Amidst growing concerns over Nigeria’s housing deficit, the Federal Government has urged the majority of Nigerians who are largely in the informal sector of the economy to tap into opportunities in the National Housing Fund through their respective cooperatives to be able to own a home within a period of time.
Babatunde Raji Fashola, the Minister of Works and Housing, gave the information on Thursday in Abuja at the ongoing annual National Council of Lands ,Housing and Urban Development, even as he noted that the Federal Government is mindful of the huge contribution of the informal sector of the economy and is determined to assist them own their own homes.
Fashola stated further that state commissioners of Housing and Urban Planning could have their own state cooperative and Housing scheme and partner with the Federal Government to access the Housing cooperative loan.
=”The cooperative Housing loan is a special purpose vehicle that would assist the large sector of the informal sector to own their homes. Their cooperatives can come forward and key into this scheme,” Fashola said.
“States should provide title, land, building approval which is vital for us to drive the scheme and move faster. Our state coordinators of the Federal Housing Cooperative loan should assist the cooperatives to drive the housing cooperatives.
Speaking further on the housing cooperative loan, Ahmed Dangiwa, the Managing Director of the Federal Mortgage Bank of Nigeria, said the Federal Government had rolled out the scheme to enable cooperatives to drive housing availability in the country.
Dangiwa pointed out that, “The essence of bringing in the cooperative is to help us market this scheme in the various states. Most of the estate development loan marketing responsibility rests with the developer. This would enable him to exit the loan once he has clients.
He said, “The Issue of affordability, equity contribution, and other issues are being addressed. For instance, the issue of equity prior to now is 30% for N10 million and above. The bank has now reduced it to 10%.The equity for houses less than 5% it is 0 percent.”
“There is also a repayment model which is driving the informal sector repayment plan, which is according to what they can afford.
“Our state coordinators and managers in the Federal Mortgage Bank of Nigeria that have the responsibilities of the rent to own for anybody that wants to key into the rent to own scheme,” he states further.
