CBN Targets 2.5 million Jobs from N200bn Housing Fund

September 16, 2020
affordable housing

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has introduced a family homes financing initiative worth N200 billion, which is expected to lead to the creation of 2.5 million direct and indirect jobs.

In the guidelines for the implementation of the initiative released on Tuesday, the apex bank said that the construction finance facility was introduced to enable the Family Homes Fund Limited (FHFL) implement the federal government’s Social Housing Programme as part of the Economic Sustainability Plan (ESP) 2020.

The Social Housing Programme seeks to fast track the deployment of 300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to up to 1.5 million jobs in five years.

Specifically, the CBN said that the family homes financing initiative, which will be implemented in collaboration with FHFL (the lead developer), is aimed at creating rapidly, up to 1.5 million direct construction sector jobs (at the rate of five jobs per home) particularly young people in the low-income bracket.

In addition, the programme has the potential to create a further one million jobs through its supply chain.

Furthermore, it said the programme, which will house up to 900,000 children and adults (at an average of three persons per home) on a low income, was designed to boost local manufacturing, by utilizing at least 90 per cent locally manufactured inputs thereby conserving foreign exchange.

“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.,” the CBN said.

On financing under the initiative, it said: “Funds would be released to FHFL on project basis subject to the cumulative maximum limit of N200 billion,” adding that “a project is defined as a cluster of homes in the same geographical location and covered with the same title documents and approvals.”

The apex bank placed a tenor for the funding at three years from the date of disbursement, while interest rate under the intervention will not exceed 5 per cent per annum (all-inclusive).

It added that loans related to any batch should be repaid in not more than three instalments within the tenor of the facility.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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