The Anambra State Government has intensified discussions with commercial banks on financing arrangements for major housing and educational infrastructure projects aimed at improving access to affordable accommodation for civil servants and students across the state.
The discussions formed part of efforts to finalise a Memorandum of Understanding (MoU) with interested financial institutions for the implementation of the proposed Social Housing Scheme for Civil Servants and student hostel projects across campuses of Chukwuemeka Odumegwu Ojukwu University (COOU) and the Nwafor Orizu College of Education, now STEM University, Nsugbe.
The Ministry of Housing received financing proposals from Fidelity Bank, First City Monument Bank (FCMB) and United Bank for Africa (UBA) on September 3 at the Jerome Udoji Secretariat Complex, Awka.
Presenting Fidelity Bank’s proposal to the ministry’s management, the bank’s Branch Head, Mr. Tochukwu Nnachi, said the bank had reviewed the designs submitted for the proposed projects and developed financing terms for consideration.
According to him, the proposed student hostel project has an estimated total financing requirement of about ₦10 billion, with a single-obligation financing arrangement of ₦1.5 billion.
He said the proposed interest rate was 28 per cent, with a five-year (60-month) tenure and a one-year moratorium.
Nnachi further explained that repayment would be domiciled through the school’s account, with the obligation expected to be repaid within 48 months.
He stressed that funds generated for repayment would not be diverted to recurrent expenditure.
Responding to the proposal, the Commissioner for Housing, Arc. Arize Henry, appreciated the bank representatives for their presentations and called for a clearer repayment schedule.
He specifically requested that the financial terms be presented in a simple chart indicating the monthly repayment obligations, to enable stakeholders to easily understand the cost implications.
The Commissioner disclosed that Governor Chukwuma Soludo was committed to providing improved accommodation for civil servants and students across the state.
He said the Governor was interested in constructing about 21 blocks of six flats for civil servants at Ebenebe, with additional housing units planned in other parts of the state.
According to him, the administration also plans to construct 16 hostel units across four campuses and institutions, including the Igbariam and Uli campuses of COOU, the Teaching Hospital at Amaku, Awka, and the Nwafor Orizu College of Education, now STEM University, Nsugbe.
Arc. Arize said the projects were designed to address the accommodation challenges confronting civil servants and students while providing a more sustainable housing solution for the people of Anambra State.
The Permanent Secretary of the Ministry of Housing, Mr. Tochukwu Obodogha, said appropriate arrangements would be made to determine eligible beneficiaries of the civil servants’ housing scheme.
He added that the Head of Service would be best positioned to determine those who would benefit from the scheme, particularly in addressing unforeseen circumstances that may arise in the course of implementation.
In their separate contributions, the Director of Building Construction and Maintenance, Bldr. Samuel Ojeleke, and the Director of Architects, Arc. Onobome Mbanugo, called for a review of the proposed financial terms.
They appealed to the banks to reduce the interest rate and extend the repayment period, noting that a more flexible financing arrangement would accommodate civil servants who have less than five years remaining in service.
