Photo caption: From left, Managing Director, FMDQ Clear, Ayodele Onawunmi; Chief Executive Officer, FMDQ Group, Bola Onadele. Koko; Vice President Yemi Osinbajo, and Head, External Relations, FMDQ Group, Mrs. Adaze Uzor-Kalu, during a courtesy visit to the Vice President at the Presidential Villa, State House, Abuja, on Monday, September 20, 2021.
Vice President Yemi Osinbajo, on Monday in Abuja, challenged financial market experts to develop an appropriate housing finance model in support of the government’s efforts to significantly transform the country’s housing sector on a large scale.
Receiving a delegation from the FMDQ Group, led by its Chief Executive, Bola Onadele.Koko on a courtesy visit to the Presidential Villa, Osinbajo, who made a presentation, noted the point about the National Housing Blueprint, expressing the belief that if the country is “able to unlock the conundrum in the sector, we can get things working.”
According to the Vice President, the country’s Economic Sustainability Programme has “something on social housing, but one of the critical issues there is how to market these houses, how we are able to provide the finance so that people can afford to buy them. These are houses that are in the order of about N2m, or N2.5m.
“But there are still constraints on account of the fact that we just do not have anything like a feasible housing finance model, I think it is time for us to do so. It just looks like it has always escaped our capacity to find a real solution to the problem.”
Speaking on the possibility of having a model that will work, Prof. Osinbajo noted that “everyone recognizes that we are in very challenging times. But I agree with you that the sheer range and vastness of our potentials make it seem almost intuitive that we are bound to succeed.
“I have no doubt in my mind whatsoever, that given the right mix of policy initiatives, we can get these things done. And your characterization of what needs to be done like attracting capital and sustaining it is so important because ultimately, capital will go where it is best treated.
“And if we are able to attract it (because we have the market, we have everything going for us), even in the worst of times, despite the situation, you find that there is still a great deal of interest.”
Making a presentation earlier, Onadele said the visit was to brief the Vice President about the transformation taking place in the FMDQ and the need for government support to grow the financial market for the benefit of the nation and its economy.
While applauding the efforts of the Buhari administration in creating the environment for the transformation, Onadele identified areas of interest for investment in the market to include housing finance and mobilizing capital for projects in the transportation sector, among others.
Onadele also appreciated the Vice President’s impactful contributions to developing the nation’s financial markets, including the passage of the Companies and Allied Matters Act 2020, especially to spur economic and innovative developments across the country.
The CAMA, he continued, is primed to improve the ease of doing business, stimulate increased economic activity, thereby creating employment, generating additional wealth, and increasing tax revenue for the government, while introducing’’ a new paradigm in the financial markets and repositioning Nigeria as a compelling destination for capital.
The FMDQ CEO also highlighted the launch of the Financial Centre for Sustainability, Lagos Fintech Hackathon in March 2021, wherein the Vice President urged participants to develop creative solutions for sustainable farming and cleaner energy, as well as the passing of the Petroleum Industry Act 2021, critical to enable the oil and gas sector access debt and equity capital.
All of these and more, including the Vice President’s exemplary leadership of various committees aimed at developing the Nigerian economy for prosperity for Nigerians, he continued, give credence to his unwavering commitment and efforts towards the growth and development of the Nigerian economy. He listed them as the National Economic Council, Economic Sustainability Committee, the Steering Committee of the National Poverty Reduction with Growth Strategy, and the Presidential Enabling Business Environment Council, among others.
Onadele reiterated FMDQ’s commitment to performing its strategic roles as a market organiser, catalyst for capital formation, adviser to governments and regulators, and financial markets diplomat, to support the development and implementation of innovative solutions towards attracting capital to boost productivity in Nigeria, reduce unemployment, bridge the infrastructure gap, and support Nigeria’s achievement of the United Nations Sustainable Development Goals.
One of the top priorities for FMDQ, he stressed further, is to support the development of commerce in Nigeria, postulating that commerce was the lifeblood of every nation and that thriving and liquid money, capital and foreign exchange markets were sine qua non in the development of Nigeria’s trade, industry, and commerce. The Exchange already demonstrated its agenda in this respect by establishing its Private Markets, to promote the inclusion of private companies in the capital markets, and provide access to long-term private capital to small, medium, and large enterprises.
He further highlighted tax incentives and tax-related initiatives that would further bolster financial market activities and solicited the Vice President’s continued support of the development agenda.
On the Vice President’s entourage was the Special Adviser to the President on Economic Matters, Office of the Vice President, Dr. Adeyemi Dipeolu, and the Deputy Chief of Staff to the President, Office of Vice President, Mr. Ade Ipaye, as well as other Special Advisers to the President.
