Developers have expressed concerns over the Federal Government’s newly approved N25 million housing loan for civil servants, deeming it unrealistic given the current economic conditions, including high construction costs and limited access to affordable materials.
Kolade Adepoju, CEO of Riel Homes, highlighted that the proposed loan for a three-bedroom flat is insufficient, citing his own experience where the cost of building a quality one-bedroom unit ranges between N14 million and N15 million, excluding land and roofing. He emphasized that N25 million would barely cover the basic structure, let alone the finishing touches.
Adepoju suggested that the government should focus on reducing material costs rather than offering inflated loan amounts that do not reflect current market realities. He argued that sustainable solutions should address the root causes of housing inaccessibility, rather than merely providing inadequate financial support.
Jeremiah Akinsele, another developer, echoed these sentiments, questioning the effectiveness of the loan distribution system. He pointed out that many civil servants already own properties, while younger, entry-level workers often struggle to secure funding for housing. Akinsele recommended a functional mortgage system that would allow gradual payments over 20 to 30 years, making homeownership more attainable.
The Executive Secretary of the Association of Housing Corporations of Nigeria, Toye Eniola, noted that the loan amount could work depending on the type of house and its location, indicating a need for a nuanced approach to housing finance.
The recent review of housing loan ceilings aims to improve the welfare of federal workers, but developers urge policymakers to reconsider both the amounts proposed and the methods of distribution to ensure that the initiative genuinely supports those in need.
