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MANAGEMENT BASED NATIONAL HOUSING FUND SCHEME

 

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The management-based National Housing Fund (NHF) scheme was established in Nigeria to address the critical shortage of affordable housing for its citizens. Launched in 1992 by the Federal Government of Nigeria, the NHF is a social security initiative that aims to mobilize financial resources for housing development across the country (Olusola et al., 2020). The NHF was created with the goal of providing a sustainable source of funding for housing development through contributions from employers and employees in the formal sector. This scheme reflects the Nigerian government’s commitment to tackling the housing crisis, which has persisted despite various policies and initiatives over the years (Adebayo & Jiboye, 2021).

Housing is a fundamental human need, and access to adequate housing is essential for enhancing the quality of life. However, Nigeria faces a significant housing deficit, estimated to be around 17 million units, with projections suggesting that this figure could rise to 28 million by 2030 if not addressed (Ogunjimi, 2023). This shortage poses significant challenges, especially for low- and middle-income families, who struggle to secure financing for homeownership. The NHF scheme seeks to alleviate these issues by providing affordable mortgage financing to contributors, thereby enabling them to acquire homes more easily (Ayedun et al., 2019).

The management aspect of the NHF scheme is crucial to its success. It involves the effective administration of funds, ensuring transparency, and accountability in the disbursement and utilization of resources. Additionally, proper management practices help in maximizing the impact of the fund on housing development, ensuring that it reaches the intended beneficiaries (Adebayo & Jiboye, 2021). Effective management of the NHF scheme is essential for addressing systemic challenges within the housing sector, including corruption, bureaucratic inefficiencies, and the lack of adequate infrastructure.

Moreover, the NHF scheme has introduced several initiatives to enhance housing delivery, including the establishment of the Federal Mortgage Bank of Nigeria (FMBN), which acts as the principal financial institution for mortgage financing in the country (Ogunjimi, 2023). Through the NHF, the FMBN offers loans at relatively low-interest rates, making homeownership more accessible to a larger segment of the population. Furthermore, the NHF scheme encourages private sector participation in housing development, which is critical for addressing the housing deficit effectively.

The implementation of the NHF scheme is not without challenges. Issues such as poor public awareness, inadequate funding, and inefficient management practices hinder the full realization of its objectives (Olusola et al., 2020). The effectiveness of the NHF scheme depends significantly on its management, as this influences its ability to mobilize resources, disburse funds efficiently, and ensure that housing projects are completed in a timely manner (Ayedun et al., 2019). Furthermore, a lack of transparency and accountability within the scheme has led to public distrust, which can undermine its overall effectiveness.

Despite these challenges, the NHF scheme represents a significant step towards addressing Nigeria’s housing crisis. By fostering a culture of saving among contributors and providing access to affordable mortgage financing, the NHF aims to empower individuals to achieve homeownership and improve their living conditions. As such, the need for effective management practices within the NHF scheme cannot be overstated. Researching and evaluating the management of the NHF scheme will provide insights into its effectiveness and inform policy recommendations for enhancing its impact on housing delivery in Nigeria (Adebayo & Jiboye, 2021).

In conclusion, the NHF scheme plays a pivotal role in addressing Nigeria's housing deficit by mobilizing resources for affordable housing. Effective management practices are essential for the successful implementation of the scheme, and ongoing research is necessary to identify challenges and opportunities for improvement. This study aims to contribute to the existing body of knowledge by evaluating the management of the NHF scheme and its implications for housing delivery in Nigeria.

1.2 Statement of the Problem

The persistent housing deficit in Nigeria is a critical challenge that has far-reaching implications for socio-economic development. Despite the establishment of the National Housing Fund (NHF) scheme to address this issue, many low- and middle-income earners remain unable to access affordable housing. This problem is exacerbated by a range of factors, including ineffective management of the NHF, lack of awareness among potential beneficiaries, and systemic inefficiencies in the housing delivery process. Furthermore, issues such as inadequate funding, bureaucratic bottlenecks, and corruption hinder the successful implementation of the NHF scheme, undermining its potential to make a meaningful impact on housing availability and affordability. Therefore, understanding the root causes of these challenges is essential for developing strategies to enhance the management and effectiveness of the NHF in facilitating access to housing.

