MORTGAGE FINANCING AND HOUSING DEVELOPMENT IN NIGERIA

Chris O. Udoka; Mary Kpataene

doi:10.29121/granthaalayah.v5.i5.2017.1850

Authors

Chris O. Udoka Department of Banking & Finance, University of Calabar, Nigeria
Owor, Mary Kpataene Department of Banking & Finance, University of Calabar, Nigeria

DOI:

https://doi.org/10.29121/granthaalayah.v5.i5.2017.1850

Keywords:

Housing Finance, Housing Loan, Mortgage Development, Mortgage Investment Private Housing Sector

Abstract [English]

This study examined mortgage financing and housing development in Nigeria. The main focus of this research was to ascertain the impact of mortgage loan in housing development in Nigeria. To achieve this objective, data were extracted from CBN statistical bulletin and National Bureau of Statistics from 1990 to 2014. Three hypotheses were formulated and tested using econometric models such as Augmented Dickey-Fuller unit root test, the co-integration tests revealed the existence of a long-run relationship among the variables. The Error Correction Model established causal links and dynamic interactions between variables by granger causality test. The result of the findings showed a significant relationship between mortgage financing and housing development in Nigeria. Variables such as mortgage loan and interest rate had positive and significant impact on housing development while cost of building had a negative effect on housing development in Nigeria. Further findings revealed that mortgage bank deposit had positive effect on mortgage investment while inflation had a negative effect on mortgage investment. The study recommended that mortgage institution in Nigeria should develop strategies to mobilize more deposits and explore new sources of fund such as funds from the capital market via housing bonds, savings and loans from co-operative societies. Government should create an enabling environment for private housing sector in housing development in Nigeria by providing infrastructure and enhancing soundness and competitiveness of mortgage institutions in Nigeria.

Downloads

Download data is not yet available.

References

Abiodun, A. (2000). “HOUSING FINANCE UNDER NATIONAL HOUSING FUND”. An appraisal paper presented at the general meeting of the Nigeria Institute of Town Planning, Lagos, Nigeria.

Adebayo, M. (2012). “PROBLEM OF HOUSING FINANCE THROUGH THE PRIMARY MORTGAGE INSTITUTIONS IN LAGOS”. International business management, 4(1), 132-141.

Ademiluyi, A. (2010). “PUBLIC HOUSING DELIVERY STRATEGIES IN NIGERIA: A HISTORICAL PERSPECTIVE OF POLICY AND PROGRAMMES”. Journal of Sustainable Development in Science, 12(6), 467-471.

Adedokun, S. (2002). “RESEARCH DESIGN”. Unpublished monograph, Department of Political Sciences, University of Calabar, Calabar.

Adediji, B (2004). “INTERNATIONAL HOUSING FINANCE AND WORLD ECONOMIC MELT DOWN VIS-A VIS NIGERIA’S HOUSING DELIVERY SYSTEM”. A paper presented at MCPD workshop organised by the Akwa Ibom State branch of the Nigerian Institution of estate surveyor and valuers.

Ademiyi, A & Raji, A. (2008). “PRIVATE AND PUBLIC DEVELOPERS AS AGENTS IN URBAN HOUSING DELIVERY IN SUB-SAHARAN AFRICA”. The situation in Lagos State. Humanity and social sciences journal 3(2), 143-150.

Aderomu, J. O. (2012). “SPATIAL STRUCTURE OF HOUSING QUALITY IN ILORIN, NIGERIA”. Reseach journal of social sciences. Res J. Soc.Sci 1(15),12-21.

Agbo, H. (2012). “AN ASSESSMENT OF TOILET FACILITIES IN SECONDARY SCHOOLS IN JOS, NORTH LOCAL GOVERNMENT AREA OF PLEATEAU STATE”. Greener journal of educational research, 2(4,) 091-094. DOI: https://doi.org/10.15580/GJER.2012.4.110112199

Akinbamijo, B. (2006). “SPARTIA DISPARITIES IN RESIDENTIAL HOUSING WEALTH. AN APPLICATION OF HOUSING MODELS TO AKURE, SOUTH-WEST NIGERIA”. The social sciences,1(2), 158-163.

Akinola, S. R. (2007). “COPING WITH INFRASTRUCTURE DEPRIVATION THOUGH COLLECTIVE ACTION AMONG RURAL PEOPLE IN NIGERIA”. Normadic journal of African studies, 16(1), 30-46.

Ajeku, A. (2007). CHALLENGES TO PROVIDE AFFORDABLE HOUSING IN NIGERIA. A paper presented at the 2nd African International Conference on housing finance in Nigeria held at shehu Yar-Adua center Abuja.

