Lafarge, AFD and LAPO Launch N1.3Bn Affordable Housing Project in Nigeria

Lafarge Nigeria, the AFD (French Development Agency) and LAPO Microfinance Bank have announced their partnership for N1 billion affordable housing scheme in Nigeria. The scheme, named, “Ile Irorun”, the Yoruba phrase for “Convenient Home” targets the poor and middle class, to improve their housing condition through microfinance. The companies signed the agreement at the Sagamu Cement Plant of Lafarge WAPCO as the AFD Country Director, Mr. Hubert Dognin, declared a long term credit line of N1 billion from AFD to LAPO to support the joint programme, which is designed to involve 400 beneficiaries in the pilot phase. The programme pilot for beneficiaries drawn from Abeokuta and Sagamu will last 6 months while expansions are underway for the 3-year scaling up phase, with the ambition to propose a nation-wide solution in the future. According to the agreement, “There will be an additional commitment of N300 million to the project, which is intended to enable low-income families to finance the construction, the extension or the renovation of their houses thereby helping them to improve their living conditions. 3,500 Nigerians will benefit from the programme within the next three years.” “Prospective beneficiaries under the scheme are identified through the network of branches of LAPO or the distributors of Lafarge WAPCO, and their loan applications are supported by free technical assistance from Lafarge. This technical assistance enables clients to lower their costs, choose their designs among a catalogue proposed by Lafarge Nigeria and ensures the quality of the construction through selected construction material retailers as well as help on construction supervision.” Mr. Guillaume Roux, Country CEO of Lafarge Nigeria, described the launch ceremony as “a major step towards the realization of Lafarge’s ambition to help build better cities in Nigeria. Lafarge’s commitment to building better cities is unwavering, hence we initiated this project to help provide access to affordable housing for Nigerians.” Mr. Godwin Ehigiamusoe, Managing Director of LAPO Microfinance Bank said, “For low-income people, houses are not just mere dwelling places, but also business locations. This is why our organizations have taken the Affordable Housing initiative seriously. This scheme will be the start of hope for many and we embrace the momentous difference it will make in their lives and businesses”. Hubert Dognin, Country Director of AFD in Nigeria, said, “The development of housing financial products adapted to microfinance bank’s customers is an innovating concept which can be replicated at wider scale to break the vicious cycle of housing market in Nigeria.” The three organizations made the partnership official through the signature of agreements between AFD and LAPO as well as between Lafarge and LAPO at the ceremony.