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Real Estate

CBN approves N200 billion housing loan for 300,000 households at 5% per annum

The facility is to enable FHF finance construction of social housing units for low-income earners.



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The Central Bank of Nigeria (CBN) has approved the sum of N200 billion as mortgage finance facility to the Family Homes Fund Limited (FHFL) and targeted at low income earners.

According to a circular, which was issued by the CBN and seen by Nairametrics, this financing initiative is to be implemented in collaboration with the Family Homes Fund Limited as the lead developer, as it is introduced to support the Federal Government’s Economic Sustainability programme.

READ: Nigeria to begin gold production in 2021 with the Segilola Gold Project

This fund is to fast track the construction of 300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to 1.5 million jobs in 5 years.

In addition to the 1.5 million direct construction sector jobs particularly young people on a low income, the programme also has the potential to create further 1 million jobs through its supply chain.

READ: FG meets group to access AfCFTA’s $650 billion market

The CBN in the circular stated, ‘’The programme will house up to 900,000 children and adults (at an average of 3 persons/home) on a 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. Towards targeting people on low-income level across the country.’’

(READ MORE:has approved the sum of N200 billion as mortgage finance facility to the Family Homes Fund Limited (FHFL) and targeted at low income earners.

READ: Banks’ loans to private sector increase by N3.50 trillion in one year – CBN

On boosting local manufacturing, the apex bank stated, ‘’The programme is designed to utilize at least 90% locally manufacturing inputs and as a result conserve foreign exchange.

“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 1.7 m doors, 7m door hinges and locks etc.’’

READ: FG meets group to access AfCFTA’s $650 billion market

The funds, which would be released to the Family Home Funds (FHF) by CBN on a project basis is subject to the cumulative maximum limit of N200 billion. The facility type which would be a term loan is to enable FHF finance the construction of social housing units for low-income earners and is for a 3-year tenor from the date of disbursement.

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The facility, which is expected to be repaid in not more than 3 instalments within the tenor of the facility, has an interest rate of not more than 5% per annum.


Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]



  1. Princess uwari

    September 16, 2020 at 3:36 pm

    Where can i see this (FHFL) family homes fund limited

  2. john

    September 16, 2020 at 7:16 pm

    3-year tenor from the date of disbursement ? unbelievable !!!

    • Kay

      September 17, 2020 at 8:12 am

      Really amazing! For low income earners to repay mortgage in 3 years is absurd to say the least.

  3. Olise Ikechukwu

    September 17, 2020 at 1:16 am

    Please how can so one apply for this loan

    • Peterlife Edemeka

      September 22, 2020 at 11:46 am

      Please let no one disrupt this wonderful initiative I thanks those that had this wonderful wisdom.from Arc Peterlife Edemeka…

  4. Malachy

    September 17, 2020 at 3:29 am

    How can I apply for the fund
    Please assist me.

  5. Ezekwem odigbo

    September 17, 2020 at 7:20 am

    how can one apply for this loan

    • Solabomi

      September 17, 2020 at 12:48 pm

      Thanks for the awareness and update.
      How can I apply for this loan?
      What’s the interest rate?

  6. Anonymous

    September 17, 2020 at 8:10 am

    How do we apply for this pls?

  7. Israel

    September 17, 2020 at 8:47 am

    More details please on how construction companies or estate developers can access the loan


    September 17, 2020 at 12:40 pm

    when is the start date for the application,and whatare the condition for qualification.

  9. Naija

    September 17, 2020 at 2:18 pm

    Monies that never get to the real intended… Mecheeeew

  10. Dee

    September 17, 2020 at 7:57 pm

    Please how can I apply for the loan, I’m so much interested

  11. Anonymous

    September 17, 2020 at 10:22 pm

    How can I apply for this please?

  12. Ngozi nzeamaka

    September 18, 2020 at 8:31 am

    I pray I will be a beneficiary

  13. Abubakar Aminat olaide

    October 11, 2020 at 3:23 pm

    Pls am interested in this loan i have home to develop and i need money to start it in lagos.

    Kindly regards


  14. Abubakar Aminat olaide

    October 11, 2020 at 3:23 pm

    Pls am interested in this loan i have home to develop and i need money to start it in lagos.

    Kindly regards


  15. Bukky

    October 27, 2020 at 2:54 pm

    Please is this still available and how can I apply for this fund

  16. Ugochukwu Amadigwe

    January 5, 2021 at 8:37 am

    Please what type of houses are you constructing? Is it semi-detached bungalows or fully detached bungalows.

    Also, what is the square meter for each of the plot?

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Real Estate

Lagos denies allegations of condoning planning violations in Osborne Ikoyi, Magodo

Lagos Government has addressed accusations of allowing physical planning infractions in selected areas of the State.



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The Lagos State Government has denied the allegation that it is tacitly condoning the violation of its physical planning laws by some developers in Osborne Foreshore Phase 2 and Peace Valley Estate, Magodo.

This follows an accusation in a post that has gone viral on social media by one Yacoob Abiodun, who claimed to be an Urban Planner/Planning Advocate, accusing the state government of allowing physical planning infractions in these areas.

The disclosure was contained in a statement issued by the Lagos State Commissioner for Physical Planning and Urban Development, Dr Idris Salako, on Monday, March 1, 2021, refuting the insinuation.

Salako stressed that the claim by Yacoob Abiodun that residents of Osborne Foreshore Phase II and Peace Valley Zone, Magodo, were crying foul over the illegal activities of some developers is totally untrue and fabricated.

While expressing his displeasure at the twist of facts by the writer, the Physical Planning Commissioner said that it became necessary to correct the misinformation peddled in the social media report in order to disabuse the minds of Lagosians by setting the records straight.

