The Roles Of Federal Mortgage Banker In Achieving Economic Development Of Nigeria

Mortgage banks are financial houses that act as specialists in providing money and facilities which encourage people, business firms to get their own houses without first saving the funds required. Housing is one of the important factors that determine urban firms and constitutes the single most serious problems facing large cities in Nigeria today. In 1950s and 1960s, the need small mainly because of low urbanization level.

The buoyancy of the Nigeria economy in the 1970s and the uneven spartan distribution of industrial development accelerated the rate of urbanization in Nigeria. The heretherto uncontrolled and unplanned urbanization resulted in housing shortages in qualitative and quantitative forms. There existed today a journey gap between the demand and supply decent accommodation. The consequence of excess demand over supply was high rent and the growth of informal rationing system which discriminated against the poor to the extent that over half of the urban populations in Nigeria live in slump.

Against this background and considering the fact that housing provides the physical frame work in which man’s social, economic and cultural resources are realized entrenched and integrated: it becomes obvious that adequate housing deserved great attention.

In realization of the importance attached to housing, the federal government of Nigeria established the federal mortgage bank of Nigeria on 20th January 1977 to take over the assets and liabilities of the Nigeria Building Society (NBS), which had been in operation since 1956. The Nigeria Building Society itself was the first mortgage institutions in the country. 

Perhaps, the federal mortgage had initial capital of the bank of twenty million naira (20m) and was later reviewed upward to one hundred and fifty million naira (N150m) in the year 1979.

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