The Central Bank of Nigeria (CBN) on Tuesday announced a N200 billion family home financing initiative in support of the Nigerian government’s quest for providing 300,000 homes across the 36 states and the Federal Capital Territory.
It stated this in a report titled, ‘Framework for the Implementation of Family Homes Financing Initiative,’ published on its website, saying the scheme would advance government’s Economic Sustainability programme, expected to create 1.5 million jobs in five years.
According to a report by PricewaterhouseCoopers, Nigeria’s housing deficit stood at 17 million houses as of 2012.
“Funds would be released to FHF (Family Homes Fund Limited) on project basis subject to the cumulative maximum limit of N200bn.
“A project is defined as cluster of homes in the same geographical location and covered with the same title documents and approvals,” the document said.
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The mass housing programme is planned to adopt a minimum of 90% locally manufactured materials in its execution in a bid to conserve foreign exchange and provide low-cost homes for 900,000 adults and children at 3 people per household.
Funding will come in the form of term loan to enable FHF, the lead developer, finance the building of social housing units for people of low income.
The duration of the loan is three years from the date of disbursement while interest will be applied at a maximum of 5% per annum (all inclusive).
“The facility related to any batch should be repaid in not more than 3 instalments within the tenor of the Facility,” the CBN said.
Guarantee will be obtained from the Federal Ministry of Finance as collateral for the facility.
The Development Finance Department of the CBN has been appointed to manage the intervention facility.