The role of mortgage institution in housing in Nigeria

CHAPTER ONE

1.1     Background of the study

It is very obvious that today in our society, housing is on of he basic needs of humanity it is essentially for this reason that housing has remained central to all national development effort of successive government in the country and the entire world over.

Housing market remain one of the most dynamic and suitable areas of investment in property world demand for housing still remains due to some factors like high rate of urbanization and rural urban migration, the need to replace dilapidated building in the country’s population and the popularity of residential real estate as a lucrative areas of investment capable of yielding better return than other classes of investment.

Although these characteristics are well understood and recognized in Nigeria, housing still remain an area where there is acute shortage due to inadequate access of basic resources needed especially land and finance.

Primary mortgage institution emerged after eighties and early nineties, following the establishment of the national housing fund by decree (N0 53 of 1989) and the announcement of the 1991 national Housing policy.

The primary mortgage institution decree was passed in 1993 to facilitate speedy implementation of financial return envisaged under the national policy.

The purpose was to encourage the establishment of financial institution capable of mobilizing saving and facilitation greater access to loan in other to popularize home by individual wishing to build or buy their own house and for large scale private builders producing house for sale

1.2     STATEMENT OF THE PROBLEM

The statement of the problem are as follows:

High cost of housing in Nigeria has posed a very big problem to citizens in Nigeria as most citizens cannot afford to pay for a house.

More so there is a problem of ineffective provision of financial services like mortgage services, this has been a very big problem to the Nigeria citizens.

However there is a problem of over population which has affected the citizens as there will be no effective housing delivery.

Moreover there is a problem of inequitable distribution of lending facilities which has also posed a big problem to the Nigerians as only some citizens benefit from the lending activities while others do not benefit form the lending activities by mortgage institution in Nigeria.

1.3     OBJECTIVE OF THE STUDY

The objective of this research study are compose into the following.

–        To find out how to reduce the cost of housing in Nigeria so that all citizens would be able to pay for a house.

–        To find out how to provide financial services like mortgage services effectively so that all the citizens can benefit from it.

–        To find out how to deal with the problem of over population effectively so that there will be an effective housing delivery.

–        To find out how to distribute lending facilities equally so that all citizens would benefit from it.

1.4     RESEARCH QUESTION

The research question are as follows:

• Do you think that cost of housing can be reduced in Nigeria?
• Do you think financial services like mortgage services can be provided effectively?
• Do you think the problem of over population can be solved in Nigeria?
• Is there any way lending facilities can be distributed equally to all citizens of Nigeria

1.5         SIGNIFICANCE OF THE STUDY

The role of mortgage institution in housing delivery in Nigeria cannot be over emphasized. The significance of this research work are as follows:

The research work will prefer solution on how to reduce the cost of housing in Nigeria so that all the citizens can be able to afford a house.

Moreso the research work will map out solution on how to provide mortgage services effectively so that every citizens will benefit from it.

Also this research work will map out solution on how to handle the problem of over population so that there will be effective housing delivery in Nigeria and all citizens will also benefit from it.

Finally the research study will proton solution on how to distribute lending facilities effectively so that all citizens irrespective of your status will be able to benefit form it.

1.6         SCOPE OF THE STUDY

This research study is concerned with the role of mortgage institution in housing delivery in Nigeria.

This research work was carried out in Anambra state of Nigeria. In Anambra state it was specifically carried out in Oko and Awka both in Anamra state with Anamra Home ownership limited as a case study.

It was limited to these areas because of some factors which things difficult for the researcher during this research work.

These factors includes time and finance and also could with fact that this work was done when the researcher is preparing to write examination.

1.7     PLAN OF THE WORK

In these research work. it is made up five chapters which comprises chapter one to chapter five.

Chapter one states, background of the study, statement of the problem, objective of the study, research question, significance and scope of the study etc.

In chapter two which states the review of literature, model and theory relevant to the research questions etc.

Chapter three carries the research metholody.

While chapter four talks about data presentation and analysis, data presentation and analysis etc.

Finally, in chapter five the research work was concluded with findings and recommendation. Also in this project work, you will encounter the abstract and other preliminary pages.

1.8     DFINITION OF TERMS

ROLE: This refers to parts or contribution expected from an individual or an organization to make the achievement of a particular goal or objectives

LAND:  The principles of common law define land as a hereditament, and it includes everything up to the sky and down to the centre of the earth.

LENDING:  This is the act of advancing money by mortgage institution to their customers in form of a loan which are usually paid back at a particular period.

HOUSING: This means physical structure where people live but with all modern convenience include. Probably a

relaxing place and other security gadgets.

FINANCE: This is the money used to run a business, an activity or a project.

MORTGAGE:    In practice of banking (2013) Onyagba said that mortgage is an arrangement where by a borrower called the mortgagor supplies a security for money advanced to him by a lender called the mortgagee.