The harsh economic climate exacerbated by COVID-19 has hit many below the belt, particularly the low-income earners in Nigeria.
As a stimulus, the Central Bank of Nigeria (CBN) plans to release N200 billion mortgage finance loan to Family Homes Fund (FHF).
The fund is for the provision of 300,000 homes in the 36 states of the federation including Federal Capital Territory and creation of 1.5 million jobs in five years for the people.
The CBN framework for the implementation of the Family Homes Financing Scheme released Tuesday indicates that the fund would be released to FMF on project basis, subject to the cumulative maximum limit of N200 billion.
The three-year term loan, according to the framework, will enable FHF finance the construction of social housing units for people on low income at an interest rate not more than five per cent per annum (all inclusive).
The apex bank said it introduced the financing initiative to support the Federal Government’s Economic Sustainability Programme.
The bank added that the programme was designed to utilise, at least, 90 per cent locally manufactured inputs so as to conserve foreign exchange.
The CBN said: “In that regard, the programme will deliberately aim to revitalise 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 1.7 million doors, seven million door hinges and locks among others.
“The programme will house up to 900,000 children and adults (at an average of three 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 initiative is to be implemented in collaboration with Family Homes Fund (FHF) Limited as the lead developer.
It said a construction finance facility to enable FHFL implement the Federal Government’s Social Housing programme as part of the Economic Sustainability Plan 2020.
“CBN 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,” it added