The Federal Government has announced plans to launch a mortgage finance facility aimed at constructing 25,000 affordable housing units nationwide.
This initiative is a key component of the Economic Stabilization Programme and will be overseen by the newly established Presidential Economic Coordination Council (PECC).
The announcement was made in an official statement by Ajuri Ngelale, Special Adviser to President Tinubu on Media and Publicity, on July 4, 2024.
According to the statement, the “Mortgage Finance Acceleration Facility” aims to provide affordable housing for all segments of the population impacted by the rising cost of living.
“Mortgage Finance Acceleration Facility: A facility that delivers affordable housing for all segments impacted by the cost-of-living challenge. This will support the construction of an additional 25,000 housing units,” the statement read in part.
The mortgage finance facility initiative is one of several initiatives that President Bola Tinubu’s administration aims to drive economic transformation in the country under the Economic Stabilization Programme.
Federal Government’s efforts to provide affordable housing units nationwide
The Federal Government has launched several programs to provide affordable housing units nationwide, aiming to close the substantial housing deficit.
The centrepiece of the current administration’s efforts is the Renewed Hope Cities and Estates program, which plans to construct 1,000 units in each of the 36 states and 4,000 units in the Federal Capital Territory.
This program is intended to promote inclusivity by offering various affordable homeownership options, including mortgage loans with single-digit interest rates and terms of up to 30 years, rent-to-own plans with flexible payment options, and outright purchases for high-income buyers.
Operating as a cross-subsidy scheme, 80% of the units will be sold at market rates, while the remaining 20% will be offered at concessional rates to low- and middle-income Nigerians affiliated with the Nigeria Labour Congress and the Trade Union Congress.
The primary focus is currently on Phase One of the program, which aims to deliver 50,000 houses across thirteen states. This phase began in February with a 3,112 housing-unit project in Karsana, Abuja.
Following the launch in Abuja, the Federal Government initiated the construction of various housing projects, including 250-unit Renewed Hope Estates and 500-unit Renewed Hope Cities in nine states, with more to follow in the coming months.
The states included in the first phase of this housing initiative are Kano, Katsina, and Sokoto (North-West); Gombe and Yobe (North-East); Ebonyi and Abia (South-East); Akwa Ibom and Delta (South-South); Osun and Oyo (South-West); and Benue and Nasarawa (North-Central).
In May 2024, the Federal Government launched the Renewed Hope Housing Online Portal to streamline the marketing and sale of houses under the Renewed Hope Cities and Estates program, enhancing transparency and efficiency in distributing affordable housing across Nigeria.