The scheme, ‘My Own Home’ comes as an offshoot of the Nigeria Housing
Finance Programme (NHFP) set up by the Federal Government and
implemented by the Central Bank of Nigeria (CBN) with the support of
World Bank’s $300 million loan.
The Federal Government through the CBN is set to ease financing housing for prospective
homeowners, following its plans to introduce a public private partnership
initiative that seeks to increase access to housing finance in Nigeria
through mortgage guarantee insurance and microfinance scheme.
The CBN in line with this project has selected eight Micro Finance Banks to increase and encourage housing finance for low-income earners in all sectors.
They will benefit from a $15 million technical assistance, which LAPO Microfinance Bank is piloting in the housing sector.
Specifically, the eight micro finance banks are expected to facilitate access to flexible housing finance for low-income earners for incremental construction or home improvement. “It could be financing to buy a piece of land for building or laying foundation on an existing land and commence building stage by stage.
“After every stage of building, and with a good history of repayment,
the microfinance bank keeps financing the customer until the building
is completed. Housing microfinance is not a mortgage and is not for the
purchase of homes.
“Housing Microfinance is closer to our traditional sense of incremental construction. Not everyone has money to finance mortgage but under the Microfinance scheme, a homeowner can stretch his building plan in such a way that he takes different tranches of loan as he builds,” according to Mr. Adedeji Adesemoye, CBN’s Head, Project Administration Team of the National Housing Fund Programme.
“The objective is to catalyse the growth of the housing sector through de-risking the housing finance value chain and improving access to finance,” he said.
The CBN in line with this project has selected eight Micro Finance Banks to increase and encourage housing finance for low-income earners in all sectors.
They will benefit from a $15 million technical assistance, which LAPO Microfinance Bank is piloting in the housing sector.
Specifically, the eight micro finance banks are expected to facilitate access to flexible housing finance for low-income earners for incremental construction or home improvement. “It could be financing to buy a piece of land for building or laying foundation on an existing land and commence building stage by stage.
“Housing Microfinance is closer to our traditional sense of incremental construction. Not everyone has money to finance mortgage but under the Microfinance scheme, a homeowner can stretch his building plan in such a way that he takes different tranches of loan as he builds,” according to Mr. Adedeji Adesemoye, CBN’s Head, Project Administration Team of the National Housing Fund Programme.
“The objective is to catalyse the growth of the housing sector through de-risking the housing finance value chain and improving access to finance,” he said.
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