The Central Bank of Nigeria (CBN) has announced a N200 billion mortgage finance loan to Family Homes Fund (FHF).
According to the CBN, the fund is for the building of 300,000 homes in the 36 states of the federation and the Federal Capital Territory. It is also expected to help create up to 1.5 million jobs in five years.
The CBN framework for the implementation of the Family Homes Financing Scheme was released on Tuesday, and it showed that the fund would be released to FMF on a project basis, at a maximum limit of N200 billion.
According to the framework, the three-year term loan will enable FHF to finance the construction of social housing units for people on a low income at an interest rate not more than five per cent per annum.
The CBN said the financing initiative was introduced to support the Federal Government’s Economic Sustainability programme, adding that the programme was designed to utilise, at least, 90 per cent locally manufactured inputs so as to conserve foreign exchange.
The CBN said:
“In that regard, the programme will deliberately aim to revitalise local manufacture of construction materials, including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures and bricks, etc. For example, it is estimated that the programme will require up to 1.7 million doors, seven million door hinges and locks among others.
“The programme will house up to 900,000 children and adults (at an average of three persons/home) on a low income with direct impact on health, education and economic outcomes.
“ Most of these would currently live in informal settlements with shared facilities in unsanitary environments.”
“CBN shall appoint a technical advisor to, among others, appraise the requests for funding by FHFL, recommend for the release of funds and monitor the delivery of the programme and utilization of funds including quality of the portfolio,” it added.