By Yinka Kolawole

Federal Housing Authority (FHA) needs a N300 billion intervention fund from the Federal Government to enable it embark on mass production of affordable housing for low and middle income earners across the country.

Managing Director/Chief Executive, FHA, Mr. Terver Gemade, made the remark during a project inspection in Abuja, noting the intervention fund was necessary to effectively tackle the nation’s housing crisis.

He commended the government for announcing a similar intervention fund for the mortgage industry, adding however, that the N200 billion announced recently by Vice President Namadi Sambo at the Architects Colloquium in Abuja will only address the demand side of the nation’s housing equation.

According to him, there was dire need for government to provide construction finance to take care of production of the houses.

A private housing development in Lekki

Gemade said the N300 billion being demanded by FHA would enable it commence effective production of affordable housing units to meet the demand of the prospective beneficiaries of the mortgages to be created by the mortgage intervention fund.

He lamented that the low and middle income earners which form the bulk of those affected by the nation’s estimated 17 million housing deficit, are unable to pay for houses at the prevailing market rates due to the absence of a national social housing policy.

The FHA boss asserted that the intervention fund will help bring down the cost of houses as well as re-energize the housing sector for effective job creation on a sustainable basis.

He added that such a re-energized housing sector would assist government in tackling the nation’s unemployment problem as, according to him, the housing industry held the key to mass employment.

Gemade, who noted that FHA had been removed from the federal budget for about 10 years, urged government to reconsider its stance and return the Authority to national budget appropriation for social housing.

He said FHA presently relies solely on internally generated revenue and bank loans, adding that the prevailing high cost of funds in the money market had conspired with other factors beyond the Authority’s control to push the prices of its houses beyond the reach of the poor.