The African Development Bank (AfDB) on Thursday, November 11, 2021, approved funding of $ 60 million (approximately ??25 billion) of financing for the mortgage loan assistance program. The fund, according to the bank, will be managed by the Family Homes Funds Limited (FHFL) with the support of the Federal Ministry of Finance, Budget and National Planning. While this has taken a long time to materialize as the federal government has sought this funding since 2018, it will bolster the government’s efforts to provide housing for low-income people across the country. The following paragraphs explain the journey of the Federal Government-AfDB partnership so far and the facts about the housing finance loan.
The federal government has been in talks with the AfDB since 2018 on financing low-cost housing in Nigeria.
The of the AfDB The overarching goal is to boost sustainable economic development and social progress in its Regional Member Countries (RMCs), including Nigeria. Since its inception in 1964, the bank has made conscientious efforts to fulfill this mandate and contribute to poverty reduction. In 2018, the federal government began negotiations with the African Development Bank AfDB, the World Bank alongside other financial institutions to raise c. ??800 million which are planned to finance the construction of affordable housing for income households in Nigeria. Family Homes Funds CEO Mr. Femi Adewole defined this segment as Nigerians Gaining below 100,000 per month of household income. The fund was traded under Family Home Funds FMF, a housing investment fund owned by the Sovereign Wealth Fund and the Ministry of Finance.
The $ 60 million (approximately ??25 billion) AfDB funding will support the federal government’s efforts to promote access to affordable housing.
The $ 60 million (approximately ??25 billion) of financing are positioned to improve access to affordable housing. According to Aisha Omar, director of international economic relations at the Ministry of Finance, Budget and National Planning, the facility will support the federal government’s efforts to promote access to affordable housing finance for low-income families through through the Family Homes Funds. . The loan assistance program, she said, will provide a low-cost deferred equity loan of up to 40% of the cost of homes and reduce the mortgage burden by 50%. She also noted that it is estimated that at least 18,750 beneficiaries will be supported by this proposed intervention, and that the funding will create approximately 9,375 direct jobs.
Home Loan Finance Assistance Program (FHFL) completed 5,408 homes in 8 states in Nigeria
FHFL actively works with state governments across the country and private developers to facilitate the construction of affordable homes for the low-income population with financial assistance through the Help To Own program. According to the Family Homes Fund, they have now completed 5,408 homes in eight states, with 9,148 under construction and another 13,543 starting construction by December 2021. According to their website, FHFL is also implementing the National Housing Program. Social (NSHP) of the Nigerian government. which will provide up to 300,000 homes and lead to the creation of 1.5 million jobs across the country.
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