stakeholders in the industry. They believe that the move will help to sustain the growth of the sector, which has been a major contributor to the Nigerian economy. The exemption will also reduce the burden of multiple taxation on telecom service providers and enable them to invest more in infrastructure development, network expansion, and the provision of quality services to consumers.Overall, the Federal Government's decision to exempt the telecom sub-sector from the 5% Excise Duty is a welcome development. It is a testament to the government's commitment to promoting the growth of the digital economy and creating an enabling environment for businesses to thrive in Nigeria. The move will help to sustain the growth of the sector, reduce the burden of multiple taxation, and enable telecom service providers to invest more in infrastructure development and the provision of quality services to consumers.]]> Wed, 22 Mar 2023 09:52:52 EST Why You Should Never Start a Business With a Loan Starting a business can be a challenging but rewarding experience. Many entrepreneurs often turn to loans as a way to finance their business ventures, but is this always a good idea?In the current economic climate, with the residue of the Covid-19 pandemic affecting businesses worldwide, there has been an increase in loan applications most especially in Nigeria, such as from loan apps like the Migo loan app, Okash, or Fairmoney, and other forms of loans like the NMFB household loan, and NIRSAL covid loan.While loans may seem like a quick and easy fix to business financing problems, there are several risks involved that you should consider before taking on debt. Why starting your business with a loan may not be the best option and what alternatives you can consider.First of all, getting a loan means paying interest on the amount borrowed. For a startup company, this is a big financial risk, especially if you haven't yet begun making a profit. According to the Small Business Association (SBA), 20% of businesses fail in their first year, and only about 50% of small businesses survive beyond the first five years. This means that taking on debt to start a business is a significant risk.Furthermore, if you take on debt, you will have to make monthly payments, which might restrict your cash flow and prevent you from investing in other parts of your company.For example, if you take Access Bank, FCMB, Union Bank, or GTB loans, this might seem like a good idea because they offer some of the best loans in Nigeria, but the interest rate is still set at an average of 16%, which is still high.Secondly, taking on debt can also limit your ability to pivot or adapt your business model. If your business is not generating enough revenue or is not performing as expected, you may need to make changes to your operations, marketing, or product or service offerings.Adapting a business model and the survival of your business also depends on the industry, for example, the restaurant industry, where high failure rates are common. According to a study by the National Restaurant Association, about 60% of new restaurants fail within the first year, and 80% fail within five years. Taking on debt to start a restaurant can be especially risky, given the high failure rates in the industry.Thirdly, applying for a loan can be a time-consuming process, and approval is not guaranteed. Even if you are approved for a loan, the amount you receive may not be enough to cover all your business expenses. Additionally, loan applications can also negatively impact your credit score, making it harder to access financing in the future.Additionally, at this period when Nigerian banks are facing transaction challenges, meeting the right personnel is time-consuming, and dialing the GTG customer care number or speaking with any bank's customer care representative on the phone for that matter has proven to be futile move.What are some alternatives to taking out a loan to launch your business? Using your funds or assets to finance your company is one approach known as bootstrapping. You won't have to worry about making loan payments or repaying debt, making this a more sustainable strategy.Consider crowdfunding or looking for investors as other options. When you look for investors, you may acquire financing in exchange for stock in your company while using crowdfunding platforms to raise money from a huge number of individuals.For example, imagine converting $1000 to naira at N760 per dollar; that is N760,000 to invest in your business.Offer Business Partnerships. For example, if you are running a fintech company or a tech sales company, you can partner with telecom service providers like Spectranet, Airtel, or MTN, who have worked with startups before.Another avenue is to seek World Bank financial aid. They have been financing and training entrepreneurs in small and medium-scale enterprises across the world for years.You can also apply for a business credit card, not to completely fund your business but to build your business credit score, so that, in the future, when your business is strong enough to manage all financial risks, a good credit score will come in handy.Before you start your company on debt, seek out alternative means of funding, calculate the risk involved, be patient with success, and do not take on too many problems. ]]> Wed, 22 Mar 2023 06:58:50 EST Why Unilever Nigeria Is Stopping Its Home Care and Skin Cleansing Business Unilever Nigeria