The Federal Government has disclosed plans to set up a N1 trillion ($654 million) housing fund aimed at providing affordable mortgages to Nigerians.
This, according to the minister of finance and coordinating minister of the economy, Wale Edun, is in furtherance of efforts to bridge the country’s estimated 28 million homes deficit.
The minister said the first phase of the fund-raising initiative includes a 40-year concessional loan from the World Bank’s International Development Association (IDA) at a 1 per cent interest rate.
He stated that the government secured matching contributions from local pension funds, banks, and insurance firms, raising a total of N250 billion in the initial phase.
“This fund will enable Nigerians to access mortgages at single-digit and low double-digit interest rates, making homeownership more attainable,” he said.
Edun said the new fund is expected to stimulate a construction boom by providing developers with guaranteed off-takers.
The minister also revealed that the government is finalising contracts with private investors to construct and manage 40 major roads spanning 5,000 kilometres (3,100 miles).
He said the Africa Finance Corporation (AFC), a Lagos-based multilateral financial institution, is among the key investors in the road infrastructure initiative.
