MORTGAGE FINANCE, INSTITUTIONAL FACTORS AND HOUSING DEVELOPMENT IN NIGERIA

The need to establish the role of institutional factors in the impact of mortgage finance on housing development in Nigeria creates the necessity for this study. This study examines the interacting effect of institutional factors in the relationship between mortgage finance and housing development. Quarterly data on housing delivery, mortgage finance and institutional and economic factors were sourced from the Central Bank of Nigeria statistical bulletin, Federal Mortgage Bank of Nigeria audited report and World Governance Indicator between 2005 to 2022. Empirical analysis was conducted using the Autoregressive Distributed Lag (ARDL) model. The research found a negative and significant (at 10% level of significance) interacting effect of institutional factors in the relationship between mortgage interest (coeff.;-1.967: p-value;0.0734) and housing development, while institutional factors render the effect of mortgage loan and mortgage equity on housing delivery insignificant. The paper concludes that the interaction of institutional factors such as government effectiveness, corruption, regulatory framework, rule of law among others, downplays the efficacy of mortgage finance in causing housing development in the short run and recommends a strengthened institutional framework that guarantees stringent anti-corruption measures, transparent mortgage application and approval process, and expedited bureaucratic processes, to enhance accessibility of mortgage finance.