CBN approves 200 billion naira housing loan for 300,000 households at 5% per annum – Nairametrics

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The Central Bank of Nigeria (CBN) has approved N200 billion as a mortgage finance facility to Family Homes Fund Limited (FHFL) for low-income people.

According to a circular issued by the CBN and seen by Nairametrics, this fundraising initiative is to be implemented in conjunction with the Family Homes Fund Limited as the lead developer, as it is being introduced to support the federal government’s economic sustainability agenda.

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This fund should accelerate the construction of 300,000 housing units in the 36 states of the federation and the Federal Capital Territory and create up to 1.5 million jobs in 5 years.

Investment One

In addition to the 1.5 million direct jobs in the construction sector, especially for low-income youth, the program also has the potential to create an additional 1 million jobs through its supply chain.

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The CBN in the circular said, ”The program will house up to 900,000 low-income children and adults (at an average of 3 people / household) with a direct impact on health, education and economic outcomes. Most of them are reportedly currently living in informal settlements with shared facilities in unsanitary environments. Towards targeting low-income people across the country. ”

(READ MORE: Approved 200 billion naira as a mortgage finance facility to Family Homes Fund Limited (FHFL) for low-income people.

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On stimulating local manufacturing, apex bank said: “The program is designed to use at least 90% of locally made inputs and therefore conserve foreign currency.

“In this regard, the program will deliberately aim to revitalize the local manufacture of building materials, including doors and windows, hardware, sanitary equipment, concrete products, tiles, glass, electrical equipment and bricks, etc. will require up to 1.7m of doors, 7m of door hinges and locks, etc. ”

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Funds, who would be released to Family Home Funds (FHF) by CBN on a project basis is subject to the cumulative maximum limit of 200 billion naira. The type of facility that would be a term loan must allow FHF to finance the construction of social housing for low-income people and is for a period of 3 years from the date of disbursement.

The facility, which is expected to be repaid in up to 3 installments over the term of the facility, bears interest at a maximum of 5% per annum.

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