Madariola Adedoyin is one of the beneficiaries of the Federal Mortgage Bank of Nigeria estate located at the Olusegun Obasanjo Hilltop, Abeokuta, Ogun State Capital. As a contributor to the National Housing Fund Scheme, Adedoyin got the two-bedroom apartment at the estate in 2016 at N6.5 million naira only after paying the equity contribution.
He is to pay and own the property in monthly rental payments until he retires from service or hits the 60-year age mark. He also can liquidate the facility anytime he has the financial capacity to do so. The International Covenant on Economic, Social, and Cultural Rights , a multilateral treaty adopted by the United Nations General Assembly with Nigeria as a signatory, also guarantees the right to housing as part of an adequate standard of living. This does not only mean having a roof over one’s head, but it also includes the right to live in safety and dignity in a decent home.
At the heart of the problem is the extreme shortage of affordable housing. The cheapest houses built by private developers cost about N15 million in Lagos and N7 million to N8 million outside Lagos. Most housing developments target the rich instead of the needs of most of the population. At the heart of the FMBN’s affordable housing delivery interventions is the NHF Scheme. It presents a convenient and cost-effective opportunity for Nigerians, especially those within the low- and medium-income segment, to become homeowners.
Unlike commercial mortgage loans, the FMBN NHF Mortgage loan offers very convenient terms. First, beneficiaries can repay the loans in monthly installments over 30 years. Second, loans of N5million and under attract zero percent equity, and those over N5 million to N15 million require flat equity of 10 per cent. Thirty-year-old Alexander Omoraka is an Assistant lecturer at the Federal University of Technology, Akure, Ondo State.