is one of the leading FMCG giants in Nigeria and a subsidiary of Unilever Plc, a British-Dutch multinational company. In a report sent to the Nigeria Exchange Limited (NGX), the company announced that it would be stopping its home care and skin cleansing business in a bid to reposition its business and sustain profitability.After sending the report on closing the two sections to the Nigeria Exchange Limited (NGX), the Company Secretary, Abidemi Ademola signed. According to the company's statement, the changes in the business model were aimed at positioning the company for more sustainable growth to meet the needs of consumers, shareholders, and employees. The company plans to concentrate on higher growth opportunities and strengthen its business operations through digitization and process simplification.The decision was made at a meeting of the Board of Directors held on March 16, 2023, at the company's headquarters in Lagos. The meeting, which was attended by the company's top executives and Board members, saw the acceptance of the proposed changes, including the amendments and other motions that were brought before them.Unilever Nigeria also intends to implement business continuity measures that reduce exposure to devaluation and currency liquidity in its business model. The company believes that these changes will contribute significantly to its overall goal of becoming a more sustainable and profitable business.The decision to exit the Home Care and Skin Cleansing categories may seem drastic, but it is not unusual for businesses to restructure their operations to remain competitive and profitable. Unilever Nigeria's move is likely to have been driven by market trends, including changing consumer preferences, increased competition, and economic conditions.By focusing on higher growth opportunities, Unilever Nigeria hopes to boost its revenue and profitability in the long term. The company's decision to digitize its operations and simplify its processes is also likely to lead to cost savings and operational efficiencies, which will further improve its bottom line.What Is Unilever’s Current Stock Price?Current Report: On Tuesday, March 21st, Unilever Nigeria current stock price is 14.00, which remained unchanged from the previous trading session. However, over the last four weeks, the stock has experienced a decline of 6.06 percent. Over the past 12 months, Unilever Nigeria's stock price has risen by 1.45 percent.Based on global macro models projections and analysts' expectations, Trading Economics forecasts that Unilever Nigeria will be priced at 13.72 by the end of this quarter and at 12.91 in one year. However,What Is Unilever's Current Dividend?Unilever Nigeria's current dividend yield is relatively low at 3.6% Compared to the top 25% of dividend-paying companies in the Nigerian market with a yield of 8.27%, What Are the Products Unilever Is Producing Currently?According to the report sent to the NGX and signed by the Company Secretary, Abidemi Ademola, the following brands will be affected:Sunlight (Detergent and Dishwashing)OMOLUXLifebuoyDoveAXE &RexonaWhile the following brands are still in operation:CURRENT FOOD PRODUCTS BY UNILEVER NIGERIA PLCBlue Band MargarineLipton Yellow Label TeaRoyco Bouillon Cubes, andKnorr Bouillon cubesCURRENT PERSONAL CARE PRODUCTS UNILEVER NIGERIA PLCClose-Up ToothpastePepsodent ToothpastePears Baby Products RangeVaseline Lotion and Petroleum JellyWhat Is Unilever Current Market Capitalization?Unilever's market capitalization is NGN 80.4 billion, Unilever Nigeria is currently ranked as the 27th most valuable stock on the NGX, accounting for approximately 0.269% of the Nigerian Stock Exchange's equity market.ConclusionIn conclusion, Unilever Nigeria's decision to exit the Home Care and Skin Cleansing categories and reposition its business is a strategic move aimed at ensuring the company's sustainability and profitability. The company's focus on higher growth opportunities, business continuity measures, and digitization is likely to lead to significant improvements in its growth and profitability in the long term.]]> Wed, 22 Mar 2023 05:20:39 EST Biography and Net worth of Flutterwave CEO Olugbenga Agboola. Olugbenga Agboola OON, also known as GB, is a Nigerian tech genius who founded the payment technology company Flutterwave. Born and raised in Lagos, Nigeria, Agboola earned his bachelor's degree in computer science from the prestigious Obafemi Awolowo University, later obtained a master's degree in information technology from the University of Lagos and an MBA from the renowned MIT Sloan School of Management.Before founding Flutterwave, Agboola worked at PayPal as an application engineer and a product manager at Google, where he honed his software engineering and product management skills. In 2016, he co-founded Flutterwave with Iyin Aboyeji and Oluwakemi Okusanya, and since then, the company has grown to become one of the most prominent payment technology companies in Africa. With operations in over 33 African countries and partnerships with global payment providers such as PayPal and Worldpay, Flutterwave has revolutionized the payment landscape in Africa.In his interview with one of the most popular music artists and celebrities in Nigeria, Ayodeji Ibrahim Balogun, also known as Wizkid, the Flutterwave CEO pointed out that the platform became bigger when Uber entered the Nigerian market and they needed a trustworthy payment platform.What is