Nigeria: CBN releases framework of Family Homes Financing Initiative

The Central Bank of Nigeria (CBN) has released the framework for the implementation of the Family Homes Financing Initiative (FHFI), which is targeted at providing 300,000 homes across the 36 states of the country, according to a news report by This Day.

The initiative is also expected to create more than 1.5 million direct jobs in five years with an N200 billion funding.

According to the framework posted on the CBN's website, the facility will enable Family Homes Funds Limited (FHFL), which is the only eligible obligor to implement the federal government's Social Housing program as part of the Economic Sustainability Plan 2020.

The framework was also designed to utilize at least 90 percent locally manufactured inputs and as a result, conserve foreign exchange. It would be funded at an interest rate that does not exceed five percent per annum.

It stated that the program 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 program would require up to 1.7 million doors, seven million door hinges and locks, etc.

Most of those to be directly impacted by the project it stated currently live in informal settlements with shared facilities in unsanitary environments as the project is targeted towards people on low-income levels across the country.

The framework added: "Funds would be released to FHF on project basis subject to the cumulative maximum limit of N200 billion. A project is defined as a cluster of homes in the same geographical location and covered with the same title documents and approvals."