Why you must invest in real estate in Nigeria

Why you must invest in real estate in Nigeria

Femi Omosehin

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Why you must investment in real estate in Nigeria are enormous is a question that needs answer.  In an unpredictable time like this when the economy of Nigeria is being blighted by inflations and interest rates are reaching for the sky, real estate has become a suitable and top investment with which to cushion the impact of the harsh economy on your financial future.

Through real estate, you can enjoy amazing returns on investment and leverage real estate to build enviable wealth. Below are the five top reasons why real estate investment being the right investment for you in an austere time like this.

Real Estate Delivers Higher Returns Than the Stock Market with Less Volatility

Real estate is not subject to the kind of volatility that plagued stock markets around the world. Your property investment appreciates in value as the market improves, thus giving you the edge to build equity. However, in the stock market, the risk remains as there are numerous unpredictable factors outside your control that can negatively impact your investment. In real estate, you have more control of your investment because your property investment is a tangible asset that you can leverage to create new channels of wealth while your capital keeps appreciating.

Real Estate Has a High Tangible Asset Value

Apart from the fact that homeowner’s insurance will protect your investment in real estate, your property investment will always have appreciated value.

Asset for Collateral

Your real estate investment can stand as collateral to secure loans from financial institutions for your business expansion. Real Estate investment is the most valid collateral from all over the world to secure a lot and that is because the value of landed properties keeps appreciating.

It Guarantees Financial Stability

Why you must invest in real estate in Nigeria is also because of the crunching economic condition, your real estate investment can give you financial stability through returns on investment on your property investment. Throughout history, real estate investment has withstood economic instability. An investment in property is an investment in financial stability.

An Investment in Real Estate Can Diversify Your Portfolio

Portfolio diversification is a vital way to grow financially by spreading out your risk and real estate investment gives you that opportunity. Real estate will always serve as a way to secure fixed assets to mitigate the risk in your portfolio. As they say, it is not safe to put all your eggs in a single basket. Real estate gives you that golden opportunity to have many baskets with which to grow your wealth.

Conclusion

Why you must invest in real estate in Nigeria is something you need to give a thought. As you invest in other business, you can also give the option of investing in real estate where many have taken advantage of the value of appreciation to their investment.

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Written by: Femi Omosehin

Email: babafemifelix@gmail.com

Edited by: Ohimai Consulting

How accountant use drone technology

Drone Techbology relevant to accountant

Introduction

How accountant use drone technology depends on the kind of job. Drone technology is unmanned aerial vehicles (UAVs) that can fly remotely (Kanellakis & Nikolakopoulos, 2017). According to Laricchia (2022), the global market for drone is predicted to increase from $26.3 billion in 2021 to $41.3 billion by 2026. In 2020, the US and the UK for instance used drones to deliver drugs, material during covid-19 pandemic.

Drone technology can be useful in the war zones, intelligence gathering. Also, it potential to bring new ways of doing business to both big and small accounting and auditing firms. The technology can now be deployed into civilian roles, such as accounting and auditing profession, search and rescue. Also, in traffic monitoring, videography, surveillance, delivery services, weather monitoring, drone-based photography, firefighting, agriculture, personal use (Laricchia, 2022).

The accounting and auditing profession has experienced radical changes in carrying out their responsibility. This could be due to the current technological advancements like drone technology, the Artificial Intelligence (AI), blockchain technologies, Internet of Things, big data.

In the accounting profession, for instance, any accounting or audit firms working with clients that own big mineral deposits or mining facilities or inventory can now make use of drones to fly over the area to snap thousands of pictures and measurements which can aid accurate assessments of holdings (Ovaska-few, 2017). The old practice of climbing to measure a coal physically is over as with just two-meter GPS tracking pole, that can be done within a stipulated time and obtain estimated volume. 

Where Drone Technology has be deployed

In addition, the permission to use drone are nowadays required for all types of aerial drones. In Germany for instance, there are limited to zones outside nature protected areas and of high urban density or conglomerations of people. From December 31, 2020, new EU regulations will apply and replace national regulations for each country.

The Federal Aviation Administration’s issued new rules in 2016 on the usage of drone that is estimates is a $127 billion global market. It means a new rule has been set for United States to use drone technology for their operation (Ovaska-Few, 2017).

