CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Mortgage finance institution can be defined as a bank that offers loans to the people who desire

to buy real estate. According to (Nzotta, 2014) Mortgage banks are institutions that help to

provide loans to mortgagers on the other hand the mortgagers give mortgages to the primary

mortgage banks. According to (Nzotta, 2014) mortgage finance institutions are established in

Nigeria to mobilize resources that will enhance credible housing delivery system. According

(Nzotta, 2014) mortgage banking involves the mobilization of resources funds from where it is

surplus in the economy towards financing housing through mortgage banking. The primary

mortgage banks provide loans for customers who which to own their own houses they give loans

to those who wish to purchase real estate (Nzotta, 2014). Mortgage finance institutes are

institutions that is recognized and authorized to provide funds for housing development, these

mortgage institutions include building societies, savings and loans companies and other

institutions that are involved in the provision of loans for the sole purpose of housing

development. These mortgage institutions are allowed by law to accept deposits from members

of the public who wish to purchase and build their own houses.

Housing is said to be one of the basic necessities of man, and it is indispensable but despite the

importance being attached to urban housing, there are some constraints militating against the

growth of housing in the urban setting (Ugonabo, & Emoh, 2013).

Firstly, it has been affirmed that the central problem confronting cities on every continent –

particularly with regards to housing provision, is that of the governance (Jiboye, 2011). The

1
problem of inadequate supply of housing in Nigeria stems from the inability of government to

build the required number of housing units for the population, the inappropriate arrangement

given by the National Housing Fund (NHF) to the financial and mortgage institutions providing

funds for housing development/housing construction, and high cost of building/construction and

all these make the provision of shelter for masses difficult both in rural and urban areas.

Secondly, the non-vibrancy of some Primary Mortgage Institutions (PMIs) constitute the loss of

focus by some PMIs in favor of non-core activities such as trading as well as the slow

disbursement of NHF to the PMIs, made some of them to be competing with the banks in

sourcing for funds for purposes other than mortgage financing (Anayochukwu, 2011).. Since the

private housing scheme in Nigeria is characterized with ability-to-pay principle which implies

that estate allocation or purchase is based on the ability and willingness to pay by the buyer or

land user. This makes the acquisition of landed properties and houses to be dominated by the rich

who could afford the bills, thereby creating a wider gap between the rich and the poor. Since the

government cannot provide housing for all and sundry, the private sector that would have served

as the palliative support is highly priced creating no option for the consumers. Consequently,

there is increase in the rate of poverty among the poor, street begging, street sleepers, increase in

social vices, subjugation of the poor tenants by the landlords, reduction in social status and low

standard of living.

1.2 Statement of the problem

The problem associated with our research topic is not far-fetched. Mortgage financial institutions

in most circumstances play a unique role in every economy in order to satisfy a psychological

need. It is worthy of note that in developed economies such as the United States of America,

2
United Kingdom, Canada, France, Denmark, among others, the common practice of owning a

house is by means of an established mortgage system. It is likely therefore that their mortgage

scheme is not being ineffectively and inefficiently managed. In contrast to the near perfect

mortgage system of developed world, there is yet to be consensus on issues relating to housing in

Nigeria among scholars, policymakers, administrators and the public (Sule, 2006 cited in Udoka

and Owor, 2017). Besides, fewness of scholarly works on influence of primary mortgage

institution on housing delivery in Nigeria has seemingly created a gap in knowledge. Against

that backdrop this project sought to contribute to the existing literature in order to at least

ascertain both direction and magnitude of the relevant

1.3 Research Questions

i. What are the various types of mortgage institutions in Benin City?

ii. Does the mortgage institution provide loans for housing delivery system in the study

area?

iii. What are the factors affecting the effectiveness of mortgage institution in housing

delivery system in the study area?

iv. What are role of banks in housing delivery system in the study area?

1.4 Aim and Objectives

The aim of this project is an assessment of the effectiveness of mortgage institution in housing

delivery system in Benin City Edo State. The aim of this study will be achieved through the

following objectives to:

i. Identify the various types of mortgage institutions in Benin City

ii. Examine whether mortgage institution provide loans for housing delivery system in the

study area

3
 iii. Evaluation factors affecting the effectiveness of mortgage institution in housing delivery

system in the study area.

iv. Ascertain role of banks in housing delivery system in the study area

1.5 Scope of the Study

The scope of this work would be within the region of Benin City and it would focus on banks

within the study area. This area was selected due to the high concentration of banks and the

location.

1.6 Significance of the Study

The outcome of this study will be of immense value to several interest groups namely, the

academia, financial institutions, investors/investment analysts and public authorities.

The work will not only enrich the scanty literature available on this topic but will also serve as a

good reference to scholars who may develop interest to further research on this topic or similar

topics.

The work will be of great benefit to the financial institutions, investors and investment analysts

hence the content of the study is adequate and suffices for a good viability appraisal to those

whose investment objectives are financial and purely for income appreciation.

Finally, the research will be greatly treasured by all levels of government. The findings and

recommendations in this work will help the government in both policy formulation and

execution on housing. This study will enlighten investors and developers on the mortgage

institution policy in Edo State. It will serve as information to the general public on the current

rental value in the study area and also be a guide to the government for policy making on

residential properties in the study area. It will serve as a resource base material to other

4
researchers interested in carrying out further research in this field subsequently his study will be

beneficial to the financial institution since real properties are used as collateral for mortgage

transactions.

