NIGERIA: FED. EXECUTIVE COUNCIL APPROVES $300MILLION LOAN FOR HOUSING PROJECT

The Federal Executive Council (FEC) on Wednesday approved that Nigeria access soft loan of 300 million U.S. dollars (about N50.1 bn) granted by the World Bank for Housing Finance Project. 

The Minister of State for Finance, Alhaji Yerima Ngama, stated this in Abuja while briefing the State House correspondents on the outcome of the FEC meeting.

He said the loan was meant to meet government’s objective of providing affordable housing to all Nigerians.

`` The Council has deliberated and approved that we access 300 million U.S. dollars from the international development association which is a soft borrowing window for developing countries, offered by the World Bank.``This loan is going to be used in order to meet the government's objective in the proposed Nigeria Housing Finance Project. The Nigeria Housing Finance Project is aimed at increasing access to housing finance by deepening primary as well as secondary mortgage markets in Nigeria.’’

According to Ngama, 250 million U.S. dollars of the amount will be devoted to the establishment of mortgage Re-finance Company. He said that 10 million U.S. dollars would also be devoted to capacity building and technical assistance to stakeholders in the mortgage industry.

 ``The remaining money will also be used for three other companies for the Nigeria Housing Finance Project. The establishment of mortgage guarantee product targeted at the low income borrower will gulp 25 million dollars. This guarantee will enable people who otherwise cannot provide adequate collateral to access loans,’’ he said.

 According to the minister, the housing demand in Nigeria is currently put at estimated 700,000 units annually while only 100,000 is being built for now.

Also speaking, the Minister of Interior, Mr Abba Moro, said the Council approved the grant of Nigerian citizenship to 129 applicants by naturalisation.

He said the successful applicants cut across Mexico, Venezuela, South Korea, Cameroun, Thailand, Singapore, Lebanon and Syria among others.

According to him, the Council also approved that the applications for Nigerian citizenship be denied 27 applicants in line with the recommendations of the EFCC.