Association urges states to key into affordable housing for all
NAN-H-82
Housing
By Uche Bibilari/ Emmanuella Anokam
Abuja, March 21, 2017 (NAN) Real Estate Developers Association of Nigeria (REDAN), has called on State housing authorities to take advantage of the two billion dollar Memorandum of Understanding (MoU) recently signed to provide affordable housing in the states.
The President, Mr Ugochukwu Chime told the News Agency of Nigeria (NAN) in an interview on Tuesday in Abuja that the fund was an opportunity for qualified developers to access.
The Federal Mortgage Bank of Nigeria (FMBN), SHELTER AFRIQUE and (REDAN), had recently signed a two billion dollar MoU to provide affordable housing for Nigerians.
Chime explained that the recent tripartite MoU was fallout of the first MoU signed with SHELTER AFRIQUE for financing construction.
“We realise that when you have construction finance and you do not have takeoff finance and the mortgage finance the cycle is not completed and if the cycle is not completed the houses are not sold.
“If the houses are not sold we have problem of paying back and problem of cost overrun as a result of interest accrued, so what we did was to have a completion from construction finance to off taker finance.
“That will close the circle as far as developer is concerned; so what we did was to have an agreement for incremental provision.
“We have a provision for two billion dollar over 10 years; SHELTER AFRIQUE will provide 200 million per annum, is an opportunity for every qualified developer with projects to access fund.’’
He said that State Governments would not only provide shelter for its people through this means but could also provide employment.
Chime said that the MoU was an opportunity for state commissioners involved in land and housing to come and access this fund to provide houses for their people.
“We are inviting the governors to come around and make sure you do not only provide shelter for your people, but in the process you are providing multiply effect in the local economy.
“In addition, state government would also provide employment for their people,’’ he said.
Chime said that the association was working on how best to train artisans, adding that their skills contribute to the provision of affordable housing.
The president said that the association was working with stakeholders in the sector to provide funding and the industries that provide building materials; to make sure the provision of affordable housing was achievable.
“We have operated individually and it did not lead us anywhere, now we are operating in unison and we believe that Nigerians are look forward to a decent shelter at affordable price and also looking forward to employment for the youth,’’ he said. (NAN)
ELLA/UU/AK/AFA
Edited by Akin Makanjuola/Felix Ajide