This study will also help estate surveyors and valuers and other professionals in the real estate

sector in Benin City to develop a grid of the different housing attributes that impact on the value

of the property. This study will be of paramount importance to various professionals, individual,

investor, developers, and student. This study will serves as a source of reference to student in

environmental discipline when carrying out research on the topic under study. It will also help to

reduce wear and tear thereby prolonging the life –span of the property in the study area. It will

create an avenue for Land located in the study area to be put in highest and best use.

1.7 Limitation of the Study

During the course of the research study the researcher encountered a lot of challenges. These

challenges are as follows;

Attitude of Respondent: The attitude of the most of the respondents was not encouraging for

instance, some respondent (landlords) in particular where not willing to supply the required

information for the fear that such information could be used against them for the purpose of

taxation. Some other respondents claimed giving out information that would amount to exposing

official secretes to the general public. This predicament of information made the researcher to

embark on series of visitations on the respondents before viable data could be obtained.

Insufficient Resource Materials: The dearth of robust resource materials further constitute the

limitation of the research work. For instance, material within the department and central library

of the polytechnic were not adequate to provide all the needed fact and information to support
5
the research study. The researcher had to travel to other institution of higher learning to source

for more materials to guide him.

Insufficient Fund: This was equally one of the challenges of the research work. Through funds

were made available for the research work but due the inflationary trends in the country the

funds became inadequate. The researcher had to work hard to ensure that a comprehensive

research was accomplished.

High Cost of Transportation: The research work was still constrained by the incidence of high

transportation fares. This was prompted by the distances of the respondent from the researcher

going from Auchi to Benin so that the researcher can access the respondents. Nevertheless, the

researcher wish to note that despite all these limitation the comprehensive nation of research was

not compromised.

1.8. Study Area.

Benin City is geographically located within the co-ordinates of latitude 600N and 6026N, and

longitude 5033E and 5041E. Benin City, a city in Southern Nigeria and the capital of Edo State

is connected by road and air to many parts of the country.

Benin City is an ancient but modernizing city with trade, commerce, government and educational

institutions. Small, medium and large scale industries are located in the city.

Benin City is blessed with a forest vegetation belt. Urban development have drastically reduced

the vegetation in the area and most of the areas used for farming have now turned into

residential, industrial, commercial, educational land uses. Benin City is an agrarian society. The

main economic activity of the area is agriculture.

6
Apart from the wood products, there is high yield of agricultural food crops which includes

cocoa, rubber, cashew, cassava, bush meat, snails, fish, rice. Apart from agricultural activities,

industries are also available in the state, such as carving and brewing. Benin City is famous for

her work of arts; they include plagues, busts and royal figures. Various carving, smothering,

jewelry, mat-making, cloth weaving businesses thrive in Benin City and the city is also known

for its bronze casting arts.

7
 MAP SHOWING EDO STATE NIGERIA

MAP SHOWING BENIN CITY, EDO STATE NIGERIA

SOURCE; Land and Survey, Benin City 20

8
1.9 Operational Definition of Terms

Mortgage institutions means any financial institution that provides a loan to a borrower for the

purchase of any real estate property, where the real estate property is used as a security for that

loan; [MAS Notice 656 (Amendment) 2021]

Housing delivery system: Housing delivery methods or systems refer to the processes and

mechanisms used to provide housing to individuals or communities .investopedia

9
 CHAPTER TWO

LITERATURE REVIEW/CONCEPTUAL FRAMEWORK

2.0. Introduction

In this chapter, the researcher will make reviews on relevant issues concerning the project topic.

References will be made to related textbooks, journals, magazines and other sources of

information available.

2.1. Literature Review of the Nigerian Housing Market

There is no how a good discussion will be done on housing without taking a look at Property

development. Housing Market an economic activity which involves developing a bare but a ripe

site or redevelopment (conversion or alteration) of a developed site. The provision of

accommodation for occupation of the person carrying out the development or for someone else

as the basic reason for property development (Gbadeyan, 2011).

The Nigerian housing market is highly untapped and undeveloped despite lot of opportunities

that abound in the sector (Akeju 2007). This is basically due to many reasons amongst which

include: lack of finance; government policy; lack of infrastructural development and high level

of poverty. There is continuous increase in the average price of houses due to increase cost of

building materials and inflation in the economy. This has concomitantly, contributed to upward

trend in house prices which has significantly affected the number of units of houses constructed

annually.

The government efforts at addressing the problems have not been successful due to its

unsustainable approach of providing houses to the people. These houses are grossly inadequate

and unaffordable by the larger proportion of the masses for which they are meant for. There are

10
efforts by the private individuals to help in alleviating this housing problem. The bulk of the

housing problem is prevalent in urban cities, but there are lots of unoccupied and dilapidated

houses in the rural areas. This is due to migration of people from most of these rural areas to

urban centers for greener pastures. Private sector’s contribution towards alleviating this housing

problem has been in the forms of Individual efforts, Cooperative associations, corporate bodies,

Estate Agents, Non Governmental Organisations/Charity organizations and foreign investors.

