Family Homes Fund is set to make dreams come true for many Nigerians, especially low income earners who are going to benefit from its various housing projects across the country, some of which will be ready soon. The project which is expected to help the Federal and state governments provide over 17 million new homes needed by the country over the next 15 years is already yielding great results.
According to Family Homes Funds, many brand new homes will be ready in December this year in various states across the country’s six geopolitical zones. The categories of the homes ranges from one bedroom to three bedroom bungalows with complete facilities needed in any functional home.
The current stage of work in Delta according to the project leaders is at 70%, which proves that the December projection is very feasible and anticipated.
About Family Homes Fund
The Family Homes Fund Limited is a partnership between the Federal Ministry of Finance and the Nigerian Sovereign Investment Authority as founding shareholders with aim to address the country’s housing deficit.
The initiative is aimed at facilitating affordable housing delivery by entering into specific partnerships with supportive State Governments, developers and International partners/agencies that can provide technical support and financing for project implementation.
The Fund is structured as a Real Estate Investment Trust and will be professionally managed to catalyse funds from the private sector, pension funds, insurance funds, multilateral agencies and impact investors.
Family Homes Fund has voted N1 trillion for affordable housing for Nigerians by 2023. The scheme also targets 1.5 million new jobs to boost families’ well-being. It will be the largest affordable housing-focused fund in Sub-Sahara Africa, according to report from the fund managers.
The scheme will be leveraging its capital to facilitate access to affordable housing for millions of Nigerians on low-to-medium income levels.
Through strategic partnerships with various players in the sector and some of the world’s main Development Finance Institutions it has an ambitious commitment to facilitate the building of 500,000 new homes by 2023.
According to the scheme promoters, the fund places priority on how it can take advantage of the opportunity a large- scale house building programme offers to create jobs for the people with low income, to bring about sustainability, improved quality of life, security and hope for beneficiary families.
“With a projected cumulative spend of up to N1 trillion by 2023 into various inputs into the house building process including doors, windows, tiles, roofing materials, blocks, paving stones, paint among others there is opportunity to incubate large numbers of SME small scale industries creating significant employment,” it said.
“The Family Homes Fund aims to catalyse the creation of new jobs through the investments we make. Alongside investment by other players in the housing sector, we have a real opportunity to achieve impact. Real positive impact on families, women who often carry the biggest burden in poor households and young people. At a national level, this potential effectively harnessed could generate up to 1.5 per cent increase to the Gross Domestic Product (GDP) by 2023,” it said.
Besides, the Fund aims to support ongoing dialogue around development of a local contents framework for inputs into the house building process. A long-term objective is to ensure that up to 80 per cent of manufactured inputs are locally produced.
Cheap and Invaluable Asset for Beneficiaries
Beneficiaries of the project will enjoy a deferred loan for up to 40% of the cost of their home. For the first 5 years of the loan, no payments need to be made. From the 6th year, monthly payments will be made to start repaying both interest and capital to assist the purchaser. The amount paid starts low and increases each year in gradual steps (average 6.5% per annum) in order for the HTB loan to be fully repaid by the 20th year, the same year the mortgage is expected to be fully repaid.
Creating New Jobs
Ongoing investments are already making a real difference with over 13,000 jobs created and about 360,000 to be created from current development pipeline. The Grand Luvu Project alone in Nasarawa State created about 8000 jobs.
Many young people, especially those who were previously unemployed have been able to obtain training on the Funds Grand Luvu project, acquire valuable skills with guaranteed long-term employment and income to support their families. Same goes for the unskilled unemployed youths who depend on their family until they were employed as masons or carpenters on the project sites.
In Kaduna, the Millennium City project has directly engaged slightly over 200 persons which includes local artisans including carpenters and brick layers. The construction need for accountants, surveyors, engineers, etc. has created a lot of jobs since commencement.
According to officials of the fund “Our focus is to create homes that people, particularly those on low income can afford but beyond that, ensure that we provide opportunity for them to earn decent wages consistently through our investment in these projects.
“We have spent the last year building very strong foundations for a major take off and now we should start seeing the results in affordable homes and jobs for local people.”
On partnerships, the scheme is building strong partnerships with broad institutions and agencies to maximise this opportunity. The fund is equipping a new generation of young Nigerians with high-level skills in modern methods of construction and technologies.
Through a combination of these activities, the Family Homes Fund aims to create or support up to 1.5million jobs by 2023 making a real difference to the quality of life of their families and the economy.
By Felix Ojonugwa