The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, has tasked the new Board of the Family Homes Fund Limited to raise private capital for its housing projects.
Ahmed who gave the charge while inaugurating the new Board in Abuja Monday said the Family Homes initiative is one of President Muhammadu Buhari’s key schemes towards macro-economic stability to bridge the housing gap with the construction of 500,000 houses aimed at providing at least 1.5 million jobs.
The minister told the board to source more funds from development finance institutions and the capital market, saying though the administration would give the organization necessary financial support, public funds would not be adequate for its mandate.
She said: “The federal government has established the Family Homes Funds for the provision of affordable homes for 500,000 low income Nigerians and the creation of 1.5 million jobs.
“This is in realization of President Muhammadu Buhari administration’s goal of bridging the housing gap with the aim of promptly addressing the numerous demands for government interventions in the housing sector.
“The present administration is committed to the implementation of this Housing Policy through the provision of enough funds for its sustainability in the Medium Term Expenditure Framework for the next five years.
“It is important to bear in mind that one of this Administration’s 11 priority areas is “Improve access to mass housing and consumer credit to enhancement of financial inclusion”.
“Thus, the responsibility that will now lie on your shoulders is huge and will require unusual commitment, uncommon focus, experience and determination to succeed. Without doubt, the Federal Government expects results, measurable ones at that.
“First, you are expected to establish top corporate governance culture and a carefully designed internal control mechanisms. The Family Homes Fund will receive significant amounts of public money, in addition to other capital from development finance institutions and the capital market.
“The Federal Government expects a financially sustainable Fund. Whilst the initial capital commitment from government will be useful, the expectation is that the company will raise significant third-party capital to finance the programme.”
The minister said members of the Board which has Alhaji Suleiman Barau, a former deputy governor of the Central Bank of Nigeria as chairman, were appointed as a testimony of President Buhari’s trust and confidence in their ability and experience to successfully steer the affairs of the company.
Charged the Board to be creative, bold and ambitious, Mrs. Ahmed said: “The housing programme envisaged under the Family Homes Scheme is the largest in the history of our nation and if successfully delivered, has the potential not only to change lives but also to boost Nigeria’s economy.
”It will, therefore, serve as a catalyst to attract investors, provide land ownership to citizens at a lower rate and mobilise funds through mortgage finance.
“The Poor delivery of affordable housing over the last 30 years is, in part, attributable to lack of cooperation among various agencies tasked with the provision of housing.
”I, therefore, encourage you to seek and build partnerships, and even collaboration. It is quite unlikely that the Fund will achieve the expectations of Mr. President, without partnering others.
On the part of government, particularly the Federal Ministry of Finance, Budget and National Planning, the minister assured the board it would work hard to meet government obligations in carrying out the fund’s mandate.
Alhaji Barau assured that his team would immediately commence work, in recognition of the enormity of its task.
He assured the minister that the Board would provide good corporate governance, with a view to achieving the set objectives of the organization.
Members of the Board include Dr. Aliyu Ahmed, Director, International Economic Relations of the Ministry of Finance, Mr. Uche Orji, the Managing Director of the Nigeria Sovereign Investment Authority, Arc. Mohammed Adamu, Mohammed Umar and an institutional representative from the Ministry of Works & Housing.
