Government launches N1.3b mortgage loan for civil servants

The Federal Government has launched a N1 .3 billion refinancing loan, in collaboration with the Nigerian Mortgage Refinancing Company (NMRC) to fix civil servants’ housing needs.

Finance Minister, Mrs. Kemi Adeosun, at the weekend in Abuja said that about 5,635 civil servants would be captured in the first batch.

According to her, the mortgage refinancing scheme is open to local and foreign investors via the public private partnership (PPP) arrangement under the Federal Integrated Staff Housing (FISH) programme of the Head of Civil Service of the Federation.

Adeosun said: “In recognition of the importance of housing, this administration earmarked N40 billion in the 2016 budget to address housing challenges.”

She said the programme was also aimed at improving the living conditions and welfare of the workforce and people and to generate employment for youths.
The minister spoke further: “The N1. 3 billion mortgage refinance investment commitment by the NMRC, followed on the heels of its N8 billion initial bond issuance, the proceeds of which have been fully utilised in refinancing. This should signal investors at home and abroad that there are significant opportunities in the Nigerian housing sector.”

The Family Homes Fund (FHF) Ltd is an innovative private sector-driven financing solution that would catalyse funds from the private sector, pension and insurance funds, multilateral agencies, and investors to use their funds to selectively intervene in the areas of developer financing and mortgage provision.

The scheme is being implemented in partnership with state governments, who will contribute land with the necessary approvals.

She further explained: “It is a financing solution that will bring money from the private sector, pension and insurance funds, multilateral and international agencies to drive an intervention in the areas of development finance and mortgage provision.”
She said: “Today, we are proud to announce the scheme for the refinancing of mortgages for 5,635 beneficiaries in partnership with the Nigeria Mortgage Refinance Company Plc.”

The scheme is a joint effort of the Office of the Head of Service, the Federal Government Staff Housing Loans Board (FGSHLB), the FISH and the NMRC.

The Permanent Secretary (Common Service Office) of the Head of Service, Dr. Yemi Adelakun thanked the Federal Government for coming up with the programme for civil servants. He said that civil servants housing challenges would now end.