Ajanlekoto, J. (2001). “SUSTAINABLE HOUSING DEVELOPMENT IN NIGERIA: THE FINANCIAL AND STRUCTURAL IMPLICATIONS”. “Paper presented at the International conference on Spartial information for sustainable development, Nairobi, Kenya.

Akinwumi, A. (2001). “AN INVESTIGATION INTO FACTORS AFFECTING HOUSING FINANCE SUPPLY IN EMERGING ECONOMIES”. A case study of Nigeria. Unpublished Ph.D thesis, Unversity of Wolverhampton.

Amirah, B. (2000). “HOUSING SECTOR PERFORMANCE IN GLOBAL PERSPECTIVE”. A Cross City Investigation Urban Studies, 37(13), 2551-2579

Akpan, I (2009). “FUNDAMENTALS OF FINANCE”. Abaam publishing co. 3rd edition, unit 972, Ewet housing estate,Uyo, Akwa Ibom Stae

Argus, R. (2002). “THE ROLE OF THE STATE AND MARKET IN THE MALAYSIAN HOUSING SECTOR”. Journal of housing and the built environment, 17(1) 49-67. DOI: https://doi.org/10.1023/A:1014868908840

Auclair, C. (2005). “UNBANIZATION CHALLENGES IN SUB-SAHARAN AFRICA”, Kenya: United Nations Human Settlement Programme.

Buckley, R. M. and Kalarickal, M (2004). “SHELTER STRATEGIES FOR THE URBAN POOR”. Paper 3427, Washinton DC, World Bank.

Buchi, K. (2002). “HOUSING THE NIGERIAN POPULATION. PROBLEMS AND PROSPECT”. Journal of the Federal Mortgage Bank of Nigeria, 1(5), 30-31.

CBN (2011). Revised Guidelines for Primary Mortgage Banks in Nigeria.

Chiquier, L. (2004). “MORTGAGE SECURITIES IN EMERGING MARKETS”. World Bank Policy Research Working Paper series working, 3370

Cranston, R. (2002). PRINCIPLES OF BUSINESS LAW (2nd ed). New York: Oxford Universty press.

Damole, T. O. (2004). “HOUSING PROVISION IN NIGERIA: THE COOPERATION ALTERNATIVE”. A paper presented for publication by the Building Society, Quarterly.

Daramola, A. (2006). “AFFORDABLE AND FUNCTIONAL HOUSING IN A DEVELOPMENT ECONOMY: A CASE STUDY OF NIGERIA”. Journal Use Dev. Stud. 2(1) 126-143.

Deng, Y. And Feng, P. (2008). “THE EMERGING MORTGAGE MARKET IN CHINA-BEN-SHAHAR”. Mortgage markets worldwide 1(2), 33

Diogu, J. O. (2004). “MIDDLE INCOME MASS HOUSING: A METHODICAL APPROACH”. Journal of Association of Architectural Educators in Nigeria, 3(1), 24-2.

Driscoll, J. (2004). “DOES BANKING LENDING AFFECT OUTPUT? EVIDENCE FROM THE UNITED STATE OF AMERICA”. Journal of Monetary Economics. 51(2), 451-477. DOI: https://doi.org/10.1016/j.jmoneco.2004.01.001

Ebie, S. (2009). “PUBLIC SECTOR DRIVEN HOUSING: ACHIEVEMENTS AND PROBLEMS”. Paper presented at the Faculty of Evironmental Sciences annual lecture, Namdi Azikiwe University, Awka, Nigeria.

Egbu, A. (2007). “THE IMPACT OF LAND USE PLANNING ON URBAN LAND MARKETS IN SUB-SAHARAN AFRICA”. A case study of Nigeria. Unpublished Ph.D thesis, United Kingdom.

Elbourne, A. (2008). “THE UK HOUSING MARKET AND THE MONETARY POLICY TRANSMISSION MECHANISM. AN SVAR APPROACH’. Journal of housing economics, 17(1), 65-87. DOI: https://doi.org/10.1016/j.jhe.2007.09.002

Eni, D. and Danson, P. (2014). “PRIVATE SECTOR PARTICIPATION IN URBAN HOUSING SUPPLY IN CALABAR, NIGERIA”. American International Journal of Contemporary Research, 3(6), 77-81.

