Despite the estimated 22 million housing deficit in the country, 1,432 completed homes under the Family Homes Funds Limited (FHFL), have not been sold since the commencement of the programme in the last three years.
The Executive Director, Paradigm Leadership Support Initiative (PLSI), Olusegun Elemo, disclosed this to journalists yesterday in Abuja, while presenting findings from the analysis of the audit report on the management of resources for the provision of affordable homes for low – income earners in Nigeria by Family Homes Funds Limited FHFL (2018 – 2020.
He explained that there was the need for low income earners in Delta, Kano, Ogun, Kaduna and Nasarawa states to acquire the 1,432 homes completed but unsold.
The federal government had initiated the house scheme in its bid to fulfil section 16 (2) (d) of the constitution of the Federal Republic of Nigeria 1999 as amended, which stipulated that the government shall provide suitable and adequate shelter for all citizens.
The government through the implementation of the Economic Recovery and Growth Plan 2017 – 2020 initiated the Family Homes Funds Limited in 2016 as special purpose vehicle to help address the housing shortage by delivering affordable homes nationwide.
Olusegun said the Nigeria Economic Sustainability Plan (NESP) 2020, had planned to provide 300,000 social homes yearly for low-income earners to address the over 22 million housing deficits in Nigeria with a yearly growth rate of 20% according to Shelter Afrique, a Pan – Africa Real Estate Finance Institution.
According to him, a report PriceWaterhouseCoopers (PwC) indicates a deficit of over 17 million houses in Nigeria, which requires about 700,000 new houses to be built annually, compared to the less than 100,000 houses that are being constructed annually.
“The World Bank 2018 Report on Nigeria’s Affordable Housing Project, revealed that the demand for affordable housing in Nigeria was growing in the face of a huge sizable deficit and a dearth of existing interventions that support closing this gap.
“The report further stated that macroeconomic conditions in Nigeria are the greatest impediments to affordable housing.
“Although seed capital of N500 billion was promised by the federal government for the provision of affordable/social homes for low – income earners, the government released N65 billion to family Homes Funds Limited between 2018 and 2020, despite the release of funds to FHFL to facilitate the development of affordable /social homes.
“There are still visible challenges impending the acquisition of completed homes by low-income earners”
Olusegun stated that the report conducted by the Auditor – General of the Federation has identified absence of need assessment by the FHFL, accessibility due to lack of infrastructure and insufficient awareness creation as key challenges.
Speaking further, PLSI’s Executive Director stated that “we have analyzed the performance audit report on the management of resources for the provision of affordable/social homes for low-income earners in Nigeria conducted by the Auditor-General for the Federation and we have highlighted key challenges impeding acquisition of 1,432 homes built in five states.
“These challenges include the absence of need assessment by the Family Homes Funds Limited, constraint with accessing completed homes due to lack of infrastructure and insufficient awareness creation for homes built among others”.
Olusegun stated further that “PLSI will support the Family Homes Funds Limited in mobilizing buyers/off-takers within the target group of low-income earners to boost acquisition of homes built in Delta, Kano, Ogun, Kaduna, and Nasarawa States”.