Family homes fund targets 500,000 subscribers by 2023
Brighter days may lie around in the corner for prospective homeowners, following plans by the government to facilitate supply of 500,000 homes by 2023 through strategic partnerships with various players in the sector and world’s main development finance institutions.
The proposed homes will be provided through a new initiative known as ‘Family Homes Fund’, which is a partnership between the Federal Ministry of Finance and the Nigerian Sovereign Investment Authority, the founding shareholders.
Touted to be the largest affordable housing focused fund in Sub-Sahara Africa, the fund will leverage its significant capital to facilitate access to affordable housing for millions of Nigerians on low to medium income.
However, leveraging its capital to support the supply of new homes for families on low to medium income is only a means to an end. The key priority for the Fund is to take advantage of the opportunity a large- scale house building programme offers to create jobs. Jobs, which are sustainable and offer families security, improved quality of life and hope.
Essentially, through a combination of several activities, the fund aims to create or support up to 1,500,000 jobs by 2023 making a real difference to the quality of life of their families and the economy.
With a projected cumulative spend of up to N1trillion by 2023 into various inputs into the house building process including doors, windows, tiles, roofing materials, blocks, paving stones, and paint. There is also opportunity to incubate large numbers of SME small scale industries creating significant employment.
Specifically, through the combined effort of various market players including Government Ministries, its Agencies and the private sector determined efforts are being made to address acute need for affordable housing in Nigeria.
“The challenge is a daunting one. But there are significant reasons for optimism that new partnerships and initiatives supported by the Federal and State Governments will help provide the over 17million new homes we need over the next 15 years,” according to a reliable source.
He said: “The Family Homes Fund aims to catalyse the creation of new jobs through the investments we make. Alongside investment by other players in the housing sector we have a real opportunity to achieve impact.
“Real positive impact on families, women who often carry the biggest burden in poor households and young people. At a national level, this potential effectively harnessed could generate up to 1.5 per cent increase to the GDP by 2023.”
The Guardian gathered that Family Homes Fund approach to creating jobs will be driven by three priorities: ONE: To support ongoing dialogue around development of a local contents framework for inputs into the house building process. A long-term objective is to ensure that up to 80 per cent of manufactured inputs are locally produced.
“We can achieve much more collectively, than any single player can individually.”
TWO: To build strong partnerships with a broad church of institutions and agencies to maximize this opportunity. We will work with existing and new partners in the building materials Industry offering where appropriate guaranteed purchase commitments thus enabling critical access to capital for investment in new.
THREE: The fund will equip a new generation of young Nigerians with high-level skills in modern methods of construction and technologies.
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