The Central Bank Nigeria has introduced a new family home financing initiative.to support the Federal Government’s Economic Sustainability programme to fast track the deployment of 300,000 homes in the 36 states of the federation and the Federal Capital Territory.
The CBN in a document titled “Framework for the implementation of family homes financing initiative”, said it was introduced to create up to 1.5 million jobs in five years.
It explained that mass housing construction was among the key economic activities with potentials to create significant number of jobs rapidly.
The bank said that the initiative would be implemented in collaboration with Family Homes Fund Ltd (FHFL), as the lead developer.
“The programme will aim at creating rapidly, up to1.5 million direct construction sector jobs (at the rate of 5 jobs/home) particularly young people on low income.
“In addition, the programme has potential to create a further one million jobs through its suppliers chain,” it said.
The apex bank said that the programme was designed to utilise at least 90 per cent locally manufactured inputs and as a result, conserve foreign exchange.
“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,” it said.
The document said that the programme would house up to 900,000 children and adults, at an average of three persons per home, on low income with direct impact on health, education and economic outcomes.
It explained that the initiative would target people on low income level across the country.
The CBN said that the construction finance facility would enable FHFL implement the Federal Government’s Social Housing programme as part of the Economic Sustainability Plan 2020.
It disclosed that funds would be released to FHF on project basis subject to the cumulative maximum limit of ₦200 billion.
“A project is defined as cluster of homes in the same geographical location and covered with the same title documents and approvals,” it said.