Affordable housing: Low-income earners yet to benefit from FG’s N65bn – PLSI 




 

The Paradigm Leadership Support Initiative (PLSI) on Thursday said despite the release of N65 billion to Family Homes Funds Limited (FHFL) between 2018 and 2020 to facilitate the development of affordable/social homes, there are still visible challenges impeding the acquisition of completed homes by low-income earners in Nigeria.

The Executive Director PLSI, Olusegun Elemo, while briefing newsmen in Abuja on findings from the analysis of the performance audit report on the management of resources for the provision of affordable/social homes for low-income earners in Nigeria by FHFL explained that the project meant for low-income earners in Delta, Kano, Ogun, Kaduna, and Nasarawa States which is to acquire 1,432 homes has been completed but remained unsold.

He further said the Federal Government of Nigeria (FGN) in its bid to fulfill section 16(2)(d) of the constitution of the Federal Republic of Nigeria 1999 as amended, stipulates that the government shall provide suitable and adequate shelter for all citizens as well as the need to accelerate economic recovery through the implementation of the Economic Recovery and Growth Plan (ERGP) 2017 – 2020 initiated the Family Homes Funds Limited (FHFL) in 2016 as a special purpose vehicle to help address the housing shortage by delivering affordable homes nationwide. 

According to him, this was followed by the implementation of the Nigeria Economic Sustainability Plan (NESP) 2020, which planned to provide 300,000 social homes yearly for low-income earners to address the over 22 million housing deficits in Nigeria with a yearly growth rate of 20% according to Shelter Afrique, a Pan-African Real Estate Finance Institution.

In his words “A report by PriceWaterhouseCoopers (PwC) indicates a deficit of over 17 million houses in Nigeria, and this requires about 700,000 new houses to be built yearly, compared to the less than 100,000 houses that are being constructed annually.

“Similarly, the World Bank 2018 Report on Nigeria’s Affordable Housing Project, revealed that the demand for affordable housing in Nigeria is huge and growing in the face of a sizable deficit and a dearth of existing interventions that support closing this gap.

“The Report further stated that macroeconomic conditions in Nigeria are the greatest impediments to affordable housing.

“Although seed capital of N500 billion was promised by the Federal Government of Nigeria for the provision of affordable/social homes for low-income earners, the government released N65 billion to Family Homes Funds Limited (FHFL) between 2018 and 2020. 

“We have analysed the performance audit report on the management of resources for the provision of affordable/social homes for low-income earners in Nigeria conducted by the Auditor-General for the Federation and we have highlighted key challenges impeding acquisition of 1,432 homes built in five states. 

“These challenges include the absence of need assessment by the Family Homes Funds Limited, constraint with accessing completed homes due to lack of infrastructure and insufficient awareness creation for homes built among others.”

Also, the Abuja Bureau Chief for EnviroNews, Etta Michael, stressed the importance of ensuring that proper need assessment is carried out before embarking on such social intervention programme to align policy objectives with citizens’ needs.

Related content you may like