THE ROLE OF FINANCIAL INSTITUTION IN HOUSING DEVELOPMENT IN NIGERIA
CHAPTER ONE
INTRODUCTION
Right from time, food, clothing and shelter have been the three most basic requirement of man of all these three requirements food and clothing are the two, which influence man’s life more than the house in which he seeks shelter, security comfort and dignity. It is infact where man starts and ends his dairy activities.
Housing is mainly the most import factors which determine the nature and form of urban settlements and the quality of human existence is directly related to it:
Housing:
Is defined by Oyeyipo (1980) to mean, the provision of any form of structure, erection of building which is man made for the purpose of accommodating a person or person by talking housing to mean only shelter the definition appears defective as it ignores all those infrastructure facilities which housing brings along with it.
The world health organization committee on housing defines it as “the physical structure than uses for shelter including equipment and devices needed for physical and social well being of the occupant” 2 such equipment and devices include utilities and services like electricity, water supply, good access roads sewage and refuse damp facilities.
The fact remains that Port Harcourt metropolis has been the administrative centre for the then eastern region,
Port Harcourt metropolis is occupied mainly by government workers with low income. This position makes it difficult to meet the high cost of housing development for their use. They therefore rely on credit from both official and informal sources to find funding for housing, and the Port Harcourt metropolitan area also consists of river basins and wetlands.
“Are existing financial institutions in the Port Harcourt metropolitan area sufficient to meet the mortgage needs of these low-income residents of the Port Harcourt metropolitan area?” If not, how can the situation be improved? do you want?
This study therefore aims to examine the existing financial structure of the Port Harcourt metropolitan area to find out how efficiently it functions and to make suggestions on how the system can be improved.
Research background
Housing development is a basic and essential function in the urban environment. Adequate supply of housing has a very positive effect on the economic and social life of city dwellers, but its insufficiency has the opposite effect.
Lack of housing is one of the major problems in urban areas, especially in developing countries. Therefore, real estate development can require significant capital, which is typically not within the capabilities of most urban dwellers, especially low- and middle-income families, and housing construction rates are often fairly low and generally It depends on your financial resources.
Such financial difficulties are exacerbated by the strict stance of financial institutions on mortgage loans. Their financing system makes it very difficult for middle and low income people to access available facilities. Most of the mortgages go to the upper class.
The purpose of this study is to examine Urban River State’s existing financial structure to determine whether it is sufficient to meet the housing needs of Port Her Harcourt residents.
1.3 Purpose of research
The purpose of this study is to examine the financing situation of residential real estate in the metropolitan area of Port Harcourt.
Evaluation of existing financial institutions
Opportunities for improvement
Providing decision makers
With decision support function
1.4 Importance of research
The study of real estate finance is highly valuable and can be used to achieve specific academic goals. We can educate governments, students and researchers alike on the importance of housing finance.
The overall outcome of this research is educational, informative, and raises public awareness of current sources of funding for residential real estate in settlements.
Real estate professionals and appraisers can incorporate the findings into future home financing plans and public advisory functions.
This research will be used to create new housing development policies and ensure their implementation. Housing policies that do not prioritize funding sources will always remain imperfect. It also serves as a basis for funding housing development programmers.
1.5 Limitations of the study
Securing the data for this study was no easy task.
This is due to the nature of the research. Some respondents collected questionnaires and did not return them. Some felt that the study would not offer a raise or salary, while others argued that the information could be used for other purposes — other than academic, which the researchers claimed.
Other problems researchers encounter during research include inability to access the research area. Since there is nothing, personnel must assist researchers.
1.6 Limitations of the study
The main limitation I encountered during the course of this project was the lack of funding, which limited research in certain areas.
Again, the time factor is the limiting factor in this study, as I divide my time between my projects and other academic pursuits. Finally, there is no proper textbook on this subject. I would like to take this opportunity to encourage experts in this field to write more books to help young people.
1.7 Definition of terms
Certain terms are used in this work, but their definitions are relevant to the study for ease of understanding.
A land development is a group of dwellings on a site built for residential purposes only, not for commercial or industrial purposes.
Usually built for residential use. It has the attributes of living shelter, security, comfort privacy investment and personal identity.
Financial institution:
Is defined as informational or formal act of providing money ““n this sense financial planning, the estimating of cash receipt and disbursement.
Finance may be defined as the management function of managing the flow of funds in an organization. It is also seen as the provision of money or means of payment at the time it is wanted, Aniagolu (1997).
Finance as defined by western” dictionary is the science of managing money” here it concerns the control of money by individuals. 3 Development
The term development is most often used in connection with property appraisers, who refer to it as construction equivalent to or resulting from the use of land with the improvement or reimprovement of already occupied property. Consider it a way to start working.
According to Toda Ro (19)
Development means accelerating economic growth, reducing inequality, eliminating absolute ownership, but also a multidimensional process involving structural, attitude and institutional tensions.
On the other hand, ‘development’ has many definitions. Town and Country Plans of England.
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