The problem with the Estate developers is that the cost of their housing units is higher than those

constructed by Individuals or Cooperatives. This may probably be due to the fact that most of the

materials used for the construction are imported and they also used modern facilities. This

therefore makes the housing unit not to be at the reach of low income earners who are definitely

going to find it difficult in affording to pay for such houses. According to Nubi (2000) the

overall housing problem is so enormous that the impact of Estate developers has been so

insignificant in addressing the situation

2.2 Housing Delivery, and Finance Policies in Nigeria

Households’ access to mortgage finance is a function of the existing housing policy as it

provides a solid background for understanding government intervention towards enhancing fund

availability for housing development (Nubi 2000). The housing programmes in Nigeria have

undergone various stages of development, rom the colonial period till date. The housing delivery

modality in the traditional pre-colonial period (Pre-1928) involved communal efforts whereby

families, peer groups (age grades), friends and relatives jointly assisted one another to construct

houses for their use (Ankeli et al., 2017).

11
According to Nubi (2000), other modes of financing housing were Esusu and Ajo which

practically involved securing loans after having been a contributor within a group. Nubi attested

to the fact that much success was recorded in the provision of fund for housing development

during the period. The colonial period was characterized by the direct construction of houses for

the expatriate staff and a few indigenous senior staff of parastatals and organizations in the

Government Reservation Areas (GRAs) (Bello, 2019). According to Nubi (2000), the period also

witnessed the establishment of Lagos Executive Development Board (LEDB) in 1928; as well as

the formation of the Nigeria Building Society (1956); and the State Housing Corporations

(between 1956 and 1960). The programmes were crippled due to lack of adequate funding by the

governments (Obi & Ubani, 2014).

Following Nigeria’s independence on the 1st of October 1960, efforts of the government towards

housing delivery include the National Housing Program implemented in phases under the

National Development Plans. It led to the establishment of the National Council of Housing

1971; the establishment of the Federal Housing Authority in 1973; the launching of the National

Low-Cost Housing Scheme in 1975; the transformation of the Nigerian Building Society into the

Federal Mortgage Bank of Nigeria (FMBN) in 1973 (although the law that founded it came into

effect in January,1977); and the promulgation of The Land Use Decree (LUD) of 1978 (Ibimilua

& Ibitoye, 2015). Other housing delivery efforts include the Employees Housing Scheme Decree

No. 54 of 1979.

The continuous failure of the government to meet up with the production of targeted housing

units and the persistent increase in housing demand led to the promulgation of the National

Housing Policy of 1991.The goal of the policy was to ensure that all Nigerians were provided

with decent and affordable housing by the year 2000. It was facilitated by the endorsement of the

12
National Housing Fund (NHF) Decree No. 3 of 1992. Inability of the policy to meet up with the

set objectives brought about its comprehensive review and culminated in the Housing and Urban

Development Policy of 2002 and a new National Housing Policy whose first draft was issued in

January 2004 and published in 2006 (Ocholi et al., 2015). It led to the establishment of the Real

Estate Development Association of Nigeria (REDAN), the Building Materials Producers

Association of Nigeria (BUMPAN) and the restructuring the Federal Mortgage Bank of Nigeria

into a two-tier financial structure. Under the new arrangement, the FMBN began to operate as a

secondary mortgage institution while the Primary Mortgage Institutions (PMIs) became the

primary lenders (Obi & Ubani, 2014). To correct all the anomalies of previous policies and solve

the problems ofhousing inadequacy, a new policy document was approved in 2012 (Pepple,

2013). However, the National Housing Policy of 2012 has not been successful due to several

factors including inadequate infrastructure, poor administration of the policy, inadequate funding

as wellas inadequate housing finance (Adeshina & Idaeho,2018)

2.3. The role of community (microfinance) and commercial banks in housing delivery

System

The National Board for Community Banks was created by Decree 46 of 1992 for the purpose of

licensing community banks towards the promotion of the growth of the informal financial sector.

Following the launching of Microfinance Policy on December 15, 2005, all existing community

banks were mandated to re-capitalize shareholders’ fund to a minimum of ₦20 million and

convert to microfinance banks (MFB) with a deadline that lapses on December 31, 2007 (CBN,

2008).

According to Igbinoba (2019), listed among the registered providers of mortgage facilities in

2019 were 7 microfinance banks, 34 mortgage banks and 27 commercial banks. The number of

13
registered mortgage banks later increased to 35 in 2020, signifying a 2.86% increment whereas a

more significant increase would have culminated in a higher mortgage adoption which in turn

would have boasted the level of homeownership Aside the limited number of providers, loans

subscribers must have an equity contribution that ranges from 30 to 50 percent with repayment

period of between 10 to 20 years, at an interest rate that ranges from 17 to 25 percent per annum

(Igbinoba, 2020). Moreover, to those buying properties, mortgage financing ranges between 20

and 27 percent (Igbinoba, 2017). As part of measures of economic recovery in the country, the

federal government introduced an all-round financial inclusion. Medium Term Plan for 2017-

2020, termed the Economic Recovery and Growth Plan (ERGP). Under this plan, a ₦5 billion

(US$ 136 276) licensed national microfinance bank was created and named Nirsal Microfinance

Bank (NIRSAL) (Igbinoba, 2019).

