In line with the need to provide construction finance facility as a way of aiding the Family Homes Funds Limited to implement the Federal Government’s Social Housing programme, the Central Bank of Nigeria has stated that it will issue a cumulative maximum limit of N200billion.
This was revealed yesterday in a correspondence on ‘Framework for the implementation of family homes financing initiative’.
Based on the report, it stipulated that funds would be released to FHF on project basis subject to the cumulative maximum limit of N200bn. The report also defined a “project” as cluster of homes in the same geographical location and covered with the same title documents and approvals.
The CBN disclosed that mass housing construction is among the key economic activities with potential to create significant number of jobs rapidly. Thus, it is as a result of this that the bank is presenting this 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 and also create up to 1.5 million jobs in five years
The CBN said the initiative was to be implemented in collaboration with Family Homes Fund Ltd as the lead developer and eligible obligor. In addition, the report stated that the programme is designed to utilize at least 90 per cent locally manufactured inputs and as a result conserve foreign exchange.
The programme itself will shelter up to 900,000 children and adults (at an average of three persons/home) on low income with direct impact on health, education and economic outcomes.
Regarding the management of the intervention facility, the report also stipulated that the Development Finance Department of the CBN would be charged with the responsibility.
Furthermore, the CBN on its part will be responsible for providing the funds for the initiative; appointing technical advisor with indispensable skills in housing construction and financing; releasing funds to the FHF on the recommendation of the technical advisor; carrying out periodic verification and monitoring of projects financed; and reviewing the framework as may be necessary from time to time.