the net worth of Flutterwave CEO Olugbenga Agboola?As of 2023, the net worth of Olugbenga Agboola is not publicly available. However, Flutterwave has raised over $225 million in funding to date, with a valuation of over $1 billion, It hence estimated that his net worth is upward of $2 million.The company's success has also led to Agboola being named on the Forbes Africa 30 Under 30 list in 2018 and 2019. In addition, he was named Entrepreneur of the Year at the 2020 Africa CEO Forum Awards.GB, who is well-known for his leadership skills, has helped to revolutionize the payment landscape in Africa, making it easier for businesses and consumers to transact and do business across borders. His vision for Flutterwave is to help build a world-class payment infrastructure in Africa that can compete on a global scale, and he continues to work towards achieving that goal through innovation and strategic partnerships. Flutterwave's platform already enables businesses to accept and make payments across borders, currencies, and payment methods, including cards, mobile money, and bank transfers. The company offers several products and services, including:Rave: Flutterwave's flagship product, Rave, is a payment gateway that allows businesses to accept online payments from customers all over the world. With Rave, businesses can accept payments in local and international currencies and can integrate with over 150 different payment methods.Barter: Barter is Flutterwave's consumer-facing app that allows users to make payments, send money, and receive money from anyone, anywhere in the world. The app is available in Nigeria, Ghana, Kenya, South Africa, and the United Kingdom.Invoice: Flutterwave's Invoice product allows businesses to create and send invoices to their customers and receive payments directly through the platform.Store: Flutterwave Store is an e-commerce platform that allows businesses to create an online store and sell their products to customers all over the world.Flutterwave has also partnered with several major global payment providers, including PayPal, Visa, and Worldpay, to provide businesses and consumers with a seamless and secure payment experience.In addition to its payment products and services, Flutterwave is also committed to driving financial inclusion in Africa. The company has partnered with several banks and financial institutions to provide access to financial services for underserved communities and has launched several initiatives to support small and medium-sized businesses in Africa.Though there are no indicators of an IPO move from the company, the fintech company had a running with the Kenya financial authorities in 2022, which made going public difficult last year. An issue that has since been cleared in 2023, Flutterwave's valuation has since crossed the billion-dollar line, and it's currently settling at $3 billion, investors are hoping 2023 might be the best year to go public for a company that has raised over $400 million in venture capital funding in the last four years.Agboola is a true inspiration for young entrepreneurs across Africa, and his story serves as a testament to the endless possibilities that technology can bring.]]> Wed, 22 Mar 2023 02:10:07 EST Top 10 Mortgage Banks In Nigeria What exactly is the Mortgage System?Well, simply put, a mortgage is a loan that you take out to buy a house or other property. You borrow money from a bank or other lender, and then you pay it back over time with interest.Now, there are different types of mortgages. The most common type is a fixed-rate mortgage, where the interest rate stays the same for the entire life of the loan. This can be a good option if you want predictable monthly payments.Another type of mortgage is an adjustable-rate mortgage or ARM for short. With an ARM, the interest rate can go up or down over time based on market conditions. This can be a riskier option, but it can also be beneficial if interest rates are low when you first take out the loan.When you apply for a mortgage, the lender will look at your credit score, income, and other financial factors to determine whether you qualify for the loan and what interest rate you will be offered. It's important to have a good credit score and a stable income if you want to get a good mortgage rate.Once you are approved for a mortgage, you will make monthly payments to the lender, which will typically include both the principal (the amount you borrowed) and interest. You will also need to pay property taxes and homeowner's insurance, which may be rolled into your monthly payment.Now, one thing to keep in mind is that if you don't make your mortgage payments on time, the lender can foreclose on your home, which means you could lose it. So, it's important to budget carefully and make sure you can afford your monthly payment before you take out a mortgage.Mortgage Industry in Nigeria (Interest Rate)The Nigerian mortgage industry has existed since 1956 when the Nigerian Building Society (NBS) was established. Now known as the Federal Mortgage Bank, renamed after the indigenization act of 1973 was passed.In 1993, the Federal Mortgage Bank of Nigeria (FMBN) assumed the role of the apex mortgage bank in Nigeria and subsequently established the National Housing Fund (NHF) as a social savings scheme to gather funds for loans back to the contributors. Many financial institutions now offer mortgage loans as home loans with various repayment plans and varying