However, mortgage penetration is yet to be facilitated by this initiative even though the CBN has

made concerted efforts to reposition in this regard (Ikekpeazu, 2018). Moreover, the financial

institutions that cater for the housing finance Nigerians are the Federal Mortgage Bank of

Nigeria (FMBN), commercial banks, merchant banks, and insurance companies. Of all these

institutions, microfinance banks are best positioned to provide fund for low-income earners’

housing development even on incremental housing basis given their huge population of over 900

banks spread throughout the federation. There is need for a policy framework that recognises the

long- term investment nature of housing and promotes incremental housing.

2.4 Insurance Industry and Mortgage Financing

The risk of defaults on loans repayment is a possibility from borrowers as a result of irregular

income and low income and thus serves as impediment to mortgage markets in developing

14
economies (Chiwetu, 2019). To cushion the effect of this on lenders and offer credit protection,

the mortgage insurance model is encouraged globally to transfer the default risk to the insurance

sector (Bank for International Settlements, 2013). This in turn, upon its successful

implementation, will foster the availability of mortgage fund for homeownership for low income,

low equity, or higher risk borrowers (Blood, 2009). However, according to Chiwetu, (2019), the

mortgage markets in developing countries is small and undeveloped due to constraints such as

poor property regulatory systems, which are bound to discourage mortgage lenders from entering

the market as a primary provider. Given this fact, governments must as a necessity step in as

initial mortgage insurance sponsors in order to attract private risk capital and equally facilitate

the introduction and adoption of the mortgage insurance model. As such, in Nigeria, the Federal

Government in a bid to provide long-term finance to mortgage-lending institutions at an

affordable interest rate through the Federal Ministry of Finance (FMOF), the Central Bank of

Nigeria (CBN), Federal Ministry of Lands and Urban Development and Housing, in partnership

with the World Bank established the Nigeria Mortgage Refinance Company (NMRC), in 2013

(CBN, 2014).

It is a public private partnership arrangement under the Nigeria Housing Finance Programme

(NHFP) with the aim of empowering the financial institutions by refinancing their portfolio.

Thus, they in turn will have capacity to provide Nigerians with affordable loans at longer tenors,

thereby encouraging and promoting home ownership in the country. The programme at its initial

phase is expected to deliver over 75,000 homes per annum, while culminating in the generation

of approximately 300,000 direct and 488,000 indirect jobs (CBN, 2014). As a measure to

guarantee lenders against possible loses emanating from borrowers’ defaults, and further deepen

the mortgage market, the CBN introduced a Mortgage Guarantee Company (MGC), (CBN,

15
2018). Successful implementation of these innovative programmes is hinged on a good, robust,

and sound policy framework to guide property registration and titling in the country and

incorporate the huge proportion of the unsalaried populace who works in the informal sector and

might not meet the criteria for accessing mortgage fund.

2.5 Major Constraints to Mortgage Loan

For majority of the citizens of the country to become homeowners, they may have to resort to

subscribing for loans from financial institution. However, exploring the mortgage options are not

without their own challenges. Some of the identified problems are the following:

• Workers that subscribe for loans from commercial banks must possess an equity contribution

that ranges from 30 to 50%, at an interest rate of between 17 to 25 percent per annum with

limited repayment period of between 10 to 20 years maximum.

• Only workers who contributes 2.5 percent of their basic monthly salaries to the scheme are

qualified to apply for loans through the accredited Primary Mortgage Institutions (PMIs) at a 6

per cent interest rate, over a re-payment period of up to 30 years, depending on the number of

years left in service and their age, under the National Housing Fund (NHF) programme. Hence,

workers in the informal sector are not qualified to access loans in this regard. For loans under ₦5

million, zero equity is demanded; however, for loans ranging from ₦5 million to ₦15 million, 10

percent equity is required. An average Nigerian may lack capacity to present the equity as a

result of the limited resources at their disposal due to high cost of living in the nation in attendant

with the low wages that is earned by a vast majority of the citizen that might not encourage them

to save towards housing purchase or development.

16
• For workers to be qualified for loans, they must possess unencumbered land with duly

registered land titles as well as approved building plans before qualifying for loans.

• The Land Use Act (1978) limits the ability of the populace to own and acquire land, given the

requirement to seek the state governor’s consent for every land transaction. The cumbersome

bureaucratic procedure and the formality of the process hinder land registration system, a

necessary criterion for accessing mortgage loans.

• Inadequate financial instruments for mobilization of affordable, long-term funds and adequate

tenor.

• Other issues that currently hinder the growth of the housing sector in Nigeria include the

lengthy period it takes to foreclose a mortgage (MBAN, 2016).

The country’s land tenure system under the Land Use Act (1978) remains a major constraint to

land titles, which is one of the eligibility criteria for accessing mortgage loans. The Land Use

Decree known as Decree 6 promulgated in 1978 nationalised every land in the federation placing

their ownership in the hands of each State governors. By virtue of this law, a uniform land tenure

system is in place in every part of the country to enable the government to control land use and

development (FRN, 1978). Individuals or groups are only granted rights of occupancy for a

stated period, normally, for a period of 99 years.