Fasakin, J. (2005). “THE RELATIVE ENVIRONMENTAL HABILITALITY OF PRIVATE AND PUBLIC RESIDENTIAL AREAS OF AKURE MURP THESIS, CENTER FOR URBAN AND REGIONAL PLANNING”. University of Ibadan, Nigeria

Freeman, L. (2002). “PUBLIC HOUSING: THE POLITICS OF POVERTY”. New York: Holt Rinechart and Winston Inc.

Gathergood, J. (2009). “INCOME SHOCKS, MORTGAGE REPAYMENT RISK AND FINANCIAL DISTRESS AMONG UK HOUSEHOLDS”. Central for Finance and Credit Markets (CFCM) Working paper, 09/03.

Grooves, R.(2004). “CHALLENGES FACING THE PROVISION OF AFFORDABLE HOUSING IN AFRICAN CITIES”. Housing Finance International. 18(4), 26-31.

Hale, G. (2007). “SOUND POLICIES FOR EMERGING MARKET FINANCIAL STABILITY”. International finance,10(1) 101-114. DOI: https://doi.org/10.1111/j.1468-2362.2007.00193.x

Henshaw, G. (2010). “THE ROLE OF PRIVATE SECTOR IN THE PROVISION OF AFFORDABLE HOUSING TO THE PUBLIC”. Lecture presented to the Nigerian Society of Engineers, CRS branch

Ikejiofor, U. (2005). “LAND ISSUES IN THE NEW NATIONAL HOUSING POLICY FOR NIGERIA: LESSON FROM RESEARCH EXPERIENCE”. Liverpool University Press wwwdeepdyve.com/liverpool-university press. DOI: https://doi.org/10.3828/idpr.27.1.5

Ikekpeazu, A. (2004). “BANK SECTOR REFORMS AND BANK CONSOLIDATION”. The experience in Maylasia CBN Bullion, 29(2) 18-31.

Irving, J.and Manroth A. (2009). “LOCAL SOURCES OF FINANCING FOR INFRASTRUCTURE IN AFRICA”. Policy Research Working Paper 4878, African Sustainable Development Front.

Iyaiya, M. Towel W. &Osemene, F (2012). “MICROFINANCE AND MORTGAGE FINANCING IN NIGERIA: A RURAL EXPERIENCE”. International Journal of Economics and Management Sciences, 1(10), 39-44.

Keys, B. (2010). “DIS-SECURITIZATION LEAD TO LAX SCREENING? EVIDENCE FROM SUPREME LOANS”. Quarterly Journal of Economics, 125(1), 307-362. DOI: https://doi.org/10.1162/qjec.2010.125.1.307

Kolawale, Y. (2015). “STIMULATING ECONOMIC GROWTH THROUGH HOUSING FINANCE”. www.vanguardngr.com/2015/04/stimulating economic growth through-housing -finance.

Lea, M. (2001). “GLOBAL TRENDS IN MORTGAGE FINANCE: A COMPARATIVE ANALYSIS”. Normadic Mortgage Banking Comference, Findland.

Leo, J. (2002). “MORTGAGE FINANCE IN CENTRAL AND EASTERN EUROPE. OPPORTUNITY AND BURDEN”. Policy Research, Working paper, 5202.

Lenard, J. (2002). “GOVERNMENT STRATEGIC PLAN FOR HOUSING IN NIGERIA”. Paper presented at the 5th international housing finance workshop, Lagos.

Mailafia, O. (2007). “THE PLACE AND PROSPECT OF MORTGAGE FINANCING IN THE ECONOMIC AND FINANCIAL SYSTEM REFORMS IN NIGERIA”. A paper presented at Board/Staff Retreat. Federal Mortgage Bank of Nigeria, Jos 23-24.

Merril, S. (2006). “EXPANDING HOUSING LENDING AFRICA”. Urban Institute of OPIC Housing Africa Conference, Cape Town.

Megbolugbo, I. F. (2004). “AN EMPIRICAL ANALYSIS OF METROPOLITAN HOUSINGAND MORTGAGE MARKETS”. Journal of housing research, 4(2), 191-210.

Mogaji, P. (2011). “THE NIGERIAN MORTGAGE BANKING SUB-SECTOR REFORM THE EXPECTATION”. A paper presented at the 3rd National Conference of the School of Business Studies, federal Polytechnic, Ado-Ekiti.

NBS (2011). “THE REVIEW OF NATIONAL ECONOMY”. National Bureau of Statistics, Nigeria.

Nubi, T. O. (2006). “THE ASSESSMENT OF EFFECTIVENESS OF MORTGAGE FINANCE FOR HOUSING PROCUREMENT IN SELECTED CITIES OF NIGERIA”. Unpublished Ph.D Thesis in Construction Management, University of Lagos, Nigeria.

