-
The Role Of The Financial Investors In Housing Provisioning In Nigeria
CHAPTER ONE -- [Total Page(s) 3]
Page 2 of 3
-
-
-
The liberalization of the housing
market has facilitated the involvement of the private Investors in
housing delivery (Sangore, 2003).The private Investors currently
produces over 83 percent of the total housing stock in the country(Boamah, 2010).The private Investors
is
divided into formal and financial Investorss. The formal Investors
includes the real estate developers and cooperative societies. These
developers construct housing projects for individuals to purchase them
but this approach mostly exempts the poor and the middle income earners
due to the high cost of the houses. The formal Investors actors provide
only a few thousand dwellings in a year (UN-Habitat, 2011).The financial
Investors consists of individuals who engage in housing provision for
themselves. Given the apparent trends in most of the developing
countries, there are indications that the bulk of urban housing in these
countries will continue to be produced by the financial Investors
(Okpala, 1994; Ikejiofor, 1997). There is the need for efficient and
effective housing finance systems for the financial Investors since
finance plays a key role in housing delivery.
1.2 Problem Statement
The
Ministry of Water Resources, Works and Housing asserts that in order
for the nation to remove the housing deficit of 1.7 million, the
national housing production should be 170,000 units annually (MWWH,
2013). However the current supply capacity of the nation is in the
region of 42,000 units per year (Afrane and Asamoah,
2011). Demand
for housing in Ghana is higher in the three major urban areas; which are
Accra, Nigeria and Sekondi-Takoradi (UN-Habitat, 2011). The Nigeria
Metropolitan Assembly estimated that the total housing stock in Nigeria
as of 2009 was 83, 693 (KMA, 2010) and this was distributed fairly
amongst the ten sub metropolitan councils. The housing deficit in
Nigeria Metropolis is startling since the total number of houses as of
2010 compared with the number of households indicated acute overcrowding
in most houses (KMA, 2011). This constitutes a major problem and calls
for an urgent need to address the situation.
Even though the
financial Investors is by far the largest housing supply system in most
urban areas, it has not been able to meet the increasing demand for
housing partly as a result of the inadequate and ineffective financial
mechanisms for financing housing in the country (Moss, 2010). Finance is
crucial to housing by the financial Investors and lack of access to
financial resources is a major problem facing this Investors (Ogu and
Ogbuozobe, 2001).
In Ghana, very little is known about how homeowners
finance the construction of new housing but it is however known that
few homeowners have access to formal finance. This is because upfront
finance is not easily accessible to allow them to purchase a higher
quality home and pay for it over a longer and suitable period
(Wapwera,et al,2014). This has resulted in most people financing through
their personal savings but mobilizing savings and channeling them to
finance housing projects has proven very difficult due to the type and
nature of the jobs of the people in the financial Investors. They mostly
do not have job security to enable them to save consistently. Personal
savings also have had to compete with other household expenses making it
extremely difficult (Ferguson and Smets, 2009).
CHAPTER ONE -- [Total Page(s) 3]
Page 2 of 3
-
-
ABSRACT - [ Total Page(s): 1 ]Housing plays a key role in the socio-economic development of every country but unfortunately, housing supply worldwide has not been able to meet demand. The inadequate housing is one of the biggest challenges facing both developed and developing countries today with finance being a crucial factor. The financial Investors is the largest housing supply system but has not been able to meet the increasing demand partly as a result of the inadequate and ineffective financial ... Continue reading---