Salako retorted that contrary to insinuations, the residents of Osborne Foreshore Phase II had influenced the increase in height of structures in the area from the original 4 or 5 to 10 floors, while Phase I still remained a maximum of five floors.

He explained that a review of the Approval Order for Osborne Foreshore was precipitated by the continuous agitation of the residents, as original allottees had brought about an increase in the height of buildings and density of the Estate while the government came in to ensure a proper review for the benefit of all concerned.

Dismissing the allegation of non-involvement in the review, he stated that the ongoing review process, which was borne out of several consultations and engagements with the residents’ association, was in line with the extant regulations guiding development planning in the State.

The Commissioner maintained that the review could not have been more inclusive, having met and discussed with residents of the Estate over 10 times before the Ministry encouraged the residents association to engage a consultant, explaining further that Messrs. MOA Planners prepared a revised plan along with the review sent by the Federal Ministry of Works and Housing.

Salako said, “It is, therefore, disheartening that despite repeated dialogue, the latest of which was held with the Governor of Lagos State, Mr Babajide Olusola Sanwo-Olu, three weeks ago, the best that the Osborne-Foreshore Residents Association Phase II (OSFRA) could do was to resort to social media to intimidate and embarrass the Lagos State Government.’

He averred that the writer’s portrayal of the incident at the Peace Valley Zone, Magodo, was not less misleading than the entire writeup as it attempted to denigrate gallant officers of the Nigeria Police who were in the estate on lawful assignment, noting that the Police officers were not only professional and diligent but they acted with the utmost respect for the rule of law and engagement.

Dr. Salako, who was present at the scene, intervened alongside the former Prelate of the Methodist Church, Pa Sunday Ola Makinde to restore order and get the understanding of the Police on the arrest warrant, expressed his dismay at the erroneous social media report which exaggerated the incident and glorified some people who claimed to have thwarted the arrest of the Estate Chairman.

Noting that it had become apparent from the unwarranted social media outburst that some people were out to take advantage of the online platforms and information technology for personal ends, the Commissioner emphasised that no amount of pressure would compel the government to outsource its responsibility for Physical Planning to groups or individuals.

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What you should know

  • It can be recalled that the Lagos State Government through its Physical Planning and Urban Development Ministry, has been on strict enforcement drive of its physical planning laws by moving against developers of illegal and unapproved buildings.
  • The state government at different times, have sealed off both commercial and residential properties in Lekki, Surulere, Ikoyi, Amuwo Odofin, Ogudu GRA, Ikeja and others and even gone as far as demolishing some of those illegal and unapproved structures.


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Real Estate

Leveraging the strong demand for housing in Lagos

Developers can attract more tenants to their building by introducing additional facilities at a slightly higher rent.



Nigeria's real estate, COVID-19 forces tenants to request moratoriums from property owners

The fast-growing young population of Nigeria has largely defined the country’s commercial capital. At 3,577 km2, Lagos has the smallest land area in Nigeria and is 21x smaller than Nigeria’s largest state; Niger.

Despite its size, the state houses the country’s largest population and arguably ranks 1st among Africa’s most populous cities. While this fast-growing young population might tell an exciting growth story, we can’t deny the socio-economic pressure it places on the state’s infrastructure and housing.

As you’ll expect, renting in Lagos can be quite difficult and expensive, particularly in areas with proximity to the city’s commercial centre; Victoria Island. Housing in these areas is gradually adapting to demand which is largely from people within the ages of 18-35. They typically demand for 1-bedroom or studio apartments and would not mind paying a premium for key additional services including quality facility management and proximity to work.

How can developers leverage this demand?

1. Serviced Apartments: Serviced apartments are gradually gaining a bit of traction in key areas in Lagos. They are typically smaller-sized apartments furnished with a bed frame, wardrobe, air conditioner and kitchen furniture. They also enjoy building facilities including security, inverters, standby generators, depending on the rental range and level of sophistication.

Developers can attract more tenants to their building by introducing additional facilities at a slightly higher rent. The shift to remote work has also strengthened the case for serviced apartments as tenants spend more time indoors and enjoy more of these facilities. Winning with serviced apartments would require quality facility management as prospective tenants have cited this as very pertinent in making their decision.

2. Shared Apartments: Multiple-room apartments can have each room rented to different tenants as it could be quite difficult finding one tenant to take up the whole space. These types of apartments could be the right fit for young people willing to explore, meet new people and split responsibilities. Muster and Fibre are two easier-living solutions that support apartment sharing. Landlords can list their properties on these platforms to secure interests from prospective tenants interested in sharing apartments.

3. Larger Formal Retail Developments: The growing urbanization in key areas in Lagos is driving opportunities for formal retail developments. In Yaba for instance, demand is currently satisfied through informal markets, small retail shops and a couple of supermarkets including Mallmart and SPAR. The closest to formal retail is E-Centre, completed in 2008 and home to Ozone Cinemas and a couple of other retail stores.

The urbanization, fast-growing population and presence of key educational institutions in Yaba present opportunities for more organized retail as seen in Surulere and Maryland with Adeniran Ogunsanya Mall and Maryland Mall. Establishing a formal retail centre could leverage this demand and help solidify Yaba’s presence in Lagos’s exciting story.

In 2050, Nigeria will be the 3rd largest country in the world after India and China and have the 2nd lowest median age among Africa’s largest economies. Going by current data, we expect a fairly large percentage of this population to reside in Lagos. This means Lagos will continue to be young and vibrant and we can trust this demographic composition to shape its housing requirements for more 1-bed apartments.

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