Afriland Properties Urges Govt To Reduce Cost Of Borrowing For Mortgage Properties

Afriland Properties Plc has advised the Federal Government to shift focus to the housing sector and ensure that people borrow for mortgage properties at a reduced rate over a long period of time to bridge nation’s huge housing deficit.

This was disclosed by the Chairman of the company, Emmanuel Nnorom, while fielding questions from Journalists at the end of the firm’s 2023 yearly general meeting held in Lagos yesterday, he stressed the need for government to create policies that would enable people to borrow for mortgage properties at an affordable rate over a period of 10 to 15 years.

According to Nnorom, “If you are having a good job, why wouldn’t you create a mortgage and invest in a property of your own. We heard government has improved consumer loan process in the country to ensure there are more available resources and we do hope this will come in a way to mitigate the high interest rate."

While reviewing its performance, the chairman noted that the company recorded a revenue of N4.72 billion, representing 150 per cent increase over N1.89 billion achieved in the corresponding period in 2022 while Profit before tax increased by 34 per cent from N1.80 billion to N2.41 billion.

He stressed that the company’s total assets also increased from N19.4 billion N34.1 billion representing 76 per cent growth. He said the company completed the development of its residential proprietary project situated in Oba Oyekan Avenue (The Residences by Afriland) in Ikoyi and Aromire Avenue (Iris Court) in Ikeja, Lagos.

According to the Chief Executive Officer of the company, Uzoamaka Oshogwe, the fundamentals of its business remained strong despite the nation’s macroeconomic challenges.

She explained that the firm is well positioned to leverage emerging trends and market dynamics by aligning the company’s five year strategic plan with the evolving needs of the stakeholders.

Similarly, she assured shareholders of the company's commitment to explore possibilities of partnering with any reputable organisation to optimise its property portfolio and improve rental yield on performing assets.

“We are committed to leveraging on viable opportunities to drive sustainable growth for the company despite the harsh operating environment as factors such as inflation, currency fluctuations and overall economic downturn may not abate in 2024.”

Also, the National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare, applauded the company efforts in increasing shareholders value through improved dividend payout.