In spite of the devastating impact of the novel coronavirus (covid-19) in many countries including Nigeria, the country’s biggest social housing scheme, Family Homes Funds (FHF) remain committed to its promise of delivering affordable homes to low and medium income earners in Nigeria.
What’s really impressive about this federal government initiative is that houses, jobs and livelihood opportunities are provided simultaneously, and those whom have already benefitted in states like Delta, Nasarawa, Kano, Kaduna etc., can point to these benefits. With at least 4,000 houses already built and 18,000 jobs created, there are signs that the Fund will be one of the backbones of post covid recovery for Nigeria.
As the country announces plan to gradually ease the lockdown, the Fund is set to return to sites of ongoing projects in Kano, Borno, Yobe and a number of other states where low income earners and civil servants are billed to benefit from the agreements signed between the state governments and Family Homes Funds.
Given the current situation presented by this pandemic, a lot of housing sector stakeholders are calling on the federal government to give more impetus to Family Homes Funds, as the Fund can be used as a key institution for delivering the most important palliative to millions of Nigerians – housing.
This pandemic has revealed how important housing is in a country like Nigeria where over 20 million housing deficit persists. The current situation where millions are either homeless or living in sub-human slums presents a perfect atmosphere for the uncontrollable spread of diseases, infections and viruses, especially coronavirus. There is no better time than now for the government to give much needed attention and resources to FHF so that it can build affordable houses for low income earners, more than already projected.
Housing is a vital economic stimulus which not only provides shelter but creates jobs and absolves people from health crisis. One of the most effective ways of dealing with age long problems like poor health, crime, poverty, and other maladies facing Nigeria is to provide mass affordable housing. Since Family Homes Funds seems well positioned to deliver on this goal, it might as well be properly equipped to deliver.
It is also very important for this housing intervention to be affordable. Because of this pandemic, a lot of people are drained financially, especially the low to medium income earners whose purchasing power has been dealt a huge blow, not to mention those who have become unemployed as a result. There should be a shift from the days when houses are built for people who cannot afford them. A lot of projects are abandoned all over the country because of this misjudgment.
Thankfully, Family Homes Funds houses fall within the affordable category, with some as cheap as N4 million. This mission of affordability must be sustained alongside the Fund’s several home ownership options like Help to Own, Rent to Own and others.
It is great that the Managing Director of Family Homes Funds (FHF), Mr Femi Adewole, has acknowledged that the most transformative thing they can do is to introduce a formal rental system into the market.
Through its Rental Housing and Help-to-Own Schemes, beneficiaries of the project enjoy a deferred loan for up to 40% of the cost of their home. For the first 5 years of the loan, no payments need to be made. From the 6th year, monthly payments will be made to start repaying both interest and capital to assist the purchaser.
Family Homes Funds is most likely the only agency today in the country that is providing financing for affordable housing outside of the commercial banks where the interest rates, requirements, affordability and development costs are usually high. The fact that they are able to provide financing at no more than 10 percent per annum which is about one third of the market rate is a significant and novel intervention.
It is beyond critical for the government to become aggressive with the demand side of housing. A lot of stakeholders will be hopeful to see that the Central Bank of Nigeria see to it that the post covid intervention promised the housing sector will be achieved. Housing is a major catalyst for any country that wishes to bounce back soon from the economic hardship that will follow this pandemic.
Because of the complex game of housing, solving housing problems now require, more than ever, an urgent collaboration between Family Homes Funds and the Federal Mortgage Bank of Nigeria (FMBN). Most civil servants and private subscribers will definitely need to rely on the National Housing Fund to acquire these low cost houses that are being built by FHF and other providers.
Family Homes Funds’ current partnership with other organizations like Nigerian Building and Road Research Institute (NBRRI), C-STEMP, AFDB, REDAN, MBAN, NITP, NIOB, HDAN and other professional bodies to agree on fundamental approaches and how to face housing sector challenges as a team must be sustained and leveraged on to deliver these affordable houses.
If Family Homes Funds’ ambitious commitment to facilitate and supply 500,000 homes and 1.5million jobs for the low income earners by 2023 must become a reality, then the federal government has to become more proactive in its financial support, given that such projects, especially in financial terms, are no longer realistic because of the impact of this pandemic on the cost of production.
The opportunity to cushion the effect of this pandemic and help restore the economy is available through important institutions like Family Homes Funds, and all stakeholders must rally round it to deliver mass affordable housing..
