Factors Influencing the Choice of Housing Financing Models that Enhance Delivery of Housing Projects in Niger State

Abstract

Focus on finance for housing projects has been more prominent due to huge financial resources that is required for provision of decent houses which is practically not at the disposal of low- income earners in Nigeria. Literature review revealed that Niger State Government, at all levels, accorded high priority to the provision of low-cost housing. Thus, the government adopted PPP as a procurement method for affordable housing development but it has not been fully realized. It is against this background that, this study aimed to identify the factors that influence choice of financial models for housing development in Niger state. Quantitative approach through questionnaire survey was used to collect data from Developers, Government representatives, Financial Institutions, Primary mortgage institution and Professionals in the build environment such as Architect, Quantity Surveyor and Builders. A total of 200 questionnaires were administered and 150 were retrieved and used for the analyses. The data collected were subjected to descriptive statistical analysis using mean score and data reduction techniques on SPSS. The results from quantitative analysis affirm the use of down payment grant financing model, Mortgage payment subside model, Mortgage interest deduction model and Credit enhancement as a viable alternative to financing model currently in use to finance affordable housing project by Niger State government. This study identifies factors such as: stringent condition, inadequate funding, research and development, Government programme and policies, and project to be financed. It concluded that stringent condition by primary Mortgage institutions, and inadequate funding are the most factors influencing the choice of financing model for successful delivery of housing projects in Niger State