The Minister of Finance, Kemi Adeosun, has said that the N500 billion new housing fund approved last week by the National Executive Council would stimulate economic activities and return the economy to the path of growth.
Adeosun made this statement while answering questions from reporters in her office over the weekend. She said the fund would be used to create a mass housing scheme that would make Nigerians become homeowners under a mortgage arrangement.
According to her, the initiative known as the “Family Home Fund” would commence in the next three to four weeks.
N500 billion had been earmarked to create mortgages for affordable houses for Nigerians, starting with the construction of 100,000 houses annually from next year, She added.
She said the housing fund is expected to increase from N500 billion to N1 trillion to make it possible for the government, through the private sector, to deliver about 400,000 houses annually through mortgages.
While explaining the rate at which the houses would be leased, she said the mortgage 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.
According to her, 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 N2.5 million and N4.5 million depending on the type.
“We have done a lot of work around how we can bring down the cost. The tag is N2.5 million 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,” she stated.
So where are we now with respect to this scheme? This post is about 8months old now. Are we still procrastinating? Nigeria we hail thee.