Housing finance in Nigeria: the role of domestic financial institutions

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Periodical article

Title:	Housing finance in Nigeria: the role of domestic financial institutions
Author:	Anyanwu, J.C.
Year:	1991
Periodical:	African Review of Money, Finance and Banking - Supplement to 'Savings and Development'
Issue:	2
Pages:	129-145
Language:	English
Geographic term:	Nigeria
Subjects:	financing dwellings
External link:	https://www.jstor.org/stable/23027477
Abstract:	The Nigerian government has accepted housing as a social responsibility and a high priority. Nonetheless, there is still an enormous gap between housing requirements and the financial resources required for its provision. At present the financial institutions involved in housing finance in Nigeria are the Federal Mortgage Bank of Nigeria (FMBN), commercial banks, merchant banks, and insurance companies. Their ability to meet the financial needs of the housing sector is bedevilled by inadequate funds (particularly long-term capital); loan defaults and recovery problems; the absence of a secondary mortgage market and guarantees; mass poverty; inefficiency in resource mobilization; rising population, urbanization, high cost of building materials and inflation; and ineffective targetting of government subsidies. Given the scope for change in Nigeria's housing finance system, the author recommends a series of measures designed to counter some of the above problems, and concludes that the role of the government in these areas, and particularly in providing housing for the low-income earners, is crucial. Bibliogr.