Abdullahi M. Gulloma
This week, the federal government announced that it has come up with a N100bn Family Home Fund under its social housing projec. The programme will provide inexpensive mortgages to Nigerians who can afford N30, 000 per month.
Sounds unbelievable? Okay, but the information came from no other person than the Acting President, Yemi Osinbajo, himself.
Osinbajo disclosed this while presenting the Social Investment Programme scorecard as part of activities to mark the 2017 Democracy Day celebrations.
He said that, already, the project has started in 11 states. “There is also an aspect of the SIP that has not been mentioned, this is N100bn set aside for the Family Home Fund of our Social Housing Project,” he said.
Explaining the operations of the fund, Osinbajo said that the N100bn is a yearly contribution to our N1trn Social Housing Fund, which is the largest in the history of the country. “Both the World Bank and AFDB are contributors to the fund from which developers will borrow 80 per cent of cost of project and counter fund with their own 20 per cent. The same fund will enable us to provide inexpensive mortgages for hundreds of thousands across the country, especially for Nigerians who can afford N30, 000 per month. We expect that this Family Housing Fund will jumpstart and expand construction exponentially across the country.”
The Acting President said that some of the houses are estimated to cost as low as N2.5 millions, which would be paid for by beneficiaries through the monthly mortgages. “The 2017 budget provides for substantial investment to implement our Social Housing Programme. The Family Home Fund of our Social Housing Programme will provide inexpensive mortgages for low-income individuals and families across the country.”
Though this is another good initiative by the present administration, the need to involve the private sector in the housing arrangement cannot be stated enough. Government should encourage the private sector build cheap houses for sale and renting to people.
However, this goal can only be met if government provides infrastructure such water, light and road, curb inflation rate and make available all resources needed by members of the business community to succeed.
