CBN introduces N200 billion housing financing initiative

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The Central Bank of Nigeria, CBN, has introduced a 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 to create up to up to 1.5m jobs in 5 years.

The Apex Bank said the initiative is to be implemented in collaboration with Family Homes Fund Ltd as the lead developer.

It added that the objectives of the programme include the creating of up to 1.5 million direct construction sector jobs (at the rate of 5 jobs/home) particularly young people on low income. In addition, it said the programme has the potential to create a further 1m jobs through its supply chain.

The Bank in a circular on Tuesday said the programme is designed to utilize at least 90% locally manufactured inputs and as a result conserve foreign exchange.

It added that Funds would be released to FHF on project basis subject to the cumulative maximum limit of ₦200 billion.

According to it, a project is defined as a cluster of homes in the same geographical location and covered with the same title documents and approvals.

“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.

“The programme will house 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”, the bank said.

CBN said it 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 with a 3-year loan at 5% interest.

The bank said interest applicants should present a formal written application by FHF to the CBN Governor to be accompanied
with copies of the Federal Executive Council (FEC) approval, Guarantee document from the Federal Ministry of Finance, Comprehensive project plan.