MORTGAGE-BACKED SECURITY AS AN OPTION FOR SOLVING THE NIGERIAN HOUSING PROBLEM
Osemwenkhae, O. and Edokpolo, A. C.
Volume 12 Issue 3
Abstract
This study examines mortgage-backed securities as an option for solving the Nigerian housing problem. We identify the challenges inhibiting housing development in Nigeria and suggest mortgage-backed security as a solution for solving these problems of housing in Nigeria. The study also examines the impact of Primary Mortgage Institutions on housing delivery in Nigeria, covering the period from 1995 to 2022. Secondary data were sourced from the Central Bank of Nigeria's statistical Bulletin. The Model was formulated, and data were analyzed using multivariate ordinary least squares (OLS) regression. A preliminary test was conducted using descriptive statistics and correlation analysis. The regression result shows that the primary mortgage institutions' loans have a positive and significant effect on housing delivery, while primary mortgage institutions' (PMIs) deposits and investments have a negative and insignificant effect on housing delivery. The result further reveals that the cost of building exerts a negative and significant effect on housing delivery. The study recommends that PMIs should increase their loanable funds for the construction of both residential and commercial houses for them to continue to improve their impact on the provision of housing in Nigeria. Also, PMIs should increase their investment in physical infrastructure and associated facilities of buildings, instead of investing in assets and securities that PMIs may engage in with their surplus funds. Keywords: Housing Problems, Housing Development, Mortgage-Backed Security, Primary Mortgage Institution, investments
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