Firm issues N50 billion CP to fast-track building projects

Chairman, Efficacy Development Plc, Mrs Suzan Samuel (left); Group Executive Director, Efficacy Development Plc, Dr Damilola Ajiboye; Group Managing Director, Efficacy Development Plc, Oyeleke Ajiboye; Founder, Pathway Advisors Limited, Adekunle Alade and Co founder and Director, Pathway Advisors Limited, Mrs Alade at the event.

A real estate developer, Efficacy Development Plc, has signed a N50 billion commercial paper agreement with Lagos-based investment bank, Pathway Advisors Limited (PAL), to accelerate property completion, hedge against inflation and expand its housing portfolio.

The N50 billion short-term facility is to serve as critical working capital, allowing Efficacy Development to complete ongoing residential and commercial projects that are currently between 30 per cent and 80 per cent finished.

By injecting capital into advanced-stage builds, the company aims to deliver units to the market within two to three months while insulating project budgets from macroeconomic volatility and rising material costs.

The deal was formalised at an executive signing ceremony at The Capital Club in Victoria Island, Lagos, attended by key leadership teams, legal advisers and banking partners.

Group Managing Director, Efficacy Development, Dr Oyeleke Ajiboye, said the fund would help to expedite ongoing projects and mitigate inflation and fluctuations in market prices. He noted that it would provide the firm with more liquidity and the ability to close out projects faster, keeping investor yields high and making its operations more profitable.

Ajiboye added that completed housing units will be accessible to buyers through structured payment options, including mortgage access via the National Housing Fund (NHF) and MRIEF, further driving the firm’s affordable housing expansion.

Addressing potential questions regarding short-term debt structures for real estate development, lead financial advisers, Pathway Advisors Limited, emphasised that the capital strategy targets near-complete assets to ensure fast capital turnover.

Founder and Group Managing Director, Pathway Advisors Limited, Adekunle Alade, said: “Commercial paper is an instrument that helps companies finance working capital requirements. Efficacy has many projects at different stages of completion; this financial paper allows them to finish projects that are 30 to 80 per cent complete within two to three months.”