Estate surveyors plan to focus on mass housing delivery

 

Estate surveyors and valuers in the country plan to hold a forum on how the country can reduce its housing deficit through effective mass housing delivery.

The forum, known as the 6th National Housing Summit, and scheduled to hold in Abuja on October 8 and 9, is being organised by the Faculty of Housing, Nigerian Institution of Estate Surveyors and Valuers.

The faculty said it was worried about the lack of political will to solve the problem of housing in the country, hence, the need to take the forum to the seat of power.

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The Planning Committee Chairman, Mr Kehinde Abayomi, said the theme of the summit would be ‘Alternative building techniques for mass housing delivery’ and would focus, among other things, on a new innovation capable of producing up to 1,000 units of quality and affordable houses from foundation to the roof within one month.

Abayomi, who represented the Chairman of the Faculty of Housing, NIESV, Mr Chika Okafor, at a press briefing ahead of the summit, said stakeholders would also be educated on how to finance mass housing delivery.

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He stated, “The main reason for our steady housing problems in Nigeria can be traced to lack of leadership, vision and political will as well as a well-structured institution to drive government policies and programmes.

“We have private real estate developers, who among others, can collaborate with the relevant government agencies to build houses for a target group and such houses being allocated to be acquired based on need, but not sold in the open market based on highest bidders as it is the practice now.”

He stated that the target group for the innovation could be the low and medium income earners who desired accommodation.

The Secretary of the faculty, Mr Tosin Kadiri, said the summit would be specific about affordability and alternative building methods.

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A former Chairman of the faculty, Mr Casmir Anyanwu, said the summit was part of advocacy.

“The faculty is mainly about advocacy, pointing out the direction to go for both the government and the people,” he stated.

Maureen Ihua-Maduenyi

Saudi refinance firm plans Islamic bond issues to fund mortgage drive

 

Government-owned Saudi Real Estate Refinance Co (SRC) plans to begin issuing Islamic bonds in coming months to finance its drive to expand the kingdom’s home mortgage market, its chief executive said on Monday.

Founded in 2017 by the Public Investment Fund (PIF), the country’s top sovereign wealth fund, SRC has so far operated with financing from the PIF and short-term deals with banks.

It will now begin issuing sukuk to raise money, first in Saudi riyals but eventually in foreign currencies to attract international investors, Fabrice Susini said in an interview.

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Initial issues will be private placements but SRC aims to make its first public sukuk issue in late September or early October, probably of at least 300 million to 500 million riyals ($80 million to $133 million), he said.

SRC is part of a government-backed effort to solve one of Saudi Arabia’s biggest social and economic problems, a shortage of affordable housing, by developing the market for home loans, which is small by international standards.

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The company aims eventually to refinance 20 percent of Saudi Arabia’s primary home loans market, which authorities hope to expand to 500 billion riyals by 2020 and 800 billion riyals by 2028 from 290 billion riyals now.

So far, SRC has signed memorandums of understanding to provide banks and home finance companies with slightly less than 6 billion riyals of financing, through portfolio acquisitions and short-term deals.

Susini said increasing the availability of long-term, fixed-rate residential mortgages (LTFRs) would be key to growing the market. This month SRC began offering LTFRs of 15-20 years through banks and other finance firms.

So far, banks have generally offered such mortgages only to employees of major companies and other people with stable cash incomes. Susini said that with SRC’s intervention, LTFRs could ultimately account for half or 60 percent of the mortgage market rather than their current level of a third.

“We want to create a situation in which access to LTFRs is no longer restricted and they are available to the mass of people,” he said.

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Another goal of SRC, which models itself partly on U.S. housing finance firms Fannie Mae and Freddie Mac, is to jump-start a securitisation market in Saudi Arabia by packaging home loans into mortgage-backed securities for sale to domestic and international investors.

Susini, previously global head of securitisation at French bank BNP Paribas, said technical and legal preparations and other work on the project could take two or three years.

