The Central Bank of Nigeria (CBN) has announced a mortgage plan and policy that targets to build 300,000 homes for low income Nigerians in the 36 states.
This was published on the website of the bank this week.
It stated that the “Mass housing construction is among the key economic activities with potentials to create significant number of jobs rapidly. It is in the light of this that the Bank introduces this financing initiative to support the Federal Government’s Economic Sustainability programme to fast track the deployment of 300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to up to 1.5m jobs in 5 years. This initiative is to be implemented in collaboration with Family Homes Fund Ltd as the lead developer.
Beyond provision of affordable housing, CBN said the next major target of the policy is job creation that aims to generate 1.5m employments.
“The programme will aim at creating rapidly, up to 1.5 million direct construction sector jobs at the rate of 5 jobs/home particularly young people on low income. In addition, the programme has potential to create a further 1m jobs through its supply chain. Classified as Confidential Boost to Local Manufacturing – the programme is designed to utilize at least 90% locally manufactured inputs and as a result conserve foreign exchange. In that regard the programme will deliberately aim to revitalize 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 1.7m doors, 7m door hinges and locks etc.
In addition to the above benefits, CBN plans to use the project as pedestal provide shelter for up to 900,000 children and adults at an average of 3 persons/home on 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.
Another purpose of construction finance Facility is to enable FHFL implement the Federal Government’s Social Housing programme as part of the Economic Sustainability Plan 2020.
On the technical advisory aspect, the CBN said it would appoint a technical adviser 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.”
The entire housing package plan targets a budget of N200 billion to spent over five years to actualize this objective.
“Fund would be released to FHF on project basis subject to the cumulative maximum limit of ₦200 billion. A project is defined as cluster of homes in the same geographical location and covered with the same title documents and approvals,” CBN explained in the memo.