The Buhari administration would be providing mortgage loan guarantees to low-income earners on low interest and collateral-free basis under the National Economic Sustainability Plan.
The implementation of the social housing plan estimated to cost over ₦400billion is expected to kick off next week as early sites for the housing projects have now been identified according to members of the Economic Sustainability Committee working on the project.
According to the sources, the Committee has already approved the plan to ensure that the 1, 2 and 3 bedroom units cost as little as between ₦1.8 to ₦2m, while financial assistance would be available for Nigerians to pay the mortgage.
Earlier in June, President Muhammadu Buhari and the Federal Executive Council approved a ₦2.3 trillion Economic Stimulus package after the Vice President Yemi Osinbajo led Economic Sustainability Committee had submitted its report.
Under the Social Housing program of the ESP, there would also be Rent to Own option as part of the Buhari administration’s resolve to impact the common man in this social Housing plan said to be unprecedented in scale and impact on the Nigerian economy with an expected generation of 1.8 jobs and houses delivered to about 1.5m Nigerian families.
Sites have been identified in each zone including Ekiti and Ogun in the Southwest, Enugu and Abia in the Southeast, Delta and Edo in the South-south, Yobe and Bauchi in the Northeast, Kaduna and Katsina in the Northwest and Nasarawa and Plateau in the North-central.
Sites have also been identified in Abuja.
To kickstart the social Housing projects, the CBN has already committed to a ₦200 billion facility with a guarantee by the FG under the Finance Ministry at about five per cent.
The implementing agency, Family Homes Fund Ltd, an agency under the Federal Ministry of Finance has already mobilized thousands of Cooperatives groups across the country who will participate in the social Housing plan as main warehouse agents and mobilize low-income buyers.
For instance, FHF met recently with 93 Cooperative Leaders from the 6 geographical zones, under the aegis of the Co-Operatives Federation of Nigeria.
Under the 300,000 houses projects, massive local production is envisaged especially in the area of local building materials.
In fact, each of the building sites would operate as a factory with the production of housing inputs such as doors, windows, hinges, frames, cement, paints, etc going on at the sites.
For instance, about 1.5m doors would be needed, 1.8m windows and 7.8m hinges.
At least 400 houses would be built in each of the 774 LGAs in the country. The ESC is also said to be working with State governments to identify land for the houses.
FG to guarantee 400 houses each in 774 councils