The provision and actualization of affordable housing in Nigeria remains an issue that continues to stir up concern especially among Housing sector stakeholders who are saddled with the responsibility of making sure the average Nigerian has a decent roof over his or her head.
Many attempts have been made in the recent past, by industry expert to demystify the problem of affordable housing for low income earners. But all efforts seem not to be dealing a blow huge enough to pull down the problem, especially as the coronavirus pandemic worsens the housing crisis in the country. What is the role of Nigeria’s Social Housing Institution, Family Homes Funds in providing solutions to the housing problems on ground?
Speaking on the strategies mapped out in actualizing affordable housing for low income earners in the country, Femi Adewole, MD/CEO Family Homes Funds Limited, is optimistic and believes the challenges confronting the housing sector are not insurmountable.
Adewole spoke as a guest Panellist at a CEOs webinar recently hosted by the Housing Development Advocacy Network (HDAN), with theme “COVID-19 Pandemic and Housing Finance Leadership.
According to him, a vast majority of Nigerian families have their house hold income below N100,000 monthly and as such would only be able to afford houses built specifically to address their needs and range of income, adding that it is this category of the country’s population that the Fund is most interested in housing.
“FHF is specifically targeted at housing solutions for Nigerians who are earning less than 100,000 naira per month as household income.
“Our Social rental housing fund is designed to enable people on the bottom parts of the housing ladder to enter a home of their choice in the location of their choice with very minimal capital commitment.
“Over the last nine months we’ve committed just under 60 billion naira to about 14,000 homes across nine States both in the North, in the east, west, south and north central geographical zones of the country” he said.
Speaking further, Adewole noted that funding is critical to actualizing the goal of affordable housing and FHF is fashioning out innovative solutions that are result-driven in term of finance, housing delivery and design standardization for projects it handles.
“Prior to Corona, we had a program for 2020 under the affordable housing to fund about 20,000 homes and we will continue to pursue that ambitious objective.
“Family homes funds is innovating around raising capital of its own. We are out shortly over the next few months into the capital market with infra credit. We are also planning to raise sukuk bond close to N50billion naira to finance some of our programs. In addition we will go to the traditional capital market to raise capital
“Beyond that, we are raising capital from development finance institutions, we have funding agreements and partnership with Shelter Afrique and a whole range of organizations” he said.
On the issue of job creation and reducing the cost of housing delivery, the FHF boss stated that “We are working with agencies like the NBRRI and other major manufacturers of building materials like cement, to look at what we can do to ensure that by 2021 at least 35% of building inputs are locally manufactured. This will not only support the economy but more significantly it will create jobs and will ensure that we can deliver homes at significantly lower prices than we currently do”
Adewole also hinted on the plans of the Fund, going forward, especially amidst and after the pandemic, reiterating his commitment to effective and result-driven leadership towards the mandate of housing low income earning Nigerians who are most affected by the effects of the pandemic.
“What we need now going forward is bold leadership. Bold leadership create outcomes, good outcomes create bold results, and bold results change lives. Post Corona virus, we need to be doing a lot of changing of lives off perhaps some of the most vulnerable Nigerians that requires bold leadership
“Let’s focus on results, let’s focus on numbers. This is what Nigerians want from us. They want to see that the homes are being provided and some of the most vulnerable people increasingly having a home over their head” he added.
