The Federal Mortgage Bank of Nigeria Board has approved the implementation of the Rent-To-Own pilot housing scheme to begin with 3000 houses nationwide.
A statement signed by Zubaida Umar, FMBN Corporate Communications Group Head, on Sunday in Abuja, stated that the scheme was a strategic move designed to make home ownership more accessible and affordable for Nigerian workers.
The FMBN ‘Rent-to-Own’ scheme is an innovative affordable housing product, which provides an easy and convenient payment plan towards home ownership for Nigerian’s workers.
The scheme is designed for workers to move into FMBN homes as tenants, pay for and own the properties through monthly or yearly rent payments spread over periods of up to 30 years.
Umar noted that the properties would also attract a single digit interest rate of nine per cent on the price of the property on an annuity basis to increase affordability.
She said: “The product will cover properties with the maximum value of N15million.
“The rent-to-own housing product targets Nigerian workers who are contributors to the National Housing Fund and will be implemented in phases. About 3000 houses are planned for the pilot phase with 3000 beneficiaries.
“To deliver on the rent-to-own housing scheme, FMBN will partner with reputable estate developers for the construction of cost-effective housing stock nationwide.
“Payments for the houses will be domiciled with the CBN through the Treasury Single Account.
“Properties that are planned for the rent-to-own scheme are Existing Estates that are funded by FMBN nationwide and non-funded estates.”
Speaking on the development, FMBN Managing Director, Dangiwa Ahmed, was quoted as saying that the rent-to-own was another groundbreaking initiative targeted at increasing access to affordable housing by workers in the low-medium income brackets.
Ahmed said: “The rent-to-own housing product is designed to make sure that any worker who collects salary should be able to live in his own home and pay conveniently over periods as long as 30-years!
“This is a massive relief especially given how little workers earn.
“I am delighted that we have successfully added this product to the many other initiatives that we have made possible to make homeownership a lot easier for Nigerian workers.”
Ahmed commended President Muhammadu Buhari for his commitment to the development of housing and the Minister of Power, Works and Housing, Babatunde Raji Fashola, for his continual support for the ongoing reforms to re-position FMBN.
He added that the scheme would eliminate the burden of equity contributions by workers for housing loans, complement its existing products and help the bank to utilise abandoned estates that were to be transferred to the scheme.