Housing crisis: Scrap Family Homes Funds now, REDAN tells FG

… Says intervention company has failed woefully
….Asks FG to return N1.5trn in its kitty to FMBN

By News Editor

Worried by its failure to provide affordable housing for Nigerians, the Real Estate Developer Association of Nigeria, REDAN, has called on the Federal Government to scrap the Family Homes Funds Limited, FHF.

The Family Homes Funds is a social intervention programme initiated by he Federal Government with a mandate to provide homes which are affordable to people on low income bracket across the country.

The scheme was registered in 2018 and commenced operations in February 2018 with initial N500 billion capital commitment and initial shareholding by the Ministry of Finance Incorporated and the Nigerian Sovereign Investment Authority, NSIA.

But four years after the registration, with about N1.5 trillion in the kitty, the impact of the initiative aimed to provide financing which are priced to match the objective of providing homes that are affordable to the specific categories of Nigerians was not felt in the housing sector of the economy.

Speaking in an exclusive interview with NEW ERA on this burning issue in Abuja, the President of Real Estate Developer Association of Nigeria, REDAN, Alhaji (Dr.) Aliyu Wamakko said the Family Homes Funds should be scrapped immediately because it has failed woefully to deliver on its mandate.

Dr. Wamakko revealed that with about N1.5 trillion given the agency, it has not done anything to address the housing deficit confronting the country.

He therefore, insisted that the government take steps to close it down and return the money either to the Federal Mortgage Bank of Nigeria, FMBN, or to the mortgage institutions who will provide the money at single digit rate to the real estate developers.

Wamakko, who is also the Chairman of the JEDO Investment Company Limited, lamented that the lackluster attitude of management of Family Homes Funds towards housing development in the country was scaring, adding that,not even a single Kobo was given to anybody in the real sector up till now.

The REDAN boss said the body has embarked on several programme aimed at addressing housing crisis, especially the Rural-Urban Housing Initiative, RUHI-774, which according to him attracted the attention of other institutions including the Shelter Afrique.

He said while Shelter Afrique and other notable institutions have aligned with REDAN to solve the housing problem challenge facing the country, an intervention company of the government, Family Homes Funds Limited decided to stay aloof.

Further lamenting difficulty faced by the association in securing funds for housing development, Wamakko said, “But that of Family Homes Funds, we are scared that it has not disbursed a single Kobo to anybody up till now.

“And we believed this is the only programme that will enhance the presence of the government in most of these communities.

“This is the only programme that will reduce the housing deficit in Nigeria. This is the only programme that would touch directly the lives of the people because they have been created as housing intervention company.

“But to our surprise, nothing on the ground for them to show. They failed in their promised to build affordable houses Nigerians.

“The issue is that they can only do this things if they align with private developers, who in return are giving their money at 10 percent which we are willing to take and we have all the capability.

“REDAN has already gotten over 5,888 hectares of land across the country for the provision of these houses under the Rural-Urban Housing Initiative, RUHI-774. We have already aligned with so many institutions for the purpose of this.

“So, we believe Family Homes Funds should have done better and would be at the forefront to reduce the housing deficit in Nigeria but reverse is the case.

“The most annoying issue is about the Family Homes Funds. They were created as housing intervention and they are doing nothing. They are expected to build 500,000 housing units before the year 2023 but up till today they are yet to provide 10,000 units.

“And we believe if they don’t do the needful government should close it down and now return this money into Federal Mortgage Bank of Nigeria, FMBN.

“And they were given about N1.5 trillion. But we can understand what they are doing . In the aspect of private developers, nothing comes to us. And there is no programme up till now.

“So, we believe if the government is willing to listen to us, if it is for housing intervention, they should return this money either to the FMBN or to the mortgage institutions who will provide this money at single digit rate to us.”