CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Housing
finance is one of the basic needs of every individual, the family and the
community in general.
As a pre-requisite to the survival
of a man, it refers to security or safety and ranks second in the physiological
needs, otherwise called clothing and food in the Abraham Maslow’s “Hierarchy of need Theory”
propounded in (1976)
The housing which is a unit of the
environment, has a profound influence on the health, efficiency, social
behavior, satisfaction, and general welfare of the community.
It reflects the cultural, social and
economic values of a society, as it is the best physical and historical
evidence of civilization in a country. The importance of providing adequate
housing in any country cannot be overstated, hence it is a stimulant of the
national economy.
In most developed countries, housing
sector contributes significantly to the performance of their economy. Increase
in the housing market activities usually indicates a strong economy, while a
decrease in the market portrays weakness in the economy.
Governments should therefore encourage
and foster the establishment of financial institutions to offer credit for
housing development and also adopt such fiscal policies as will ensure that a
larger portion of the national wealth is made available for housing
development. As a specific case, governments should consider the establishment
of housing developments funds or the issue of development stocks for housing.
If the postulate that housing is a national social problem is accepted, then
the private sector should take its share of the responsibility to supplement
and reduce the reliance on governmental efforts.
Commercial and industrial concerns,
and other organization should be made to include in their development
programmes, plans for providing for workers, the rural dwellers are not privileged
to have access to housing finance system.
This is as a result of population
explosion and continues influx of people. Finance being universally accepted as
one of the basic needs of individuals as the second after food that is most
important and essential in human life.
The problem of rural housing finance
that serves as impediments to the successful implementation of housing finance
and programmes in the study area.
Housing finance is considered the
most important factor of rural area problem in Nigeria, adequate housing
finance therefore the first requirement for a new develop area in any nation.
This is because there are so many
problems associated with rural housing finance development such as adequate and
effective buildings in the study area, there are some mud structure of building
presently which suppose not to be so.The importance of housing finance delivery
is stressed by Agboola (1998) who asserted that without a well-organized and
efficient housing mechanism, the goals of rural housing finance development
policy will be largely in attainable.
1.2 STATEMENT
OF THE PROBLEMS
The problem of rural housing has become on everyday discussion in all quarters of the public and private sectors of the developing countries by J. Abiodun. This is emphasized by Olotuah (2000), that the pooled effect of high population large increase and urbanization in declining economy has thrown Nigeria into serious housing problems.
Ironically, the low income groups
and poor who constitute the majority in the Nigeria society are most affected
by the finance and housing menace.
In Alapa village, the problem that
is being generalized to each household includes;
- Lack of pipe borne water
- Absence of desence building
- Service and facilities, such as access
of motor able road apart from the main road.
In other to provide answer to these
problems, some questions must be raised,
these includes;
Why has rural housing finance remained passive and irrelevant in drive toward housing delivery?
Is there any existing superstructure of
housing finance that caters for rural housing in the study areas?
How has individuals contributed to the financing
of rural areas?
1.3 AIM
AND OBJECTIVES
The aim of this study is to examine the problems associated with rural housing finance in Nigeria. In other to achieve this aim, the following objectives where required.
OBJECTIVE
OF THE STUDY
- To identify the types of housing development within the study area.
- To examine the sources of rural housing finance.
- To investigate the problem of rural housing finance
1.4 SIGNIFICANCE
OF THE STUDY
The relevant of this project is to
provide some essential useful information and suggestion to the developer as to
the development of rural housing finance in the study area.
This research project will also serve as useful information to the government tactic sensitized the various level of government to rise up to their responsibilities to provide necessary housing facilities, social services within the study area.
It will also be of help for students
and researcher for further investigation.
1.5 SCOPE
OF THE STUDY
The disciplinary scope of the study
is to examine the magnitude of rural housing problem in Nigeria, where the spatial
scope is to cover the Alapa Village of Asa Local Government, Kwara State. And
the target population are the resident Of Alapa village.
1.6 LIMITATION
OF THE STUDY
The smooth execution of this study was
hampered by certain constraints.
- Adequate
information: – The information gathered during the research was not totally
received from the villagers, the people living in the village seem to be under
informed, some question asked about their own town even seem strange to them as
they don’t have any idea of what it entails.
- The
time limit with into undertaken that study is another limitation where
respondent delay in giving information.
- Lack
of capital or fund to be used in many/various aspects e.g. transportation fees
from school to case study and other element that require finance.
THE PROBLEM ASSOCIATED WITH RURAL HOUSING FINANCE” A CASE STUDY OF ALAPA TOWN, ILORIN EAST ASA LOCAL GOVERNMENT AREA