Consequently, limitations are placed on individual’s ability to own and acquire land, occasioned

by the need to seek the state governor’s consent for each land transaction. The formality involved

thus hinders housing finance as a result of the cumbersome title registration process and the huge

cost. World Bank Group (2016) reported that title registration takes eight or nine months to a

year or more in Nigeria while cost ranges between 20-30 per cent of the property value which is

17
about two to three times as high as the African average. Also, as seen in Table 3, in the ease of

property registering category, the country was ranked 185th out of a total of 189 developed and

developing countries while registration costs vary from state to state such rendering formal

acquisition of land and it’s titling a task beyond the means of an average homebuyer. It is no

wonder that only about three percent of the country’s land mass is registered (Igbinoba, 2019),

and thereby inhibiting access to home financing as mortgages cannot be perfected without

certificate of occupancy. While the intention for the promulgation of the Land Use Act was

laudable, the implementation became a clog in the wheel of progress of mortgage financing

because the Act specifically stated that the consent of the government must be sought for every

transaction on land.

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 CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This chapter discussed the methodology adopted in this study. It explained systematically, the

step by step procedure adopted, in carrying out the study. It discussed the research design,

sources of data, population of study, sample size and sampling technique, instrument of data

collection, and method of data presentation and analysis.

3.1 Research Design

The design of the study will be descriptive/research design. Descriptive survey design according

to Ali (2006) is a study mainly concerned with describing and explaining events as they are

without any manipulation of what is being observed. This design is considered for this study,

because it will help to assess the effectiveness of mortgage institution in housing delivery system

in Benin City, Edo State

3.1.1 Population of Study

Table 1: population of study

S/N Responses Population Percentage

1 Staffs in Various banks 103 67.32%
2 Bank Manager 50 32.68%
Total 153 100%
Source: Feb. 2024

The table above analyse the population of commercial banks staffs and managers within Benin
City metropolis. Staffs of various banks are only 103 represent 67.32% of the total number of
Bank managers were only 50 representing 32.15% of the total in Benin City.

19
3.1.2 Sample/Sampling Technique

Sample frame

This is a presentation of the total number of the targeted audience that makes up the population;

by extension, the study looked at those elements that can be documented. For this purpose, the

sample frame of the research was the total number of staffs and bank managers which were

random selected in various banks in which are one hundred fifty-three (153) in Benin City

metropolis.

Sample Size

This refers to a small amount of a substance taken from a larger unit and tested in order to obtain

information about the substance for the purpose of the study. The sample size consisted of the

number of the element from which information required in this study work was gotten.

3.1.3 Instrumentation and Procedure for Data Collection

This is the method used to collect raw data for analysis for this research. The instrument used to

collect data was the Questionnaire because it allowed respondents to give a detail response to

structure questions at his/her convenience. A questionnaire is a list of questions carefully

prepared by a researcher to elicit reactions from respondents for the purpose of resolving the

research problem. The questionnaire was sectioned into A and B. The section A focused on the

background data while section B focus on the research objective. The likert scale was used to

structure the questionnaire to capture the intensity of the respondent. This took the form of 5-

point likert scale of strongly agrees, agrees, undecided, disagree and strongly disagree.

20
3.2 Method of Data Analysis

The data collected from the questionnaire administration was processed and analyzed which

would help the researcher to make recommendations. For the purpose of this study, the data was

analyzed using descriptive and inferential statistical tools.

3.2.1. Statistical Analysis

The percentage table analysis format was used to analysis the socio-economic background data

of the respondents. Mathematically, percentage is ratio multiplied by 100. It helps the number of

factors according to the degree of occurrences attached.

It is given thus:

P (%) = n x 100
N
Where:
P = percentage (%)

n = value of item

N = Total value of item

21
Table 3.2.1 Showing method of data analysis adopted

Objectives Method of Analysis

i. Identify the various types of Weighted Mean Score (WMS)
mortgage institutions in Benin City
ii. Examine whether mortgage Weighted Mean Score (WMS)
institution provide loans for housing
delivery system in the study area
iii. Evaluate factors affecting the Weighted Mean Score (WMS)
effectiveness of mortgage institution
in housing delivery system in the
study area.

iv. Ascertain the role of banks in Weighted Mean Score (WMS)

housing delivery system in the study
area

The Weighted Mean Score was determined using:

WMS= 5n5+4n4+3n3+2n2+n1
N
Where N5= Number of Respondent who answered very important
N4= Number of Respondent who answered important

N3= Number of Respondent who answered neutral

N2= Number of Respondent who answered less important

N1= Number of Respondent who answered not important

Therefore, data was processed by coding using the statistical package for

Social Science (SPSS) software and Ms.-Excel for graphical presentation .

22
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0. Introduction

This section presented the analysis of data obtained from administration of questionnaires,

interview and direct observation. The data so collected are presented using descriptive analysis

method such as, frequency and percentage distribution Tables as well as weighted mean analysis

in a manner that is consistent with the objectives of the study.

4.1. Questionnaire Administration

Table 1: Questionnaire Distribution and Retrieval

Study population No of No of Questionnaires Percentage (%)

Questionnaires Retrieved
Administered
Bank Staffs 103 85 82.5
Bank Managers 50 30 60.0
Total 153 115 75.1
Source: Author’s Field Survey, (2024).

Table 1 showed that 75.1% of the total questionnaires administered were retrieved from the

respondents. This implied that the percentage of questionnaires retrieved from the respondents

was statistically adequate to represent the whole population from which inference could be made

for this study; hence the results of the findings could be relied on.

23
4.2. Socio-Economic Characteristics of Respondent

Socio-economic/demographic background of respondents have very significant role to play in

expressing and giving the responses about research problem.

