Abstract:
Housing plays a crucial role within a nation’s economy, necessitating a significant focus on financing housing projects due to the substantial financial investments required. This financing challenge is particularly pronounced for providing suitable housing to low-income earners in Nigeria. This study aims to assess the impact of different housing financing models on the execution of housing projects, aiming to improve the accessibility and affordability of housing for individuals belonging to the low and middle-income strata. Existing literature underscores the commitment of the Niger State Government towards low-cost housing initiatives, with a preference for Public-Private Partnerships (PPPs) as a procurement method. However, the full realization of the potential of this approach remains incomplete.
In this research, a quantitative approach using a questionnaire survey was employed to gather data from various stakeholders including developers, government representatives, financial institutions, primary mortgage institutions, architects, quantity surveyors, and builders. Employing a random sampling technique, 200 questionnaires were distributed, and 150 responses were collected for subsequent analysis. Descriptive statistical techniques, encompassing mean scores and data reduction methods via SPSS, were applied to the collected data. The quantitative analysis results informed decisions through mean scores and rankings, leading to the identification of viable alternative financing models for affordable housing projects undertaken by the Niger State government.
The outcomes of the quantitative analysis favored several financing models, with Mortgage Payment Subsidy model (mean score of 4.40), Down Payment Grant Financing model (mean score of 4.03), Secondary Market Mortgage Finance model (mean score of 3.84), Housing Cooperative model (mean score of 3.53), and Unbundle Mortgage Finance model (mean score of 3.52) emerging as preferable alternatives to the current financing approach. Additionally, this study pinpointed critical factors influencing these models, including stringent conditions, funding availability, research and development, government programs and policies, and the specific project to be financed.
Furthermore, this research unveiled significant challenges associated with these financing models, encompassing capital constraints, limited access to finance, unfavorable government policies, inflation, issues with building materials, complications related to the land use act, property registration hurdles, and infrastructural limitations. To address these issues comprehensively, the study constructed a comprehensive framework delineating the effective financing models, their corresponding factors, and associated challenges.
Consequently, this study emphasizes the importance of considering all identified factors and challenges when selecting an appropriate financing model. As a key recommendation, stakeholders including the government, housing providers, and developers are urged to adopt the developed framework to ensure the successful and efficient delivery of housing projects within Niger State.
Assessing the Importance of Housing Financing Models for Advancing Sustainable Housing Projects in Niger State, GET MORE, ACTUARIAL SCIENCE PROJECT TOPICS AND MATERIALS
