The Federal Government has disclosed that it would provide mortgage loan guarantees to low-income earners, on low-interest rates and collateral-free basis, in a bid to ensure that 300,000 housing units are delivered to the intended target, as part of the National Economic Sustainability Plan (NESP).
The implementation of the social housing plan estimated to cost over N400bn is expected to kick off next week, as early sites for the housing projects have now been identified, according to members of the Economic Sustainability Committee working on the project.
It is reported that the Economic Sustainability Committee has already approved that the 1, 2, and 3 bedroom units cost as little as between N1.8 million to N2million under the plan, while financial assistance would be available for Nigerians to pay the mortgage.
Nairametrics had earlier reported that the Central Bank of Nigeria approved the sum of N200 billion, as a mortgage finance facility to the Family Homes Fund Limited and targeted at low-income earners. It was introduced to support the Federal Government’s Economic Sustainability Programme, and it’s meant to fast track the construction of 300,000 homes in the 36 states and Abuja.
Earlier in June, President Muhammadu Buhari and the Federal Executive Council approved a N2.3 trillion Economic Stimulus package, after the VP Yemi Osinbajo led Economic Sustainability Committee submitted its report. The President then directed the VP to supervise the implementation of the plan alongside other members of the committee.
Under the Social Housing program of the ESP, there would also be Rent to Own option, as part of the Buhari administration’s resolve to impact the common man in this social Housing plan is expected to generate about 1.5 million jobs and houses delivered to about 1.5 million Nigerian families.
Already, sites for early start projects have been identified in all the 6 geo-political zones in addition to the FCT. The sites include those in Ekiti and Ogun in the Southwest; Enugu and Abia in the Southeast; Delta and Edo in the Southsouth; Yobe and Bauchi in the Northeast; Kaduna and Katsina in the Northwest; and Nasarawa and Plateau in the Northcentral. Sites have also been identified in Abuja.
The CBN has already committed to a N200 billion facility, to kickstart the social housing projects, with a guarantee by the FG under the Finance Ministry at about 5%. The implementing agency, Family Homes Fund Ltd, an agency under the Federal Ministry of Finance has already mobilized thousands of Cooperative groups across the country, who will participate in the social Housing plan as main warehouse agents and mobilize low-income buyers.