The Central Bank of Nigeria (CBN) has announced a financing initiative to support the Federal Government’s Economic Sustainability programme, the plan by the apex bank is to fund the Social Housing programme to the tune of N200bn. Here are some 5 things you need to know about the mortgage loan and how to be a beneficiary.

Are you looking for a Housing Loan Initiative? Do you want to apply for CBN Social Housing Loan initiative? If yes is your answer to the questions above, this article is a guide for you to get started. We will guide you through the necessary steps needed to apply for this loan.

The CBN N200b Social Housing Loan Initiative is currently ongoing. The registration portal for this project is https://fhfl.com.ng/

About the CBN Social Housing Loan Initiative

The Family Homes Funds Limited (FHFL) has a commitment to put 500,000 families in homes by 2024 and in the process, create 1,500,000 jobs

We are addressing the Nigerian housing deficit by providing accessible financing for affordable housing projects that align closely with the New Urban Agenda and the Global Goals promoting sustainable cities and communities, reduced poverty, good health and well-being, clean water, sanitation, decent work, economic growth, and reduced inequalities. We partner with Developers and Direct Finance Institutions that meet our strategic objectives

Key Principles Governing FHFL Loan

The following key principles governing FHFL Loan Financing are listed below, read carefully:

Eligible Entities: FHFL may only provide loan to registered corporate entities (public or private) whose Memorandum and Article of Association permit it to carry out house-building business and who meet FHFL’s eligibility criteria.

Eligible Projects: FHFL will only finance social housing projects which meet set out eligibility criteria, particularly in relation to target beneficiaries, costs, environmental
and social impact and risk rating;

Partnership: FHFL financing decision will be made within the context of a partnership with the developers. This implies recognition and commitment to the goals and objective of the Fund particularly our focus on housing people on low income and job creation.

Read Also: Business/Company Registration with Corporate Affairs Commission (CAC) – Apply now

Distribution: FHFL seeks to complete projects in every state of the federation.

Viability: FHFL will only support projects which are financially viable. Projects must reasonably demonstrate that receipts from the project will be sufficient to pay any loans advanced by FHFL.

Eligibility and Requirements for Borrowers

Eligible Borrowers: Subject to meeting other requirements, FHFL will consider financing projects promoted by eligible borrowers. Eligible borrowers are in two categories:

Public Sector Borrower

They are defined as:

    • The Federal Government, any of the 36 State
      Governments and the Federal Capital Territory of the Republic of Nigeria;
    • An appropriate agency of the Federal Government, any of the 36 State Governments and the Federal Capital Territory of the Republic of Nigeria;
    • Co-Operatives and or associations representing public sector workers except where its operations and decision making are entirely independent.

Private Sector Borrower

They are defined as any other entity incorporated in the Federal Republic of Nigeria including corporations, developers, non-governmental organisations, joint venture
partnerships etc.

Check: N-Power Latest: Batch C Shortlisted Candidates will be released soon

Borrower Requirements

All borrowers are required to meet the following eligibility requirements:

  • Be registered with the Corporate Affairs Commission to carry out housing development
    and related business or in the case of public sector borrowers, possess appropriate authorization and or approval to enter into a loan agreement. This may be legislative approvals, specific executive authority/decisions or indicated in relevant instruments;
  • Have previous experience of or demonstrate capacity required to execute a housing
    development project of the nature and scale being contemplated;
  • Have and show proof of own financial capacity to meet project costs not covered by FHFL financing particularly pre-development, pre-sale and statutory approval costs;
  • Have project land which meet FHFL Site Selection Criteria and is transferrable to FHFL simultaneously on completion of a Loan Agreement;
  • Where necessary, have evidence of compliance with relevant statutory requirements including tax returns;

Supporting Documents to Apply for CBN Social Housing Loan.

