A surprise windfall which could provide construction jobs in excess of N200 billion could be unfolded in the next few months for property developers, who are being made the arrowhead of a radical plan, to jump-start the stifling local economy through housing delivery.
The Real Estate Development Association (REDAN)), is modifying the scheme tagged Rural-Urban Housing Initiative (RUHI) 774, which would kick-off before end of the year with construction contracts for 100 units in each of the 774 Local Government Area in the country.
Family Homes Fund (FMF), a social intervention programme of the Federal Government with initial shareholding by the Federal Ministry of Finance and the Nigeria Sovereign Investment Authority is backing the scheme.
Over the next four years, the company aims to invest up to N1.3trillion ($3billion) in the development of 500,000 homes for people on a low income. In the process, the company also aims to create jobs and enable homeownership through its creative products.
Already, the association is a closing agreement with FMF at a single-digit interest rate, which will provide jobs for 2.5 million Nigerians. About 70 per cent of the deal has been firmed up, and the project would be launched simultaneously in all the states of the federation.
Mass housing construction is among the key economic activities with potentials to create a significant number of jobs rapidly. It is in the light of this that the Central Bank of Nigeria (CBN) introduced 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.
REDAN President, Dr. Aliyu Wamakko told The Guardian that the association has received tremendous support from FMF on the scheme and its membership has shot up due to REDAN’s leadership commitment to rejuvenate the housing industry.
Wamakko further said, “We have agreed on 70 per cent of the contract terms, it is remaining 30 per cent of the paperwork. We are already on it, very soon we come out to announce the date of commencement.”
According to him, “REDAN was able to seek collaboration with FMF to finance this project, the agency has given a strong indication and agreed to finance the scheme. We have also spoken to the Federal Mortgage Bank of Nigeria (FMBN), Nigeria Mortgage Refinancing Company (NMRC) and Mortgage Banking Association of Nigeria (MBAN) to create mortgagees for the people who are going to benefit from the scheme.
“We have also synergised with the paramilitary agencies such as Police, National Drug Law Enforcement Agency NDLEA, Nigeria Security and Civil Defence Corps (NSCDC) and Nigeria Union of Local Government Employees (NULGE) and Nigerian Union of Teachers (NUT), Independent Corrupt Practices Commission, immigration, Customs, and Nigerian Correctional Service. They will be off-takers in the project.
“We want to ensure that every Nigerian will have a house in his own local government of origin, where ever he/she chooses to live. In this case, we collaborate with stakeholders, especially all professional bodies in the built environment so that they will give supervision through their state chapters to ensure standards for the houses.”
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He disclosed that association is also collaborating with building materials manufacturers like BUA, Dangote cement, aluminium companies, and iron rod producers. “We wrote letters to them, some firms have given us about 25 per cent discount and waivers,” he added.
The Guardian gathered the scheme would boost local manufacturing as it is designed to utilise at least 90 per cent of 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.
Source: The Guardian
