An Assessment of Housing Delivery in Nigeria: Federal Mortgage Bank Scenario

Article excerpt


In recent times the federal mortgage bank spite of it role in housing delivery has recorded little or no success which is the major concern of this paper to critically assess the extent to which the federal mortgage bank has recorded success in housing delivery in Nigeria. Information on the extent of housing delivery was obtained from federal ministry of statistic and federal mortgage banks. However, findings indicate that in 2002 to 2005, the mortgage finance bank was able to mobilized N19.175 billion compared to 1992 to 2002 with a value of Nil. 451 billion showing a growth rate of 82%. It was discovered that the bank granted loan value of N4.531 billion to 4,151 national housing fund to contributors to either build or renovate their houses. Nevertheless, the mortgage finance bank has recorded little or no success but has appreciably improved in terms of fund mobilization which has aided increase in housing delivery in Nigeria.

Key Words: Housing delivery; Mortgage bank; Finance; Nigeria; Government


In considering the global need for housing in the United Nations Development Decade (1960-70), it was state that 1,000 million people in Africa, Asia and North America about half the total population of these continents were homeless or living in the houses which are dangerous to health. Recent studies have shown that housing delivery is a high contentious and politicized issue that is of great concern to administrators, scholars and the public in Nigeria (Sule, 2001). In the last decades, the influx of people into urban areas, the national population increase and inadequate responses by the government have contributed to the appalling situation in this country, to the extent that economic development and the welfare of the citizens are adversely affected (Federal Republic of Nigeria, 1991; Akinmoladun & Oluwoye, 2007; Ademiluyi & Rayi, 2008). However, housing delivery system in Nigeria is a combination of various inter-linkage components such as land, infrastructures, building materials, building regulations policies end more importantly the finance component (Ebie, 2003). It has been observed that rapid population and poor economic growth have compounded the problems of inadequate housing in Nigeria. These housing inadequacies, particularly for the low income group, have been complicated by high rate of population growth, real estate values, influx or rural immigrants, deplorable urban and infrastructures and lack of implementation of planning policies. Today, the problems of inadequate supply of housing in Nigeria steam from the inability of government to build the requirement number of housing units for the population. Apart from that, the inappropriate arrangement given by the National Housing Fund (NHF) to the financial and mortgage institutions providing funds for housing construction and high cost of. Construction has led to shortage in housing delivery by the institutions. Beside, the problems have become more critical in the cities where huge housing supply deficits, dilapidated housing condition, high cost of housing as well as proliferation of shuns and equator sittered exist (Iyagba & Asunm, 1997; Adedeyi, 2005; UN-HABITAT, 2006b, 2006d; Daramda, 2000b). As a result, a large majority of urban residents, particularly the land income earners who constitute about 50% of Nigeria's 140 million people (oxford policy management, 2004a), are force to live in conditions that constitute an affront to human dignity (Alkali, 2005; Coker et al, 2007; UNFPA, 2007; Aribigbole, 2008). In recognition of the fact that neither the public nor the private sector are able to address this problems individually which is the backdrop why this paper wishes to assess the level of housing delivery by the mortgage bank as a housing finance institution in Nigeria with specific reference to the contributions of federal mortgage bank in to housing, delivery in government owned housing development agencies, private estate developers in post reform period and mortgage arrears of FMBN loan on-lent to estate developers. …