Obadan, M. I. (2006). “CAPITAL ACCOUNT LIBERALIZATION: EXPERIENCE FROM EMERGING MARKET ECONOMIES”. Central Bank of Nigeria Economic and Financial Review, 44(4), 89-115

Obenback, M. (2002). “MORTGAGE SECURITIZATION: WHAT ARE THE DRIVERS AND CONSTRAINTS FROM AN ORIGINATOR’S PERSPECTIVE (BASEL I/BASEL II)”. Housing finance International 17(1), 52-62.

Oduwaye, L. (2008). “CHALLENGES OF HOUSING FINANCE BY PRIMARY MORTGAGE INSTITUTIONS IN LAGOS, NIGERIA”. http://www.gla.ac.uk/media 129719 en.pdf

Ogunmakin, L. (2006). MULTI- HABITATION AND CULTURAL STRUCTURES EXPERIENCE FROM NIGERIA. Book of reading, Dept of Architecture O. A. U. Ile-Ife and CARDO, Newcastle, U.K.

Oladujoye, A.O. (2005). “IMPLEMENTATION OF THE SUSTAINABLE CITIES PROGRAMME IN NIGERIA”. Havana Documentationof experience SCP sustainable programme locating agenda 21 programme.

Oniboku, P. (2000). “URBAN HOUSING IN NIGERIA”. Nigerian Institute of social and economic research (NISER), Ibadan.

Ogu, V. and Ogbuozube (2011). “HOUSING POLICY IN NIGERIA: TOWARDS ENABLEMENT OF PRIVATE HOUSING DEVELOPMENT”. Habitat international, 25(4), 473-492. DOI: https://doi.org/10.1016/S0197-3975(01)00018-2

Osamwonyi, I. O. (2003). “MORTGAGE BANKING: THE CHALLENGES”. Chartered Institutute of Bankers of Nigeria, 1(2) 6-12

Ogedengbe, P. and S. Adesopo, A. (2003). “PROBLEMS OF FINANCING REAL ESTATE DEVELOPMENT IN NIGERIA”. Journal of Human Ecology 14(6) 425-431. DOI: https://doi.org/10.1080/09709274.2003.11905648

Ojo, O. (2004). “FACTORS AFFECTING RESIDENTIAL REAL ESTATE FINANCING IN SOUTH-WESTERN NIGERIA”. Unpublished Ph.D Thesis of the Department of Estate Management, Obafemi Awolowo University, Ile-Ife, Nigeria.

Ojigbo, A. (2003). “FUNDAMENTALS OF RESEARCH AND APPLIED STATISTICS”. Calabar: Index Educational Foundation.

Okupe, L. & Windapo, C. (2000). “THE ROLE OF PRIVATE SECTOR IN HOUSING DELIVERY IN NIGERIA”. A seminar paper on effective approach to housing delivery in Nigeria, organised ny Nigerian Insitute of Building, Ibadan.

Okupe, L. (2002). “PRIVATE SECTOR INITIATIVE IN HOUSING DEVELOPMENT IN NIGERIA-HOW FEASIBLE?” Housing Today,1(6),21-26.

Oladapo. S. (2008). “CHALLENGES OF HOUSING FINANCE BY THE PRIMARY MORTGAGE INSTITUTIONS”. LAGOS. Journal of environmental studies 2(1), 168-174.

Olutuah, A. O. (2006). “SUSTAINABLE LOW-COST HOUSING PROVISION IN NIGERIA: A BOTTOM UP PARTICIPATORY APPROACH” in Boyd, D. (ed) proceeds of 22nd Annual ARCOM Conference, 4-6.

Omirin, M. (2007). “THE ROLE OF PRIMARY MORTGAGE INSTITUTIONS IN HOUSING DELIVERY”. Housing Finance International, 21(5), 52-56.

Omole, F. (2010). “AN ASSESSMENT OF HOUSING CONDITION AND SOCIA-ECONOMIC LIFESTYLES OF SLUM DWELLERS IN AKURE, NIGERIA”. Contemporary Management Research. 6(44), 273-290.

Owoeye, O. (2012). “ANALYSIS OF HOUSING CONDITION AND NEIGHBOURHOOD QUALITY OF RESIDENTIAL CORE OF AKURE, NIGERIA”. Mediterranean Journal of social Sciences, 3(3) 471-481.

Osuala, E. (2008). “INTRODUCTION TO RESEARCH METHODOLOGY”. Africana-First Publisher Limited. Onitsha, Nigeria.

