Group queries CBN over N200bn housing loan

  The Housing Development Advocacy Network (HDAN) has called on the federal government  to explain why the Central Bank of Nigeria (CBN) approved N200 billion loan for low cost housing but has not released it three years after. The Executive Director of HDAN, Festus Adebayo, in a statement he made available to Daily Trust yesterday, […]

 

The Housing Development Advocacy Network (HDAN) has called on the federal government  to explain why the Central Bank of Nigeria (CBN) approved N200 billion loan for low cost housing but has not released it three years after.

The Executive Director of HDAN, Festus Adebayo, in a statement he made available to Daily Trust yesterday, wondered why since 2020 when the loan was approved it is yet to be disbursed.

Daily Trust learnt that CBN had announced a N200 billion lifeline for mortgage financing in 2020 and the facility was meant to be made available to Family Homes Funds Ltd. for the building of 300,000 homes for low-income earners across the 36 states and the Federal Capital Territory (FCT), and also, to generate 1.5 million jobs in five years.

Adebayo said, “To the best of our knowledge, the agreement for the release of this loan for the sector’s development has been signed since 2020 but till now the disbursement has not reached any of the government-owned housing finance agencies.

“We are concerned on why the approved loan has not been released three years after when all processes have been concluded.

“We demand the CBN governor to tell Nigerians what is delaying the release of the funds.

“We are also calling on the incoming government to ensure that this fund is released to support social housing provision.”

The CBN has said on its portal that, ‘The programme (housing intervention loan) will house up to 900,000 children and adults (at an average of 3 persons/home) on a low income with direct impact on health, education, and economic outcomes’.

The apex bank added that “As part of the efforts at addressing capital flight, the CBN also disclosed that the buildings will be constructed using about 90 per cent of locally sourced materials.

“In that regard, the programme will deliberately aim to revitalise local manufacture of construction materials, including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures and bricks etc,” it added.

“For example, it is estimated that the programme will require up to 1.7m doors, 7m door hinges and locks etc.

“Beneficiaries are expected to pay an interest rate of not more than 5.0% p.a. (all-inclusive).”