FEC Approves $300m For Housing Projects

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The Federal Executive
Council (FEC) has approved that Nigeria accesses a soft loan of 300 million U.S. dollars (about N50.1bn) granted by the World Bank for Housing Finance.
Minister of State for Finance, Alhaji Yerima Ngama, who made this known while briefing newsmen  recently, in Abuja, on the outcome of the FEC meeting said the loan was meant to meet government’s objective of providing affordable housing to Nigerians.
He said, “the council has deliberated and approved that we access 300 million US dollars from the International Development Association (IDA) which is a soft borrowing window for developing countries, offered by the World Bank”.
According to the minister, the loan will be used to meet the government’s objective in the proposed Nigeria Housing Finance Project.
Ngama said, “The Nigeria Housing Finance Project is aimed at increasing access to housing finance by deepening primary as well as secondary mortgage market in Nigeria.  Two hundred and fifty million US dollars of the amount will be devoted to the establishment of a Mortgage Re-finance Company”.
The minister explained that 10 million US dollars would also be devoted to capacity building and technical assistance to stakeholders in the mortgage industry, adding that the remaining sum will be used for three other companies for the Nigerian Housing Finance Project.
“The establishment of mortgage guarantee product targeted at the low income borrower, will gulp 25 million dollars.  This guarantee will enable people who otherwise cannot provide adequate collateral to access loans”, he said.
According to the minister, the housing demand in Nigeria is currently put at estimated 700,000 unit annually, while only 100,000 is being built for now.