Housing Loans At 1.6% Interest

C

ement manufacturer and marketer, Lafarge Wapco has decided to partner with LAPO, a Nigerian microfinance bank to provide affordable housing for low income earners by financing 400 clients for housing projects over the next six months. LAPO is in charge of disbursing the loans at a rate of 1.6 percent per month, which is one percent less than their usual lending rates. LAPO said they have so far serviced 50 clients.

The partnership was agreed on in October last year between Lafarge Wapco, Agence Francaise de Development and LAPO to provide affordable housing to low income earners in Nigeria. Under the agreement, LAPO will disburse the loans while Lafarge will see to the technicalities and ensure the project is strong and well executed to the plan and budget. The agreement is valued at 1billion Naira and was signed at Lafarge’s Sagamu Plant in Ogun State.

The scheme which is called ”Ile Irorun” (convenient housing) was created by Lafarge in order to help alleviate the challenges of urbanization in Nigeria with an estimated housing gap of about 17 million units. Lafarge has placed Nigeria as one of its top priorities in the delivery of affordable housing solutions and have an intention of affecting the lives of 2 million Nigerians by 2020.

According to Godwin Ehigiamusoe, the Managing Director of LAPO, “shelter is the aspiration of every human being rich or poor, thus there is need for liberalization of access to housing as house ownership is a symbol of maturity and fulfillment for everybody irrespective of gender or one’s station in life.”

The Lafarge/LAPO housing project is in sync with the Nigeria Mortgage Refinance Company launched by President Goodluck Jonathan on the 16th of January 2014 in Abuja, to refinance mortgages that will be originated by primary mortgage lenders. The NMRC, which will have a takeoff capital of 6billion Naira will official, commence from June 2014.

Source: 3investonline.com