…As state govt proposes affordable housing trust fund

The Lagos State Government is planning a financial mechanism for low-income earners and the informal sector.

Commissioner for Housing, Hon. Moruf Akinderu-Fatai, disclosed this, during a site inspection of some ongoing state-owned housing schemes in Ikorodu.

Known as Affordable housing Development Trust, the financial product would bring succor to both property developers and intending homeowners.

The fund, he said, will reduce the challenge of financing housing development as well as empower people, particularly low and medium income earners to access housing without undue financial stress.

Akinderu-Fatai said the financial mechanism is being prepared in collaboration with Artic Infrastructures. This is in response to the state’s need for financing products that are domesticated to solve its peculiar housing challenges.

While global financing models are attractive, they might not address the unusual problems of Lagos State.

The commissioner revealed that government plans to construct 1,000-unit workers’ village in Ayobo, with 500 units and another in Ota, adding that construction will commence soon as the challenge of land grabbers is being resolved.

Akinderu-Fatai underscored the fact that the housing challenge in Lagos is complex because of the continued and uncontrollable influx of people from all over the nation.

He noted that given the rate at which the population of the state is increasing, there must be proactive measures to ensure that governmental interventions result in substantial positive impacts in the lives of the people.

On his part, the Permanent Secretary, Ministry of Housing, Mr. Wasiu Akewusola, said the new financing package can be accessed by both construction companies and home seekers as well as contributions made by both public and private sectors.

The fund, he said, will also cater for the training, capacity building and upgrading of artisans, development of innovative building technology, sustainable housing developments and renewable of slums.

In disbursing the fund, Akewusola said, “part of the financing will be used as housing loans with repayment plan of 20 years. This will be channeled through micro-finance banks with cooperative societies serving as intermediaries.

“Construction fund will also be granted to developers having vertical construction with sustainable energy idea,” he said.