Family Homes Funds Limited (FHFL) was established with the mandate to finance housing for Nigerian families on the lower income segments and address the pressing housing deficit in the country.
Over the years, FHFL has not only shown promise in fulfilling this mandate but has also evolved into a dynamic Development Finance Institution (DFI) that caters to a wide range of homeownership solutions on both the demand and supply sides of the housing market.
2.0 Early Years and Mission
In 2018, FHFL became fully operational as a company of the Federal Government of Nigeria with initial efforts focused on financing social housing projects – a critical step in ensuring that every Nigerian family could have a safe and decent place to call home. This was tied with the complementary role of creating jobs and promoting local production of building materials. One could say that FHFL combines social purpose and national ambition with the efficiency and competitiveness of the private sector.
Getting off the mark, FHFL had to contend with obvious barriers to affordable housing including access to land, high inflation, cost of construction, finance, and limited purchasing power on the demand side. Nonetheless, our first initiative was the development of 2,908 homes across five states – Ogun, Kano, Delta, Kaduna and Nasarawa, now referred to as the FHFL Legacy Estates. We directly executed these projects to demonstrate to the market, especially to developers, that affordable housing was not only possible but can be decent and impactful.
Beyond financing, we also began to undertake a lot of capacity building that is much needed in the housing sector. We engaged with several stakeholders including developers, partner financial institutions and cooperatives on the need to institutionalise corporate governance and innovation in their operations.
3.0 Impact and Achievements
- 15,689 homes financed for low-income families
Since inception, FHFL has made significant strides in delivering on its promise. To date, we have financed the construction of over 15,000 homes across Nigeria, making homeownership a reality for thousands of families. These homes offer safe, secure, and sustainable living conditions, significantly improving the quality of life for thousands of households. Our projects span both urban and rural areas, ensuring broad accessibility and impact.
- 84,000+ direct and indirect jobs created
Through our housing projects, FHFL has created over 84,000 jobs, both directly and indirectly. This includes employment in construction, manufacturing, and related industries, providing vital income and stability to local communities. Our focus on local hiring practices has further amplified the socio-economic benefits of our projects.
- Training and development for artisans and professionals
Image: artisans training programme in North East
Recognizing the importance of skill development, FHFL has implemented comprehensive training programs for artisans and other professionals in the housing sector. Our capacity-building initiatives have equipped thousands with the skills and knowledge needed to excel in their trades, promoting high standards of craftsmanship and enhancing employment opportunities. This initiative has today benefitted over 3,000 artisans across Nigeria.
- Promoting inclusive housing
Beyond meeting the housing need of families on low to middle income, FHFL has deliberate housing programs and projects for vulnerable groups such as internally displaced persons, women, and students.
Such programs include FHFL’s partnership with states in the Northeast of Nigeria – a region that is severely impacted by insurgency. Through this partnership, FHFL has financed the development of over 8,500 homes for families that were previously displaced by this insurgency, guaranteeing them a fresh start and a promising future.
Also, for universities across Nigeria, FHFL is in partnership with other stakeholders to provide sufficient hostel accommodation where students can have a decent living, and healthy learning environment. We laid the foundation for the first of this project in 2024 at the Akwa Ibom State University, where 1,600 new bed spaces including much-needed amenities like study and fitness areas, laundromat, and common areas is being built.
Image: Groundbreaking ceremony for students housing project in Akwa Ibom state
We are also supporting the provision of homes for widows across the country with a pilot phase of 200 homes in Northwestern Nigeria.
4.0 Evolution and Expansion
Recognizing the need to address various facets of the housing market, FHFL has evolved beyond its initial focus on social housing. Today, we operate as a full-fledged Development Finance Institution, offering innovative financing solutions that cater to diverse housing needs. Our portfolio now includes a range of homeownership products designed to meet the unique requirements of Nigerian families, whether through demand-side subsidies or supply-side financing.
READ ALSO: FG Inaugurates Family Homes Fund Board, Promises Affordable Housing for Low-Income Earners
- Affordable Housing Fund (AHF)
The Affordable Housing Fund is aimed at financing the construction of affordable homes for families on low income. Towards achievement of this goal, FHFL is working in partnership with public and private sector developers by providing competitively priced direct financing – both debt and equity to finance projects that meet our strategic objectives.
- Help to Own (HTO)
Help to Own is a Home Loans assistance initiative that allows households buy a new home by contributing only a 10% deposit rather than the traditional 20-30% deposit. The remaining 90% is funded by FHFL and our mortgage partners.
Image: Handover ceremony of new homes to Help-to-Own beneficiaries in Nasarawa state
- Rental Housing Fund (RHF)
The Rental Housing Fund enables low-income households move into a new home with one month’s rent and deposit viz Rental Housing, Student Housing. The Fund aims to address Nigeria’s pressing affordable housing deficit by providing mid-income rental housing options to meet the growing demand for quality and accessible housing. The Rental Housing Fund seeks to address two (2) key finance challenges in Nigeria: absence of financing for the development of rental housing projects in Nigeria, and lack of infrastructure financing mechanisms for mid to large-scale projects.
