Ms Ama Pepple, the Minster of Lands, Housing and Urban Development says the Federal Government will support new initiatives to support the provision of affordable houses in the country.
Pepple made this known on Wednesday in Abuja during the inauguration of `Social/Affordable Housing Scheme’ in Lugbe, an initiative of ASO Savings and Loans Plc.
The scheme, being executed in collaboration with the ministry, has a 1.5 hectare of land valued at about N200 million for the construction of one, two and three-bedroom flats at affordable prices.
The minister added that the scheme would consist of four-floor storey building of six blocks of flats, totaling 144 housing units.
Pepple explained that the choice of a storey building was aimed at ensuring efficient land utilisation in Abuja.
She said a policy frame work to effectively guide the course of action in the housing sector would be presented to the Federal Executive Council on May 7.
The policy, she noted, would enhance housing delivery to low and middle income earners in the formal and informal sector of the economy.
In his remarks, Malam Hassan Usman, the Managing Director of the company, said that the scheme was intended to facilitate the acquisition of inexpensive houses by low income earners in the society.
The managing director explained that the houses would be affordable because the cost of land was discounted.
``The Federal Mortgage Bank of Nigeria gave us a concessionary interest rate of 8 per cent per annum as against the 10 per cent per annum in estate development loan, so as to reduce the cost of constructing the houses.
``The National Housing Fund loan will be made available to target markets through the Federal Mortgage window, thus reducing the acquisition cost.
``It is intended that the cost of the one bedroom houses shall be discounted and made up from the acquisition cost of the three bedrooms'', he said. (NAN)