TABLE 4.2.1: Sex Distribution of Respondents

Option Number Percentage (%)
Male 65 56.52
Female 50 43.4
Total 115 100
Source: Field Survey, 2024
In the above table 4.2.1 indicated that 65 respondents representing (56.52%) were male and
while 50respondents representing (43.4%) were female. This show that majority of the
respondents were male.

TABLE 4.2.2: Age Distribution of Respondents

Option Number Percentage (%)

16 – 20 30 26.09
21 – 24 30 26.09
25 – 28 30 26.09
29 and above 25 21.74
Total 115 100
Source: Field Survey, 2024

From the above table 4.2.2 indicated that 30 respondents representing (26.09%) people were

between the ages 16-20, 30 respondents representing (26.09%) people were between the ages 21-

24, 30 respondents representing (26.09%) people were between the ages 25-28 and respondents

representing (21.74%) were 29 and above. This means that majority of the respondents age are

between 16 - 28.

24
TABLE 4.2.3: Marital Status of Respondents

Options Number Percentage (%)

Single 60 52.174
Married 55 47.83
Total 115 100
Source: Field Survey, 2024

From the above table 4.2 3, 60 (52.174%) were single and while 55(47.83%) were married. This
means majority of the respondents were single

TABLE 4.2.4: Educational Background of Respondents

Options Number Percentage %

ND 45 39.13
HND 25 21.74
B.Sc/B.Tech 45 39.13
M.Sc/M.Tech 34 29.57
Total 115 100
Source: Field Survey, 2024

From the above table 4.2.4, 45 respondents representing (39.13%) of the respondents had ND, 25

respondents representing (21.74%) of the respondents had HND, and B.Sc/B.Tech of the

respondents had 45 respondents representing (39.13%) while 34 respondents representing

(39.13%) of the respondents had M.Sc. this means that majority of the respondents had

education.

25
Table 4.2.5 Some the various types of mortgage institutions in Benin City

S/N Types of mortgage 5 4 3 2 1 WMS Ranking

institutions
1. Federal mortgage bank 67 38 - 10 - 4.53 1st
of Nigeria
2. Primary mortgage 69 41 - 5 - 4.5 2nd
institutions
3. Real development 61 51 - 3 - 4.45 3rd
Associations of Nigeria
4. Building Materials 70 30 9 6 - 4.426 4th
Producers Association of
Nigeria
5. National housing fund 53 45 10 7 - 4.25 5th
6. Microfinance bank 65 35 - 8 7 4.243 6th
7. Commercial banks 63 37 - 15 4 4.18 7th
8. Merchant banks 50 45 - 20 - 4.087 8th
9 Insurance Bank 56 24 28 - 7 4.06 9th
Source: field survey, 2024

The table 4.2.5 above indicates some the various types of mortgage institutions in Benin City.

Findings indicated are Federal mortgage bank of Nigeria (4.53), Primary mortgage institutions

(4.5), Real development Associations of Nigeria (4.45), Building Materials Producers

Association of Nigeria (4.426), National housing fund (4.25), Microfinance bank (4.243),

Commercial banks (4.18), and Insurance Bank (4.06) are the most common types of mortgage

institutions in the study area with the rank of 1st, 2nd, 3rd .4th, 5thand 6th respectively.

26
Table 4.2.6. To ascertain whether mortgage institution provides loans for housing delivery
system in the study area in the study area.
S/N Loans 5 4 3 2 1 WMS Ranking
1. National housing funds programmes 70 30 9 6 - 4.43 1st
2. Primary mortgage institutions 65 35 - 8 7 4.24 2nd
3. commercial bank Advertise their loans 45 50 - 20 - 4.04 3rd
offers
4. local capacity for managing rapidly 55 25 27 - 8 4.035 4th
growing cities
5. Primary mortgage banks provide loans 64 17 - 30 4 3.93 5th
6. FMBN Provide loans 66 18 - 1 30 3.77 6th
Source: field survey, 2024

The table 4.2.6 above indicates whether mortgage institution provides loans for housing delivery

system in the study area. According to the respondent National housing funds programmes

indicated by respondents representing a mean score of 4.43 ranked 1st, followed by Primary

mortgage institutions indicated by respondents representing a mean score of 4.24 ranked 2nd,

commercial bank Advertise their loans offers was indicated by respondents representing a mean

score of 4.04 ranked 3rd, local capacity for managing rapidly growing cities indicated by

respondents representing a mean score of 4.035 ranked 4th, Primary mortgage banks provide

loans indicated by respondents representing a mean score of 3.93 ranked 5 th and while FMBN

Provide loans indicated by respondents representing a mean score of 3.77 ranked 4th respectively

in the hierarchy of ranking.

27
Table4.2.7 To examine some of the factors affecting the effectiveness of mortgage
institution in housing delivery system in the study area.

