ABSTRACT
Housing in most countries of the world is an
important economic sector and the manner in which resource are mobilized for
has a major effect on the economy. Despite the knowledge of the importance of
housing, ownership or accessibility to decent houses and mobilization of
resources remain a problem in Nigeria.
This project examines the effect of mortgage institution in the provision of
affordable and sustainable houses in Nigeria. The survey covers mortgage
institutions, federal and state ministries and parastatals, stakeholders in the
building industries and educational sector. To be able to evaluate the effect,
questionnaires were administered with personal interview. A total of fifty (50)
questionnaires were distributed randomly to those staffs. The percentage method
and chi-square test were used in analyzed the data gathered. The results
revealed that the effect f mortgage institutions in Nigeria is inadequate. This
ineffectiveness can be traced to high rate of interest charged on properties,
insufficient fund, low level of participation in the Natural Housing Fund and
down payment. It is recommended that the rate charged on properties should be
reduced, worker should be encouraged to register in the National Housing fund
and he Government in collaboration with lending houses should develop a
formular to remove various bottle neck connected with loans, especially the
issue of collaterals.
TABLE OF CONTENTS
Title page
Certification
.......................................................................................i
Dedication
......................................................................................ii
Acknowledgement ..........................................................................iii
Table of contents
.............................................................................iii
Abstract
............................................................................................iv
CHAPTER ONE
1.0 Introduction
..........................................................................1
1.1
Background of the study ....................................................1
1.2
Statement of problem
..........................................................3
1.3
Aim and objectives
................................................................3
1.4
Research Question
...............................................................4
1.5
Significance of the study
......................................................4
1.6
Scope of the study
................................................................5
1.7
Limitation of the study
........................................................5
1.8
Definition of terms
...............................................................6
CHAPTER TWO
2.0
Review of Related Literature....................................................7
2.1
Concept of mortgage
.....................................................................7
2.2
The Structure of the Nigeria mortgage Institution
.......8
2.3
The Central Bank of Nigeria (CBN)...................8
2.4
Historical background of mortgage Institutions in Nigeria......9
2.5
Concept of mortgage
finance..............................................10
2.6
Mortgage Institution in Nigeria...........................................10
2.6.1
Insurance companies
...........................................................11
2.6.2
Specialist Institution
..............................................................12
2.6.3 State/Municipal
Government Financing ......................................12
2.6.4 The
Federal Mortgage Bank Of Nigeria
(Fmbn)..........................13
2.6.5 Primary
Mortgage Institution (PMI).............................................13
2.5.5 The
Federal Mortgage Finance Limited (FMFL).........................14
2.6.7 National
Housing Fund (NHF) ..................................................15
2.7 Mobilization
Of Funds...................................................................16
2.7.2 Mandatory
Scheme ................. ......................................................17
2.7.3 Government Budgetary Allocation And Financial
Transfer ....18
2.8 Housing Finance In The Non-Formal Sectors
.............................19
2.9 The Impact Of Mortgage Institutions In Nigeria................. .......20
2.9.1 Access to Long Term Loans For Housing
Development .........21
2.9.2 Accessibility
to Decent Houses................. ...................................21
2.9.3 fund
mobilization to applicant ................. ....................................22
2.9.4 Reduction
in the rate of abandoned projects .............................22
2.9.5 Reduction
in the Rate Of Unemployment................. .................23
2.10 Problems
of Mortgage Institutions In Nigeria
...........................23
2.10 Interest
Rate and Loan Value (LTV) Ration ............. .................23
2.10.2
Level of Participation In The NIIF............. ...................25
2.10.3
Macroeconomic Environment............. ..........................25
CHAPTER THREE
3.0
Introduction ............. ............................................................60
3.1
Research Area ............. .........................................................60
3.2
Population of the study............. ............................................60
3.3
Research design............. .......................................................61
3.4
Sampling size and sampling procedures............. ................61
3.5
Method of data collection ............. ......................................62
3.6
Sampling techniques............. ...............................................62
3.7
Instrumentation ............. ..................................................63
3.8
Method of data Analysis ............. .......................................64
CHAPTER FOUR
4.0
Data presentation, Analysis and findings ............. ..........66
4.1 Presentation
of data............. .................................................66
4.2 data
Analysis / Evaluation ............. .................................67
CHAPTER FIVE
5.0 Summary,
conclusion and Recommendation
5.1
Summary of findings ............. ..........................................74
5.2
Conclusion ............. ............................................................75
5.3
Recommendation ............. ................................................76
5.4
Area of further study............. ...........................................77
References............. .............................................................79
Appendix ............. ................................................................83
Questionnaires
............. .....................................................84
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY:
Housing provides more than shelter for man because
it encompasses all social services and utilities that are needed for a livable
environment in order for any community to be worth living in housing accepted
in man’s hierarchy of need to be next to food.
