OPPORTUNITIES IN THE NIGERIAN CAPITAL MARKET By

Transcript:OPPORTUNITIES IN THE NIGERIAN CAPITAL MARKET By:
OPPORTUNITIES IN THE NIGERIAN CAPITAL MARKET By Esuk, E. I. Morenikeji (Mrs.) Securities & Exchange Commission The Capital Market has abundant opportunities that can be tapped by all; Individuals Institutions Various levels of Government The economy at large. Opportunities to Individuals Wealth Creation Career Development Wealth Creation Through a combination of the following Dividend Capital appreciation Bonus Career Opportunities One could develop a career in any of the following ; Stock brokers Portfolio Management Fund Managers Underwriters Solicitors Trustees Issuing house Investment advisers Registrars Estate surveyors Other Capital Market Professionals including Reporting Accountants, Auditors, Engineers etc Even Regulator As an Estate Surveyor, you can create your own space where you can operate and excel in the Capital Market especially in Real Estate Investment Trust. Real Estate Investment Trusts (REITs) Real Estate Investment Trusts are Real Estate Financing Vehicles that are modelled after Mutual (or Unit Trust) Funds. REITs own, and in most cases, operate Income-producing Real Estate Projects. The REITs structure are created to provide all types of investors (Private Individuals and Institutions) the opportunity to invest in large scale, diversified portfolios of Income-producing Real Estates in the same way they typically invest in other asset classes through the purchase and sale of liquid securities REITs cont. When investors buy shares in REITs, the share sale proceeds are used to buy or construct Commercial or Residential Real Estates. A single REIT invests in a wide range of properties located in different locations so as to protect investors in the event that Real Estate prices decline in a particular market. Investors receive dividends that are comprised of rental income and or profit generated from property sales. Advantages of REITs Diversification Dividend Liquidity Performance Transparency Growth/Capital appreciation Access to more efficient, effective and better priced funding Genesis of REITs The genesis of REITs can be traced back to 1960 where, through a legislative action, the US Congress gave all Americans (not just the affluent few) the opportunity to invest in Income Producing Real Estates in a manner similar to how Individuals and Institutional Investors invest in Share and bond REITs in similar economies Ghana’s Home Finance Company (HFC) established its’ 1st REIT in 1994. The HFC is at the forefront of Mortgage Financing in Ghana and is regulated by the SEC. In 2007, SEC Nigeria set and issued guidelines for the Registration, Issuance and Operationalization of REITs in Nigeria. The 1st successful