CHAPTER ONE
1.0 GENERAL INTRODUCTION
Since the creation of man, he has been faced with three basic problems via: Food, Shelter and clothing. Man in an attempt to solve these problems has undergone serious of trials to which no end is tat sight. The problem of food is still the problem of mankind. MORTGAGE FINANCE. Shelter is universally accepted, as essential human needs that man cannot do without. Some people rank it second to food in the hierarchy of man’s needs.
Shelter is also paramount in the mind of every man that he is prepaid to give up other needs to have one, having one at least is seen and rightly too as a mission accomplished. In the bid to solve these problems, more and more problems are being encountered.
In any give society, the government takes it upon them to see that three basic needs of nature are handled so as to pose at least a minimum problem to the society. In Nigeria like any other developing nation, housing a monstrous problem. Particularly in our urban towns. Since independence in 1960, government policies have been directed towards effective housing delivery in order, to make life better and increase productivity, but the achievement are below expectation because of many other demands on the government resources.
The persists increase in population, devaluation of Naira through foreign exchange market, hyperinflation rural – urban migration have resulted into over crowded homes ,increasing pressure non infrastructure facilities, thus accounting for the regularly deteriorating environment and usually collect savings and deposits from the public but mainly depends state government budget allocation for direct housing development, local thrift institution are usually not mortgage finance institution as properties are rarely accepted as collateral. Thus mortgage banking, as specialized development banking becomes obvious.
Between 1987 and November 1993, the federal mortgage Bank of Nigeria licensed 251 primary mortgage institutions. Although, most of the PMIS were concentrated in the urban centre especially Lagos, this could however, finance landed properties in any part of the country.
This study shall discover how far the FMBN has been able to achieve its objectives, consider its contribution to the economy so far, its problems, way of solving them, its prospects and also recommend ways to improve its services or keep its existence.
1.1 OBJECTIVES OF THE STUDY
The reason behind the study of this type centers on the environment and the quality of human existence, which has a direct relationship with the environment in which we lives. This environment comprises mainly the devilling houses it is the intention of this research work to look into the finance of housing/ shelter, which should be the priority of every government, most especially where its supply is inadequate. The study of this topic is very essential considering the fact hat the mortgage institution are the pillar of the construction industry which of not well handled in an economy like our will lead to a downfall of the construction industry which if not well handled in an economy like our will lead to a downfall of the construction industry.
Housing, as a capital intensive project without private sector participation in provision of finance and other infrastructure to complement the efforts of the government made the achievement so significant until 1989 when primary mortgage institutions (PMIS) Decree 53 of 1989 was promulgated.
