Primary Mortgage Institutions Financing Options And Housing Sector Development In Nigeria

Among, the necessities of life, food, clothing, and shelter are the three most important needs that an individual requires and that must be made available by the government of a nation to its populace, but in Nigeria shelter has continuously become a menace among the citizens. Based on this lacuna, this study examined the impact of primary mortgage institution financing options and housing sector development in Nigeria. The study adopted ex-post facto research design where panel data was sourced from audited financial statements of eight (8) primary mortgage institutions in Nigeria, from the year 2011 to 2022. The convenience sampling technique was used in selection of the mortgage banks for data availability purposes. The panel regression estimation technique was applied on the model intending to examine the impact of the financing option of customer deposit, national housing fund, development loan, and shareholder equity on housing development proxied with urban population. The findings from fixed effect model revealed that national housing fund and shareholder’s equity have positive and significant effect on the urban population while customer deposit has negative and significant effect on urban population in Nigeria. It is concluded that national housing fund in the treasury of the primary mortgage institutions should be channeled accurately with the required interest thereby improving on the housing development in the economy.