Ngozi Amuche
Central Bank of Nigeria has approved the sum of N200 billion as a mortgage finance facility for the Family Homes Fund Limited and targeted at low income earners.
The facility, which is expected to be repaid in not more than three installments within the tenor, has an interest rate of five percent per annum.
In a circular, which was issued by the CBN, 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.
According to the apex bank, the 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 five 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 1million jobs through its supply chain.
Specifically, 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.’’
On boosting local manufacturing, the apex bank stated, ‘’The programme is designed to utilize at least 90 percent local manufacturing inputs and as a result conserve, foreign exchange.
“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, amongst others.”