Affordable housing program in Nigeria receives boost from CBN

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The affordable housing program in Nigeria has received a boost after the Central Bank of Nigeria (CBN) approved over US$ 517M as a mortgage finance facility towards the construction of 300,000 homes in the 36 states of the federation and the Federal Capital Territory.

In support of the Federal Government’s Social Housing program under the Economic Sustainability Plan 2020, this financing initiative will be implemented in collaboration with the Family Homes Fund Limited (FHFL), as the lead developer.

CBN revealed that the funds would be released to FHF on a project basis subject, explaining a “project” as a cluster of homes in the same geographical location and covered with the same title documents and approvals.

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The initiative targets people on low-income levels across the West African country. “The program would house up to 900,000 children and adults, at an average of three persons per home, on a low income with direct impact on health, education and economic outcomes” explained the bank on a document.

Job creation

The CBN explained that mass housing construction is among the key economic activities with the potentials to create a significant number of jobs rapidly.

“The program will aim at creating rapidly, up to 1.5 million direct construction sector job opportunities at the rate of 5 jobs per home, particularly young people on a low income. In addition, the program has the potential to create further one million jobs through its supply chain,” noted the Central bank and apex monetary authority of Nigeria.

The program, the bank states that it was designed to utilize at least 90 percent of locally manufactured inputs and as a result, conserve foreign exchange.

“The program 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,”.