In Poland, the initiative of Drone Powered Solutions was birthed where a law was passed in 2013 to freely commercialized the operation of the machines. The accounting, audit, and consulting firm started a drone-focused division after the country passed laws in 2013 friendly (Ovaska-Few, 2017.)

In Australia, Rio Tinto who has its facility in a remote area planned in 2016 to start using drone technology to monitor mine sites including the staff.

Growing demand for drone used in the workplace and in others area.

It was recorded that PwC completed its first stock count audit using drone technology. With the assistance of a drone, they were able to capture images at a coal reserve in South Wales and used them to measure the volume of the coal, based on the measurement of volume.

Also, Amazon and Google are already testing ways to deliver packages with drones. Facebook has started using drones to provide internet connections in remote locations.

Furthermore, Ford Motor Company filed a patent to start the use of drones for dead batteries. The patent was filed on 3rd Feb 2017 and circulated on March 8th, 2022, with assigned serial number 11271420.

Benefit of Drone Technology to the Accounting and Audit profession 

Some range of benefits derived from using the drone:

Time-efficiency and effectiveness: Drone devices help to improve and increase effectiveness and efficiency in the accounting and auditing profession.

Accuracy: Produce accurate data that can be relevant for future forecast and planning. Using a drone to collect insight into the condition of assets is faster, cheaper, safer and more accurate than traditional methods.

Save Cost: Drones may save money for accounting clients, who can use them for stocktakes, mapping, safety monitoring and to inspect bridges and building.

Productivity: It can enhance productivity.

Reduce the risk of injury: For instance, the benefit in health and safety as the need for someone to climb over the coal pile are removed.

Speed: Helps speed up some business processes.

Monitoring strategies. Help monitor staff, operation and some dangerous zone. For instance, drones can assist the firm or staff to take account area difficult to reach.

Storage of long-term data: Moreover, drone methods allow for storage of long-term data which can be useful account physical factors (like weather, light conditions and geomorphology of the beach) for more spatial-temporal analysis (Kataoka et al.,2018).

However, note that this drone technology can’t work on its own. The technology produces data that needs to be interpreted and translated into meaningful information for a business decision. 

As accountants or auditors, it requires that they strive to keep abreast of how the new technologies works and how they can be used to enhance effectiveness, efficiency and then develop the skills needed to interpret and present the data so that they can continue to add value to their businesses and employers.

Conclusion

The essay examined the relevant of drone technology to the accounting and auditing profession. However, commercial drones are the way of the future, and it’s going to make a big difference for any firm (Ovaska-Few, 2017). It is good to know how accountant use drone technology has come to stay with us. Moreover, the earlier we change our knowledge of the technology to our advantage the better. Furthermore, accountants and auditor need to accept this new technology with two hands opened. They should see how this new technology can enhance their job but not to see it as a threat.

Implications

The implications are stated below:

  1. Be part of the at least 95% that will accept this new technology if they must prepare for the future.
  2. Develop a new skill that is all-encompassing for them to be relevant at all times and drive the development of the accounting profession.
  3. Become a consultant in the field to remain relevant and being in change of the world where we live by data.
  4. Become a strategic thinker
  5. Apply their professional judgement whenever is necessary.
  6. Established Drone-focused division or department should be set up to handle all matter related to drone and lastly
  7. Check the impact of drones on client’s business operations.

For more about using the right knowledge.

The pillars that make men great in the right knowledge

How it should be cited:

Ojeaburu, F. (2022). How accountant use of drone technology. https://ohimaiconsulting.com/how-accountant-can-make-use-of-drone-technology-to-better-theirjob/#:~:text=Drones%20may%20save%20money %20for,auditors%2C%20technology%20can%20enhance%20productivity.

References

Kanellakis, C., & Nikolakopoulos, G. (2017). Survey on computer vision for UAVs: Current developments and trends. Journal of Intelligent & Robotic Systems87(1), 141-168.Survey on Computer Vision for UAVs: Current Developments and Trends | SpringerLink

•Laricchia, F.(2022). Drone economy worldwide 2021-2026. https://www.statista.com/statistics/1234521/worldwide-drone-market/

Ovaska-Few, S. (2017). Drones Set To Invade Accounting Profession. Journal of Accountancy.

