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3000 Pilot Rent-To-Own Houses for Nigerian Workers

Posted by Uget Properties on August 29, 2018
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FMBN

Nigerian workers, especially contributors to the National Housing Fund are about to smile as the Federal Mortgage Bank of Nigeria (FMBN) Board rolls out Rent-To-Own’ pilot housing scheme. Just recently, the FMBN Board approved the implementation of nationwide 3000 rent-to-own pilot housing project. According to a statement signed by FMBN Corporate Communications Group Head, Mrs Zubaida Umar, released on 12th August in Abuja, the program is strategically designed to provide Nigerian workers access to affordable housing.

This new housing product is specially targeted to Nigeria workers who are making contribution to the national housing fund. The 3000 houses which will be spread across the federation is planned to be implemented in phases.

The plan is that Nigeria workers who subscribe to the scheme will move into FMBN funded homes as tenants, then start paying for the property either monthly, quarterly or annually over a 10-30 years’ period depending on their preference and number of years they still have before retirement.

Beside the long-term payment plan of up-to 30 years, another incentive incorporated into this scheme by FMBN to boost its affordability is that the houses will attract only 9 percent interest rate on the price of the property on an annuity basis.  The scheme will cover houses not exceeding N15 Million value. That means workers can apply for houses within the range of 1-15 million naira in any of the FMBN funded house nationwide. The scheme will construct low-cost international standard houses ranging from 1-bedroom apartments to 4-bedroom bungalows.

To successfully deliver on the project, FMBN is set to partner with reputable private estate developers for the development of economical housing stock across the country. The pilot phase of the scheme which is due to commence soon is planned to deliver about 3,000 houses. By FMBN arrangement, the payment of the houses by subscribers will be through a dedicated Treasury Single Account (TSA) domiciled with the Central Bank of Nigeria.

Dangiwa Ahmed,
Managing Director/chief executive officer of FMBN

According to the chief executive officer of FMBN, Dangiwa Ahmed, “The rent-to-own housing product is designed to make sure that any worker who collects a salary should be able to live in his own home and pay conveniently over periods as long as 30 years. This is a massive relief, especially given how little workers earn. I am delighted that we have successfully added this product to the many other initiatives that we have made possible to make homeownership a lot easier for Nigerian workers”.  He said the launch of the housing scheme is another innovative program of the bank aimed at improving access to affordable housing for Nigerian workers who fall within the low-medium income brackets”.

Mr. Ahmed commended the President Muhammadu Buhari and the Minister of Power, Works and Housing, Babatunde Raji Fashola for their dedication to the development of affordable housing and the ruling government’s commitment and unwavering support toward reforming and re-positioning the Federal Mortgage Bank of Nigeria to begin living up to its mandate.

If this housing initiative succeeds, it will in no small measure improve the welfare of Nigeria workers as the scheme will eliminate the burden of raising equity contributions, thereby making access to housing loans and mortgage accessible to especially medium-low income earners.

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