FG to Invest N500bn in 5 yrs to Bridge Housing Deficit — Presidency

By October 31, 2018 Investment News

The Federal Government will over the next five years invest N500 billion to bridge the housing deficit through the Family Homes Fund (FHF).

Mr Adeyemi Dipeolu, the Special Adviser to the President on Economic Matters said this while speaking with newsmen on the sideline of the second Nigeria Housing Finance Conference in Abuja on Tuesday.

Newsmen report that the conference was organised by the Nigeria Integrated Social Housing (NISH).

The conference has as its theme: “Innovative Financing of Affordable Housing’ with the sub-theme “Delivering Affordable Housing through Cooperatives’’.

Dipeolu, represented by Ms Imeh Okon, the Senior Special Assistant to the President on Infrastructure, said that FHF would be powered by the government but with private sector participation.

“Government is giving FHF N100 billion yearly for the next five years with anticipation that it is going to leverage one trillion naira of private resources.

“This money is essentially to help build social and affordable housing for Nigerians and in this situation, if you earn N30,000 you can be able to buy houses that will be under the FHF.” He added that presently, some houses had been completed in Nassarawa state and about 3,000 to 6,000 were under construction across Nigeria.

According to Dipeolu, the Ministry of Power, Works and Housing has also completed more than 2,000 houses of 72 units across Nigeria under the affordability index with the hope that Nigerians will be able to access them.

On the issue of high mortgage, he said that efforts were ongoing to ensure cheaper mortgages, adding that if the houses were there and the mortgages were not available, it would be a bit of a challenge for Nigerians to access the houses.

Dipeolu also said that the issue of hidden charges in mortgage acquisition was also being addressed.

“Most of the mortgages that are being issued right now through the Primary Mortgage Banks (PMBs) to my understanding make these charges to cover their own administrative costs.

“We have been told about these hidden charges and presently, we are working with the PMBs to see how we can reduce them to the barest minimum so that it will not impact on what the beneficiary has to pay in the long run.

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