Central Bank of Nigeria has said it will release a cumulative maximum limit of N200bn to provide construction finance facility to enable Family Homes Funds Limited to implement Federal Government’s Social Housing programme as part of Economic Sustainability Plan 2020.
CBN disclosed this on Tuesday in a report on ‘Framework for the implementation of family homes financing initiative’.
Part of the report read, “Funds would be released to FHF on project basis subject to the cumulative maximum limit of N200bn.
“A project is defined as cluster of homes in the same geographical location and covered with the same title documents and approvals.”
According to CBN, mass housing construction is among the key economic activities with potential to create significant number of jobs rapidly.
“It is in the light of this that the bank introduces this financing initiative to support Federal Government’s Economic Sustainability programme to fast track deployment of 300,000 homes in the 36 states of the federation and Federal Capital Territory and to create up to up to 1.5 million jobs in five years,” it said.
CBN said the initiative was to be implemented in collaboration with Family Homes Fund Ltd as the lead developer and eligible obligor.
It said, “The programme is designed to utilise at least 90 per cent locally manufactured 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 among others.
“For example, it is estimated that the programme will require up to 1.7m doors, 7m door hinges and locks among others.”
According to CBN, 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, it said.
It said the Development Finance Department of CBN would be responsible for the management of the intervention facility.
According to the report, CBN will provide the funding for the initiative; appoint technical advisor with requisite skills in housing construction and financing; release funds to the FHF on the recommendation of the technical advisor; carry out periodic verification and monitoring of projects financed; and review the framework as may be necessary from time to time.