AN EVALUATION OF LENDING POLICY OF FEDERAL MORTGAGE BANK OF NIGERIA
AN EVALUATION OF LENDING POLICY OF FEDERAL MORTGAGE BANK OF NIGERIA
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Date
1999-07
Authors
I KRAI IIM, YUSUF,
ALHAJI
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Abstract
ABSTRACT
Lending Policy of Federal Mortgage Bank of Nigeria (FMBN) is one of the major areas of
interest in mortgage financing and which most people and institutions are interested in. The
reason being that the formation of the housing finance system extend beyond the mere
provision of loans, its function have micro-economic implications. Since finance is catalytic,
its potential effectiveness within the context of a housing sector policy is conditioned by
certain variables such as:-
a. The priority of housing within the overall economic system;
b. The availability of funds at the appropriate terms
c. Institutional organization for the mobilization and allocation of finance for housing.
d. Income distribution profile of the population
e. Price of housing services and regulatory standards for planning and development.
The policies evolved by the Federal Mortgage Bank of Nigeria is the basis of this research. In
order to arrive at conclusion from this presentation financial data which relate to the loan
portfolio of the bank were analyzed. The data include : the amount of applications made to
FMBN since its inception in 1977, the amount of loans approved and the amount of
disbursement made to the potential applicants. Using coefficient of determination and simple
percentages as instruments of analysis, the results shows that:
1. The housing finance system in Nigeria is characterized by a general
shortage of long term funds.
2. Government patronage of the housing finance system is needed and is indispensable
for providing the housing finance services affordable to the majority.
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3. Sector policy must have to be in reality of available resources. Population growth and
urbanization are crucial determinants of housing demand pressure.
4. The sector policy should aim at meeting the fewer needs of many.
5. Complimentary funding from private sector sources would have to be induced in the
medium to long-term to develop new financing instruments. The result of this study
shows governments interest in this matter with the introduction of various policies on
housing.
Description
BEING A THESIS SUBMITTED TO THE POST GRADUATE
SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA
Keywords
EVALUATION,, LENDING,, POLICY,, FEDERAL,, MORTGAGE,, BANK,, NIGERIA