Housing Development Advocacy Network, HDAN has called on the Federal Government to explain why the Central Bank of Nigeria’s approved N200billion loan for low cost housing was yet to be released three years after.
HDAN’s Executive Director, Festus Adebayo posited that the release for the housing sector intervention loan was signed since 2020.
The Central Bank of Nigeria (CBN) had announced a N200 billion lifeline for mortgage financing.
The loan which is to be made available to Family Homes Funds ltd is targeted at building 300,000 homes for low-income earners across all the States and the Federal Capital Territory and also to generate about 1.5 million jobs in five years.
However, three years down the line nothing has been heard about the fund.
The leading non governmental advocacy group in a statement signed by Adebayo wondered why nothing has been heard since 2020.
He said “To the best of our knowledge the agreement for the release of this loan for the sector development has been signed since 2020 but till now the disbursement has not reached.any of the govt owned housing finance agency.
“We are concerned on why the approved loan has not been released three years after when all processes have been concluded.
” We demand from CBN Governor to tell nigerians what is delaying the release of the funds.
” We are also calling on the incoming govt to ensure that this fund is released to support social housing provision
Adebayo said just few weeks ago president Biden announced the intervention of 73bn USD that’s about 53 trillion Naira for affordable housing . That is About 5 times the entire Nigeria Budget. So when we’re crying about lack of social housing to take care of the vulnerable in our society ,this is the problem.And that is lack of political will to develop our mortgage and housing sector.
“Today we can say private sector are doing better than government in the area of housing delivery .
“While demanding for the release of the funds , we are also determined to follow up how the fund will be used at every stage.”
On this housing intervention loan, the CBN has said on its porter that “The programme will house up to 900,000 children and adults (at an average of 3 persons/home) on a low income with direct impact on health, education and economic outcomes,”.
“Most of these would currently live in informal settlements with shared facilities in unsanitary environments. Towards targeting people on low-income level across the country.”
As part of the efforts at addressing capital flight, the CBN also disclosed that the buildings will be constructed using about 90 per cent of locally sourced materials.
“In that regard, the programme will deliberately aim to revitalise local manufacturing of construction materials including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures and bricks etc,” it added.
“For example, it is estimated that the programme will require up to 1.7m doors, 7m door hinges and locks etc.”
Beneficiaries are expected to pay an interest rate of not more than 5.0% p.a. (all-inclusive).