CBN sets up N200 bln family home finance intervention fund
By Samuel Bankole
The Central Bank of Nigeria (CBN) has set up ₦200 billion facilities to finance mass housing construction across the country under the federal government Economic Sustainability programme.
The regulatory bank, which on Tuesday rolled out the guidelines to facilitate the mortgage lending at 5 percent interest rate annually said the fund will be disbursed through Family Homes Funds Limited (FHFL) and guaranteed by the federal ministry of finance and budget.
The CBN said the deployment of the intervention fund will facilitate the construction of about “300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to up to 1.5m jobs in 5 years.”
The regulatory bank has continued to play the role of development bank in the economy in a bid to support government initiatives and provide soft loans for businesses under its intervention policy.
The bank had on Monday rolled out guidelines to extending its intervention fund to manufacturing ond distribution of solar energy in a bid to help bolster power supply in rural areas of the country.
The bank had set up intervention funds for the aviation industry, anchor borrowing to finance the production of rice and other agriculture produce.
“The programme will aim at creating rapidly, up to 1.5 million direct construction sector jobs (at the rate of 5 jobs/home) particularly young people on low income. In addition, the programme has potential to create a further 1m jobs through its supply chain.
“The Development Finance Department of the Central Bank of Nigeria shall be responsible for the management of the intervention facility,” the bank said.
Some insiders said the intervention fund by the CBN should be subjected to comprehensive auditing to ensure prudence and ensure that fund get to the right people it was intended.
It was claimed that the anchor borrower intervention fund currently has about 65 percent default rate while many of the farmers who took the loans can not be traced by the regulatory and participating banks.