In a bid to tackle Nigeria’s persistent housing challenges, the Federal Government has embarked on the allocation of 8,925 houses to eligible applicants across the country as part of the National Housing Programme (NHP). This initiative, which was spearheaded by the Ministry of Housing and Urban Development, marks a critical step in addressing the longstanding housing deficit and improving access to affordable housing for Nigerians. The announcement came through a statement issued by Marcus Ogunbiyi, the Permanent Secretary of the Ministry of Housing and Urban Development.
Highlighting the progress made in the housing allocation process, Ogunbiyi emphasized that the first batch of allocations had been finalized following a thorough review of the conditions and procedures governing the sale of houses under the NHP. The allocation process witnessed a substantial response from applicants. A total of 8,925 applications were received across the country. These applications were categorized based on payment preferences, including outright payment, mortgage options, rent-to-own arrangements, and installment payment plans.
Insights into the profile of applicants nationwide.
Among the applicants, 1,294 opted for outright payment, 2,408 chose mortgage financing, 2,184 preferred rent-to-own agreements, and 3,039 selected installment payment modes. The issuance of provisional allocation letters for successful applicants in the outright payment category signifies a crucial milestone in the implementation of the NHP. The selected subscribers will receive notifications from federal housing controllers in their respective states, as well as from the chairman/CEO of the Nigerians in Diaspora Commission (NIDCOM), starting Thursday for the collection of their allocation documents.
Ogunbiyi also provided insights into the ongoing profiling of applicants enrolled in the National Housing Fund (NHF) scheme. He focused particularly on those opting for mortgage, rent-to-own, and installment payment arrangements. The NHF scheme, a federal government initiative, offers low-interest loans to employed Nigerians aged 21 and above, with contributions of 2.5 percent of their monthly salaries channeled through the Federal Mortgage Bank of Nigeria. The recent allocation initiative aligns with the government’s broader commitment to housing development, as demonstrated by the allocation of N50 billion towards constructing 40,000 housing units under the “Renewed Hope” agenda launched on November 1, 2023.
NHF scheme vital to addressing the housing crisis.
This strategic investment underscores the recognition of housing as a fundamental human need and a critical driver of socioeconomic stability and prosperity. Despite these positive strides, challenges remain, particularly in states where completed housing units are yet to be finalized. States such as Abia, Lagos, Bayelsa, Rivers, and the Federal Capital Territory (FCT) are awaiting the completion of housing projects before commencing the allocation process. This underscores the complex nature of housing development, requiring coordinated efforts between government agencies, private sector stakeholders, and communities to ensure timely and effective delivery of housing solutions.
The NHF scheme, central to the housing allocation program, plays a pivotal role in facilitating access to housing finance for eligible Nigerians. The recent enhancement of the maximum loan amount from ₦5 million to ₦15 million reflects a proactive approach to meeting the evolving housing needs of citizens. Additionally, the extended repayment period of up to 30 years at a six percent interest rate offers a sustainable financing mechanism for home ownership aspirations. At least, many Nigerians will be able to pay in installments and stretch the payment into sizeable chunks over time.
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Looking ahead, the success of the housing allocation program hinges on several key factors. These include transparent and efficient allocation processes, continued investment in housing infrastructure, collaboration with state governments and relevant stakeholders, and ongoing efforts to address systemic challenges such as land tenure issues, regulatory frameworks, and affordability constraints. The impact of affordable housing extends beyond providing shelter; it encompasses broader socioeconomic benefits, including improved health outcomes, enhanced productivity, and strengthened community resilience. As the Federal Government continues to prioritize housing development as a strategic imperative, concerted efforts towards sustainable urban planning, inclusive housing policies, and innovative financing models will be crucial in realizing the vision of adequate and affordable housing for all Nigerians.
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Central Bank of Nigeria: Website
