……creates 1.5m jobs in 5yrs
The Central Bank of Nigeria, CBN, says it planned to support the Federal Government’s Economic Sustainability programme aimed at fast-tracking the deployment of 300,000 homes in the 36 states of the federation and FCT as well as create up to 1.5m jobs in 5 years through the implementation of N200 billion Family Homes Financial(FHF) Initiative.
The bank noted that the mass housing construction is among the key economic activities of the federal government with potentials to create a significant number of jobs rapidly.
In a released statement, the apex bank explained that the initiative would be implemented in collaboration with Family Homes Fund Ltd as the lead developer.
‘’Create Jobs at Scale – The programme will aim at creating rapidly, up to 1.5 million direct construction sector jobs (at the rate of 5 jobs/home) particularly young people on a low income. In addition, the programme has the potential to create a further 1m jobs through its supply chain.
‘’Boost Local Manufacturing – The programme is designed to utilize at least 90% locally manufactured inputs and as a result, conserve foreign exchange. In that regard, the programme will deliberately aim to revitalize local manufacture of construction materials including doors and windows, ironmongery, sanitary fittings, concrete products, tiles, glass, electrical fittings/fixtures and bricks etc. For example, it is estimated that the programme will require up to 1.7m doors, 7m door hinges and locks etc.
‘’Quality of Life – The programme will house up to 900,000 children and adults (at an average of 3 persons/home) on a low income with direct impact on health, education and economic outcomes. Most of these would currently live in informal settlements with shared facilities in unsanitary environments. Towards targeting people on low-income level across the country.’’ The statement read.
On funding, CBN stated that it would release funds to FHF on project basis subject to the cumulative maximum limit of ₦200 billion based on a cluster of homes in the same geographical location and covered with the same title documents and approvals.
It noted that the term loan would enable FHF to finance the construction of the social housing units for people on a low income, stating the interest rate under the intervention shall be at not more than 5.0 per cent per annum (all-inclusive) and three years tenor from the date of disbursement
‘’Work should begin at the site within 2 weeks of receipt of funds from CBN. FHF shall implement the housing projects subject to use a labour-intensive system to maximize the use of labour from the project catchment area; exclusively use local materials (unless where it is not available) and allow the TA or any other CBN representative(s) access to the project site and information as deemed necessary for monitoring.’’ It stated.
