Nigeria plans 0.5 trln naira investment in housing to stimulate economy -finmin

Nigeria is planning about 500 billion naira new housing fund as part of its bid to stimulate the economy of the West African country and brings it back from recession and return it back to the path of growth, the Finance Minister, Kemi Adeosun, has said.

Adeosun, who fielded questions from some journalists in her office at the weekend, said a mass housing scheme that would make Nigerians become homeowners under a mortgage arrangement would commence in the next three to four weeks.
According to a statement by her media adviser, Festus Akanbi, the minister said under the initiative known as the ‘Family Home Fund’, the sum of N500bn had been earmarked to create mortgages for affordable houses for Nigerians, starting with the construction of 100,000 houses annually from next year.
According to her, the housing fund is expected to increase from N500bn to N1tn to make it possible for the government, through the private sector, to deliver about 400,000 houses annually through mortgages.
The mortgage, according to her, will be created at a single digit interest rate of 9.99 per cent payable in 20 years, with homeowners making an initial deposit of 10 per cent.
She said the low and middle-income earners would benefit more from the scheme as about 70 per cent of the houses would be given out for between N2.5m and N4.5m depending on the type.
Adeosun said, “We have done a lot of work around how we can bring down the cost. The tag is N2.5m and it is a house you can move into. So, we are bringing down the cost.
“These are affordable houses for Nigerians;the scheme is going to be linked with the BVN. One house per person; so, you cannot buy the house and rent it to somebody else.”