The advantages of dematerialization are many: it enables the investor to trade at any time without necessarily passing through the bottlenecks of verifying the share certificates any longer, because the shares are now domiciled with CSCS, he can give a mandate to his broker at any time and the broker accesses the Exchange that same day and trade for him. Some of the beauties of dematerialisation are that it enhances market dynamism, liquidity and decision making in securities investment, etc.Read More
Accion Microfinance Bank (AMfB) penultimate week, partnered JAKIN, a Non Governmental Organisation (NGO) in realization of its 2016 edition of ‘Dress A Child For School Project.’Read More
Conoil Plc has recorded a half year Profit Before Tax, PBT of N1.566 billion for the unaudited results ended June 30, 2016, representing a growth of 196 per cent from N528.5 million recorded in the corresponding period of 2015.Read More
In an apparent bid to enhance supply of foreign exchange to the bureau de change BDC segment of the of the foreign exchange market, the Central Bank of Nigeria (CBN) last month directed that banks should sell $50,000 from proceeds of international money transfers ( IMT) to the 3000 BDCs in the country.Read More
Afrinvest West Africa Limited has stated that investors’ confidence is required to boost the Nigeria’s economy, even as it gets set to launch its banking reports.Read More
Commissioner for Insurance and Chief Executive of the National Insurance Commission, NAICOM, Mr. Mohammed Kari has said that chief executives and directors of insurance companies that feign ignorance when asked to give account of their companies’ misconducts could face criminal prosecution.Read More
By Kingsley Adegboye
Amid increasing glut in the Nigeria’s property market as a result of the economic recession currently facing the country, the Chief Executive Officer of Sujimoto Construction Limited, a Lagos-based real estate development company, Mr. Sijibomi Ogundele, has revealed that the surge in the number of empty apartments in Ikoyi, Lagos, is due to over pricing.
Ogundele added that this disturbing phenomenon must have prompted the well-informed and educative research publication of economy watch, Financial Derivatives Company Limited recently, which informed that “The number of vacant properties in the upper class real estate neighbourhoods of Lekki, Victoria Island and Ikoyi has risen by 72 percent over the last 18 months”.
Ogundele who is fondly called Sujimoto, said the cost of construction is usually padded, warning prospective property investors to beware.
According to him, “This has become a motto on a whole new level for prospective investors, who seek the very much-deserved value for money. To avoid drawing hasty conclusions and to guide our investment choices, investors should only listen to industry experts and verifiable perspectives as seen in the FDC research, and avoid the bandwagon of those listening to jaundiced opinions, which are quite popular.
“For example, the fact that former UK Prime Minister David Cameron said Nigeria was fantastically corrupt, does not in fact mean each and every Nigerian is corrupt. Also, the fact that a few celebrities find themselves enmeshed in marital problems does not mean that the marital life of every Nigerian is in danger.
“To put this more clearly, apartments that should not cost more than 100 million naira, are costing investors 400 million naira to construct. Therefore, owners have no other choice than to let out the apartment at 40 million naira, transferring the padded cost of construction to tenants. What is the difference between Ipekere locally fried plantain chips sold in remote areas and the same plantain chips sold in urban areas?
“Have you ever wondered why a good meal prepared in Ijebu Ode would cost lesser than one sold in Lagos? An estimated rental for an apartment in Ikoyi is about $80,000. The same apartment in Lekki would cost $30,000. What do you think makes the difference? Value in terms of price, quality and location put together in the same place. If location is a fundamental principle in real estate, how much more luxury real estate?”, Ogundele stated.
Describing the situation as a case of quality versus quantity, said “A developer who compromises on quality of materials, no matter how highbrow the property’s location, has no right to place an exorbitant price on it. Thus, the argument for demand exceeding supply, as far as empty apartments in Ikoyi go, is unfounded.
“Luxury apartments are in high demand. Poorly finished buildings with exorbitant prices constitute the pile of empty apartments constantly being alluded to. Consider this: Are developments such as Tango Towers and Ultimate Towers in Ikoyi, empty? If such developments are not empty, imagine what would happen when the LorenzoBySujimoto with its high-end features, state-of-the-art facilities, exceptional returns on investment and competitive pricing, is completed?
“I once pointed out that luxury is not expensive. It is the intention to deliver luxury that is expensive. While the cost of a nice three-bedroom apartment in Johannesburg would go for about $350,000, the same apartment in Ikoyi would want $1 million. If the cost of construction materials is the same all over the world, the price of marble, granite, cement, tiles, kitchen, doors, paints etc, why is cost in Nigeria about 300 per cent higher?
“You cannot offer a Toyota for the price of a Bentley. One might argue that both cars will eventually ply the same road but the efficiency and prestige of a Bentley speaks for itself. Luxury sells itself. For us at Sujimoto, our biggest marketers are our clients. Listen, I have sold crap before and I have sold luxury and I can tell you from experience that it is easier to sell luxury than crap.
“When you sell luxury, you sell peace of mind, you have not only sold something that would last for generations, but you win the heart of your client who now becomes your evangelist. With the oil price plummeting, and major economies across the world experiencing down turn, individuals and organizations no longer have loose money to throw around. And with the current downsizing by companies, prospective tenants demand full value for their hard-earned money.
The inability of commercial banks to give long-term credit facilities is due to the non-availability of long-term-deposits by Nigerians, a financial expert, Mr Nnamdi Okonkwo has said.Read More
The Central Bank of Nigeria (CBN) will soon stop performing its role as ‘lender of last resort’ to the banking system. CBN Governor, Mr. Godwin Emefiele disclosed this in Abuja at the annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN).Read More
As the Nigerian Economic Summit Group, NESG has concluded arrangements to host this year’s summit, it is expected that both Government officials and array of private sector chieftains across the sectors of the economy would grace the occasion to discuss issues affecting the economy and provide panacea to addressing the economic challenges facing the country.Read More
When there was oil boom and a somewhat stable economy, the issue of unemployment was a very big problem. Now that Nigeria is experiencing economic crisis, one wonders what the hope of the teeming unemployed Nigerian youths would be. Nigeria’s economy has been hurting on account of the drop in oil prices at the international oil market. All oil producing countries around the globe are feeling the impact of the historic fall in the price of crude oil.Read More
Central Bank of Nigeria has in the last seven years injected about N2 trillion into the economy in its various intervention schemes. The interventions funded about 1,686 projects which have created a total of 6.2 million jobs in agriculture, industry, aviation among others. An industry report on CBN interventions sighted by Financial Vanguard showed that the interventions of the CBN into the economy were directed at diversifying the economy, job creation and promotion of inclusive growth.Read More
The Ghanian Ministry of Transport has directed that Terminal Handling Charges (THC) should not be charged by anybody as local charge at any of the country’s ports.Read More
I will start with the opportunity, the size of the market, the size of the under-served in this market which is 37 million, about 18 times the population of Botswana, the opportunity is very large. Secondly, we saw a large number of micro-finance businesses doing similar things without any differentiation which we think would be an opportunity to bring to the market, whether it is in the education, health or agriculture and we do low income housing.Read More
The Banking and Conglomerates sub sectors on the Nigerian Stock Exchange, NSE, last week boosted the stock market turnover by 85.83 per cent. Specifically, a turnover of 1.183 billion shares worth N10.300 billion in 16,522 deals were traded last week by investors on the floor of the exchange in contrast to a total of 1.115 billion shares valued at N13.817 billion that exchanged hands penultimate week in 16,083 deals.Read More