ArticlesREAL ESTATE ADVICE

The Federal Government Affordable Housing Scheme for Nigerians

Housing deficit in Nigeria has posed a major challenge to both the government and the citizens. Specialists also proffer real estate as the solution to Nigeria’s recession. Thus, individuals and government agencies have been putting in efforts to solve the problem and generate more income for the country as well as reduce homelessness in the country.

ALSO READ: The Impact of Recession and Homelessness in Lagos

In August 2014, the Goodluck Jonathan administration launched the first 10,000 Affordable Housing Mortgage Scheme under the Nigerian Housing Finance Programme in an effort to help bridge the housing deficit in the country. The launching, which was expected to alleviate constraints to a rapid housing development in the country, kicks off the pre-qualification of people for an initial 10,000 mortgages to be provided by lenders. The scheme is designed to enable Nigerians who meet specific eligibility requirements to be registered for the 1st 10,000 mortgages for houses valued at between N2 million and N20 million for mortgages over a period of up to 20 years.

The then Minister of Finance & Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, launched the programme  in Abuja. According to her, it was an actualisation of President Goodluck Jonathan’s promise of delivering affordable housing.

READ  Advantages and Disadvantages of Investing in Real Estate

CHECK: PROPERTIES FOR SALE IN NIGERIA

The minister noted that the scheme is a private sector driven initiative which the Federal Government initiated with strong support from Nigeria Mortgage Refinance Company (NMRC) and Primary Mortgage Banks (PMBs) and implemented in partnership with 21 pilot states. She added that unlike the existing mortgage scheme which  tenure is not more than 36 months, it is now possible for  NMRC mortgage subscribers to pay back between 15 and 20 years. The scheme was aimed at primarily at the first time home buyer and young people who is in the market to purchase a home costing between N2 million and N20 million.  An online portal was developed especially for this scheme, www.housingfinance.gov.ng.

Two days ago, the Buhari administration commenced the commenced the pilot phase of the National Housing Programme (NHP) with the sum of N35 billion, as part of efforts to boost the supply of affordable housing units across the country. The Minister of Power, Works and Housing, Babatunde Fashola, disclosed this at the 3rd United Nations Conference on Housing and Sustainable Urban Development (Habitat III) in Quito, Ecuador. He said the housing programme would bridge the huge housing gap in the country, create thousands of jobs, as well as ensure sustainable and affordable homes for the beneficiaries. In his speech, Fashola stated: “In order to remove the inhibitions and obstacles to the supply of affordable housing

READ  How to buy a House without Saving in Nigeria

ALSO READ: Buy A Property, Pay In 48 Months Without a Mortgage

In his speech, Fashola stated: “In order to remove the inhibitions and obstacles to the supply of affordable housing units and to bridge the huge housing gap, we have recently embarked on developing a sustainable National Housing Programme that will form the bedrock for aggressively reducing the housing deficit in Nigeria. It’s critical features are responsiveness to the needs of the end users based on surveys, affordability analysis and income differences; responsiveness to cultural and climatic diversity; responsiveness to local economic needs; and focus on the SMEs and cottage industries as drivers of building inputs like doors, windows, plumbing and electrical fittings; and piloting and validating the concept by starting small with N35bn ($115m) to prove it.”

No doubt the housing sector in Nigeria is rapidly growing. Apart from the offline development, online real estate portals have taken the business to another level. Nigerians can now buy, sell, or rent properties just by clicking on their computer. This will also help in taking the real estate business in Nigeria to another level. All Nigerians can buy, sell, and rent properties by visiting www.tolet.com.ng.

Source: Vanguard

Tags

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button