Investment in Public Sector Housing in Nigeria: An Empirical Analysis

Abstract

This study evaluated the influence of government expenditure on Housing project development in Nigeria, over the period of 1980 to 2016 while utilizing secondary sourced data culled from the central bank of Nigeria Statistical Bulletin. The study utilized analytical techniques such as Unit root/stationarity test, ordinary least square, cointegration test and granger causality as well as graphical representation. It was discovered that Government Recurrent Expenditure (GRE) has a positive and significant relationship with Housing Development proxied as Housing Stock (HOS), Government Capital Expenditure (GCE) has a positive and significant relationship with Housing Development in Nigeria proxied as Housing Stock (HOS), and Overall, judging by the calculated F-statistics, it can be concluded that Government expenditure has a significant impact on Housing Development in Nigeria especially in the short run, it was thus recommended that Government should increase their expenditure on projects that will enhance Housing Development; Government should channel their expenditure to productive sectors of the economy in order to increase Housing Development; Necessary enabling legislations should be enacted and incentives given to institutions that are financing housing projects in Nigeria so as to encourage them to be more aggressive in mobilizing idle resources from the public via the money and capital market. Also, Federal Mortgage Bank of Nigeria (FMBN) which is the apex mortgage institution in the country should be reorganized and empowered to ensure proper capitalization and improved service delivery, given its mandate as a regulatory body and the significant influence it has on housing development in Nigeria.

Keywords: Housing development, Government Expenditure, Mortgage Financing

DOI: 10.7176/RJFA/11-8-16

Publication date: April 30^th 2020