THE Managing Director and Chief Executive Officer of Goldbanc Management Associates Limited (GMA), Olu Abayomi-Sanya, has emphasised the need to introduce asset securitisation in order to widen the scope of the Nigerian capital market.According to Abayomi-Sanya, asset securitisation has many benefits for stakeholders due to what he identified as the availability of superior quality of assets.In his submission at a one-day seminar on assets securitisation organised by GMA in Lagos,Abayomi-Sanya explained that the process involves transforming non-tradable financial assets into tradable securities.According to him, it involves the transfer of an asset or a pool of assets, directly or indirectly, by the owner of the assets to a special purpose vehicle, which is funded through an issue of debt securities or notes backed by the cash flows generated by the assets.Explaining further, Abayomi-Sanya stated that asset securitisation leads to transparency in the balance sheet of the originatorsof the process as it results in identifiable assets.He said, 'securitisation provides a relatively risk-free investment for the investor. They are basically good-quality assets, helping the investors to diversify their portfolios. For the financial systems of the country, securitisation leads to an increase in the number of debt instruments in the market and provides additional liquidity in the market. It may widen the market and lead to entry of new players due to the superior quality of assets being available.'They must have predictable stream of future cash flow, they must have past experience, which can be used to predict default rates andlow default rate.'According to him,the typical users ofassets securitisationincludemortgage financiers, finance companies, banks, estate developers, managers, public utilities, intellectual property holders, insurance companies, aviation companies, governments, toll plaza managers among others.Information made available explained that since the beginning of the 1980s, securitisation has become a global financing tool, which countries such as Mexico, Brazil, United States, Canada, United Kingdom, France, Australia, Hong Kong, the Netherlands, Japan, Germany, Singapore have embraced.According to Abayomi-Sanya,asset securitisationis veryimperative for the raising of funds that are needed to fund the growth of vital sectors of the Nigerian economy such as housing and other infrastructure.Govt to establish $13.5m solar farm in KadunaFrom Anietie Akpan, CalabarTHE Minister of Environment, Hajiya Hadiza Mailafia, on Friday in Kaduna, launcheda 50MWsolar farm project in Kaduna, as part ofthe Federal Government's power generation programme.Mailafia announced at the ceremony that theproject wouldcost 13.5 million dollars (about N2 billion).She said that the project, whencompleted,would help to reducegreen house gas emission, earn Nigeria revenue from the sale of carbon credit and curtail the depletion of theozone layer.She said the initiative was part ofefforts by the government to develop the nationin line with global trends, asclimate change and its adverse effectscouldno longer be ignored.``We are all aware of the tremendous and totally unexpected changes in weather, which have led to severe drought, flooding and change of weather pattern.``The world is going green in sourcing for and deploying energyandNigeria cannot afford to be left behind,`` she said. She said that several countries haddeveloped strategies for dealing with the effects climate changeby making concerted policy shifts andembarking on aggressive renewable energy projects.``The Federal Government is determined to find solutions to the power situation that had plagued Nigeria through the most responsible and sustainable means.Government isdetermined to make Nigeria theemerging green market in Africa.'With itssize and the position it occupies politically and economically in the West Africanregion, this goal isachievable,' the minister said.Mailafia saidthat theministry waspoised to achieve power generation through its renewable energy programme unit. She explained thatthe renewable energy programme was a Public Private Partnership (PPP) between the government andSynergent Powershare Nigeria Limited.The Minister said that the solar farmwouldgenerate electricity from thesun, adding that on completion, it wouldfeedKaduna Airport, the Nigerian Defence Academy (NDA) and the Nigerian Air Force Base, as well as,communities inthe area.She promised that theproject would be completed within record time for the benefit of the institutions and communities.
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