Following a huge housing deficits in the country, the Central Bank of Nigeria (CBN) has released a framework for the implementation of the N200 billion ‘Family Homes Financing Initiative’ in a bid to provide 300,000 homes across the 36 states of the federation.
The initiative is also expected to create more than 1.5 million direct jobs in the next five years.
According to the framework, the construction finance facility would enable Family Homes Funds Limited (FHFL), which is the only eligible obligor to implement the federal government’s social housing programme as part of the Economic Sustainability Plan 2020.
Designed to utilise at least 90 per cent locally – manufactured inputs and as a result, conserve foreign exchange, FHFL , as the lead developer would provide 900,000 children and adults with homes , averaging three persons per home.
The framework stated that the programme would deliberately aim to revitalise local manufacturer of construction materials including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures and bricks. Among others. For example, it is estimated that the programme would require up to 1.7 million doors, seven million door hinges and locks, among others.
Most of those to be directly impacted by the project it said currently live in informal settlements with shared facilities in unsanitary environments as the project is targeted towards people on low income level across the country.
“Funds would be released to FHF on project basis subject to the cumulative maximum limit of N200 billion. A project is defined as cluster of homes in the same geographical location and covered with the same title documents and approvals,” the framework stated.
Term loan which would enable FHF finance the construction of social housing units for people on low income, would have a tenor of three years from date of disbursement and an interest rate of five per cent.
FHF shall ensure prudent utilisation of facility for the purpose for which it was granted; adhere strictly to the terms and conditions of the facility; keep up-to-date records of developments on each project site; allow access to the project and records by the CBN and technical adviser; repay the facility in accordance with the approved repayment schedule; and comply with the provisions of the loan agreement and the framework.
The Federal Ministry of Finance, it stressed, would issue guarantee to the FHF in respect of the facilities granted under the initiative; partner the CBN and the TA in monitoring the project till full repayment and comply with the provisions of the framework.