interest rates with the average interest between 16% - 20%Below we will look at the best banks in Nigeria to acquire mortgage loans.Top 10 Mortgage Banks in Nigeria1. Federal Mortgage Bank of Nigeria (FMBN): FMBN is a government-owned mortgage bank and the largest mortgage institution in Nigeria. It is the primary institution for providing long-term credit facilities to mortgage lenders in Nigeria.How FMBN loan workThe FMBN, through the National Housing Fund, issues mortgage loans to individuals who have successfully maintained the mandatory equity contribution of 2.5% of their basic monthly salary for six months; the interest rate is currently at 6%.The application and obtaining of the loan are done through accredited primary mortgage banks. Find out more and how to apply for a Federal Mortgage Bank loan here.2. Nigeria Mortgage Refinance Company (NMRC): NMRC is a private sector-driven mortgage refinancing company established to provide affordable mortgage loans to Nigerians.How it WorksThis also doesn't involve a direct application to the NMRC but rather through subsidiary banks and partners. After applying for the loan through the subsidiaries, the NMRC refinances the loan while the borrower gradually pays back the capital and interest. Find out more about subsidiary institutions here.3. Abbey Mortgage Bank: This is one of the leading mortgage banks in Nigeria, with a focus on providing mortgage financing and real estate advisory services to Nigerians and Africans.How it worksAbbey Mortgage Bank is one of the subsidiaries refinanced by the NMRC and offers a maximum loan duration of 10 years. Check your eligibility here.4. First Bank of Nigeria: First Bank of Nigeria is one of the oldest and largest banks in Nigeria, offering a wide range of banking products and services, including mortgage loans.How to apply for First Bank's Mortgage loanThey offer up to 50 million naira in loans, a couple's mortgage plan, and only for the outright purchase of properties. You can start your journey here.5. Stanbic IBTC Bank: a subsidiary of Standard Bank Group and one of the largest financial institutions in Nigeria. It offers mortgage loans and other banking products to Nigerians.How to apply for Stanbic IBTC Home loanThis is one of the easiest mortgage applications in Nigeria, with a minimum obtainable loan of 3 million naira and a 20-year maximum repayment period. Find out more here.6. Access Bank Plc is one of the largest banks in Nigeria and offers a range of financial products and services, including mortgage loans.Access bank home loan applicationThey offer a minimum 20% equity contribution maintained for at least 24 months and a repayment period of 20 years. Find out more here.7. Union Homes Savings and Loans Plc: a mortgage bank that provides mortgage financing and other real estate services to Nigerians.How it worksThis is one of the oldest mortgage banks in Nigeria, established in 1994. They offer equity of 25%. To apply, start here.8. Sterling Bank Plc is a financial institution that offers a range of banking products and services, including mortgage loans.How to apply.One home is the mortgage subsidiary of Sterling Bank Plc. They offer mortgage loans and rent financing opportunities with a maximum mortgage repayment plan of 10 years. Find out more here.9. Imperial Mortgage Bank, a subsidiary of the Guarantee Trust Bank, has been in the mortgage business since 1992 and is one of the largest mortgage banks in Nigeria.How to applyImperial Mortgage Bank offers up to a 25-year repayment period with 20% equity and a maximum loan amount of 60 million naira. To apply, start here.10. First Trust Mortgage Bank is a mortgage bank that provides mortgage financing and other real estate services to Nigerians. With a capital base of over 30 billion naira, they are well positioned on this list.How to get a mortgage loan from First Trust Mortgage BankThey offer various mortgage loans, from construction loans to outright purchases. They also offer a 20% minimum equity requirement, a 15-year repayment tenor, and the opportunity for a joint spouse mortgage.How to get a mortgage loan in NigeriaVisit any of the links provided above and check out your eligibility and requirements. If you are a match, start your application online or visit any of the bank's branches to talk to a staff member.Overall, despite significant issues with the Nigerian mortgage system, efforts are being made to increase Nigerians' access to mortgage finance. The Nigerian mortgage system has the potential to improve in the future in terms of accessibility and affordability for all Nigerians with ongoing work and investments.The high interest rates that make it impossible for the majority of Nigerians to afford mortgage loans are one of the problems with the country's mortgage system. Compared to other African countries, Nigeria ranks 41st in mortgage interest rates out of 54 countries.To solve this, the government has established a variety of mortgage refinancing organizations to offer mortgage loans with more inexpensive long-term financing.Another issue is the difficulty of registering and transferring land, as well as the absence of valid land titles, which can make it challenging for lenders to use the property as collateral for a mortgage loan. The government is attempting to resolve this issue by streamlining the land registration process and developing a more effective property transfer system.]]> Wed, 22 Mar 2023 00:15:50 EST