  • Copy of Title Documentation
  • Preliminary drawing
  • Preliminary development cost (funding requirement summary)
  • Development agreement (where applicable)
  • Company Profile detailing;
  • Proposed marketing strategy with necessary evidence
  • List of directors and beneficial owners
  • Company registration details
  • Records of experience of executing similar projects, personnel etc
  • Tax information
  • Evidence of Statutory contribution (Pension, ITF, etc)

Project Eligibility and Requirements

To be eligible for financing by FHFL, project proposals must meet the following requirements:

Project Beneficiaries/Target

Beneficiaries of the project or aspects of it requiring FHFL financing must be predominantly on low to medium income. FHFL will publish Target Cost Indicators (TCIs) periodically to provide guidance. FHFL will generally not provide financial support for projects exceeding current Target Cost Indicators.

Project Scope

Project Proposals must be for a minimum of 250 homes including all necessary service infrastructure and social amenities required for a sustainable community, including but not limited to roads, electricity, water.

 Project Site

  • The project site must comply with FHFLs site selection criteria, evidence of detailed site assessment by suitably qualified professional should be provided. The Site Selection Criteria is available on our website. (https://fhfl.com.ng/)
  • Project Proposals should provide evidence of legal ownership and/or control of the project site including willingness to transfer same to FHFL as collateral for its financing.
  • Evidence that the project site has received or is eligible to receive planning and other statutory approvals for the type of project proposed should be provided.

Technical Requirements and Standards

Projects must comply with FHFL Project development Standards as published and or revised from time to time except where waivers are obtained in writing. FHFL Independent Project Managers will certify compliance. A copy of the Standards is available on our website.

Social and Environment Considerations

Projects must comply with FHFL’s Social and Environmental Management Policy as published from time to time. Specifically, and for emphasis, all projects funded by FHFL shall:

  • Comply with relevant statutory requirements and achieve prior to disbursement of any funds, written approval by the relevant authorities;
  • Ensure the safety of workers involved in the construction works including but not limited to provision of protective clothing, safety equipment and gadgets, sanitation facilities, appropriate insurance etc;
  • Comply with local labour laws and ensure that no worker employed receives below the minimum wage as prescribed from time to time by the Government of Nigeria and child labour is not employed under any circumstances;
  • Promote equal opportunities for all, irrespective of gender, race or other considerations with regard to employment of workers and sale/lease of completed homes;
  • Exclude land that has been expropriated without compensation or where there has been forceful eviction;
  • Demonstrate potential to create jobs and demonstrate preference for locally manufactured inputs.

Eligible Costs


Only the following project costs will be eligible for financing from FHFL:

Building Construction works and associated Infrastructure including Estate Roads, Water, Sewage and Power.

FHFL will not generally provide finance for:

Third party land acquisition and associated costs.
Third party professional Fees

Financial Viability

Eligible projects should provide information on financial viability.

Project Exit

Eligible project proposals must provide confirmed exit strategies. For housing projects for sale, proposals must pre-identify target purchasers, proof of eligibility, home financing undertakings and proof of affordability.

Project Timescale

FHFL lending is generally disposed to projects (or agreed phases) which can be exited (start to completion of last unit sale) within a maximum of 36months.

How to Apply for CBN Social Housing Loan Initiative

Once a project sponsor has determined that their project is eligible for a FHFL loan and that it is appropriate for them, they may apply for project financing. FHFL will work on a cooperative basis with the project sponsor to ensure that all requirements for financing are addressed in a timely manner.

Application Process

Read: FG MSME Survival Fund: CRM Grant & MIS Platform Four Easy Steps to Apply

Step 1: Go to the CBN N200 Billion Social Housing Registration Portal via www.fhfl.com.ng, then Complete the Online form and upload supporting documents.

Step 2: If project meets FHFL’s initial requirements, sponsor will be required to
submit additional information.

Step 3: Further due diligence carried out including site evaluation. Sponsor required to pay appraisal fee.

Step 4: Feedback.

By noble

Leave a Reply

Your email address will not be published. Required fields are marked *