HOME OWNERSHIP: CBN introduces construction facility
By Elizabeth Adegbesan
THE Central Bank of Nigeria, CBN, has introduced a construction finance facility to enable Family Homes Fund Limited to implement the federal government’s Social Housing Programme as part of its Economic Sustainability Plan 2020. The Programme aims at speeding up the deployment of 300,000 homes in the 36 states of the federation.
In its Framework for the Implementation Of Family Homes Financing Initiative, the apex bank stated: “Mass housing construction is among the key economic activities with potential to create a significant number of jobs rapidly.
“It is in the light of this that the Bank introduces 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 to create up to up to 1.5 million jobs in 5 years.
“This initiative is to be implemented in collaboration with Family Homes Fund Ltd as the lead developer.”
On funding, the CBN said that Funds would be released to FHF on project basis subject to the cumulative maximum limit of N200 billion.
The facility is a term loan of not more than 5.0 percent per annum with a three years tenor from the date of disbursement, which the CBN said, will enable FHF to finance the construction of social housing units for low income people.
Written by Kartia Velino