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2.5m new jobs underway as CBN rolls out N200bn housing facility

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Family Homes Financing Initiative

The federal government of Nigeria is working to create at 1.5 million construction jobs and 1 million supply jobs in the next five years via a housing financing initiative by the Central Bank of Nigeria (CBN) valued at N200 billion.

The apex bank stated this in the Framework for the Implementation of Family Homes Financing Initiative it released on Tuesday, saying that mass housing construction is among the key economic activities with potentials to create significant number of jobs rapidly.

“It is in the light of this that the Bank introduces this financing initiative to support the Federal Government’s Economic Sustainability programme to fast track the deployment of 300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to up to 1.5 million jobs in 5 years,” the framework read.

CBN further stated that the Family Homes Financing Initiative is to be implemented in collaboration with Family Homes Fund Ltd as the lead developer.

It identified three main objectives of the initiative to include creating jobs at scale, boosting local manufacturing and giving Nigerians improved quality of life.

Create Jobs at Scale – The programme will aim at creating rapidly, up to 1.5 million direct construction sector jobs (at the rate of five jobs/home) particularly young people on low income. In addition, the programme has potential to create a further 1 million jobs through its supply chain.

Boost Local Manufacturing – The programme is designed to utilize at least 90 per cent 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 1.7 million doors, 7 million 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 per home) on 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,” the CBN has said in the framework, adding that the facility is targeting people on low income level across the country.

The apex bank further said that it shall appoint a technical advisor to, among others, appraise the requests for funding by Family Homes Funds Limited (FHFL), recommend for the release of funds and monitor the delivery of the programme and utilization of funds including quality of the portfolio.

“Funds would be released to FHF on project basis subject to the cumulative maximum limit of ₦200 billion,” the CBN said.

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