Andrew Torchia & Andrew Roche

FHA targets low income earners in new N27bn housing scheme

 

The Federal Housing Authority (FHA), Nigeria’s housing development agency, is targeting low income earners in the Federal Capital Territory (FCT) Abuja in its new housing project valued at N27 billion.

On completion, the scheme will deliver 1,650 housing units of different configurations. This means that the staggering housing deficit in the country will be reduced by that number while a corresponding number of low income earning households will be taken off the property market.

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Nigeria has a heavy housing deficit burden which the World Bank in one of its reports estimated at 17 million units, a figure experts say has become not only trite, but also untenable, citing population growth, rising urbanization and increased number of school leavers that have attained home-owning age.

The FHA scheme comprises 550 homes located in Zuba, Kwali and Lugbe axis of the FCT. The buildings range from one-bedroom flats to five bedroom luxury apartments and it is expected that these projects would be delivered soon, though at different times.

“Zuba is almost completed while the one in Kwali is ongoing and Lugbe phase II has just started”, Mohammed Al-Amin, FHA managing director, disclosed, adding that there were also on-going projects in Apo, Guzape area of the FCT for the high-income earners which was 90 per cent completed.

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In its determination to serve every strata of the society, the housing authority is also planning to begin another scheme in Maitama area of Abuja which will consist of villas, duplexes and luxury houses.

Mohammed explained that the housing initiative, which was aimed to make houses affordable to the low-income earners was under the social housing scheme, adding that locating houses far away from the main city does not go well with the government, hence the initiative of building houses in the fringes of the city.

“The demand for the houses is high. None will be above five million and there are one to five bedroom houses. The good thing is, if you are going through the government mortgage system, you don’t have to pay what is called equity. You don’t have to pay 30per cent of the money before a house is given to you,” he assured low income earners who are scared of affordability.

The FHA boss advised buyers not to negotiate with anyone who is not a staff of the FHA. He assured that the digitization initiative engaged by FHA would eliminate double allocations, forgery of documents and ensure quick services.

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“There exist cartels who lie to potential buyers that they have land to give them. We keep telling Nigerians not to negotiate with anyone who is not an FHA staff. Even if the person is from FHA, you should ask him if he is from estate department. Only people in estate department and, to some extent marketing department, are allowed to interact with the public”, he warned.

CHUKA UROKO

FG injects N9bn to boost FHA programmes

 

The Federal Housing Authority (FHA) established in 1973 is charged with the preparation of proposals for national housing programmes as well as execution of such housing programmes. It also develops and manages real estate in all states of the federation.

The President Muhammadu Buhari-led administration had at many fora reiterated its commitment to the provision of affordable houses to Nigerians. Making good its promise, the government recently released N9 billion to the Federal Housing Authority for the construction of houses across the country.

FHA Managing Director Professor Mohammed Al-Amin said with the fund already domiciled in the authority’s account, it will go a long way in accelerating its housing programmes as well as providing infrastructure in its existing estates.

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He said in line with the Federal Government’s directive, FHA has stated building 550 low-cost houses in Zuba, a suburb of the Federal Capital Territory (FCT).

He said the Zuba housing project is the pilot phase, adding that the low-cost houses would be built in all the state capitals across the country, assuring that upon completion, the houses would be specifically allocated to the low income earners.

He said the project began 15 weeks ago and is a mixture of one, two and three-bedroom flats.

He said: “A total of 550 houses are to be produced there. We are going to invest N9 billion in the project. Already, we have this money in our account and we are releasing it according to the dictates of the Public Procurement Act.”

He said the low cost houses would also be built in Kwali and Lugbe in the FCT.

Unlike in the past, the FHA MD said they have appropriately accommodated Nigerians in the informal sector in the housing programmes under the Federal Ministry of Finance, in conjunction with the Office of the Vice President.

Al Amin said of the project: “For low income earners or those in the informal sector, we have what is called the Family Home Fund.

“This fund is being administered by the Office of the Vice President and the Federal Ministry of Finance. In this fund, once you can afford to contribute N30,000 monthly, then you get into the process of owning one of the buildings as far as you meet the stipulated criteria. The Zuba housing scheme is one of such.”

