Perception of Low Income Earners on the Performance of Mortgage Institutions in Housing Finance in Lafia, Nasarawa state, Nigeria

Iliyasu Ibrahim, Maryam Salihu Muhammad, Umar Auwal, Daniel Raymond


The problem of housing provision by the mortgage industry which includes financing has always being a major concern to the public as a whole. This study investigated the performance of mortgage institutions in housing finance for low-income earners in Lafia metropolis, Nigeria. The objective is to assess the performance of mortgage institutions from low-income earners’ perception. Data was collected through a questionnaire survey from 314 low-income earners randomly selected from the targeted population in Lafia metropolis. The data collected were subjected to descriptive statistics with mean ranking to examine the degree of agreement and the significance of the various variables. The study revealed that performance factors such as collateral, loan maturity period and loan requirement, etc. were highly ranked as the most performed area by mortgage institutions. It is recommended that government and stakeholders should reduce the high rate of interest, make mortgage loans accessible and affordable to low-income earners and also increase the funding of mortgage institutions. This study reinforces other research works on the performance of mortgage institutions in housing finance.


Mortgage institutions; housing; finance

Full Text:



Abiodun, A. (1999). Housing finance under National Housing Fund. An appraisal paper presented at the General Meeting of the Nigeria Institute of Town Planning.

Adedeji, Y. M. D., & Abiodun O. O. (2012). An Evaluation of Accessibility of Low-Income Earners to Housing Finance in Nigeria. European Scientific Journal, 8(12), 80–95.

Adedokun, O. A., Akinradewo, F. O., Adegoke, J. O., & Abiola-Falemu, J. O. (2011). Evaluation of the Performance of National Housing Fund Scheme towards Housing Delivery in Nigeria. Journal of Emerging Trends in Economic and Management Science, 2(6), 467-471.

Agbola, T. (1998). The housing of Nigerians: a review of policy development and implementation in the housing sector. Ibadan: Development Policy Centre.

Akinjare, V., Adetiloye, K., Akhanolu, I., & Tochukwu, O. (2016). The Assesment of the Contribution of Primary Mortage Institutions to Housing Finance in Nigeria: A Case Study of Union Homes Savings and Loans PLC. Asian Journal of Information Technology, 15(13), 2094–2100.

Alagbe, O. A. (2011). Enhancing Sustainable Housing Development in Nigeria Using Compressed Stabilized Laterite Bricks. Journal of Sustainable Development and Environmental Protection, 1(3), 51–59.

Arilesere, D. (1997). Housing Finance in Nigeria. A paper presented during Nigerian Institute of Building organised workshop on Affordable Housing, Lagos.

Bichi, K. M. (2000). The Role of Federal Mortgage Bank of Nigeria in Financing and Procurement of Housing Infrastructure in Nigeria. Workshop paper organized by the Nigeria Institute of Quantity Surveyors, Abuja. CBN, (1990). Economic and Financial Review. CBN, Lagos.

Buckley, R., & Kalarickal J. (2013). Shelter strategies for the urban poor idiosyncratic and successful, but hardly mysterious. Washington: World Bank.

Chatterjee, L. (1982). Housing in Indonesia. Amsterdam: Free University.

Chiquier, L. & Lea, M. (2009). Housing finance policy in emerging markets. Washington: World Bank Publications.

Denise, D. & Wheaton, C. (1992). The Markets for Real Estate and Space: A Conceptual Framework, Journal of the American Real Estate and Urban Economics Association, 20(1), 181–197.

Durlauf, S., & Blume, E. (Eds.). (2018). New Palgrave Dictionary of Economics (2nd ed.). London: Palgrave Macmillan.

George, D., & Mallery, P. (2006). SPSS for Windows Step by Step: A Simple Guide and Reference, 13.0 update (6th ed.). Boston: Pearson.

Lea, M. J., Bernstein, S. (1996). The role of the primary mortgage market in the development of a successful secondary mortgage market. Washington: Inter-American Development Bank.

Mailafia, O. (2007). The place and prospects of mortgage financing in the economic and financial systems reforms in Nigeria. A paper presented at year 2007 Board/Staff Retreat. Federal Mortgage Bank Nigeria, Jos, March 23–24, 2007.

Nubi, T. O. (2002). Financing Low Income Housing in Nigeria Cities: – Need for Paradigm Shift. In Proceeding, National Conference on Cities in Nigeria, 9–11 October 2002 (p. 135–138.). Ile-Ife: Obafemi Awolowo University. Retrieved from

Oduwaye, L. (2008). Challenges of Housing Finance by Primary Mortgage Institutions in Lagos Nigeria. Retrieved from$FILE/Nigeria%20Desktop.pdf

Ogedengbe, P. S., & Adesopo, A. A. (2003). Problems of Financing Real Estate Development in Nigeria. Journal of Human Ecology, 14(6), 425–431. doi: 10.1080/09709274.2003.11905648

Okupe, L. (2000). The Role of Private Sector in housing Delivery in Nigeria. Retrieved from

Onabule, D. (1990). Housing Delivery in Nigeria National Workshop on Housing Delivery in Nigeria. Abuja.

Oni, S. A. (2005). Mortgage Institutions and Financing in Nigeria: Performance, Constraints and Prospects. Central Bank of Nigeria Economic and Financial Review, 43(4), 77–82.

Tiwari, P., & Moriizumi, Y. (2003). Efficiency in housing finance: a comparative study of mortgage instruments in Japan. European Journal of Housing Policy, 3(3), 267–288. doi: 10.1080/14616710310001630721

United Nations. (1984). Promotion of non-conventional approaches to housing finance for low-income groups. Nairobi: United Nation Centre for Human Settlements.

US Census Bureau. (2010). 2010 US Census United States. Washington: Census Bureau. Retreieved from

Warnock, V. C., & Warnock, F. E. (2008). Markets and housing finance. Journal of Housing Economics, 17(3), 239–251. doi: 10.1016/j.jhe.2008.03.001

Zubairu, M. (1997). Housing Development in Nigeria: The Federal Housing Authority Experience. Workshop on Financing and Procurement of Housing and Infrastructure, The Nigerian Institute of Quantity Surveyors. Lagos.

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM


  • There are currently no refbacks.

Copyright (c) 2019 Iliyasu Ibrahim, Maryam Salihu Muhammad, Umar Auwal, Raymond Daniel

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.