Currently in the midst of negotiations for a $1bn deal is REDAN (Real Estate Developers Association of Nigeria) and Shelter Afrique (a pan-African housing development finance organization). According to a news article on the subject, he deal – if it all goes through – will lead to the construction of 150,000 “low and medium housing units across the country.” In the hope that this will actually happen, some key government organs have been incorporated, in a Memorandum of Understanding (MoU). As Mr. Goke Odunalmi (Sec-Gen of REDAN) commented, “we are finalizing discussions with Shelter Afrique for a housing finance deal of about $1bn. About 12 developers will receive about $50m each.”
Also to be brought into the partnership for increasing efficiency of the work, will be Lagos Bureau of Lands, the Federal Mortgage Bank of Nigeria (FMBN) and the FCTA. The FMBN will be the mortgage part of the housing units manager and the other two organizations will be providing the land for the project. As well, according to Chief Olabode Afolayan, President of REDAN, the FMBN is being requested to “guarantee access to the loan, noting that the nation’s apex mortgage institution will serve as the delivery vehicle for the 12 enlisted developers.” One of the reasons for FMBN’s involvement is that loans are never given out without collateral so going to Shelter Afrique to access the loan will be helpful with FMBN’s backing.
Following this, the money gained from Shelter Afrique will be used for housing construction. Following that the houses will be sold to National Housing Fund contributors which will make it easier to get the money back. FMBN’s role at that point will be used to help pay the loan back since it is “the only secondary mortgage institution in the country.”
Making Housing Affordable
The main aim of the project of course, is to make housing affordable for “most Nigerians,” a situation that is currently not in place. With this new project, all that will change and the country will become a place where having a home is almost a basic right.
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