The Central Bank of Nigeria (CBN) has launched a N200 billion financing initiative to fast track the deployment of 300,000 homes across the 36 states and the federal capital territory (FCT).
The apex bank released a framework for the implementation of family homes financing initiative on Tuesday.
According to the document, the financing initiative will be implemented in collaboration with Family Homes Fund Ltd (FHF) as the lead developer and will create up to 1.5 million jobs in five years.
“The programme will aim at creating rapidly, up to 1.5 million direct construction sector jobs (at the rate of five jobs/home) particularly young people on a low income. In addition, it has the potential to create further 1 million jobs through its supply chain.
“The programme is designed to utilize at least 90 per cent locally manufactured inputs and as a result conserve foreign exchange. It will house up to 900,000 children and adults (at an average of three persons/home) on a low income with a direct impact on health, education and economic outcomes.”
It said most of these people are currently living in informal settlements with shared facilities in unsanitary environments.
“Funds would be released to FHF on project basis subject to the cumulative maximum limit of N200 billion. The interest rate under the intervention shall be at not more than 5.0 per cent per annum (all-inclusive).”
The apex bank the financing initiative will last for three years from the date of disbursement and the development finance department of the bank will be responsible for the management of the intervention facility.