In what seems a desperate determination to recover their money from loan defaulters, some commercial banks in Nigeria have put up for sale, a number of houses, hotels, petrol stations, schools and other property used as collateral for the loans.

The sale of these property is the second leg of this desperation, coming after the banks had, a couple of weeks ago, published the names of debtors in the national dailies in a ‘name and shame’ strategy aimed at cajoling the defaulters to pay up their debts.

This present move is adding to the woes of the banks, as many of the foreclosed property cannot find ready buyers due to the slowdown in the economy which has kept the high end property market, where most of these property belong, struggling.

“Some of the creditor banks are coming informally to the market and they are bringing their property under forced sale. Most of these properties are high-end and the market here is struggling”, Rogba Orimolade, an estate surveyor and valuer, confirmed to BusinessDay in a telephone interview.

Orimalade explained that most of these property cannot find buyers because those who drive that segment of the market are mostly politicians and oil companies, adding that these buyers were being cautious, waiting for government’s policy direction on the economy.

A marketing manager with a major international property vendor, who spoke to BusinessDay on condition of anonymity, also confirmed that the market has been flooded by new assets.

“The situation we have now is such that supply has far outweighed demand and this is why some of the property are going for prices that are way below their market value”, the marketing manager affirmed.

Bismarck Rewane, the CEO, Financial Derivatives Company Limited, had earlier this month noted that the real estate market was experiencing downtimes resulting from over-supply and other factors that have pushed up vacancy rate at high-end locations in Nigeria to as high as 54 percent in July this year, up from 48 percent in June.

Confirming the supply glut in the market, Chudi Ubosi, an estate surveyor, however, expressed doubt that they were foreclosed properties as a result of bank debtors and sale of their collateral assets.

“The banks have consistently passed to us properties for sale and we have regularly worked on them. It is an on-going process. They hardly wait until the CBN forces them to”, he said, adding, “the interesting thing too is that many times, as soon as the debtors realise that the banks are serious about the sale of their collateral assets, they begin to take the issue a lot more seriously and enter into negotiations with them to reconcile the accounts and work out fresh terms of repayment”.

Other property vendors, mainly estate surveyors who spoke to BusinessDay on condition of anonymity, also confirmed receiving instructions from some of the banks to help them dispose of foreclosed property which are scattered in major cities of the country.

While some of these vendors disclosed that they had received the property lists directly or indirectly from the banks, others said some of the banks had contacted them to do same, even before the names of debtors were published, pointing out that the exercise started long before now.

Though majority of the agents/vendors were very protective of the identities of the banks that have approached them for the sale of their assets, BusinessDay checks reveal that almost all the 17 banks which have so far published names of their loan defaulters are in the market with foreclosed assets.

http://businessdayonline.com/2015/08/economic-slowdown-deepens-banks-woes-as-debtors-property-cant-find-buyers/ lalasticlala

TIME TO START WITHDRAWING ALL CASH FROM MY BANKS.... CAN'T TRUST THEM...



SAVANNAH MADE US LEARN THE HARD WAY..

Chai....hard times are really here

Its [size=20pt]LadyF[/size] again

Hmmmm.... Wat do you expect to happen wen a/an bogot, illiterate, dull, no clear thinking man takes d wheel of control. All we hear is I will, buhari to, body language, probe!! Govt of photos and cameras!! No economic policy, no power policy, youth empowerment nbam, infrastructure development nop.. Even d core reson pple voted for I'm boko haram still dae terrorize.. All wat naija dae experience in terms of benefits are just transformation of Jonathan, but we are experience change in terms of appointments.. Let's bet it, a time will come wen buhari will ask jambites to write Integrity test!!

Meanwhile, buhari is a nymphomaniac--- el rufai

while the masai warrior in aso rock keeps hiring his tribes men.

more to come

Na so them go dey borrow the answer billionaire....

Lmao..... At least I dey feed well, subscribe,.... Manage the one wey i get..... Gracias!

Meanwhile na for Kom Kom I go dey put my money for now!

How will their debtors' (politicians') property find buyers when 70% of the country is living on less than $1 per day? They loot money belonging to the nation and starve the masses, oya let their children start buying property from them... Since they didnt allow wealth to circulate abi...

Buhari is involved

vv

I smell a recession.

h

Things will get worse before it will get better.

God bless Nigeria, my beloved country.

This one na gbege ooo.. Someone should ask them if swap is allowed.. If its allowed, make i swap one of the properties with this my papa useless boys quarter and add small change on top.. Na Godwin be that ooo..

Oil dependent economies are unstable economies.

Nigeria must get off oil.

Modified....

What is happening is as a result of a fall in oil money influx into the country. That....and tightening of the forex supply to buffer the naira...as well as an expectation of austerity (really....we have ho choice)...means no money.....and thus..no kudi to keep up the houses.

For Nigeria's economy to be stable...we must diversify. Not just talk about it...do it.

Bad time

Trouble looms.

Bad market.

Freemanan:
TIME TO START WITHDRAWING ALL CASH FROM MY BANKS.... CAN'T TRUST THEM...



SAVANNAH MADE US LEARN THE HARD WAY..

Savannah's collapse was pre Soludo. Won't happen now...thanks to tighter regulations.

I am interested in buying, if they have a twin duplex structure or a two storey building located at lekki, then I am willing to pay 2million naira, if any at maitama, then I wil make it 3million instanta! After all a politician once bought a govt suv, one of its latest models for less than 200k in dis same country......so @ banks, if alarm catch una too much, make una lemme knw cos I wil buy as many properties as my 10million can go, after all politician properties na stil govt property.

bushdoc9919:
Oil dependent economies are unstable economies.

Nigeria must get off oil

tell that to your idol

YerYer:
I smell a recession.

You are still smelling? Stuff wey don dey table for long now..
The stock market has shelved trillions, Growth rate has slowed down....

its going down...

DickDastardly:

tell that to your idol

1.PMB is not my idol.I am a Nigerian. My allegiance is to my country and its peoples....not to any politician, or party.

2.If any Nigerian leader cannot see the need to diversify now;...he is blind and he must be removed

3.Your idol GEJ did not do his job well..ie his job of diversifying the economy.....which is partly why we are here.

4.Whatever the cost...we must be prepared to switch from a resource dependent economy to an industrial economy. This might mean austerity....but it would get us to the point of prosperity.

hmmmmm!
u guys should start withdrawing ur monies from this banks

This is good opportunity for new investors to buy properties. I wish i had money to buy one of the properties !!!

Many were over valued in the first case, they will all find buyers at the right price.

When dummies run an economy, this is the kind of shyt you end up with.

When you build a house and set a rent price of N5 million per annum in an economy where people can't eat a single square meal, na rat, cockroacj and lizards go live for your house, rent free.

Stupid fools