Abstract
This study examined mortgage financing and housing development in Nigeria. The main focus of this research was to ascertain the impact of mortgage loan in housing development in Nigeria. To achieve this objective, data were extracted from CBN statistical bulletin and National Bureau of Statistics from 1990 to 2014. Three hypotheses were formulated and tested using econometric models such as Augmented Dickey-Fuller unit root test, the co-integration tests revealed the existence of a long-run relationship among the variables. The Error Correction Model established causal links and dynamic interactions between variables by granger causality test. The result of the findings showed a significant relationship between mortgage financing and housing development in Nigeria. Variables such as mortgage loan and interest rate had positive and significant impact on housing development while cost of building had a negative effect on housing development in Nigeria. Further findings revealed that mortgage bank deposit had positive effect on mortgage investment while inflation had a negative effect on mortgage investment. The study recommended that mortgage institution in Nigeria should develop strategies to mobilize more deposits and explore new sources of fund such as funds from the capital market via housing bonds, savings and loans from co-operative societies. Government should create an enabling environment for private housing sector in housing development in Nigeria by providing infrastructure and enhancing soundness and competitiveness of mortgage institutions in Nigeria.
Highlights
Housing is one of the basic necessities of life
The result of the findings showed a significant relationship between mortgage financing and housing development in Nigeria
This study has shown that mortgage loan has significant and positive impact on the development of housing in Nigeria
Summary
Housing is one of the basic necessities of life. It occupies a very important position in the life of man as exemplified by Maslow's hierarchy of needs, because it provides shelter, comfort andHttp://www.granthaalayah.com ©International Journal of Research - GRANTHAALAYAH [182][Udoka et al, Vol. (Iss.5): May, 2017]ISSN- 2350-0530(O), ISSN- 2394-3629(P)ICV (Index Copernicus Value) 2015: 71.21IF: 4.321 (CosmosImpactFactor), 2.532 (I2OR)protection (Mogaji, 2011). Housing is one of the basic necessities of life It occupies a very important position in the life of man as exemplified by Maslow's hierarchy of needs, because it provides shelter, comfort and. According to Oladapo (2008), housing is a major economic asset which has profound impact on the prosperity of the country and the productivity of individual as decent houses increases workers’ health and affects the well-being of the citizens. It is an index of measuring the standard of living of a countryand a very important consumer item. The focus of finance has been more prominent because the provision of houses requires huge financial resources which most of the low income earners in Nigeria are unable to afford (Sanusi, 2010)
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