A Hierarchical Hidden Variable Model of Effective Housing Finance in Nigeria Through SEM Smart-PLS

Abstract

The aim of this article is to outline the important factor required towards effective Housing finance in Nigeria subject to the operations of the National Housing Fund Scheme. This is presented in a model in their hierarchical order of importance (Credit Policy, Banks’ Financial Structure and Land Accessibility). Data was obtained through questionnaire administration while a two-stage approach in partial least square-structural equation modelling (PLS-SEM) was adopted to examine the appropriateness of hierarchical modelling. The findings indicate that the conceptual properties of Credit policy, Financial Structure and Land Accessibility matches with reflective-formative type of second order hierarchical component of the models. The study offers a wholistic understanding of the systematic factors required to aid the Housing finance system in the country. It gives insight to the government on what to consider for proper implementation of Housing finance system in the country, while offering an alternative avenue to researchers intending to introduce hierarchical component in modelling Housing Finance system in other countries.