ABSTRACT

The need to assess the various avenues towards individuals housing construction as well as their sources of funding is imperative. The study examines access to finance for housing development in Federal Polytechnic, Idah using the cooperative scheme as a case study. It assesses the challenges of source of finance for housing development. The study utilizes clustered and random methods of sampling to select the School, Departments and Staff in the institution for data collection. Out of 77 questionnaires administered, 45 questionnaires were retrieved making a return rate of 58%.  The data collected through the structured instrument was subjected to descriptive and statistical analysis. The study reveals that Cooperative scheme is a major source of finance for housing development this is because the condition attached are less stringent than bank loan/facility  and majority of the respondents are not significantly aware of National Housing Trust Fund (NHTF) as a source of funds for housing development. It was also observed that informal source is the major source of finance for the low-income earner and that the level of access to finance for housing development is very low. It further shows that funds obtained from Cooperatives societies for housing development are often insufficient. The study recommends that public awareness should be embarked upon for mortgage finance and the stringent conditions required for housing loan should be reviewed. Also, the integration of the formal and informal mechanisms for effective access to finance is inevitable. Other recommendations and conclusion in the last chapter if adopted will go a long way in making Cooperative society a viable source for financing staff home ownership.

TABLE OF CONTENT

Cover page-----------i

Declaration -----------ii

Certification----------- iii

Dedication---------- iv

Acknowledgement---------- v

Abstract -----------vi

List of tables---------- vii

Table of content ----------viii

CHAPTER ONE

INTRODUCTION 

Background of Study---------1

Statement of the Research Problem  -------3

Aim and Objectives --------4

Aim-----------4

1.3.2 Objectives----------4

Scope of the Study---------4

Hypothesis Formulation --------4

1.06  Significance of Study --------5

1.07 Brief Description of the Study Area-------5

1.07.1 List of Schools Available at Federal Polytechnic, Idah---7

1.07.2 List of Courses Offered at Federal Polytechnic, Idah----7

1.08 Definition of Terms---------8

CHAPTER TWO

LITERATURE REVIEW 

2.1 INTRODUCTION

2.1.1 Finance----------11

2.1.2 Housing Finance---------11

2.1.3 Cooperative Societies--------14

2.2 Historical Background of Cooperative Societies in Nigeria.---14

2.3 Roles of Cooperative Societies in Financing Housing 

Delivery in Nigeria.--------16

2.4 Types of Cooperative Societies in Nigeria ------16

2.5. The Objective and Organisation of Housing Cooperative---17

2.6 Advantages and Disadvantages (Drawback) of Housing Cooperatives --18

2.6.1 Advantages of Housing Cooperative.------18

2.6.2 Drawback (Disadvantages) of Housing Cooperative----18

2.7 Major Elements of Housing Finance------19

2.7.1 There are Essentially Three Major Elements Involved in any Loan--20

2.7.2 There are at Least Seven Major Ways of Providing Housing Finance-21

2.8 An Overview of Other Models -------22

2.8.1 Cooperative Housing in Australia-------22

2.8.2 Cooperative Housing in America-------23

2.8.3 Comparative Analysis of the Two Models-----24

2.8.4 Comparative Analysis of American and Australian 

Cooperative Housing Models--------24

2.9 Nigerian Experience at Cooperative Housing-----26

2.10 Applying the Cooperative Principle to Contemporary 

Housing Provision---------27

2.11 Operational Framework--------28

2.11.1 The Ministry of Lands, Housing, and Urban Development---30

2.11.2 Central Bank of Nigeria (CBN)-------30

2.11.3 Federal Mortgage Bank of Nigeria (FMBN)-----31

2.11.4 Securities and Exchange Commission (SEC)-----32

2.12 Summary of Literature Review-------32

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Type of Data and Sources--------34

3.2 Sampling Frame and Size--------34

3.3 Method of Data Analysis--------35

3.4 Hypothesis Test Statistics--------35

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

4.2 Sources of Finance for Housing Development by the 

Respondents----------37

4.2 The Contribution of the Cooperative Societies to the 

Housing Development--------38

4.3 The Income Range of the Respondent (Staff) in the Study Area---38

4.4 Repayment Mode of the Members of the Cooperatives ----39

4.5 Type of House the Respondents Build with the Loan----39

4.6 The Repayment Period of the Cooperatives-----40

4.7 The Cooperative Societies that Provide Loan for House Development--40

4.8 Source of Additional Finance for Housing Development----41

4.9 Awareness and Contribution to National Housing Trust Fund

 (NHTF) in the Study Area---------41

4.10  Preference of Finance for Housing Development Through  Cooperative Societies, Commercial Banks and National Housing 

Trust Fund (NHTF)---------42

4.11 Requirements and Processes for Accessing Cooperative Loan, 

Bank Loan and National Housing Trust Fund (NHTF)----42

4.11.1 Procedures to Accessing Finance for Housing Development---42

4.11.3 Weak Affordability for Loan Repayment-----44

4.11.4 Lengthy Procedures for Accessing National Housing 

Trust Fund (NHTF) Loan--------45

4.12  Challenges of the Various Sources and Implications for

Housing Development--------45

4.12.1 Personal Income/Savings--------45

4.12.1.1 Delay in Completion of Buildings------45

4.12.1.2 Low Income---------46

4.13.1 Cooperative Loan---------46

4.13.1.1 Inadequacy of Loan--------46

4.14.1 Commercial Banks---------47

4.14.1.1 High Interest Charged on Loan-------47

4.14.1.2 Short Repayment Time--------48

4.14.1.3 Lengthy Procedure--------48

4.15.1 National Housing Trust Fund (NHTF)------48

4.15.1.1 Weak Affordability for Loan Repayment-----48

4.15.1.2 Lengthy Procedures for Accessing National

Housing Trust Fund (NHTF) Loan------48

4.15.1.3 High Equity Contribution (Down Payment)-----49

4.16 Test of Hypothesis---------49

4.16.1 Statement of Hypothesis--------49

4.16.2 Decision Rule---------50

4.16.3 Computation of Test Statistic-------50

4.16.4 Decision----------51

4.16.5 Inferences----------51

4.17 Discussion of Result---------51

4.18 Summary----------51

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION

5.1 Introduction----------52

Summary of Findings---------52

5.3 Recommendations---------53

5.4 Conclusion----------56

References  

Appendix