The African Development Bank (AfDB) has approved financing of up to US$60m for Homes Loan Assistance Programme managed by the Family Homes Funds Limited (FHFL) with the support of the Federal Ministry of Finance, Budget and National Planning.
According to Mrs Aisha Omar, Director International Economics Relations, who led the negotiations on behalf of the Honourable Minister of Finance, Budget and National Planning, Mrs. (Dr.) Zainab Shamshuna Ahmed, the facility, will support the Federal Government’s efforts to promote access to affordable housing finance for low-income families through the Family Homes Funds.
The Help to Own (HTO) Fund is a Home Loans Assistance programme targeted at Nigerians on low/middle income, offering them a low-cost, deferred equity loan for up to 40% of the cost of their home. The assistance will reduce the mortgage repayment burden on eligible beneficiaries by 50%.
It is estimated that at least 3,750 new Help to Own mortgages will be supported through this proposed intervention by the partnership with the African Development Bank, directly resulting in the creation of approximately 9,375 direct jobs and impacting at least 18,750 beneficiaries.
In response to the approval by the AfDB Board, the MD of Family Homes Funds, Mr. Femi Adewole, said, “…. on behalf of the Board and Management Team at Family Homes Funds, we are grateful for the support this initiative has received from the Honourable Minister of Finance Budget and National Planning, Mrs. (Dr.) Zainab Shamshuna Ahmed and the AfDB management. It has been 18 months of tough and intensive engagement. However, we now have a big opportunity to execute a programme that will increase the volume and tenor of mortgage loans available in the market, deepen our housing finance system, improve access to decent housing and homeownership for people on modest incomes; significantly improving their quality of life.”
FHFL is currently working with State Governments and private developers across the country to facilitate the construction of affordable homes for people on a modest income, who will offtake these homes with financial assistance through the Help To Own Programme. The Fund has now completed 5,408 homes across eight states, with 9,148 under construction and another 13,543 commencing building works before December 2021. FHFL is also implementing the Nigeria government’s National Social Housing Programme (NSHP) that will provide up to 300,000 homes and lead to the creation of 1.5 million jobs across the country.
Editor’s note
About the AfDB
The African Development Bank Group is a multilateral development finance institution providing finance to African governments and private companies investing in the regional member countries. The AfDB’s mission is to fight poverty and improve living conditions on the continent through promoting the investments of public and private capital and programmes that are likely to contribute to the economic and social development of the region.
About FHFL
The Family Homes Funds is a social housing initiative promoted by the Federal Government of Nigeria as part of its Social Intervention Programme. The Company is a Limited Liability Company with initial shareholding by the Federal Ministry of Finance, Budget and National Planning, and the Nigeria Sovereign Investment Authority. The Company aims to invest up to N1.3trn in promoting the development of 500,000 homes for people on a low income. The Company also aims to create up to 1,500,000 jobs in the process.
