Low Income Earners To Pay N2m For FG’s Houses

Chief Uduese Essien, the Minister of Housing, Lands and Urban Development on Friday, said that the low income earners would pay not more than N2 million for a unit of the ministry’s proposed mass housing units.

Essien, who disclosed this to journalists after he had paid a courtesy call on Governor Babatunde Fashola of Lagos State at Alausa, Ikeja, said this was because the cost would be subsidised by the ministry.

“Housing for the low income group of one-bedroom apartment would cost a lot less because we realise that workers who would be the major beneficiaries would not be able to raise about N5 million.”

“We are aiming at houses not more than N2 million for the low income group, while houses for medium and high income earners would cost a little more. The payment period would be spread over a 15 year period,’’ he said.

It would be recalled that the Federal Ministry of Housing, Lands and Urban Development recently said it would build 1,500 houses in each state of the federation at an average of 500 in each senatorial district.

The minister added that the ministry would enter into partnership — under the Public Private Partnership (PPP) agreement — whereby the ministry would acquire the lands in the states, put in the necessary infrastructure, while the private sector would build the housing units.

Essien said the developers would sell the houses to the public and share the profit with the ministry on agreed ratios.

The minister added that those who have been contributing to the National Housing Funds (NHF) would be able to benefit from the programme under its mortgage facility arrangement.

“This is in addition to the fact that the NHF scheme is already taking care of its contributors,’’ he said.

Essien commended Fashola for the urban renewal taking place in Lagos State and his identifying the Federal Government land where the proposed houses could be built.

“With this, Lagos State might be among the first states where the ministry would start building its mass housing units across the country,’’ he said.

In his response, Fashola assured the minister of the state’s cooperation on issues that would bring positive impact on the governed.

He advised that the federal and state governments should come up with an enduring and sustainable model for housing development in the country, which succeeding administrations could continue with.

“Past ministers had built housing units across the country but there were no sustainable policies after their exit from power.”

Fashola suggested that such a policy should include the participation of mortgage banks — to fund the projects — while beneficiaries pay back within 15 years.