Oyalawo, B. (2012). “HOUSING MARKET CONTRAINTS IN WEST AFRICAN REGION”. Mediterranean Journal of Social Sciences, 8(3), 241-251.

Quijano, F. (2003). “SAVNG, CAPITAL ACCUMULATION AND OUTPUT”. Englewood cliff, Prince hall business publishing.

Renaud, B. M. (2008). “MORTGAGE FINANCE IN EMERGING MARKETS: CONSTRAINTS AND FEASIBLE DEVELOPMENT PATHS”. Chickester-West Sussex, United Kingdom. DOI: https://doi.org/10.1002/9781444302301.ch11

Ronald, R. (2007). “MARKET-LIBERAL HOMEOWNER SOCIETIES. QUESTIONS OF CONVERGENCE IN AND AROUND AN ANGLO”. Housing Finance International, 22(3), 21-34.

Roy, F. (2007). “EXPANDING HOUSING FINANCE SYSTEM IN AFRICA AND ASIA. HOW FAR CENTRAL AND EASTERN EUROPEAN MODELS ARE REPLICABLE?” Paper presented at APNHR Conference in transformation in housing urban life and public policy.

Sanusi, J. O. (2003). “MORTGAGE FINANCING IN NIGERIA: ISSUES AND CHALLENGES”. Paper presented at the 19th John Wood Ekpenyong Memorial Lecture, organised by the Nigerian Instituttion of Estate Surveyors and Valuers.

Sanya, O. (2011). “REAL ESTATE INVESTMENT TRUST: A VERITABLE FUNDING TOOL FOR HOUSING DEVELOPMENT IN AN EMERGING MARKETS”. Paper presented at the 7th International Housing Financial workshop, Lagos.

Sassen, S. (2008). “MORTGAGE CAPITAL AND ITS PARTICULARITIES: A NEW FRONTIER FOR GLOBAL FINANCE”. Journal of International Affairs, Fall/Winter. 61(1), 235-265.

Sule, R (2006). “THEMATIC ISSUES OF URBAN AND REGIONAL DEVELOPMENT. PLANNING IN NIGERIA”. Thumbprints International Company, Calabar, Nigeria

Tomlinson, M. R. (2007). “A LITERATURE REVIEW ON HOUSING FINANCE DEVELOPMENT IN SUB-SAHARAN AFRICA”. Commissioned by Fin Mark Trust, Assesed online at http:/www.finmark.org.za/wpcontent/upload/litreview-HFAfrica.pdf.

Udoh, U. & Uyanga, J. (2013). “HOUSING CONDITIONS AND HEALTH IN RURAL NIGERIA: A STUDY OF AKWA IBOM STATE”. Research on Humanity and Social Sciences. 3(11), 222-286.

UN-Habitat (2005). “FINANACING URBAN SHELTER”. Global report on human settlements, Nairobi. UN Press.

UN-Habitat (2008). “HOUSING FOR ALL: THE CHALLENGES OF AFFORDABILITY ACCESSIBILTY AND SUSTAINABILITY THE EXPERIENCE AND INSTRUMENTS FROM DEVELOPING DEVELOPED WORLD”. A synthetic report.

Warnock, V. C. & Warnock, F. (2008). “MARKET AND HOUSING FINANCE”. Journal of Housing Economics, 17(3), 239-251. DOI: https://doi.org/10.1016/j.jhe.2008.03.001

White, B. T (2010). “UNDERWAYER AND NOT WALKING AWAY: SHAME, FEAR AND THE SOCIAL MANAGEMENT OF HOUSING CRISES”. Wake Forest Low Review, 3(45), 971.

WHO (2009). “REVIEW OF EVIDENCE IN HISTORY AND HEALTH”. Background department. Budapest fouth ministerial conference of environment and health.

Windapo, C. (2010). “THE ROLE OF PRIVATE SECTOR IN HOUSING DELIVERY IN NIGERIA (A SEMINAR PAPER ON EFFECTIVE APPROACH TO HOUSING DELIVERY IN NIGERIA”. Ibadan: Nigerian institute of building.

Yunus, M. (2008). “CREATING A WORLD WITHOUT POVERTY. SOCIAL BUSINESS AND THE FUTURE OF CAPITALISM” New York: Public Affairs.

Zandi, M. & Dentris, C. (2011). “THE FUTURE OF THE MORTGAGE FINANCE SYSTEM”. Special Report, Moody’s Analytic https://www.economy.com/mark-zandi/documents/mortgage -finance reform-020711.