CBN Releases Financing Framework For Housing Sector

…Targets 1.5 Million Jobs In 5 years

The Central Bank of Nigeria has released the framework for the financing of 300,000 homes across the country.

The apex bank disclosed this on Tuesday in a document titled, ‘Framework For The Implementation of Family Homes Financing Initiative, ‘ which was seen by THE WHISTLER.

The document was obtained from the apex bank’s official Twitter account.

The CBN plans to support the Federal Government’s Economic Sustainability programme through the financing initiative.

Nigeria’s largest lender said the project would create up to 1.5 million jobs in the next five years.

The initiative will be implemented in collaboration with Family Homes Fund Ltd as the lead developer.

“The programme will aim at creating rapidly, up to 1.5 million direct construction sector jobs particularly among young people on low income.

“In addition, the programme has potential to create a further one million jobs through its supply chain,” the framework added.

The apex bank further revealed that it had designed the programme to utilize at least 90 per cent of locally manufactured inputs, adding that this would help to conserve foreign exchange.

“In that regard the programme will deliberately aim to revitalize local manufacture of construction materials including doors and windows, iron mongery, sanitary fittings, concrete products, tiles, glass, electrical fittings and fixtures and bricks,” the CBN said.

Nigeria’s largest lender estimated that the programme would require up to 1.7 million doors, seven million door hinges and locks which would be sourced from the local market.

The CBN said the programme would improve the quality of life for 900,000 children and adults at an average of three persons per home.

The beneficiaries would mostly be Nigerians on a low income with a direct impact on health, and education among others.

The CBN said the funds would be released to the Family Homes Fund on a project basis subject to the cumulative maximum limit of N200bn.

The loan tenure would be three years from the date of disbursement, while the interest rate under the intervention shall be at not more than five percent yearly.