February 23, 2017

‘FG working towards ensuring every Nigerian owns house in 3 years’

‘FG working towards ensuring every Nigerian owns house in  3 years’

Residents of Ado in Karu Local Government, Nasarawa State counting their losses after Monday night flood killed many residents and damaged several houses, other property

By Demola Akinyemi

ILORIN-Federal government on Thursday said it has concluded arrangements to ensure that every Nigerian owns house within the next three years by ensuring that it built 16-17 million units houses every year across the states of the federation for public and private workers .

The Minister of State, Power, Works and Housing, Hon. Mustapha Baba Shehuri who made the disclosure in Ilorin, Kwara state capital said the project which will be achieved under a Public-Private Partnership arrangement has reached an advanced stage in terms of implementation.

Hon Sheuri said this at the official commissioning of 250 housing estate units financed by the Federal Mortgage Bank of Nigeria(FMBN) and developed by Kam- Abioye Nigeria Limited located along Bala-Eiyenkorin road, Ilorin, the state capital.

According to the minister,”The Federal Ministry of Power, Works and Housing will continue to strive at meeting the challenges of housing deficit in Nigeria,which has been put at 16-17million units.”

“Indeed,the Ministry’s plan to build several housing units in every state of the federation for public and private workers every year,over the next three years,under a Public-Private Partnership arrangement has reached an advanced stage in terms of implementation”.

He said this became necessary because, “Every government has the responsibility of addressing the welfare of its citizens in all possible ways.It is in this context that it has been a matter of priority for the President Muhamamdu Buhari led administration to provide affordable housing for the teeming Nigeria’s populace”.

The Minister who said that, “National Housing models have been designed and approved for each six geo political zones of the country added that,”he design of the housing units is based on the cultural diversities and climatic conditions in the choice of the houses and in line with the present administration’s vision of standardizing building materials to boost local content by encouraging our artisans and craftsmen as well as the creation of employment”.

While noting further that, “the 250 housing units being commissioned today are equipped with basic amenities required for a decent life”,the minister stressed that, ‘the developer has done a good job and it is my humble prayer that the beneficiaries will make good use of these facilities to ensure the accomplishment of the lofty objectives for which huge expenditures were incurred by the government’.

Hon. Shehuri also pointed that, “the FMBN being the apex mortgage institution in Nigeria has a major role to play in the realization of the aspirations of many Nigerians towards owning a home through mortgage,stressing that,“I am please to re-affirm the resolve of this administration to recapitalize the bank to the tune of N500billion which will no doubt reposition the bank to adequately and efficiently carry out its mandate under the National Housing programme of this administration in order to make the lower class nigerians own houses easily.

The Acting Managing Director/Chief executive of Federal Mortgage Bank,Mr Richard Esin in his address said at the occasion that ,the Federal government has approved loan of N5M and below by National Housing Fund(NHF)for prospective house owners‎,”thus loan applicants will not be required to make down payment of 10% of the house price”anymore.

He stressed,”in addition,the cost of mortgage perfection which usually adds another 10% to the upfront costs will be capitalised and repaid gradually over a period of five years.The effect of these concessions reduces initial ownership costs by at least 20%”

According to him,”These steps are in pursuit of the business focus of the bank which is targeted at providing affordable mortgages to promote home ownership among the mass and middle income market segments in Nigeria”

He added that,”The targetted average price per unit of house to meet the need of these customer markets is estimated at N5M per unit”

“To achieve this price target,FMBN is collaborating with developers for large scale housing delivery at city/district scale based on the National Housing Model driven by the federal ministry of power,works and housing”