CBN RELEASES FRAMEWORK FOR IMPLEMENTATION OF THE FAMILY HOMES FINANCING INITIATIVE
The Central Bank of Nigeria (CBN) has recently released the targeted framework for the implementation of new and lasting Family Homes Financing Initiative (FHFI), which is aimed at providing 300,000 homes across the 36 states of Nigeria.
Does the implementation of new and lasting family homes financing initiative predict a perfect future for Nigeria? Is it a solution to the housing problems in Nigeria both in rural and urban areas? Will yield to an improvement in Nigeria’s economy? Is it a step to tackle the unemployment crisis in Nigeria? So many questions remain unanswered.
The initiative is believed to create more than 1.5 million direct jobs in five years with a N200 billion funding. According to Central Bank of Nigeria, this facility will enable Family Homes Funds Limited (FHFL), which is the only eligible obligor to implement the federal government’s Social Housing Programme as part of the Economic Sustainability Plan 2020. A plan that clearly projects transition in Nigeria’s Economy.
The framework was also designed to utilize with effect at least 90 per cent locally manufactured inputs, and as a result, conserve foreign exchange. The programme deliberately aims to revitalize local manufacture of construction materials, including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures, and bricks. It is also estimated that the programme would require up to 1.7 million doors, seven million door hinges and locks etc. “This project would be funded at an interest rate that does not exceed five per cent per annum” as stated by the framework.
The project is said to have a direct impact on people currently living in informal settlements with shared facilities in unsanitary environments as the project is targeted towards the low income group across the country.
The framework added: Funds would be released to FHF on a project basis subject to the cumulative maximum limit of N200 billion’’. It further stated, The Development Finance Department of the Central Bank of Nigeria shall be responsible for the management of the intervention facility. The CBN shall provide the funding for the initiative; appoint a Technical Advisor (TA) with requisite skills in housing construction and financing; release funds to the FHF on the recommendation of the TA; carry out periodic verifications and monitoring of projects financed; and review the framework as may be necessary from time to time.
The Framework certainly offers a wide variety of opportunities in combatting the requirement for housing in Nigeria. It is definitely an implementation that is to be encouraged as such initiatives will support economic growth in Nigeria.