MORTGAGE FINANCE, MACROECONOMIC FACTORS AND HOUSING DEVELOPMENT IN NIGERIA
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Date
2025
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Economics and Allied Research
Abstract
Despite the critical role of housing as a component of economic growth and social stability,
literatures has shown that housing development in Nigeria can be constrained by lack of longterm financing, as well as macroeconomic factors. This study examines the intricate
relationships between mortgage finance, housing development and the interactive effect of
macroeconomic factors in Nigeria. This research employs data on housing delivery, mortgage
finance and macroeconomic factors, sourced from the Central Bank of Nigeria (CBN)
statistical bulletin and Federal Mortgage Bank of Nigeria (FMBN) annual audited report
between 2005 to 2022. The research adopt an expos factor and experimental descriptive design.
Pre-estimation test such as unit root test and Bound test were employed to test for stationarity
and cointegration. Empirical analysis was conducted using the Autoregressive Distributed Lag
(ARDL) model. Findings from this study revealed that mortgage loan interaction variable have
a very weak positive effect on housing delivery in the long run, with a coefficient of 0.005230
(p-value; 0.0005), mortgage equity’s negative effect was also reduced in the long run, with a
coefficient of -0.001611 (p-value; 0.0268). Mortgage interest rate was also found to have a
reduced negative effect on housing delivery in the long run, with a coefficient of -0.005316 (pvalue; 0.0003). The research concludes that macroeconomic factors’ interaction with mortgage
finance negatively affects changes in housing delivery. Consequently, the research
recommends that policymakers implement holistic measures to stabilize the economy, while
incentivizing mortgage lending to guarantees access to adequate and affordable housing for
Nigeria’s growing population.