Real Estate Developers Express fear over selection process of CBN’s N200 billion Housing Fund

Real Estates Developers have expressed fears regarding the transparency of the selection process of the Central Bank of Nigeria’s N200 billion Housing intervention programme targeted at low-income earners.

They tasked the apex bank to ensure genuine developers with sincere intentions benefit from it in the public’s interest.

This was disclosed by the Chairman, South West, Real Estate Developers Association of Nigeria (REDAN), Bamidele Onalaja, according to Punch.

He explained that he doubts the workability of the price tag of N2million on the housing units except in places such as Gombe, Jigawa and others but not in major cities across the nation.

According to a circular, which was issued by the CBN and seen by Nairametrics, this financing initiative is to be implemented in collaboration with the Family Homes Fund Limited as the lead developer, as it is introduced to support the Federal Government’s Economic Sustainability programme.

This fund is to fast track the construction of 300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to 1.5 million jobs in 5 years

Onalaja, who is also the Managing Director, RevolutionPlus, advised Family Homes Fund Ltd to ensure they give only to those who were qualified with a track record of providing affordable housing.

He said, “Land acquisition is a major issue but it is not impossible. In states such as Jigawa and Gombe, a one bed may be possible excluding land.”

On the criteria for qualification, Onalaja stated that a developer should have genuine land with title while the CBN would provide a consultant.

He said the association was elated because the facility type was a term loan to enable FHF to finance the construction of social housing units for low-income earners for a three-year tenor from the date of disbursement.

According to a statement issued by the association on Sunday, the fund is to fast track the construction of 300,000 homes in the country, in addition to creating up to 1.5million jobs in five years.

However, he lauded the initiative, adding that if sincerely applied, it would achieve the long dream of affordable housing by the public.

“In that regard, the programme will deliberately aim to revitalise local manufacture of construction materials. If the government is able to effectively handle their side of the bargain, then the whole programme will run through,” he added.