E-Collection

E-Collection stakeholders in Nigeria.
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E-Collection is electronic collection of government revenue. Therefore, E-Collection through Treasury Single Account received new development since inception.

However, some of the improvement to e-collection are in line with Central Bank of Nigeria (CBN) circular of 10th December 2020.

New Development of E-Collection/TSA implementation in Nigeria

1. New TSA cost of E-Collections for payer and Ministries, Department and Agencies (MDAs). The charges are grouped into two.

(A). Transaction charges borne by the payer.
i) If the payment is received through Point of Sales (POS), it will attract N150 plus 0.50 per cent of the amount being paid subject to a maximum of N1, 000 per transaction.

ii). If payment is received through other channeled, it attracts N150 exclusive of Value Added Tax (VAT)

(B). Transaction charges borne by the MDAs.

(i) They provide the platform for collection.

(ii) They will process all data about the payment and the payer.

(iii) They transmit the data and replicate them and lastly

(iv) Fund sweeping.  For this, stakeholder below is to receive from Payment Solution Service providers (PSSPs) or Deposit Money Banks (DMBs) fund sweeping. This depends on who is playing the collection role for the MDAs. NIBBS is to receives 10% while Office of the Accountant General of the Federation (OAGF) to receives 2.5%.

2. New TSA sharing formula for collection cost received among the various stakeholders as follows:

PSSPs——————————-43%

Collecting Banks——————33%

CBN———————————11%

NIBBS——————————-10.5%

OAGF——————————–2.5%

3. The government link the revenue generating agencies to TSA portal through (PSSPS). PSSPs are companies appointed by government to collect TSA payments from ministries departments and agencies (MDAs).

As at today, payer has to initiate payment from the receiving agencies portal. The way to initiate is to get register or enrolled in the receiving agencies portal.

Requirement to Sign Up for E-Collection/TSA Platform

For E-Collection platform to be effective, these requirements are essential:

a. Provide Tax Identification Number (TIN) and certificate

b. Attached company documents like Corporate Affairs Commission (CAC) Certificate

c. Wait for account to be approved by the receiving agencies

Then, payer cab initiate payment from payer personal account in the receiving agencies portal

Payer will automatically transfer to TSA portal from the receiving agencies portal, for instance Remita

4. Time to Initiate Payment

Payer can only initiate Payment into TSA only when step 3 is being completed.

5. Stakeholders

The addition of Etranzact, Interswitch to join SystemSpec (the operator of Remita) to collect government revenue. SystemSpec has acted as a sole PSSPS appointed by government to collect TSA payments from MDAs.

6. Electronic Payment Companies

The main electronic payment companies involved in TSA increased to four companies. They are Etranzact, Interswitch, SystemSpec and Nigeria Interbank settlement System (NIBSS).

Therefore, NIBBS ensures that all the relevant stakeholders comply with the framework and also communicate collection codes for remittance to PSSPs.

Conclusion

Ogbonna and Ojeaburu (2015) in their study recommended among others, that the government should strengthen Government Integrated Financial Management Information System (GIFMIS) module. Also, cover other area of interest in the national budget to achieve economic development. Moreover, more need to be done to ensure E-Collection are active in all MDAs.

for more information about e-collection

References

Aderinokun,K.Onwuamaeze. D. & Emejo,J.  (2020). CBN Unveils New Pricing Template for TSA Collections. THISDAYLIVE.

Ogbonna, G,N & Ojeaburu, F (2015). The Impact of Government Integrated Financial Management Information System (GIFMIS) on Economic Development of Nigeria. West African Journal of Businessnand Management Sciences, 4(1). 313-336. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3363159.

Conceptual Framework

Conceptual Framework

Conceptual framework is dealt with in this post. In line with theoretical foundation and previous research related to this study, a conceptual framework that describes the relationship between environmental accounting and sustainability development in Nigeria. The independent variable (predictor variable) used are oil spillage cost, oil drilling waste disposal cost and degradation as dimensions while the dependent variable (criterion variable) used are human development index and human poverty index as measures.

Conceptual Framework showing Independent Variable and Dependent variable
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Figure 1:1 Conceptual framework of environmental accounting and sustainability development in Nigeria

Sources: (List all your source.)

Note

Indicators

Some school will require you list out the indicators as a bullet under the dimensions of independent variables and measure of dependent variables. Ensure all the indicators are discussed in chapter two (i.e. literature review). One essence of indicator is that it will increase the literature of your work. It will also make it easier for someone to see at glance the direction of your work.

