Nairametrics| The Central Bank of Nigeria (CBN) and the Association of Housing Corporations of Nigeria (AHCN) have come together to begin the structuring of a N500 billion intervention fund in the real estate industry. The fund is meant for the mass construction of housing units across the country. As for the CBN, the fund is part of its statutory responsibility. However, for the AHCN, the case is a little different.
According to President and Chairman of Council, AHCN, Mr. Mohammed Adamu, the association is partnering the CBN on this intervention fund due to the financial hindrance faced by members of the public, who genuinely wanted town housing units. The intervention fund was thus in a bid to address the affordability issue.
“This affordability question has created serious challenge to the availability of housing finance into the sector, as real estate financiers usually request for off-taker guarantee before getting facility for any housing project. Bothered by this scenario, the association has decided to create an off-takers’ database throughout Nigeria in partnership with Value Chain Project Consultant Limited, and we have commenced the process of structuring a N500bn revolving housing intervention fund from the CBN to facilitate mass housing construction for Nigerians.” Punch quotes Adamu as saying.
The AHCN is a body with over 50-member organisations consisting of federal and state housing/property agencies, housing research institutes, mortgage establishments and private estate developers, as well as the Federal Housing Authority, Nigerian Building and Road Research Institute and the Federal Mortgage Bank of Nigeria.