The scheme that was launched on Monday, is in line with the state’s pledge to stimulate investment in home ownership by increased access to affordable mortgage finance at 9.5 per cent over a period of not less than 10 years.
“Clearly if you go by available statistics, in Nigeria today, we have over 16 million deficits of housing stock. Lagos, has about one million and we are talking about over 21 million people living in Lagos. In that regard, if we are to house even 25 per cent of that population, we are talking about five million to 250,000 homes,” Ayo Gbeleyi, Lagos State Commissioner for Finance told CNBC Africa.
Lagos HOMS plans to buy off houses from private estate developers and put them on the market for tenants with the desire to own homes. The Governor of the state, Babatunde Fashola, promised to transform the housing delivery in Lagos by providing 200 homes every month starting from March this year.
“What has happened is a landmark event that has kick-started that steady march towards bridging the gap in the housing deficit in Lagos. When you flip that and you talk about affordability, as was read out in his Excellency’s speech, we are coming at this with a mortgage rate of 9.5 per cent maximum,” he explained.
According to Gbeleyi, this compared to what is available in the market is granted at a very huge discount with over 50 per cent slash in the price compared to the market.
“On the building itself, the government is offering 25 per cent discount on the cost of land, cost of infrastructure as well as cost of building so we have put in a lot of initiatives to make these homes affordable for the people of Lagos state," he said.
The State Government also made it clear that the project is funded with revenue generated from the tax collected in the state in the past three years. Applicants must be Lagos residents who have been residing in the state for a period of not less than 180 days and who possess proofs of payment of tax for a continuous period of five years preceding their application.