The Federal Government has revealed plans to waive the usual initial payment of 10% equity on housing loans below N5million ($16,000) administered by the Federal Mortgage Bank of Nigeria (FMBN). The Minister of State for Power, Works and Housing, Mustapha Baba Shehuri, who disclosed this during the commissioning of a 125-unit housing estate in Enugu, said the decision to scrap the 10% is part of commitments to provide cheap houses to Nigerians, low-income earners in particular.

Although the Minister did not disclose what the new arrangement for mortgages would be, he noted that the FMBN had a key role to play in the realization of the aspirations of many Nigerians to own homes through mortgage. He added that the government will fully support the financial institution, in regards to its recapitalization.

Shehuri also announced that the government intends to construct mass houses in every state for public workers and other interested parties over the next three years, via a Public-Private Partnership (PPP) model.

According to him, “this will translate to the affordability of housing for Nigerians and will also create employment opportunities for our teeming youths”.

Anita Fatunji