After merging with four microfinance banks in 2014, the value of Jubilee-Life Mortgage Bank’s portfolio has exceeded N5.3 billion, according to the bank.
Jubilee-Life Mortgage Bank merged with Karis Microfinance Bank, Lekki Microfinance Bank, New Life Microfinance Bank and Estate Microfinance Bank in 2014 and has since remained strong in the face of economic downturn, making N245 million profit in 2016, which is 16.3 percent of N1.5 billion bottom-line made by the industry.
Jubilee-Life’s array of portfolio includes Harmony Gardens and His Grace Pavillion in Abuja; Navas Pavilion and Overflow Estate in Ogun, among others in Lagos, Ibadan, Port Harcourt and other parts of the country.
“Jubilee is no longer the Jubilee of old,” said Olatunbode Aderemi, chief executive officer of the mortgage bank, while addressing journalists at the unveiling of its corporate office in Marina, Lagos.
“We have a national license to operate around the country. Many mortgage banks in the country either have a regional or state license. There are 10 mortgage banks with a national license and we are one of them,” Aderemi said.
According to him, the lower middle-class and the poor in Nigeria do not have access to mortgages due to high interest rate, fuelled by inflation.
“In other climes, interest rate is single-digit. There are also municipal funds and many other types of funds that are up to 50 years that people can access. But here, we don’t have it. Due to the nature of our economy, investors take a short-term view, which is why it’s hard to see long-term funds,” he explained.
Nigeria is hit by housing gap of 17 to 18 million and an infrastructure deficiency that will require more than $300 billion to fix.
The need for housing is more in cities where many Nigerians live in slums due to high cost of rents.
“The income level is still so small. You have people with small salaries yet cost of properties is so high. There is high level of poverty and investment appetite of our people in real estate is still low because many people do not see real estate as preserving value,” he stated.
He urged the government and policy makers at various levels to cultivate the habit of executing policies, rather than resort to primordial sentiments that hurt development, stressing that Jubilee is playing its part in ensuring that Nigerians save money to buy their own houses in the future.
“I believe that poor branding of Nigeria is an opportunity for any player that comes to the market with integrity,” he said, adding that the bank is ready to partner with others in a mutual benefit basis.
ODINAKA ANUDU
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