By Yinka  Kolawole
The Federal Executive Council (FEC) will soon receive for consideration a policy framework to guide housing development in the country.

Minster of Lands, Housing and Urban Development, Ms. Ama Pepple, disclosed this last week during the inauguration of a Social/Affordable housing scheme in Lugbe area of the Federal Capital Territory (FCT), being facilitated by a primary mortgage institution (PMI).

She said the policy framework will effectively guide the course of action in the housing sector, noting that it would enhance housing delivery for low and middle income earners in the formal and informal sector of the economy.

The Lugbe Social & Affordable Housing Scheme is a joint venture between the Housing Ministry and Aso Savings & Loans Plc. It is one of the pilot projects that the Federal Government through the Ministry of Lands, Housing & Urban Development has embarked upon towards meeting the housing needs of low income Nigerians who reside in the FCT. The project involves the construction of one, two and three-bedroom flats at affordable prices, on a 1.5 hectare of land valued at about N200 million.

Pepple said the project will consist of four-floor storey buildings of six blocks of flats, totalling 144 housing units. She explained that the choice of storey buildings was aimed at ensuring efficient land utilisation in Abuja. The minister said the federal government will support new initiatives to support the provision of affordable houses in the country.

She said the housing scheme was one of the first of good things to come in the effort to revitalize the housing and urban development sector. “In this regard, we shall draw inspiration from this project and continue to work collaboratively with all relevant stakeholders in the housing and urban development sector to move it forward,” she said.

Also speaking at the event, Managing Director of Aso Savings, Mr. Hassan Usman, said the scheme is intended to facilitate the acquisition of inexpensive houses by low income earners in the FCT. He remarked that because the cost of land was discounted, the houses would be affordable.

“Aso Savings is determined to partner with the Ministry of Lands, Housing and Urban Development and the Federal Mortgage Bank of Nigeria (FMBN) to accelerate the provision of affordable housing in the country. Working in partnership with the ministry, we expect to finance the development of at least 100, 000 affordable houses over the next four years. With the right environment, we are confident that it can be achieved.

“FMBN gave us a concessionary interest rate of 8 per cent per annum as against the 10 per cent per annum in estate development loan, so as to reduce the cost of constructing the houses. The National Housing Fund (NHF) loan will be made available to target markets through the Federal Mortgage window, thus reducing the acquisition cost. It is intended that the cost of the one bedroom houses shall be discounted and made up from the acquisition cost of the three bedrooms,” he said.