AVAILABILTY OF HOUSING FINANCING FUNDS FOR PRIVATE ESTATE DEVELOPERS IN ABUJA, NIGERIA
AVAILABILTY OF HOUSING FINANCING FUNDS FOR PRIVATE ESTATE DEVELOPERS IN ABUJA, NIGERIA
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Date
2012-12
Authors
KABIR, IBRAHIM
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Abstract
Housing development involves huge capital expenditure, finance is therefore an essential
ingredient in housing development. The cost, extent of which capital is provided and availability
of finance for real estate development can influence the viability of such project. The study
examined the concept of Housing Financing, the various sources of Finance available for Estate
Development and also examined the factors militating against the availability of Funds for
Housing Development. It further examined the effect of Government legislation on the Housing
financial sector. The study made use of well structured questionnaires to collect expert opinion
on the issues of interest. The data collected were analysed using the Relative Importance Index
(RII) and mean. The study established that the most frequently used source of finance by private
estate developers is the mortgage bank is having a grand mean value of 4.02 on a five (5) point
scale. On the level of significance of the factors militating against the availability of funds, all of
the militating factors investigated (excessive protocol and bureaucracy, collateral security,
restriction of government policies, high interest rate, loan ceiling and duration) are highly
significant (having mean values ranging from 3.80 to 4.31), Finance and land are the least
available housing construction inputs (with means of 3.0). Interest rate charged by financial
institution is very high (16% - 25%). The study concludes that finance is not readily available to
private estate developers in Abuja, Nigeria. The study recommends that the Federal Mortgage
Bank of Nigeria (FMBN) should concentrate only on its wholesale functions and operate in the
secondary mortgage market by providing mortgage banking services. This will guarantee the
large-scale securitization of mortgage portfolios, a mechanism that has remained the primary
engine of growth in the housing finance systems in developed countries such as France, Italy,
Germany and United States.
Description
A THESIS SUBMITTED TO POST GRADUATE SCHOOL
AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
MASTERS DEGREE IN CONSTRUCTION MANAGEMENT
DEPARTMENT OF BUILDING
FACULTY OF ENVIRONMENTAL DESIGN
AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA
DECEMBER, 2012
Keywords
AVAILABILTY,, HOUSING,, FINANCING,, FUNDS,, PRIVATE,, ESTATE,, DEVELOPERS,, ABUJA,, NIGERIA