1.3 Objectives of the Study

The main objective of this study is to determine the effectiveness of the management-based National Housing Fund scheme in facilitating access to affordable housing in Nigeria. Specific objectives include:

To evaluate the impact of the NHF scheme on housing accessibility for low- and middle-income earners. To determine the factors affecting the efficient management of the NHF scheme. To find out the level of awareness and understanding of the NHF scheme among potential beneficiaries.

1.4 Research Questions

What is the impact of the NHF scheme on housing accessibility for low- and middle-income earners? What are the factors affecting the efficient management of the NHF scheme? How does the level of awareness and understanding of the NHF scheme influence its utilization among potential beneficiaries?

1.5 Research Hypotheses

Hypothesis I
H0: There is no significant impact of the NHF scheme on housing accessibility for low- and middle-income earners.
H1: There is a significant impact of the NHF scheme on housing accessibility for low- and middle-income earners.

Hypothesis II
H0: There are no significant factors affecting the efficient management of the NHF scheme.
H2: There are significant factors affecting the efficient management of the NHF scheme.

Hypothesis III
H0: There is no significant relationship between the level of awareness and understanding of the NHF scheme and its utilization among potential beneficiaries.
H3: There is a significant relationship between the level of awareness and understanding of the NHF scheme and its utilization among potential beneficiaries.

1.6 Significance of the Study

This study holds significant value for policymakers, housing stakeholders, and researchers by providing insights into the management of the National Housing Fund scheme in Nigeria. By identifying the challenges and opportunities within the NHF scheme, the findings can inform strategies to enhance its effectiveness in addressing the housing deficit. Furthermore, understanding the impact of the NHF scheme on housing accessibility will contribute to the development of policies aimed at improving the living conditions of low- and middle-income earners in Nigeria. Ultimately, this research will help bridge the gap between theory and practice in housing delivery, facilitating informed decision-making and promoting sustainable housing solutions.

1.7 Scope of the Study

The scope of this study is focused on the management-based National Housing Fund scheme in Nigeria, specifically examining its effectiveness in facilitating access to affordable housing for low- and middle-income earners. The study will analyze the impact of the NHF scheme on housing accessibility, investigate the factors affecting its efficient management, and assess the level of awareness and understanding of the scheme among potential beneficiaries. Data will be collected from various stakeholders, including government officials, housing practitioners, and beneficiaries of the NHF scheme, to provide a comprehensive understanding of the issues at hand.

1.8 Limitations of the Study

This study may face several limitations, including potential biases in self-reported data from participants regarding their experiences with the NHF scheme. Additionally, the study's focus on a specific geographic region may limit the generalizability of the findings to other contexts within Nigeria. Furthermore, challenges in accessing up-to-date information and relevant stakeholders may impact the depth of analysis. Despite these limitations, the study aims to provide valuable insights into the management of the NHF scheme and its implications for housing delivery in Nigeria.

1.9 Definition of Terms

National Housing Fund (NHF): A financial scheme established by the Nigerian government to mobilize funds for housing development and provide affordable mortgage financing to contributors.

Affordable Housing: Housing units that are economically feasible for low- and middle-income earners, enabling them to acquire homes without financial strain.

Management Practices: Strategies and processes implemented to ensure effective administration, transparency, and accountability within the NHF scheme.

Housing Deficit: The shortfall in the number of housing units available compared to the demand for housing, often resulting in overcrowding and inadequate living conditions.

Stakeholders: Individuals and organizations involved in or affected by the NHF scheme, including government agencies, housing developers, financial institutions, and potential beneficiaries.

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