Banking and Finance Sector Have Key Roles to Play in Achieving Sustainable Development

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Wednesday, September 16, 2020 / 3:22 PM / Ottoabasi Abasiekong for WebTV / Header Image Credit: @cibnigeria

The Banking and Finance sector in Nigeria will play a prominent role in supporting sustainable development in Nigeria. The President of the Chartered Institute of Bankers of Nigeria (CIBN), Mr. Bayo Olugbemi, FCIB made this comment at the opening session of the 13^th Annual Banking and Finance conference, which held virtually in Abuja and Lagos.

Speaking at the conference Mr. Olugbemi said  "So, when we talk about a sustainable future, what do we mean? Literature has a generous and wide array of interpretations. Luckily, the United Nations offers a comprehensive but concise picture of what a truly sustainable future would look like. This picture is brilliantly captured within the 17 United Nation's Sustainable Development Goals (SDGs) which include Decent Work & Economic Growth; Industry, Innovation, and Infrastructure; Gender Equality and Reduced Inequality".

On the opportunities and implications of the UN SDGs which has 2030 as the target year for achievement, the CIBN President said "Given the 17 goals and implicit 169 targets, we cannot only have a better understanding of the sustainable future to strive for but the blueprint to achieve this".

He added "In the quest to achieve such goals, the banking sector no doubt has a pivotal role to play. Indeed, banks often called the lifeblood of the economy are generally responsible for the efficient allocation of resources which is a forerunner to wealth creation and economic growth and development. Given the recent disruptions caused by COVID-19, the roles of banks have become more important now than ever before".

The two-day conference covered 5 sub-themes and two breakout sessions over two days. It discussed the following topics: 

• An Assessment of Inclusive Banking and the way forward
• An articulation of the risks of facilitating a sustainable future and positioning of banks in tackling such risks
• A discussion on how Fintech is shaping the future through innovation and disruption
• A discussion on Leadership and Competence in the Banking Industry
• A discussion on Green Banking and Economic Growth
• The Impact of Finance on Emerging Sectors: Spotlight on MSMEs, Manufacturing, Creativity and Agriculture Industry
• The Impact of Finance on Emerging Sectors: Leveraging Digital by the Banking Industry

 

CBN approves N200 billion housing loan for 300,000 households at 5% per annum

The facility is to enable FHF finance construction of social housing units for low-income earners.

September 16, 2020

By Chike Olisah

The Central Bank of Nigeria (CBN) has approved the sum of N200 billion as mortgage finance facility to the Family Homes Fund Limited (FHFL) and targeted at low income earners.

According to a circular, which was issued by the CBN and seen by Nairametrics, this financing initiative is to be implemented in collaboration with the Family Homes Fund Limited as the lead developer, as it is introduced to support the Federal Government’s Economic Sustainability programme.

This fund is to fast track the construction of 300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to 1.5 million jobs in 5 years.

In addition to the 1.5 million direct construction sector jobs particularly young people on a low income, the programme also has the potential to create further 1 million jobs through its supply chain.

The CBN in the circular stated, ‘’The programme will house up to 900,000 children and adults (at an average of 3 persons/home) on a low income with direct impact on health, education and economic outcomes. Most of these would currently live in informal settlements with shared facilities in unsanitary environments. Towards targeting people on low-income level across the country.’’

(READ MORE:has approved the sum of N200 billion as mortgage finance facility to the Family Homes Fund Limited (FHFL) and targeted at low income earners.

On boosting local manufacturing, the apex bank stated, ‘’The programme is designed to utilize at least 90% locally manufacturing inputs and as a result conserve foreign exchange.

“In that regard the programme will deliberately aim to revitalize local manufacture of construction materials including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures and bricks etc. for example, it is estimated that the programme will require up to 1.7 m doors, 7m door hinges and locks etc.’’

The funds, which would be released to the Family Home Funds (FHF) by CBN on a project basis is subject to the cumulative maximum limit of N200 billion. The facility type which would be a term loan is to enable FHF finance the construction of social housing units for low-income earners and is for a 3-year tenor from the date of disbursement.

The facility, which is expected to be repaid in not more than 3 instalments within the tenor of the facility, has an interest rate of not more than 5% per annum.