By Ladi Patrick
The Federal Mortgage Bank (FMBN) of Nigeria has advised
developers to shift focus towards the provision of functional and affordable
homes that meet the demand and financial capacity of low-income earners in the country.
The Chairman, Board of Directors of the Bank, Dr. Adewale Adeeyo stated at the commissioning of the first phase and hand
over of keys to subscribers of Sparklight Grace Court Estate, which was a
partnership project between the bank and the developer in Lagos.
Adeeyo, who was represented by FMBN Zonal Manager for Lagos and Ogun States, Mr. Simeon Agada, noted that Nigeria needs more houses and people that are ready to provide affordable homes because Nigeria actually has a deficit of housing of about 17 million.
He said housing developers should expand on the provision of a one-room apartment, studios with toilets, bathroom, and kitchen that the working class and Nigeria’s young adults need to sustain life.
This is even as he expressed concerns on an inflation rate that cut across every sector of the economy including the real estate said stakeholders should come together and curtain its impact on housing by reducing the cost of housing construction, by looking inward and try to apply more local content and available building technology in the industry.
The houses are sold on a well-structured mortgage arrangement provided by FMBN.
“If we can use locally made doors, windows, and other things, we will be reducing the cost of housing development. People need decent homes that are affordable, that they can put down their heads after hard day work. A bachelor doesn’t need to start looking for a three-bedroom bungalow or a duplex to live in because it is not economical.
“FMBN is ready to support any serious developer who is ready to build residential houses through financing. The bank will provide the funding ones the developer meets the requirements so that the housing can be taken up through mortgage loans and off-takers would be paying in installment at their convenience. The rate is six percent per year.”
“Government is making sure that the interest rate on housing mortgage remains low at single digit for the provision of social housing.”
He stated that the government recognizes the roles developers and banks are playing in the sector, saying that they need to be encouraged to further recapitalize to be financially better and play their roles more effectively.
