Wednesday, 3 December 2014

Okonjo-Iweala-Why we can’t process applications for 10,000 new homes

The Federal Government said on Tuesday it was working towards to reduce the cost of motage bank

The Minister of Finance, Ngozi Okonjo, said negotiations towards a consensus on the proposed template accounted for the observed delay in processing applications received from Nigerians who seek to own homes under the 10,000 Mortgage Finance Scheme launched recently by the government.

“That is why processing the application has been delayed by about four weeks so that subscribers would not have to pay additional 16 per cent when they go to perfect their ownership titles.”

“There is no hidden agenda in the process at all. Those who do not qualify would also receive letters explaining why they were not able to meet the selection criteria,” the minister assured. “We trying to scale down the cost of mortgage finance from 16 to 3 per cent to make it affordable to ordinary Nigerians.”


The minister, who was speaking at the Housing Stakeholders’ Consultative Workshop on Enabling Land, Finance and Concessions for Affordable Housing Delivery held in Abuja, said subscription in the
first phase of the programme exceeded the target by six times, with 66,412 applications received from prospective house owners across the country.

About 63 per cent of the total applicants were male, 37 female, while 10 per cent were from couples, with more than 92 per cent of the applicants in the public and private sectors of the economy.

More than 50 per cent of the applicants preferred homes located in Abuja, followed by Lagos with 18 per cent of the total, with people within the age bracket of 31-40 years accounting for more than half, followed by those in the 41-50 age group.

About 78 per cent of all the applications came from public sector employees, while 7 per cent were from self-employed subscribers, while others came from financial institutions, telecoms and media.

The Minister said shortly after the programme was launched, processing the applications had commenced to select the 10,000 successful applications in the first phase of the programme, but was compelled to order the suspension following a proposal received the Association of Mortgage Lenders.

According to the minister, rather than limiting the process to 10,000 applicants, the association had proposed that the entire 66,000 applications could be handled at once.

Source: 247nigeriannewupdate

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