S/N Factors 5 4 3 2 1 WM Rankin

S g
1. Economy 53 45 10 7 - 4.25 1ST
2. Housing Inadequacy 65 35 - 8 7 4.243 2ND
3. Inadequate funding 57 37 - 10 11 4.20 3RD

4. Unavailability of Mortgage Loans 63 33 - 15 4 4.18 4TH

5. Change in government 50 45 - 20 - 4.087 5TH
6. Inadequate infrastructure 45 50 - 20 - 4.04 6TH
7. Poor administration of the policy 65 25 27 - 8 4.035 7TH

Source: field survey, 2024

The table 4.2.7 indicates some of factors affecting the effectiveness of mortgage institution in

housing delivery system in the study area. Findings indicated that Economy with a mean score of

4.25 ranked 1st, followed by Housing Inadequacy with a mean score of 4.243 ranked 2 nd,

Inadequate funding with a mean score of 4.2 ranked 3 rd, Unavailability of Mortgage Loans with a

mean score of 4.18 ranked 4th, Change in government with a mean score of 4.087 ranked 5 th,

Inadequate infrastructure with a mean score of 4.04 ranked 6 th while Poor administration of the

policy with a mean score of 4.035 ranked 7th in the study area.

28
Table 4.2.8; To determine the role of banks in housing delivery system in the study area.

S/ Effects 5 4 3 2 1 WM Rankin

N S g

1 Provide fund for low-income 67 38 - 10 - 4.53 1st

earners

2. Easy access to loans 69 41 - 5 - 4.5 2nd

3 They are registered providers of 61 51 - 3 - 4.45 3rd

mortgage facilities

4 They easy know who are qualify 70 30 9 6 - 4.426 4th

to access loans

Source: field survey, 20224

The table 4.2.8 presented above indicates the role of banks in housing delivery system in the

study area. According to the respondents perception, the roles are provide fund for low-income

earners (4.53), Easy access to loans (4.5), They are registered providers of mortgage facilities

(4.45), They easy know who are qualify to access loans (4.426) with the rank of 1st, 2nd, 3rd and

4th respectively in the hierarchy of ranking.

4.3 Discussion of Findings

4.3.1. To identify some the various types of mortgage institutions in Benin City

From the analysis, it was deduced from the respondents that Federal mortgage bank of Nigeria

(4.53), Primary mortgage institutions (4.5), Real development Associations of Nigeria (4.45),

Building Materials Producers Association of Nigeria (4.426), National housing fund (4.25),

29
Microfinance bank (4.243), Commercial banks (4.18), and Insurance Bank (4.06) are the most

common types of mortgage institutions.

4.3.2. To ascertain whether mortgage institution provides loans for housing delivery

system in the study area.

The results from the analysis indicated that mortgage institution do provide loans for housing

delivery system in the study. This implies that National housing funds programmes, Primary

mortgage institutions and commercial bank Advertise their loans offers are mostly available in

the study area.

4.3.3. To examine some of the factors affecting the effectiveness of mortgage institution in

housing delivery system in the study area.

Findings depicted that Economy with a mean score of 4.25 ranked 1st, followed by Housing

Inadequacy with a mean score of 4.243 ranked 2nd, Inadequate funding with a mean score of 4.2

ranked 3rd and Unavailability of Mortgage Loans with a mean score of 4.18 ranked 4 th are the

most significant factors affecting the effectiveness of mortgage institution in housing delivery

system in the study area.

4.3.4. The role of banks in housing delivery system in the study area.

Findings reveals that the roles are to provide fund for low-income earners (4.53), Easy access to

loans (4.5) and they are registered providers of mortgage facilities (4.45).

30
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings

The following are the major findings:

 Findings of the study revealed that Federal mortgage bank of Nigeria, Primary mortgage

institutions, Real development Associations of Nigeria, Building Materials Producers

Association of Nigeria, National housing fund, Microfinance bank, Commercial banks,

and Insurance Bank are most common types of mortgage institutions.

 Findings of the study revealed that mortgage institution do provide loans for housing

delivery system in the study. This implies that National housing funds programmes,

Primary mortgage institutions and commercial bank Advertise their loans offers are

mostly available in the study area.

 Findings depicted that Economy, followed by Housing Inadequacy, Inadequate funding

and Unavailability of Mortgage Loans are the most significant factors affecting the

effectiveness of mortgage institution in housing delivery system in the study area.

 The study revealed that Findings reveals that the roles are provide fund for low-income

earners, Easy access to loans and they are registered providers of mortgage facilities.

5.2 Conclusion

Nigeria experiences rapid urbanization which has negatively impacted on her housing sector. As

highlighted in this paper, a good housing delivery system is built on the foundation of an

31
effective policy framework that ensures adequate long-term finance at a low interest rate. With

effective policies in place, access to mortgage finance will be enhanced.

Consequently, this paper, proffers the following recommendations for efficient housing finance

and delivery system in Nigeria For Nigeria to actualize the dream of providing adequate shelter

for her urban populace there must be a renewed commitment by government to the formulation

and proper implementation of housing policies.

5.3 Recommendation

Consequently, this project, proffers the following recommendations for efficient housing

finance and delivery system in Nigeria For Nigeria to actualize the dream of providing adequate

shelter for her urban populace there must be a renewed commitment by government to the

formulation and proper implementation of housing policies:

i. Successful implementation of these innovative programmes is hinged on a good,

robust, and sound policy framework to guide property registration and titling in the

country and incorporate the huge proportion of the unsalaried populace who works in

the informal sector and might not meet the criteria for accessing mortgage fund.

ii. Government should continue to play criticalregulatory and supervisory roles in the

housing sector and should not shy away from making or amending laws and policies

from time to time that will improve housing supply.

iii. The National Housing Policy should not be left as mere policy statement but made to

become a Law.

iv. Government can be legally challenged if they refuse to implement a law compared to

a policy.

