Abstract
This study evaluated the influence of government expenditure on Housing project development in Nigeria, over the period of 1980 to 2016 while utilizing secondary sourced data culled from the central bank of Nigeria Statistical Bulletin. The study utilized analytical techniques such as Unit root/stationarity test, ordinary least square, cointegration test and granger causality as well as graphical representation. It was discovered that Government Recurrent Expenditure (GRE) has a positive and significant relationship with Housing Development proxied as Housing Stock (HOS), Government Capital Expenditure (GCE) has a positive and significant relationship with Housing Development in Nigeria proxied as Housing Stock (HOS), and Overall, judging by the calculated F-statistics, it can be concluded that Government expenditure has a significant impact on Housing Development in Nigeria especially in the short run, it was thus recommended that Government should increase their expenditure on projects that will enhance Housing Development; Government should channel their expenditure to productive sectors of the economy in order to increase Housing Development; Necessary enabling legislations should be enacted and incentives given to institutions that are financing housing projects in Nigeria so as to encourage them to be more aggressive in mobilizing idle resources from the public via the money and capital market. Also, Federal Mortgage Bank of Nigeria (FMBN) which is the apex mortgage institution in the country should be reorganized and empowered to ensure proper capitalization and improved service delivery, given its mandate as a regulatory body and the significant influence it has on housing development in Nigeria. Keywords : Housing development, Government Expenditure, Mortgage Financing DOI: 10.7176/RJFA/11-8-16 Publication date: April 30 th 2020
Highlights
Housing has been identified as the most basic need of mankind for obvious reasons, others being food and clothing
Objectives of the study This study primarily aims to examine and evaluate the impact of Government Expenditure on Housing Development in Nigeria while the specific objectives include: i
Granger causality The following is the test of causal influence between employed variables, the causality shows that the employed explaining variables which include Government Capital and Recurrent expenditure do not possess bi-directional causal relationship with Housing Development as captured by housing stock in Nigeria as seen over the study period which is evidenced by the probability level which are seen to be greater than the 0.05 significance level
Summary
Housing has been identified as the most basic need of mankind for obvious reasons, others being food and clothing. The housing delivery system in Nigeria is a mix of many interrelated components which include, land, infrastructure building materials, policies, building regulations and importantly the Finance component of it Scholars such as Adebamowo et al ( 2012); Williams (2002) opines that access to housing produced by the government is still out of the reach of the urban poor who cannot afford the financial resources needed to purchase these housing units. Oni et al (2014) investigates the joint effects of capital and recurrent expenditures of government on the economic growth of Nigeria using the ordinary least square method for estimating multiple regression models covering 1980-2011 time period. The regression results showed that both capital and recurrent expenditures impacted positively on economic growth during the period of study
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