He said the government is bothered about the high rate of rural–urban migration with its attendant social ills, adding that with the number of houses to be built, the menace would be greatly reduced.

The Chairman of the Board of Directors, FHA, Lawal Shuaibu, said the 550 Zuba housing project was a social intervention scheme of the Federal Government, adding that the agency was also involved in the construction of commercial houses for high income earners.

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He said it has also built high-end houses at Apo district of Abuja for high income earners under its commercial housing scheme.

However, residents of Federal Housing estates in locations like Gwarinpa, Lugbe, Kubwa, Kado and Karu in Abuja have been complaining of lack of proper maintenance of infrastructures in the estates.

But Al-Amin said from the funds recently released, money would be set aside to upgrade and rehabilitation of infrastructure like roads, drainages and waste disposal in its various estates.

He said he held a town hall meeting, last week, with residents of Lugbe and that he was overwhelmed with complaints on infrastructure there which made him to invite the Minister of State II, Power, Works and Housing, Suleiman Zarma, to the estate to have a firsthand information of the condition of the estate.

“Over N100 billion is expended by the Federal Government for building new houses from 2015 to date through appropriation to reduce the housing deficit.

“FHA is working in collaboration with the FCDA to ensure that the developments are guided by what the master plan dictates but we are still having challenges of lack of cooperation from some groups of people who think they are above the law,” the FHA board chairman, Lawal Shuaibu, said

The chairman Lugbe Residents Association, Mr Odelana Adesina, said the estate is housing over 70,000 residents but faced the challenges of deplorable roads, lack of pipe-borne water and waste disposal system.

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He said: “There is no government hospital; light is also a problem and the Abuja Electricity Distribution Company is not billing us appropriately.

“We also need more police outposts to help in securing the estate, among others. So, we want government to make its intervention as quickly as possible.”

The minister, in the course of the inspection, however, said the masterplan of the estate is being violated with the manner some people built on the water ways, blocking the drainage system which could lead to erosion.

He noted also that the estate was initially meant for 5,000 residents, but now has a population of over 60,000, overstretching the infrastructure. He also decried frequent violation of planning regulations of the estate by both residents and managers.

“We have our own part to play as residents and as managers of the estate because I have seen frequent abuse of the planning regulations.

“But as planning authority, we know periodically, we are supposed to look into our settlements, not only the ones we built but also the ones that are inherited by people.

“We have to look at them and do a structure plan and upgrade the facilities to be up to the standard of good living for all the citizenry of the country,” Zarma added.

He directed the FHA to ensure regulatory standard for facilities such as markets, hospitals and shopping complexes, among others, assuring that the authority would carry out a survey with a view to ascertaining the best ways to improve the road network as well as provide other services in the area.

The FHA Managing Director, Mohammed Al-Amin, stressed the need for quick intervention in the condition of the housing estate, saying the best way to do that was to bring in members of the Federal Executive Council.

“That is why the minister supervising the housing sector in the Ministry of Power, Works and Housing is here on this tour.

“We want government to know the quantum of the needs that are there, and we are starting with FHA Lugbe, on Airport road as our pilot programme.

“The first avenue is the major road leading into the FHA estate and it is a connection road but in a very deployable state. A lot of vehicles ply the road and it is almost obliterated due to erosion and illegal encroachment among others,” he said. He said that the FHA would be collaborating with the Federal Capital Territory Administration (FCTA) to enforce compliance with the master plan of the estate.

AG Mortgage Bank promotes affordable housing in Enugu

AG Mortgage Bank Plc., a Primary Mortgage Bank in the country, has enabled no fewer than 89 subscribers in Enugu to become home owners under the Federal Mortgage Bank of Nigeria (FMBN) National Housing Fund (NHF) Scheme designed to promote home ownership across the country.

The keys to the houses, according to the Managing Director and Chief Executive Officer , AG Mortgage Bank Plc, Mr.  Ngozi Anyogu, were delivered to the happy home owners recently in Enugu.

