THE EFFECT OF BANKING REFORMS ON HOUSING PROVISION IN NIGERIA

THE EFFECT OF BANKING REFORMS ON HOUSING PROVISION IN NIGERIA

CHAPTER ONE

• BACKGROUND OF STUDY

There have always existed a relationship between the availability of credit and housing provision in the society. The banking sector plays a formidable role in providing funds for the construction of housing through the issuance of loans. According to Kroszner (2008:1). The United State banking reform policies in 1970’s which permitted banks to spread their services all over the country had a huge impact in the development of real estate, particularly in the area of residential housing development.

Major reforms in he Japanese banking industry is what paved way to the tremendous growth in the Japanese housing sector both in quantitative and qualitative terms (Yameri Bankers Association).

Nigeria has also had series of reforms in the banking sector such as, the establishment of the Federal Mortgage Bank of Nigeria in 1989, and the banking consolidation policy in 2006. It is imperative to investigate the banking reform policies that have been carried out in Uyo and how they have affected the housing sector.

1.2     STATEMENT OF PROBLEM

As banking reforms  continue to create impact in the society’s economy, the level of banking activities in Uyo metropolis requires attention. So that the different banks that exist in the metropolis would be known as well as how long they have existed.

It has also become necessary to find out whether banking reforms has been carried out in Uyo metropolis, as well as the various reforms that has taken place and how they contributed positively or negatively to housing provision. This is necessary considering the growth rate of slum n Uyo and the high rate of rent charge on residential housing in the metropolis.

1.3     AIM AND OBJECTIVES 

• Aim of Study

The aim of the study would be to examine how banking reforms have affected housing provision in Uyo.

1.3.2  Objectives of Study

This study will seek to accomplish the following objectives

1. To determine the number of commercial and mortgage banks in Uyo.
2. To determine the banking reforms that has been carried out in Nigeria

• To assess if the banking reforms has affected the banks in housing provision.

1. To assess if the reforms has help individuals to provide houses.
2. To make necessary recommendations.

1.4     JUSTIFICATION AND SIGNIFICANCE OF STUDY

The study is significant because such research is yet to be carried out in Uyo.

The study is also important as it would provide useful information to students of estate management, banking and finance, business management and other related fields.

The study will also add to the wealth of knowledge of professionals in the real estate and banking sector.

It would also enable government, private developers, commercial banks and housing corporation to re-evaluate their policies on housing provision.

1.5     SCOPE AND LIMITATION OF STUDY

The study would be carried out within the space of three months, and within Uyo Metropolis.

The study would only center on two banking reforms – the establishment of federal mortgage banks and banking consolidation.

The study would be carried out on commercial and mortgage banks in Uyo metropolis.

The study would also be carried out on residential housing in Uyo.

1.6     RESEARCH HYPOTHESIS

Ho:    Availability of credit in the banking sector does not enhance housing provision.

H_I:     Availability of credit in the banking sector enhances the  provision of housing.

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