CEO North court, Ayo Ibaru.
By Barnabas Esiet.
Following the recent ban, of individuals and non-bank corporates from Open Market Operations (OMO) auctions, by the Central Bank of Nigeria’s (CBN), a real estate advisory firm, Northcourt has called on investors in Nigeria to turn to real estate, shares and long-term bonds.
The Chief Operating Officer/ Director of Advisory of Nourtcourt, Ayo Ibaru, made the call in Lagos at a forum organized by the Finance Correspondents Association of Nigeria (FICAN), with the theme “investment opportunities in 2020”
Considering the continuous fall in Treasury bill (T-Bill) yields, Ibaru said there is need for investors to invest wisely to reduce the risk of losing money and to realize higher returns.
He said although recurrent expenses in the retail real estate sector is huge, owing to many challenges, the sector still provides a better option for investors that are looking for long-term windows owing to greater opportunity of property appreciation.
“Land is not static which explains why it keeps appreciating even during a recession, If you have appetite for just short-term investment, then invest in shares, bonds and explore currencies ” Ibaru advised.
He warned retail investors who are currently troubled over low T-Bill yields to be more cautious in 2020 as the CBN and other multilateral organizations might still take certain decisions that could further change every market expectations.
The Nourthcourt boss asked government to pay more attention to the huge dead capital in the sector especially in unoccupied multi-million naira houses scattered across the country, arguing that the owners could be made to pay a token every month to government to boost revenue.
“Such amount could be channeled into provision of tangible social infrastructure especially children centers, schools, hospitals, health facilities among others.” He said.
Northcourt is a real estate investment solutions company that adopts a research-based approach to developing and managing property as well as providing real estate advisory services in West Africa.