CBN releases framework for implementation of the Family Homes Financing Initiative
The Central Bank of Nigeria (CBN) has released the framework for the implementation of the Family Homes Financing Initiative.
The 6-page document released by the regulator states that the initiative is based on the backdrop that mass housing construction is among the key economic activities with potentials to create significant number of jobs rapidly.
It is in the light of this that the CBN introduces the Family Homes 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 1.5m jobs in 5 years.
This initiative is to be implemented in collaboration with Family Homes Fund Ltd as the lead developer. The programme is designed to utilize at least 90% locally manufactured inputs and as a result conserve foreign exchange. In that regard the programme will deliberately aim to revitalize local manufacture of construction materials including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures and bricks etc. For example, it is estimated that the programme will require up to 1.7m doors, 7m door hinges and locks etc.
The family homes financing initiative has a maximum funding limit of ₦200 billion and is available to low income earners as a 3-years term loan at an interest rate of not more than 5% per annum (all charges inclusive).
Intending beneficiairies are expected to produce the following:
a.) Written request for the release of funds
b) Evidence of land availability from State Government, FCT, Government Agencies or Co-operatives
c) Site Plan
d) Building approval from the relevant authority
e) Project delivery timeline
f) Repayment Plan
g) Other documents as may be required by CBN or TA
The funds will be managed and implemented by Family Homes Funds Limited (FHFL) .
Registered in 2017 and commencing operations in 2018, the Family Homes Funds is Sub-Sahara Africa’s largest housing fund focused on affordable homes for Nigerians on low income. It is a social housing initiative promoted by the Federal Government of Nigeria as part of its Social Intervention Programme with initial shareholding by the Federal Ministry of Finance and the Nigeria Sovereign Investment Authority