UNDERSTANDING HOUSING SITUATION OF LOW-INCOME GROUPS IN NIGERIA AND THEIR PERCEPTION TO MORTGAGE FINANCING

This work shows the housing situation of low-income groups and their perception towards mortgage financing in Nigeria as it aims to improve homeownership. Qualitative technique is used for primary data collection and analysis while existing literature are also reviewed. The study interviews 46 low-income respondents about current housing situation and perception to mortgage finance and it shows that low-income groups continue to live in poor housing some living up to 30 years in the same building, stagnating social mobility. Office workers are slightly more aware of mortgage institutions and what they do as oppose to artisans and traders. Limited resources increase cognitive burdens that limits the group’s ability to invest in personal homes as they are only concerned with meeting the very basic needs of life. The study reveals a prevailing perception that housing programmes are only for the rich which limit the group’s interests in government programmes. The study calls for the revival of the economy to reduce the economic pressures faced by low-income groups so as to overcome cognitive burden and the negative perceptions of government programmes. Mortgage institutions should pursue aggressive grassroots awareness about the benefits of mortgage. Finally, governments should construct low-cost housing and directly allocate them to low-income groups with flexible payment processes to reduce the perceived challenges associated with seeking loans from mortgage institutions.