CBN Approves N200b Mortgage Finance Loan For Low-Income Earners

The Central Bank of Nigeria (CBN) has approved  N200 billion as mortgage finance loan to Family Homes Fund (FHF) targeted at low-income earners.

It made this known in a statement on the apex bank’s website, Tuesday, indicated that the money will be used to build 300,000 homes in all states and the Federal Capital Territory (FCT) and is expected to generate about 1.5 million jobs in five years.

“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,” the bank explained.

“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.”

To conserve foreign exchange, the CBN 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 revitalize local manufacture 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).

The Framework shall be subject to review from time to time as may be
deemed necessary, the bank stated.

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On Monday, the Bank introduced a Solar Connection Intervention Facility to complement the Federal government’s scheme which aims at expanding energy access to 25 million individuals through the provision of solar home systems or connection to a mini-grid.

According to the apex bank in its released guideline on Monday, the long term low-interest credit facility has a maximum limit of N500 million for pre-qualified home solar value chain players that include manufacturers and assemblers of solar components and off-grid energy retailers in the country.