Odetundun (1995) affirmed that housing in most
countries of he world was an important economic sector and the manner in which
resources were mobilized for housing had a major effect on the economy.
Fundamental to the provision of adequate housing in qualitative terms is the
availability of housing finance. According to Olutuah (2001) housing quality in
Nigeria
is indeed poor; this can be glanced form he high rate of urbanization in the
country which he described as social economically handicapped urbanization. The
high rate of urbanization resulting form rural urban migration and high rate of
population increase is without corresponding commensuration in the rate of
economic development, social change and technological advancement. Urban
poverty is thus concomitant of such development which finds ready expression in
a high incidence of housing poverty.
As Muoghalu (1987) observed, housing poverty is
determined by the mobility to afford standard housing thus, the provision of
adequate housing is hinged on the accessibility of housing finance. In Nigeria, the
problems of housing are enormous and complex but the private sector had
contributed immensely to its provision in the country. Onibokun (1990) opined
that the private sector provides a preponderate proportion of residential
building in the country. The rapid rate of urbanization, high rate of inflation
and instable economy have given to increase in cost of housing which is often
beyond the capacity of the medium / low income groups.
As parts of the efforts in addressing housing
problems in Nigeria,
government has institute mortgage institutions to provide low cost housing
loans that are accessible even to low income earners.
1.2 STATEMNT OF THE PROBLEM
The basic problem of mortgage institutions could be
viewed from the following
·
Increase in
capital requirement
·
High interest
rate
·
Management
adequacies.
1.3 AIM AND OBJECTIVES OF HE STUDY
The aim of the study is to access the effect of
mortgage institutions in the provision of affordable and sustainable houses in Nigeria.
The objectives of this study are:
1)
To identify the
various functional / operational mortgage institution in Nigeria.
2)
To identify and
evaluate the effect of mortgage institutions in the provision of affordable and
sustainable housing in Nigeria.
3)
To identify the
hindrances facing mortgage institutions in Nigeria
1.4 RESEARCH QUESTIONS
i) Does mortgage institutions helps in
provision of affordable and sustainable houses in Nigeria?
ii) Does mortgage institutions contribute in
financing construction industry?
iii) Does mortgage institutions helps in
carrying out housing estate in Nigeria.
?
1.5 SIGNIFICANCE OF THE STUDY
This study was carried out with participant in the
housing sector especially developers in mind that they will find this work
useful to reduce difficulties involves in obtaining finance for housing
development. Researchers would also find this work relevant as a reference
literature in carrying out their research work.
Finally, that Nigerians will also be of immersed
benefit in the sense that they will be able to know how finance can be sourced
for housing development.
1.6 SCOPE OF THE STUDY
This
study covers the major effect of mortgage institutions in the provision of
affordable and sustainable houses in Nigeria. And also it plays the role
to provide low cost housing loans that are accessible even to the low income
earners.
However, during the progress of this work, some
other relevant mortgage institutions were mentioned.
1.7 LIMITATION OF THE STUDY
During this study, a great limitation were
experienced in obtaining suitable materials on this study, because of the
reluctance of owners of these materials and some cases their staff to create
time to search for them and give out. In some cases, they were too busy to give
the necessary help due to their harmonious engagement.
Some respondents need constant remainders by the researcher
before they could complete the questionnaires and this consumer extra cost of
transportation and time while some were returned unfilled and this caused the
researcher starting all over again to look for other respondents to fill and
answer them.
1.8 DEFINITION OF TERMS
According to dictionary.com
1)
Effect: Is a change
that is a result or consequence of an action or other cause.
2)
Mortgage: This a
legal agreement by which similar organization lends money to secure a house
etc, and also pay the money back over a particular number of years.
3)
Affordability:
Sufficient money or time to be able to buy or do something.
4)
Sustainability: This is
based on a simple principle: Every thing that we need for survival and
well-being depends either directly or indirectly or our material environment.
5)
Housing; These are
houses, flats/apartment, etc that people lives in, especially when referring to
their type, price or condition.
Business Plan 19
Case study 0
Feasibility Study 44
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