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According to the Chief Executive Officer, the houses were developed by the COPEN group, a reputable property development company with projects across the country.

All the houses are within the Jedidiah Gardens Enugu which provides a good ambience for home owners

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AG Mortgage Bank “is an active operator of the NHF Scheme, and has disbursed in excess of N3 billion to over 390 NHF beneficiaries” he said.

Access to mortgage loan under the Federal Mortgage Bank of Nigeria – National Housing Fund Scheme, according to the Chief Executive is open to all Nigerians with verifiable stream of income who are contributors to the NHF scheme.

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Anyogu urged Nigerians in all spheres of endeavour to take advantage of FMBN/NHF scheme and AG Mortgage Bank’s other mortgage products namely: The Tenant – Owner -Mortgage (TOM); a rent to own programme, Leap Into Mortgage (LIMO) product, an incremental mortgage arrangement, that fits home buyers at different income levels.

Infrastructure funding: FG needs to borrow N1.6trn –Agusto & Co boss

 

The Federal Government has been advised to take more loans if its decision to fund infrastructure in the country will be realised.

Speaking at the training for financial journalists held in Lagos at the weekend, a Senior Analyst at Agusto & Co, Jimi Ogbobine, said the government will need about N1.6 trillion to fund infrastructure this year.

According to him, ‘Analysis of the Macroeconomic Environment’ sponsored by Rand Merchant Bank, was meant to deepen the knowledge of journalists on the economy and financial industry developments.

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Ogbobine said the bulk of financing for infrastructure will come from borrowing with a larger share being domestic debts.

He added that funding the capital budget will require higher than planned borrowing with adverse implications for interest rates and interest costs for the economy.

“The Federal Government borrowing to fund infrastructure is likely to be between N1.2 to N1.6 trillion. The implementation is unlikely to start before the second quarter and revenue is likely to be lower than planned.

Actual funding from asset restructuring, recoveries and “other” may be substantially lower than the planned level of N2 trillion. Therefore, fully funding the capital budget will mean higher than planned borrowing with adverse implications for interest rates and interest costs,” he said.

He added that obligatory spending of the Federal Government is still more than 100 per cent of revenues, hence, there is no free cash flow for investment in infrastructure. “Every kobo of infrastructure spending is financed by debt constrains ability to fully fund budgeted amounts.

Debt as percentage of revenue is significantly higher than the median, of 200 per cent, for countries in Middle East & Africa. Federal Government plans to partly finance 2018 capital expenditure with proceeds of asset sales,” he said.

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He said a hyper-inflationary environment is one where prices double at least every three years. “This means inflation rate of about 25 per cent per annum.

In such environments, investors hold savings in low inflation currencies in dollars, Pounds Sterling and Euros and business persons price products (particularly those with a high import content) in these low inflation currencies, usually the dollar. In effect, such environments are “dual currency environments”.

“Real Gross Domestic Product per capital should grow in 2018. It should be easier for businesses to access forex to fund their operations. Most businesses should see top line and profit growths.

Unemployment rate will fall but the level will remain high,” he stated.

Continuing, the analyst said actual deficit may be lower than planned deficit largely because of a low implementation of the capital budget.

Ogbobine said based on the long-term inflation difference, the naira-dollar exchange rate should close 2018 at about N420/1 in the Investors & Exporters’ FX Window. He however predicted that should oil revenues increase, as is likely, the CBN will try to keep rates in this market as close as possible to the current levels.

He explained that despite recent contraction in Gross Domestic Product (GDP) growth, Nigeria remains Africa’s largest economy, following rebased GDP figures in 2013. “Still a viable economy based on long-run projections.

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Significant issues with political stability, terrorism and scattered violence in certain areas. Heavily dependent on crude oil exports and facing severe economic challenges with the current global oil market shocks, terrorism threats, and attacks on key economic interests,” he said.

He stated that average oil price for 2018 is likely to be firmer driven largely by OPEC production cuts, stronger growth, high but declining inventories and political tensions in the Middle East.

