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1,432 FG’s low-cost homes remain unsold in five states, says report

By Joke Falaju, Abuja
03 October 2022   |   4:07 am
A new report released by a civic organisation- Paradigm Leadership Support Initiative (PLSI) has revealed that about 1,432 low-income homes across five states have remained unoccupied despite being completed.

A new report released by a civic organisation- Paradigm Leadership Support Initiative (PLSI) has revealed that about 1,432 low-income homes across five states have remained unoccupied despite being completed.

This group also raised concern that despite N65 billion released to Family Homes Funds Limited (FHFL) between 2018 and 2020 to facilitate the development of affordable/social homes, most of them are yet to be subscribed by low-income earners.

The PLSI Executive Director, Olusegun Elemo, disclosed this while analysising the performance audit report on the management of resources for provision of affordable/social homes for low-income earners in Nigeria by Family Homes Funds Limited (2018-2020) in Delta, Kano, Ogun, Kaduna and Nasarawa States.

Elemo told newsmen in Abuja that the Federal Government in its bid to fulfill section 16 (2)(d) of the 1999 constitution as amended, stipulated that the government shall provide suitable and adequate shelter for all citizens, as well as the need to accelerate economic recovery through implementation of Economic Recovery and Growth Plan (ERGP) 2017 – 2020 initiated by the Family Homes Funds Limited (FHFL) in 2016 as a special purpose vehicle to help address the housing shortage by delivering affordable homes nationwide.

This was followed with implementation of Nigeria Economic Sustainability Plan (NESP) 2020, which planned to provide 300,000 social homes yearly for low-income earners to address the over 22 million housing deficits with a yearly growth rate of 20per cent, according to Shelter Afrique, a Pan-African Real Estate Finance Institution.

He stated that a report by Price Waterhouse Coopers (PwC) had indicated a deficit of over 17 million houses in Nigeria, and this requires about 700,000 new houses to be built yearly, compared to the less than 100,000 houses that are being constructed.

Similarly, the World Bank 2018 Report on Nigeria’s Affordable Housing Project revealed that the demand for affordable housing is huge and growing in the face of a sizable deficit and dearth of existing interventions that supports closing this gap.

The report further stated that macroeconomic conditions in Nigeria are the greatest impediments to affordable housing.

A seed capital of N500 billion was promised by the Federal Government for the provision of affordable/social homes for low-income earners, the government released N65 billion to FHFL between 2018 and 2020.

According to Elemo, despite the release of funds to FHFL to facilitate development of affordable/social homes, there are still visible challenges impeding acquisition of completed homes by low-income earners.

He said: “We have analysed the performance audit report on management of resources for the provision of affordable/social homes for low-income earners in Nigeria conducted by the Auditor-General for the Federation and highlighted challenges impeding acquisition of 1,432 homes built in five states.

“These challenges include the absence of need assessment by the FHFL, constraint with accessing completed homes due to lack of infrastructure and insufficient awareness creation for homes built among others.”

“PLSI will support the FHFL in mobilising buyers/off-takers within the target group of low-income earners to boost acquisition of homes built in Delta, Kano, Ogun, Kaduna and Nasarawa States.”

He called on the management of FHFL to improve on its efficiency and effectiveness in providing affordable/social homes to Nigerians.

Elemo urged FHFL to implement the recommendations offered by the Auditor-General for the Federation to address challenges hindering acquisition of homes built by low-income earners.