AN EMPIRICAL STUDY OF MORTGAGE BANKS CONTRIBUTIONS TO HOUSING DEVELOPMENT IN NIGERIA

ABSTRACT

This research work as believed is another contribution to mortgage banking literature which will be very usefully particularly to future researchers on this topic and those already engaged in the banking industry. The idea behind this project research work entitled Mortgage Banks  contribution to Housing Development in Nigeria is inherent from the crucial and very important nature of housing to every right thinking human being. Professor Abraham Maslow in his “hierarchy of needs – a most widely accepted description of human needs of the general population classified food, shelter and clothing as the basic needs of every man. Every human being is a born land lord: therefore house ownership is a birthright that must be enjoyed by every man. The contributions of mortgage banking to the housing development in Nigeria cant not be over whelmed. The federal mortgage bank of Nigeria (FMBN), the primary mortgage institution (PMLS) and other institutional bodies involved in housing delivery have performed numerous function in the general effort to provide affordable residential houses for the Nigeria population. However, a remarkable bottleneck facing the Nigeria housing finance sub-sector is the delay by the  apex mortgage institution to disburse the National housing fund loan through the primary mortgage institution for on-lending mortgagers. To increase the available hosing stock, the apex Bank (FMBN) should ensure the constant supply of loans to Nigerians for the purpose of buying building or improvement of residential houses. The research study therefore is going to show the actual contributions of mortgage banking to housing development in Nigeria. It will equally show the problems faced by the (PMLS) in their housing finance and delivery effort. In trying to state the problems and prospects the researcher utilized both primary and secondary data. The work is structured in times five distinct chapters and writhen in simple language to enable readers secure a true picture of the information transmitted.

CHAPTER ONE

INTRODUCTION

6.0 BACKGROUND OF THE STUDY

The Nigeria building society (N.B.S) was established in 1956 as a federal savings scheme for members of the public. Under the popular saving scheme, the saver was required to deposit in the account on initial sum ofN5 (five naira) at opening. The save may subsequently deposit in the account as much as he can from time to time.

The popular saver received interest of four percent on the account and could draw up to four hundred naira (N400.) per amount. Larger drawing would require a month notice to the society.

Other special packagers were equally handled by the Nigeria society. One important service rendered by the NBS was home purchase mortgage loans.