CBN Targets 300,000 Houses In A New Loan Scheme |The Source

By Uche Mbah

The Central Bank of Nigeria has continued on its intervention streak as it has released N200 billion facilities to finance mass housing constructions across Nigeria in a new infrastructural development scheme, the  Sustainability Program.

The Apex Bank, Monday, published guidelines for the intervention in the manufacturing sector, with special emphasis on solar energy. This was with the view of boosting power in rural areas.

It was followed by Tuesday’s rollout of a program involving real estate and mortgage programs which aimed at lending to private concerns in these sectors at five percent annual interest. The fund is expected to be disbursed via Family Home Funds Limited, with the Minister of Finance and Budgets serving as the guarantors.

The CBN is targeting three hundred thousand homes in the thirty-six states of the federation and Abuja. They are targeting 1.5 million jobs in five years.

Only recently, the bank had intervened in the Aviation industry. They have embarked on facilitating  anchor borrowing to finance rice production together with  other agricultural produce-though the CBN said the default rate for these anchor borrowing programs is up to 65%.

It is not clear, however, whether there is a provision for a comprehensive external audit of the scheme.

The apex bank has been accused of usurping the job of development banks in interventions. Recently they were in altercations with the Nigerian economic summit group who claimed that they-the CBN-are becoming dictatorial in the way it is intervening in certain financial issues, particularly as it concerns Bureau de change. However, they have been lauded in some quarters for providing soft loans for SMEs and others.

“The program will aim at creating rapidly, up to 1.5 million direct construction sector jobs (at the rate of 5 jobs/home) particularly young people on low income. In addition, the program has the potential to create a further 1m jobs through its supply chain.

“The Development Finance Department of the Central Bank of Nigeria shall be responsible for the management of the intervention facility,” the bank said.

In a related development, the Presidency has defended the continuous borrowing to finance critical infrastructure while hosting an economic advisory body to discuss the tension being experienced  due to the recent increase in petroleum pump price and electricity tariff.