The Federal Government has commenced negotiation with the African Development Bank AfDB, the World Bank and other financial institutions with a view to raising over N800 million to fund the construction of affordable housing for Nigerians.
The fund is being negotiated under the Family Home Funds FMF, which is a housing investment fund owned by the Sovereign Wealth Fund and the Ministry of Finance. The housing scheme was set up primarily to finance housing for Nigerians who are low income earners.
Announcing the development during the fund raising/launching of Real Estate Developers Association of Nigeria, REDAN, in Abuja, the Chief Executive Office of Family Homes Funds, FHF, Femi Adewole, explained that the fund is meant to provide housing for low-income Nigerians, adding that the scheme was set up primarily to finance housing for Nigerians who are low income earners.
"That is interpreted to me as Nigerians who are earning below N100, 000 per month as a household.
That is what we are here to do. As I have said earlier, we are doing this in two ways. We are providing finances for developers who will build homes ranging from N2.5 million to N5 million.
"And in addition to that, we are providing some assistance to the buyers of those houses. We are giving them deferred loans up to forty percent of the cost of the houses. We are talking to a lot of development partners. We are at very advanced discussion and approval stage. So, we need a lot of money to achieve 500,000 homes. And that money is not going to come from the Federal Government of Nigeria alone.
"So, we are in partnership with whole range of development institutions, and the African Development Bank AfDB , and the World bank are just two of such institutions that we are talking to and who are providing support for the housing scheme", Adewole said.
FG advocates alternative funding for road, housing projects
On funds realised so far, he said, "It is commercial secret. So, for now I think we should not dwell on it because we have a long way to go. We have to raise about N800 million. To date, we have a strong commitment of over $200 million.
"Till date, the funds have been running only in the last 45 months. We have invested over N20 billion into five housing projects which are ongoing", FHF boss noted.
Adewole, who disclosed further that some of the locations for the housing are Kaduna, Kano, Lagos and Delta states, respectively, however assured Nigerians, that before the end of December over 200 houses would have been completed.
Speaking earlier, President of Real Estate Developers of Nigeria, REDAN, Ugochukukwu Chime, emphasised on the readiness of the body to work in collaboration with stakeholders in the housing sector to move the sector to a higher pedestal.
According to him, "It is our sincere responsibility to work with stakeholders in the housing sector to ensure that we move the away from the learning curve to a higher pedestal of project feasibility, execution and closure.
"Knowledge is light and learning/training is key to understanding the dynamics of the business of real estate, and also an instrument to wipe out ignorance."
Chime said that the house project will cost N500 million and is expected to be "partially completed and occupied in one year and fully completed, equipped and furnished in two years.
He appealed to federal government through the instrumentality of the Family Homes Funds to simplify the requirements and participation for willing Nigerians.
Chime added that, "Concentration on demand induced supply based on market forces has not yielded the desired dividends because of the value chain and transaction dynamics that will produce such effective linkage is non-existent."