CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND TO THE STUDY
Housing shortage is one of the most serious developmental challenges presently confronting Nigeria. Stakeholders and industry operatives in building technology are unanimous in their opinion that the process of housing delivery in Nigeria needs a change of strategy. In this study, the researcher is examining modern ways that could be explored to meet the nation’s housing deficit which stands around 17million units (Akeju, 2012). Although Nigeria with a population of over 160 million people has been identified as the largest market in Africa for everything, including real estate, growing demand for decent shelter has continued to meet leaner supply of housing units.Over the years, successive governments in the country had tinkered with policies in a bid to achieve its mass housing objective but due to lack of reasonable commitment to it, achieving the goal has remained elusive (FRN, 2007). Experts who gave analytical insight into the problem of housing delivery in Nigeria called for a declaration of a state of emergency in the housing sector, saying innovative thinking and modern strategies could bring about better outcomes that will enhance housing delivery process in the country. It is a known fact that financing of housing projects remained one of the biggest problems in the sector that is militating against housing delivery. Akeju (2012) is of the opinion that the major issue in housing delivery is funding, getting appropriate funding. There is money flowing everywhere but the right type of money needed for long term project like housing is not available. Something that can really work for affordable housing can be akin to what the Federal Mortgage Bank offers which cannot go round. Modern strategy in housing delivery in Nigeria will reiterates the government’s priority to tackle overcrowding and the ambitious target to reduce severe overcrowding in rented housing apartments (Bush, 2004). Alongside making funding available for larger homes, with at least higher number of bedrooms, and a long-term commitment to deliver the familysized affordable homes should be identified in a strategic plan for housing delivery (Easton, 2006). There are many strategies needed to facilitate massive housing deliveryin Nigeria but modern and technologically-inspired large scale housing schemes – schemes and sites with thousands of housing units could play a significant role in the delivery of the large number of houses the Nigerians needs.Theexperience of the last 20 years suggests that the level of demand for new homes over the next decade will not be met by piecemeal incremental developments. In Nigeria today, there is a shortage of housing for low-income earners and constantly growing housing demands (due to increase in population) that are not met. Unfortunately, banks are reluctant to provide mortgage facilities to low-income earners. In order to solve the housing/mortgage challenges faced by the Nigeria populace, the Nigerian Mortgage Refinance Company (NMRC) was established to promote home ownership and increase the availability and affordability of mortgage loans to Nigerians.In spite of the incorporation of NMRC in June 24, 2013, not much has changed. The apathy of banks towards mortgage transactions still lingers, understandably, because of the risk of default. To buttress this, 66,402 Nigerians applied for mortgages during the recent Nigerian Housing Finance Programme. Only 10,000 Nigerians were selected. However, the interest rates by primary mortgage institutions that participated in the programme were alarming (14.5% -19%).It is suggested that a cue be taken from other countries where the cost of mortgage for first time home buyers are low, with small down payments and easy terms especially, a single digit interest rate.