Source of Reference

The essence of the source of reference is because someone may have use one of the dimensions of independent variable and measures of dependent variable before now. So, you have to reference those author accordingly.

Operational Framework

Operational Framework showing the direction of the independent variable and the dependent variable
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The model in Figure 2:1 above, showed the relationship between environmental accounting and sustainability development in Nigeria. Environmental accounting is the predictor variable with the following dimensions oil spillage cost, oil drilling waste disposal cost and degradation, while sustainability development in Nigeria is the criterion variable with a measure as human development index and human poverty index, whereas the moderating variable is firm size. The directions of the arrows shows the direction of the study relationship. The operational framework thus, illustrates the hypothesised relationship with each arrows representing a study hypothesis.  In the operational framework each of the dimensions of environmental accounting are linked to the measures of sustainability development in Nigeria.

Heuristic Model

This Heuristic Model below is showing the result of the test between the dimensions of environmental accounting and measures of sustainability development in Nigeria.

This is heuristic model showing the relationship between independent variable and the dependent variable
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Figure 5.  1: Heuristic model of environmental accounting and sustainability development in Nigeria

Key

Bold line indicates strong positive significant relationship

Broken arrow indicates weak positive insignificant relationship

This heuristic model in figure 5:1 shows the result of this study based on the hypotheses tested. The framework used an arrow to explain the relationship between variables that is significant and insignificant.

Conclusion

The design of conceptual framework, operational framework and heuristic model are dynamic in nature. All the design does not need to follow this pattern.

Always find out from your school the accepted design. This information shared will guide you as a researcher and student of higher institution in producing a better thesis and publications.

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Master Program on International finance

Master program on international finance is for Master student in foreign universities. You are required to prepare/submit an individual report discussing the following:

Choose a Multinational Enterprise (MNE) listed on an internationally recognised Stock Exchange (including for example, London, Dublin, New York or Paris). You are required to:

 a. Critically discuss two recent developments in the international financial environment which appear to have impacted on your chosen company’s recent performance and development. Analyse how these two developments are likely to impact on the company in the near future. (14 marks)

b. Discuss the following key elements of the MNE’s international financial and/or risk management strategy (and how they appear to have affected the financial performance of your chosen company): · Sources of finance · Dividend policy (14 marks)

c. With reference to your chosen Multinational Enterprise (and using the most recent annual report published), analyse the financial performance (in terms of profitability, liquidity, efficiency and investment) of the company in the two most recent consecutive financial periods (e.g. 2018/19 or 2019/20, ) using 8 different accounting ratios (prior year comparative figures will be available in the annual report). (32 marks).

Notes:

 (i) You must advise your tutor of your chosen multinational enterprise to ensure suitability for use and avoid duplication

(ii) It is advisable to choose your multinational enterprise and download the most recent annual report. This will facilitate your preparation and allow you to effectively participate in weekly class activities;

Master program on International finance Guidelines 1)

The assignment may take the form of an individual written word-processed briefing report of not more than 2500 words, including title page, contents page, in-text references and citations, but excluding tables, reference list and appendices

Part of Solution to the Question

   1         Introduction

Honda is a Japanese company that specialize in the manufacturing of automobiles, motorcycles and power equipment with headquarter in Tokyo, Japan (Honda, 2021a; Forbes, 2021). Honda made a net profit of ¥509,932 million and ¥695,444 million in 2020 and 2021 years respectively.

Honda is ranked 39 among the top 100 companies in the Fortune Global 500 list (Fortune 500, 2021). The financial performance and developments are analyzed, explained and outlined, including how it copes with the risks linked with its sources of finance and dividend policy.

2          Section A: Current developments

2.1       Development One—Covid-19 Pandemic

The covid-19 pandemic impacts the financial performance of Honda to the extent that its production activities were affected (Honda, 2021a).

2.2       Development Two—Chip Shortage

Honda was affected by the global microchip shortage. This caused Honda and other major brands to slowdown vehicle production and caused sales drop by 50%. This development made Honda to have low inventory and prompted their prices to rise (Hesketh, 2021). Over 100,000 vehicles were affected last years due to this chip shortage (Reuters, 2021).

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