Housing Finance in Nigeria: Issue and Solutions
CHAPTER ONE
OBJECTIVES OF THE STUDY
The following are the objectives of this study:
1. To examine the issues related to housing finance in Nigeria.
2. To identify the solution to the issues of housing finance in Nigeria.
3. To ascertain the level of housing finance by the Nigerian government.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
THE HOUSING SITUATION IN NIGERIA
The housing situation in Nigeria is characterized by some inadequacies, which are qualitative and quantitative in nature (Oladapo, 2006). While the quantitative housing problem could be solved by increasing the number of existing stock, the qualitative inadequacies are enormous and complex. Despite Federal Government access to factors of housing production, the country could at best expect 4.2% of the annual requirement from her. Substantial contribution is expected from other public and private sectors. Various studies have, at different times, revealed the problems of housing production. Teufic and Ural (1978) Ogundele (1989) Agbola (1987) Okpala and Onibokun (1986) recognized finance as part of housing problems but ranked land and building materials higher. Their findings influenced government housing policies and subsequent establishment of some relevant programmes and institutions like the Site and Service Programme and the National Institute of Road and Building Research. The drought of information and working knowledge of housing finance operation is a major problem today. In a tight money market, housing is the first area to suffer, since neither the builder nor the consumer can readily obtain finance for housing. Actually, many builders have difficulty obtaining capital for their projects even in normal times. Two of these problems – the high interest rates that contribute to the high cost of housing and the difficulty in obtaining capital for home construction. According to Onabule (1996) 245 Primary Mortgage Institutions were established under the NHP within 1991-1996. Unfortunately, only 54 are now operating, mainly in South West part of the country and Abuja. According to Abiodun (1999), National Housing Fund collected about 4 billion naira from the Mandatory Saving Scheme. Out of N300 million loan approved by FMBN, only N100million was advanced.
HOUSING FINANCE: A NEGLECTED ELEMENT OF DEVELOPMENT STRATEGY
Commercial banks and commercial banking activity have been present in Nigeria at least since the colonial period. Owing partly to commercial banking tradition and partly to their role in international finance and trade during the colonial period, commercial banks primarily serve the financial needs of commerce. Supplying venture capital has typically been the role of merchants or investment bankers, who in the colonial period tended to operate from Europe. Except for a restricted clientele, commercial banks did not then nor do they now serve the financial needs of households.
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH DESIGN
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to housing finance in Nigeria: issue and solutions
SOURCES OF DATA COLLECTION
Data were collected from two main sources namely:
- Primary source and
- Secondary source
Primary source: Personal interview was conducted with the staff of first bank of Nigeria plc.
Secondary source: The secondary formed the major theoretical part that was derived through critical review of library and also other related literature (material written by others researchers).
POPULATION OF THE STUDY
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information on the study housing finance in Nigeria: issue and solutions. 200 staff of selected mortgage bank in Abuja was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
INTRODUCTION
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
DATA ANALYSIS
The data collected from the respondents were analyzed in tabular form with simple percentage for easy understanding.
A total of 133 (one hundred and thirty three) questionnaires were distributed and 133 questionnaires were returned.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain housing finance in Nigeria: issue and solutions. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenge of housing finance in Nigeria: issue and solutions
Summary
This study was on housing finance in Nigeria: issue and solutions. Three objectives were raised which included: To examine the issues related to housing finance in Nigeria, to identify the solution to the issues of housing finance in Nigeria, to ascertain the level of housing finance by the Nigerian government. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of selected mortgage banks, Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made of managers, customer care officers, accountants and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The need for housing in Nigeria is enormous. This section reviewed the theoretical issues underpinning the delivery of housing. The various public and private interventions in housing delivery strategies have been examined. This paper has identified and discussed the various problems that have bedeviled the provision of housing in Nigeria, the various policies the government has put in place to counter these problems, the short comings of these policies and suggested some possible practical solution to these problems. Therefore, in order to increase housing stock in Nigeria there is the need to incorporate affordable housing delivery scheme into the formulation and implementation of housing policies and program which should not be at the exclusive preserve of federal government at the exclusion of governments at local government level. There is a need now, to reach out and effectively involve the people and governments at grassroots levels in the formulation of housing policies. The Federal government has been directly involved in the construction of buildings for all categories in the past and even presently. It is now necessary that housing must be considered as a personal service and as such, the primary responsibility of housing should not be left with the people themselves who, however, should be assisted in some ways in order to realize their aspirations for self actualization of owning individual houses.
Recommendation
There is a need now, to reach out and effectively involve the people and governments at grassroots levels in the formulation of housing policies. The Federal government has been directly involved in the construction of buildings for all categories in the past and even presently. It is now necessary that housing must be considered as a personal service and as such, the primary responsibility of housing should not be left with the people themselves who, however, should be assisted in some ways in order to realize their aspirations for self actualization of owning individual houses.
REFERENCES
- ABIODUN A. (1999): Housing Finance under National Housing Fund: An appraisal. Paper presented at the General Meeting of the Nigeria Institute of Town Planning.
- ABIODUN A. (1999): Housing finance under National Housing Fund: An appraisal. Paper presented at the General Meeting of the Nigeria Institute of Town Planning.
- ABRAMS C. (1964): Mans struggle for shelter in an Urbanizing world, published by Massachusetts Institute of Technology Cambridge, Massachusetts, and London, England.
- AGBOOLA T. (2000): Housing, Poverty and Environment – The Nigerian situation. A seminar Paper presented at a workshop on Effective approach to Housing delivery In Nigeria. Organized by the Nigerian Institute of Building, Ibadan, Nigeria
- AKANJI O. (1998): Informal finances sector in Nigeria, Bullion. Publication of the Central Bank of Nigeria, 1998, Volume 22 N0 3
- ANTHONIO J. (2000): Critical issues and obstacles to Housing Finance & Procurement. A Seminar Paper presented at National Workshop on Financing and Procurement of Housing and Infrastructure, Organized by Nigerian Institute of Quantity Surveyor. Abuja.