“A lot is still contingent on ability to produce and evacuate oil from the Niger-Delta. Demand management of imports will continue. If Nigeria is able to produce and evacuate crude, she will build reserves but some of the reserves will be used to intervene in the Nigerian Autonomous Foreign Exchange (NAFEX) market to keep exchange rates in this market at near current levels,” he
added.

Ajiri Daniels

Time to explore opportunities in social housing

 

Great opportunities abound in the social housing sector of the economy but successive governments in the country have not been able to utilise these opportunities to the benefits of the public.

The social housing sector has all the hallmarks of a sector that will see increasing challenge over the next few years.

Recent industry debate has focused on the need for, and means to deliver, accelerated levels of consolidation through various activities. The need for social housing stock has never been greater, but there will inevitably be winners and losers as the sector works through its issues.

Social housing is an umbrella term used to refer to rental housing which may be owned and managed by the state, by non-profit organisations, or by a combination of the two, usually with the aim of making it affordable.

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Social housing may also be referred to as a public housing which may be a form of housing tenure in which the property is owned by a government authority, be it federal, state or local government authority.

When you talk about social housing for the masses, the words that come to mind are cheap, affordable, non-profit driven, mass produced houses that could be occupied by low income earners, who may wish to save towards eventually buying such houses over time.

Generally, social housing deals with housing solutions that are priced and financed in a way that would ensure low-income occupants could satisfy their other basic needs.

Even though the scarcity of affordable housing affects all segments of the society, it is notably low-income earners who are most affected. The way and manner government build estates does not show that the poor masses are borne in mind.

The property market ought to service the low income earners in the society. The Nigerian urban housing market primarily targets high income earners and thus leaves large parts of the Nigerian population excluded from formal housing provision.

In general, low-income households face a number of barriers such as weak individual purchasing power; lack of access to housing finance; unavailable complementary goods, such as land and infrastructure; and insufficient housing supply required to meet the actual demand of the urban poor.

Executive teams, boards and their lenders need to be proactive in assessing the impact of recent policy changes and their options and response to them.

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With the range of stakeholders and the clear public policy interest, it is likely to take significant time and effort to deliver credible solutions for those providers with the most challenged business models.

Social Housing, in its various forms, has been an increasingly important part of the UK provision since the boom in house building following the end of the Second World War.

There are a variety of private, public and charitable enterprises that build, manage and maintain housing stock, with standards and rent levels subject to a high degree of regulation.

As of September 2015, there were 1,783 Registered Providers (RPs) of social housing who were registered with the Homes and Communities Agency (HCA), the sector regulator. The sector supplied some 2.7m homes in England, representing an increase of 1.5 per cent on the previous year.

Much of the growth in the sector was attributed to the increase in Affordable Rent Stock to a new high of 123,000 units (Source: BBC, April 2015).

The creation and provision of social housing is towards ensuring housing affordability. Affordable housing is therefore defined as housing which costs no more than 30 percent of the income of the occupant household. This is the generally accepted definition of housing affordability.

Frankly speaking, Nigeria’s housing problem is derived from a historical lack of focus on housing development.

Over the years, the country has not been able to develop a viable and sustained housing finance system either because of lack of expertise, up to date and knowledgeable industry leaders especially in the policy making arms, lack of funding for relevant institutional agencies/department, political and selfish gains. Housing plays a special role in the social, political but more importantly economic dialogue in most societies.

Housing has been known to be a major component of creating stable and healthy communities and it is often the largest single category of household expense. For housing to be successful, a country like Nigeria needs to have a stable macroeconomic environment. Moderate to high inflation rates and nominal interest rates as witnessed in Nigeria are typical features of volatile economies.

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These features have strong effects of reducing the affordability of mortgages. A volatile economy also affects the supply of funds and the types of mortgages offered by lenders. In such an environment, lenders are concerned about liquidity risk and are reluctant to offer long term loans.

The solution to this, then, becomes government’s strong institutional intervention in terms of favourable policy drafting and implementation.

