| Abstract: | This article reviews the institutional arrangements made for mortgage financing in Nigeria in light of the government's expressed desire to improve housing provision for low-income Nigerians. It considers the Federal Mortgage Bank of Nigeria (FMBN), established in 1977, and the first primary mortgage institutions licensed in July 1991; the National Housing Fund Decree no. 3 of 1992 and the National Housing Fund Unit; and the conditions under which the FMBN grants loans and the types of loans available. It notes that Nigeria's present housing finance system is severely underdeveloped and ill-equipped to mobilize and channel savings to the housing sector. Although the FMBN has been created to serve as a wholesale and apex institution, the other institutional components of finance markets in terms of primary mortgage institutions such as building societies, housing associations, credit unions, housing cooperatives, etc. have not developed. Thus the FMBN has concentrated largely on the retail functions of lending to individuals. Its lending practice does not favour the low-income household. It has been unable to source adequate funds from the private sector. Recommendations to overcome the current problems with respect to housing finance and to encourage and facilitate private home ownership conclude the article. Bibliogr., sum. |
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