Thesis Abstract

Abstract
Mortgage banking in Nigeria has undergone significant development over the years, starting from its inception to its current state. This research paper delves into the historical evolution of mortgage banking in Nigeria, highlighting the achievements made and the challenges encountered along the way. The historical development of mortgage banking in Nigeria can be traced back to the establishment of the Nigeria Building Society in 1956, which marked the beginning of formal mortgage financing in the country. Subsequent years saw the emergence of various mortgage institutions and policies aimed at promoting homeownership and real estate development. One of the notable achievements in the history of mortgage banking in Nigeria is the establishment of the Federal Mortgage Bank of Nigeria (FMBN) in 1977. The FMBN was created to provide long-term credit facilities to mortgage institutions and promote the development of the mortgage market in Nigeria. Additionally, the creation of the Mortgage Refinance Company (NMRC) in 2013 was a significant milestone, aimed at providing liquidity to the mortgage market and increasing affordability for potential homeowners. Despite these achievements, mortgage banking in Nigeria faces several challenges that hinder its growth and effectiveness. Some of the major problems include inadequate access to long-term funds, high interest rates, lack of proper land titling system, and low levels of awareness about mortgage products among the populace. These challenges have contributed to the low mortgage penetration rate in Nigeria, which remains significantly below its potential. In conclusion, the historical development of mortgage banking in Nigeria has seen both achievements and challenges. While progress has been made in establishing institutions and policies to promote mortgage finance, there is still much work to be done to address the existing challenges. By tackling issues such as access to long-term funds, interest rates, land titling, and awareness, the mortgage banking sector in Nigeria can achieve its full potential and contribute to the growth of the real estate market and homeownership in the country.

Thesis Overview

The Nigeria building society was the mortgage institution to be established in 1956 to finance house building not necessity home ownership. It was financed by substantial equity by the colonial later common wealth development corporation (CIX) and the federal and regional government in the regions housing corporation were established,  pretty to build and save or let estates. Housing and mortgage finance represents the third area where special intervention is made necessary by the shear magnitude of the problem.

The federal mortgage bank of Nigeria (FMBN) was established in  1977 as a fully owned federal government housing development finance agency under the federal mortgage bank act No 7 of 1977. This step followed the dissolution of the Nigeria building society (NBS) whose assets and liabilities were taken over by the FMBN. The Nigeria building society was self incorporated in December 1956 with a capital of N3.25m and jointly owned by the common wealth development corporation (CDC) the federal government of Nigeria and the eastern Nigeria government in the proportion of 60 percent, 31 percent and 9  percent respectively. The federal military government however took over the (CDC) share of the time federal mortgage bank of Nigeria (FMBN) was established in 1977 was N20 million (FMBN 1987 Dimy) .

The Dutch first of Bereuschot morel Bosboom (management consultant) was contracted by the federal government to supervise the take off the new bank for a 3 years period from 1977. With the exist of the Dutch management consultant in July 1980 the management operations of the bank become wholly indigenous  at the same time there was also a changer in the authorized share capita and ownership structure of the bank the authorizes share capital increased to N150 million jointly subscribed by the federal government and the central bank of Nigeria in the proportion of 60 percent and 40 percent respectively the federal government appoint the chairman and mebers of the board of Directors By 1931, the bank has estabilished branches in all the state capitals. Underscoring its national out look since than additional forty-three (43) home savings center had been established in major area outside the state capitals. This is decidedly to expand its sprend of service delivery as well as to widen its savings mobilization base.