FEDERAL LOW COST HOUSING

FEDERAL LOW COST HOUSING - FHA

The National Council on Privatisation (NCP) has approved the commercialisation of the Federal Housing Authority (FHA). Consequently, the Minister of Lands, Housing and Urban Development had been appointed to chair the steering committee constituted to work out details of the exercise.

This was one of the fallouts of a recent meeting of the Council, which was held in Abuja. The NCP said the decision was taken to address the huge housing deficit in the country.

The FHA is a parastatal under the supervision of the Federal Ministry of Lands, Housing and Urban Development, established in 1973 and vested with the responsibility of preparation and execution of a National Housing Programme as may be approved by the Federal Government from time to time.

FHA has a wholly-owned subsidiary, FHA Homes and Savings Limited, which serves as its Primary Mortgage Institution (PMI) with the mandate to maintain savings and mortgage loan accounts of customers. However, the noble objective of the Federal Government to use FHA and its subsidiary as vehicles for bringing affordable housing programmes to the doorsteps of the less privileged and low income earners in Nigeria has yet to be achieved.

Since its inception about 40 years ago, the FHA has been able to build only about 37,000 housing units in 80 estates across the country (an average of less than 1000 houses per annum). Currently, the housing deficit in Nigeria is estimated at 17 million units. Studies show that the organisation is handicapped by a number of challenges, including historical operating losses; teeming legacy debts; Poor internally generated revenue (IGR) base and inability to effectively function without government funding.

Comments

SURVEY OF PRICES OF PROPERTIES ON THE ISLAND

Sales price Rental per annum Lekki Phase 1 3 Bedroom flat N45m – N50m N2.5m – N3m 4 Bedroom wing of duplex N70m – N80m N3m – N4m Agungi 4 Bedroom detached house N45m – N50m N2.5m 3 Bedroom flat N40m N1.5m – N1.8m Chevy view 4 Bedroom terrace house N42m N2.5m 3 Bedroom flats N35m N1.6m Crown Estate 4 Bedroom detached house N30m – N40m N1.5m – N2m Thomas Estate, Ajah 3 Bedroom flat N25m N750k – N800k Abraham Adesanya 3 Bedroom bungalow N12m – N14m N700k – N1m 2 Bedroom bungalow N11m – N12m ...

Quick fixes for quick profits in real estate

It has been said several times that ‘ideas rule the world’ and this holds true in real estate investing as well. We want to examine a time-tested idea that guarantees quick turnaround time and good returns on investment in most real estate markets. We’ll be examining guidelines for making a good return in rehabilitating and selling properties. First, you need to find a property that is in need of repairs or renovation but is located in a good area.

Nigeria Central Bank’s decision on CRR to have ‘shock effect’ on money market – Rewane

The MPC increased the already controversial Cash Reserve Ratio on public sector deposits from 50 to 75 per cent The decision by Nigeria’s Monetary Policy Committee, MPC, to increase the already controversial Cash Reserve Ratio, CRR, on public sector deposits from 50 to 75 per cent would in the short term, have a shocking effect on the nation’s money markets, Bismarck Rewane, a finance analyst and Managing Director, Financial Derivatives Company, has said. “The impact of this decision on money markets will be a shock effect in the short run and a re-turn to equilibrium rates within six weeks”, Mr Rewane said in a report analysing the MPC’s decision. He said the first time the MPC increased the CRR (the percentage of funds banks have to keep with the Central Bank) on public sector deposits in August 2013, an estimate of N1trn or 6.84 per cent of Money Supply (M2) was debited. “At that time, the impact was a spike in interbank rates of approximately 800 basis points (bps...

Rullion's Blog

Search This Blog