The Central Bank of Nigeria (CBN) has approved N200 billion as mortgage finance loan to Family Homes Fund (FHF) targeted at low-income earners.
CBN through a statement on the apex bank’s website indicated that the money will be used to build 300,000 homes in all states and the Federal Capital Territory (FCT) and is expected to generate about 1.5 million jobs in five years.
According to the approval which was made on Tuesday, the plan is targeted at over 900,000 people, including cchildren.
“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,” the bank explained.
“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.”
To conserve foreign exchange, the CBN disclosed that the buildings will be constructed using about 90 per cent of locally sourced materials.
“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,” it added.
“For example, it is estimated that the programme will require up to 1.7m doors, 7m door hinges and locks etc.”
Beneficiaries are expected to pay an interest rate of not more than 5.0% p.a. (all-inclusive).
The Framework shall be subject to review from time to time as may be deemed necessary, the bank stated.