Housing Delivery: FG approves 100% funding of N5m NHF loans for contributors

…as FMBN spends N3.5bn on estate development in Nasarawa

Federal Government has approved a new funding model for the National Housing Fund (NHF) as part of ongoing efforts geared towards ensuring accelerated housing delivery for workers in both public and private sectors.

The effort was aimed at bridging the estimated 17 million housing deficit.

In the bid to achieve the feat, Federal Government has approved 100 percent funding of loans not exceeding N5 million for all contributors into NHF.

Richard Esin, acting Managing Director/Chief Executive of FMBN disclosed this at the commissioning of 252-unit housing finance by Federal Mortgage Bank of Nigeria (FMBN) in Karu, Nasarawa State.

According to him, Nigerian workers who are consistent and continuously contribute to the scheme, become eligible for mortgage loans at a concessionary rate of six percent per annum and repayable over a maximum of 30 years to ensure him ownership.

“To further lower the affordability bar, I am pleased to inform NHF contributors that the honourable Minister has graciously approved that NHF loans of N5 million and below will attract 100 percent funding, this loan applicants will not be required to make down payment of 10% of the house price.

“In addition, the cost of mortgage perfection which usually adds another 10% to the upfront costs will be capitalised and repaid gradually over a period of five years. The effect of these concession reduces upfront home ownership costs by at least 20%.

“These steps are in pursuit of the business focus of the bank which is targeted at providing affordable mortgages to promote home ownership among the mass and middle income market segments in Nigeria.

“The targeted average price per unit of house to meet the need of these customer markets is estimated at N5 – N7 million per unit. To achieve this price target, FMBN is collaborating with developers for large scale hosting delivery at city/district scale based on the National Housing Model driven by the Federal Ministry of Power, Works and Housing,” Esin said.

He further disclosed that the bank has so far invested approximately N3.5 billion into development of 1,130 housing units in Nasarawa state through NHF. Some of the estates developed by the bank in Nasarawa include: 500 housing units in Chipa estate in Lafia; 140 housing units in Imani Estate in Karu; 76 housing units in Walidah Estate in Keffi and 119 housing units in Abuja-Keffi expressway.

On his part, Mustapha Shehuri, Minister of State for Power, Works and Housing who applauded the successes recorded so far by FMBN, explained that the 252-unit housing estate financed by FMBN and developed by Lape Nigeria Limited, a private developer, was in response to the promise of President Muhammadu Buhari’s administration resolved to tackle the 16-17 million housing deficit.

“Indeed, the ministry’s plan to build mass housing units in every state of the Federation for public workers over the next three years, under a public private partnership arrangement has reached an advantage ved stage in terms of implementation.

“National hosing models have been designed and approved for each geopolitical some, which takes care of our socio-cultural and climatic diversities in our choice of house type, promotion of standardisation, as well as the use of local building materials. This will translate to affordability of housing for Nigerians and will also create employment opportunities for our teeming youths currently unemployed,” Shehuri said.

He also reiterated the commitment of the present administration towards supporting the ideals of the National housing programme and FMBN for its effort in stepping up to the challenge of housing deficit by participating in the supply, as well as the demand sides of housing finance.

“It is worthy to note that the Federal Mortgage Bank of Nigeria being the apex mortgage bank in Nigeria,has a pivotal role to play in the actualisation of the aspirations of many Nigeria’s to own a home through mortgage. I am equally happy to reaffirm the resolve of this administration to lend is full support to the bank towards ensuring that it is adequately recapitalized to cater for the mortgage finance needs of Nigerian workers, who would be the major beneficiaries of houses being built under the national housing programme of this administration,” the Minister said.

To this end, he urged Nigerian workers both in public and private employment including self employed to contribute to the National Housing Fund to enable government to assist all Nigerians to own a home.

While applauding the developer for a good job done, he assured that the 252 housing units being commissioned are equipped with basic amenities required for decent living.