The Central Bank of Nigeria (CBN) has released the framework for the implementation of its initiative called Family Home Finance.
The financing initiative, according to the Apex Bank is 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 and to create up to 1.5m jobs in 5 years“
The objective of the new Initiative are
- Create jobs at large scale – creating rapidly, up to 1.5 million direct construction sector jobs.
- Boost local manufacturing – revitalize local manufacture of construction materials including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures and bricks etc. With its 90% local content.
- And improve quality of life – house up to 900,000 children and adults (at an average of 3 persons/home) on low income with direct impact on health, education and economic outcomes.
The facility is with a limit of N200 billion, to be guaranteed by the Federal Ministry of Finance. Will be availed as a Construction Finance Facility to enable Family Home Funds Limited (FHFL) to implement the Federal Government’s Social Housing programme as part of the Economic Sustainability Plan 2020.
The CBN will be responsible for providing the funding for the initiative and the appointment of Technical Advisor, who will be supervise the project and advise of fund disbursement.
FHFL will ensure prudent utilisation of facility for the purpose for which it was granted ensure repayment of the facility with the 3 years tenure.
Federal Ministry of finance is to guarantee the 5%, N200 billion loan, and also partner CBN and the TA in monitoring the project.
It is estimated that the programme will require up to 1.7m doors, 7m door hinges and locks etc, from local manufacturers.