The coming on board of the Nigerian Mortgage Refinance Company (NMRC), is a commendable step towards scratching the surface of this challenge. This is despite the fact that the NMRC is dragging the feet in most of the roles it should take.

Another distinguishing characteristic of housing finance is the ability to mortgage the property to secure the loan. This means that the land laws and processes (title registration, foreclosure laws, etc.) have to be put in place to allow enforceability.

An accurate and comprehensive land registration system is a necessary condition for effective property rights. This is largely absent in Nigeria. However, it is important to mention that a few states have begun to address this problem through the setting up of several land registries at the state level.

It is pertinent that the states are encouraged to get these initiatives to a cruising altitude. At the Federal Mortgage Bank of Nigeria (FMBN), tireless efforts are being made to also contribute to solving this problem through the bank’s centralised repository land and assets registry system.

At the Federal level, creating or sponsoring a Mortgage Electronic Registration System as is done in the United States and other emerging markets will also help to increase the ability to mortgage properties.

Social housing delivery is therefore housing delivery that not only provide good quality and affordable housing, but allocates its benefit equitably between the rich and the poor. It also regenerates the environment rather than destroying it.

Also, it empowers the poor to have access to decent homes at affordable cost rather than mitigating or excluding them. In sum, it can be described as housing delivery system which gives priority to the disadvantaged groups, enlarging their housing choice and opportunities and giving
them a say in decisions that affect their housing needs and lives (Agbola and Alabi, 2000).

Maduka Nweke

COCMEGG commends FMBN on its positive efforts towards affordable housing

 

The Coalition of Civil Societies and Media Executives for Good Governance in Nigeria (COCMEGG) has lauded the Federal Mortgage Bank of Nigeria (FMBN) for making homeownership affordable, available and less cumbersome to Nigerian workers.

The affordable home ownership according to the group will drive growth of the economy. A statement issued in Abuja and signed by the president, Omoba Kenneth Aigbegbele and publicity secretary, Comrade Inuwa Sule, respectively said the FMBN under the leadership of Ahmed Musa Dangiwa is raising the hope of Nigerians desiring to have houses of their own.

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This is following the organisation’s appraisal of the bank’s efforts in carrying out its regulatory roles and functions as enshrined in the Act establishing it.


“COCMEGG passes a vote of confidence on the hierarchy of the Federal Mortgage Bank of Nigeria (FMBN), under Arc. Ahmed Musa Dangiwa, for its forthrightness, vision and strategies in seeing to it that the average workers, middle income earners and the common man on the streets have a home to lay their heads and therefore, called on all relevant stakeholders in the industry to support and partner with the institutional development, transformational philosophy and revolution presently taking place at the FMBN and key in for the overall prosperity of the Nigerian workers,” it stated.

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The statement lauded introduction of the zero equity on loans to Nigerian workers by the bank for the implementation of a new approved condition for accessing loans from the National Housing Fund (NHF). The group added that the initiative will lead to the reduction of hardship presently experienced by Nigerians in having access to building their own houses. “It is indeed a strategic initiative that will not only drive the mortgage industry but the economy as a whole as it will also boost and encourage people at the grassroots by enriching their wellbeing and making life easy for Nigerians by engaging more people in the construction sector.”

The World Bank had estimated that Nigeria has a housing deficit of about 17 million units and the FMBN has therefore, designed the NHF to mobilise funds to provide the citizens with affordable residential houses through accredited PMBs with the lowest rate possible. “Since the present leadership took over the helms of affairs, it has been plethora of initiatives, as the apex mortgage body has experienced a lot of milestones ranging from good governance practice, accountability and transparency in its core operations including institutional capacity building and infrastructure development of the bank.”

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It is on record that Nigerians have never been so sensitized in the last three decades, unlike what we are seeing today towards homeownership, as the management’s strategic awareness, enlightenment and sensitisation campaign have created the needed impetus for the boost of the industry as witnessed by all today.