- Land and Infrastructure Fund
The Land and Infrastructure Fund is a short-term construction finance facility for real estate developers, offering a 10% interest rate viz land banking, off-site infrastructure.
5.0 Capital Raising and Partnerships
A key factor in our success has been our ability to secure funding beyond government allocations. Besides the initial investment from the Federal Government and the Sovereign Wealth Fund, we also position ourselves to attract funding from the domestic capital market, international Development Finance Institutions (DFIs), the private sector, philanthropy funds, insurance funds, multilateral agencies, and impact investors. This diversification of income options and blended finance affords us a more stable and sustainable business model. These funds have enabled us to expand our initiatives and reach more families in need of housing solutions. Our strategic partnerships with international DFIs have also brought in valuable expertise and best practices, further enhancing our impact.
With the African Development Bank (AfDB), we have devised a strategic alliance aimed at expanding access to affordable homes on the demand side. Simultaneously, on the supply side, we have joined forces with the Agence Française De Développement (French Development Agency – AFD) to facilitate the provision of student housing within Nigerian universities. We also maintain strong affiliations with the ECOWAS Bank for Investment and Development (EBID) to bolster our operations and drive the development of additional housing projects.
In 2021, we achieved a significant milestone by successfully raising ₦30 billion through a Sukuk Bond Issuance in the capital market – the first in the history of Nigeria. This was a significant boost to our relentless pursuit of strong financial capabilities for affordable housing development in Nigeria.
To remain in good standing for partnerships and investments, we have diligently built an institution eligible for favourable investment grade ratings. Presently, our GCR rating stands at BBB+ (positive), while our Agusto & Co. rating is A+ with stable outlook. Existing now for only about 6 years, we are proud of this progress and have not lost sight of what is still ahead of us.
6.0 Commitment to Innovation and Sustainable Practices
In a market like Nigeria, both the demand and supply sides require significant interventions. So, by designing a range of interconnected demand and supply interventions, we have been able to deliver homes and homeowners at the same time. For example, our Affordable Housing Fund product finances the construction of homes, while our Help to Own Fund – a mortgage product – is making homeownership accessible to a broader segment of the population, promoting economic inclusion and financial stability. We continually explore new ways to make housing more affordable and accessible, leveraging technology and innovative financing models.
Furthermore, we have embraced Environmental, Social, and Governance (ESG) principles as the foundation for aligning our operations with global goals for environmental sustainability, equity, social justice, and transparency. Integrating ESG considerations into our corporate strategy is enabling the organisation to create sustained value for our investors, foster positive relationships with customers and local communities, and inspire confidence in our employees that we are an impact-driven organisation.
FHFL is committed to incorporating sustainable building practices in all our projects. This includes the use of eco-friendly materials and energy-efficient designs, contributing to environmental conservation and long-term cost savings for homeowners. In deepening local capacity in this regard, we are in partnership with the National Agency for Science and Engineering Infrastructure (NASENI) to support the promotion new building technologies, local content and training initiatives.
7.0 Supporting the Federal Government’s Renewed Hope Agenda
Images: ongoing work at the Renewed Hope site, Karsana, Abuja
Family Homes Funds Limited is supporting the Federal Government of Nigeria’s (FGN) ‘Renewed Hope Agenda’, with the core objective of revitalising the Nigerian economy, bringing about prosperity and unity. The agenda, according to President Bola Ahmed Tinubu represents a ‘’commitment to unleashing our country’s full economic potential, by focusing on job creation, access to capital for small and large businesses, inclusiveness, the rule of law, and the fight against hunger, poverty and corruption.’’
One of the key areas of the agenda is the Renewed Hope Cities and Estate Programme – a nationwide initiative for housing development. The programme’s ambition is to deliver 100,000 homes and create 1.2m direct and indirect jobs, leveraging public-private partnership. This is in addition to the value chain effects of purchase, supply of building materials, businesses around the construction sites, etc.
Family Homes Funds Limited is playing a crucial role in the actualisation of the Federal Government’s Renewed Hope Cities and Estate Programme, providing funding for the project as the pilot phase kicks off in Abuja where 20,000 of those homes would be built. We are very excited about this partnership, because we know that beyond homes, the construction and development of these new areas will generate employment opportunities, stimulate local businesses, and attract investments.
Conclusion
Family Homes Funds Limited remains dedicated to transforming the housing landscape in Nigeria through our comprehensive approach that combines affordable housing provision, job creation, economic stimulation, and capacity building. Our ongoing efforts continue to make a profound impact on the lives of individuals and communities, driving national progress and development.
From our early days of financing social housing to our current status as a comprehensive DFI, we have remained dedicated to improving the lives of Nigerian families through sustainable housing solutions. As we look to the future, we remain focused on our mission, driven by the belief that everyone deserves a place to call home.