Nigeria’s inflationary pressure and weak government policies are slowing down mortgage business in the country, the Managing Director of Living Trust Mortgage Bank, Adekunle Adewole, has said.
The MD said this at an event, ‘Facts Behind the Figures – Living Trust Mortgage Bank’ organised by the Nigerian Exchange Limited on Monday.
Prices of commodities are currently at five years high as inflation has risen to 18.9 per cent, according to the National Bureau of Statistics.
Adewole believes that the setbacks could hamper lenders’ effort to close the 20 million housing deficit suffered in Nigeria.
He said, “Our environment is volatile. Palpable fear remains over insurgency in the North Eastern parts. While remaining expansionary plans, terrorism continue to affect the economic participation of a large section, safety of lives and products, limitations of movements/operational time and cost of security.
“Government policies have really slowed down our growth. Elongated justice process; prohibitive cost of securing land titles; non-de-risk of financial service sector; complex administration system affects sub sector.”
The Central Bank of Nigeria set a Cash Reserve Ratio of 27.5 per cent for the banking sector and any infringement could lead to 40.24 per cent interest charge.
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