Tarkaa David

FG plans to commission NHP projects in 33 states

 

Barring any last minute hitch, the National Housing Programme of the President Muhammadu Buhari-led government will be commissioned in about 33 states of the federation before the end of this year.The President Muhammadu Buhari-led government’s effort at addressing the huge housing deficit in Nigeria, which is estimated at 17 million, gave birth to the National Housing Programme.

Under the programme, the federal government through the Federal Ministry of Power, Works and Housing, embarked on the construction of massive national housing schemes in 33 states of the federation. The project, according to the Minister in charge of the ministry, Mr. Babatunde Raji Fashola, SAN, aside from providing affordable and accessible houses for Nigerians, has also created employment opportunities.

In what appears as his testimony, the Minister whose ministry is directly in charge of the National Housing Programme, declared that it has yielded its first expected result of creating employment for youths.Fashola, who spoke recently while on the inspection tour of the project site in Imo state, said that the programme was initiated as part of efforts by the Federal Government to get the teeming youths across the country back to work.

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“The very first thing that we needed to achieve has been achieved; get people back to work, move the economy back to growth and get the economy out of recession.”“From the food vendors to the number of companies that are employed here, you can see building materials; you can see labour and you can see an ecosystem of growth.”

A tour to some of the project sites across the country, where some of the NHP projects are sited recently revealed that would be-beneficiaries of the housings units would have access to their allocation in the next couple of weeks.Aside from the fact it would provide houses for Nigerians, it has also created jobs for thousands of all cadres of Nigerians.

Its commission date though Housing News could not ascertain, a source at the Federal Ministry of Power, Works and Housing, hinted that it would be commissioned soon.
The source said everything about the commissioning has been perfected, saying that it may be done during the presidential campaign.

“Let me assure you that the NHP project would be commissioned before the end of this year (2018).
Everything about the event has been perfected”, the source said.

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There is however some issues like; compensation to the traditional land owners, provision of parameter fencing and allocation to Nigerians that truly need affordable homes which need to be addressed.One of the critical issues that should be urgently addressed before the commission date and handing over of the project units to its owners is compensation of the traditional land owners.
From South to the North, one of the agitations of the locals whose communities are the beneficiaries of the project is issue of the compensation. This however, is not the responsibility of the federal government.

Tope sunday

FHF to deliver decent accommodation for fairly low to modest income earners

 

The Managing Director of Family Homes Fund (FHF), Dr. Femi Adewole has said that FHF is committed to doing an excellent work in providing housing that people on low income can afford.

He made this statement during an Interview with HousingNews Crew earlier today in his office.

“we are doing tons of work in ensuring that we bank adequate land in good locations where these homes will be sited.

“We are ensuring that we maximize the efficiency of the design of these homes which is key to ensuring that we deliver the affordability that our people need” He said

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According to Dr. Femi, In line with the mandate which is centered on providing large scale affordable housing supply and economic development, “FHF is working in partnership towards providing up to 500,000 homes and 1.5million jobs from now till December, 2023”

“Primarily, we are working with partners who can build to scale so that we can harvest the economies of skills that then goes on to deliver lower prices to our target customers”

“we are currently talking to REDAN, Housing Corporations, Federal Ministry of Power, Works & Housing, State Governments, and other parastatals. We are bringing a whole range of people together to partner with us as they all have key roles in ensuring that this programme succeeds” he said.

Dr. Adewole said that FHF is putting a structure in place that allows people to actually be able to afford those houses and be able to buy them even after they have been built.

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“We are coming up and in the final stages of designing home loans assistance program that will ensure that our target market which is basically people who are earning fairly low to modest income can have access to decent accommodation at no more than 30% of their income.” He said.

The M.D. Family Homes Fund expressed with assurance that FHF being the largest housing fund in Sub-Saharan Africa stands a strong chance in delivering on its mandate.

“Because of the large capital that we have, the Family Homes Fund is the largest housing fund in sub-Saharan Africa so we are financing the program with a significantly concessionary interest and rate for development. If we put all those things together, I think it gives us a strong chance for delivering on the mandate.”

Wilson Ifeoma, HousingNews, Abuja.

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