- To fund mass housing construction
- Targets 900,000 children, adults in 36 states, FCT
- 5m direct construction, 1m supply chain jobs
A N200 billion family homes financing fund is being created by the Central Bank of Nigeria (CBN) to fast track the deployment of 300,000 homes across the 36 states of the federation and Abuja, a CBN guidelines on the new initiative seen by Business A.M. has shown. The initiative is also primed to create about 1.5 million new jobs in five years, according to the document.
There is also an indication that the apex bank conceived of this new fund to support the federal government’s Economic Sustainability Programme (ESP), which its development finance department said in the guidelines will be executed in collaboration with the Family Homes Fund Limited acting as lead developer.
The programme is designed to utilize at least 90 per cent locally manufactured inputs, which will then help to conserve foreign exchange to boost local manufacturing, according to the guidelines.
“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,” the CBN stated.
The framework also shows that in line with government’s ESP plans, 900, 000 children and adults on a low income with direct impact on education, health and economic outcomes will be targeted by the initiative across the country.
With regards to the funding, the CBN stated thus: “Funds would be released to FHF on project basis subject to the cumulative maximum limit of N200 billion on a 3 year tenor from the date of disbursement and the interest rate under the intervention shall not exceed 5 per cent per annum.
“Construction work should begin at the site within 2 weeks of receipt of funds from CBN while the loan repayment for the facility should not exceed 3 installments within the tenor of the facility,” the framework revealed.
It noted that the periodic monitoring of projects financed under the FHF initiative shall be conducted by the technical advisors and CBN, adding, however, that the Development Finance Department of the Central Bank of Nigeria shall be responsible for the management of the intervention facility.