32
 v. Government should see home ownership as a right of every Nigerian citizen and

should embark on the rent-to-own scheme

REFERENCE

Adeshina, T. & Idaeho, R. (2018). Analyses of Nigeria’s policies on housing. JEE Sector
Thought Leadership Series.

Akeju, A.A., (2007). Challenges to providing affordable housing in Nigeria. A Paper presented
at the 2nd Africa International Conference on Housing Finance in Nigeria held at Sheu
Yaradua Center Abuja, 17-19 October.

Ankeli, I. A., Daniel, I. D., Omotehinshe, J. O., Lawal, O. K.,Odeyomi, F. G., & Adebowale, P.
(2017). Affordable and acceptable mass housing delivery: A panacea to the Nigeria
housing problem. Conference of the International Journal of Arts & Sciences, 10(1), 31–
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Anayochukwu, O. B. (2011). Urban housing financing in the south-eastern states of Nigeria:

Problems and Prospects. Journal Sustainable Development in Africa, 13(8), 268-282.

Bello, A. (2019). Review of the housing policies and programmes in Nigeria. International
Journal of Contemporary Research and Review, 10(2), 20603-20616.

Gbadeyan, R. A. (2011). Private Sector’s Contributions to the Development of the Nigerian

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Nigerian Housing Market Current

Igbinoba, R. (2017). Tackling the housing affordability challenge. Pison Housing Company
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Igbinoba, R. (2019). Africa Housing Finance Yearbook 2019– The West African and Monetary
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Igbinoba,R.(2020).Nigeria:AfricaHousingFinanceYearbook2020.https://housingfinanceafrica.org
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mortgage-financing-for-housing-in-nigeria.pdf

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Accessed: 15-4-2020.Association of Nigeria.www.propertyinsider.com.ng/mortgage-ceos

Ocholi, S. O.; Manase, D.; Lowe, J. & Sommerville, J. (2015). Critical review of Nigeria
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121-127.

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http://www.housingfinance.org/pdfstor age/Africa, (Accessed on: 17 June, 2015).

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34
 Department of Estate Management,
School of Environmental Studies,
Auchi Polytechnic,
P.M.B. 13,
Auchi,
Edo State.
2024.

Dear Respondent,

Questionnaire

I am HND11 student of the Department of Estate Management and Valuation, Auchi

Polytechnic, Auchi, Edo State. I am carrying out a research study on the topic “Assessment of
the effectiveness of mortgage institution in housing delivery system in Benin City, Edo
State”. Please assist in providing answers to the following questions to enable me get the data
needed to complete the investigation. The exercise is purely for academic purpose. So, your co-
operation in answering the question in the questionnaire and private discussion will help in
carrying out this work properly. Every piece of information given out will be handled with
utmost confidentiality.
Thanks for your anticipated co-operation.

Yours faithfully,

ITEGUERE ANDREW AFANI

35
Background Information
Introduction: Kindly tick the appropriate box provided or makes comment where necessary.
1. Sex: male ( ) female ( )
2. Age bracket? 20 – 29 ( ) 30 – 39 ( ) 40-49( ) 50 and above ( )
3. Marital status? Singled ( ) married ( )
4. Educational background primary ( ) secondary ( ) OND/HND( ) B.sc ( ) Masters
( )
Section B

5. Listed below are some various types of mortgage institutions in Benin City. Rank them
according to the scale defined; Strongly Agree= 5, Agree = 4, indifference = 3, Disagree
= 2, and Strongly Disagree =1
S/N Types 5 4 3 2 1
1. Federal mortgage bank of Nigeria
2. Primary mortgage institutions
3. Real development Associations of Nigeria
4. Building Materials Producers Association of Nigeria
5. National housing fund
6. Microfinance bank
7. Commercial banks
8. Merchant banks
9. Insurance Bank

6. Listed below are whether mortgage institution provides loans for housing delivery system
in the study area. Rank them according to the scale defined; Strongly Agree= 5, Agree =
4, indifference = 3, Disagree = 2, and Strongly Disagree =1

S/N Loans 5 4 3 2 1
1 National housing funds programmes
2 Primary mortgage institutions
3 commercial bank Advertise their loans offers
4 local capacity for managing rapidly growing cities
5 Primary mortgage banks provide loans
6 FMBN Provide loans

36
 7. List Below are some of factors affecting the effectiveness of mortgage institution in
housing delivery system in the study area. Rank them accordingly using likert
scale defined; Strongly Agree = 5, Agree = 4, Undecided = 3, Disagree
= 2, Strongly Disagree= 1
S/N Factors 5 4 3 2 1
1 Economy
2 Housing Inadequacy
3 Inadequate funding
4 Unavailability of Mortgage Loans
5 Change in government
6. Inadequate infrastructure
7. Poor administration of the policy

8. List Below are Ascertain role of banks in housing delivery system in the study area.
Rank them accordingly using likert scale defined; Strongly Agree = 5,
Agree = 4, Undecided = 3, Disagree = 2, Strongly Disagree= 1
S/N Factors 5 4 3 2 1
1 Provide fund for low-income earners
2 Easy access to loans
3 They are registered providers of mortgage
facilities
4 They easy know who are qualify to access loans

37