Effect of Mortgage Institutions on Performance of Real Estate Industry in Nigeria

Abstract

The study examined the effect of mortgage institutions on performance of real estate industry in Nigeria. The
research utilised quantitative method on the ex post-facto research design. Times series secondary data was sourced
from the Central Bank of Nigeria Statistical Bulletin covering a period of 1995 to 2023. In addition, Econometric
Views (E-Views) was the statistical software used in presenting the data. The data so collected were analysed by
descriptive statistics, correlation analysis and unit root test. Similarly, Autoregressive distributed lag was used to
analysis the model. Mortgage institutions was the independent variable with its proxies as: primary mortgage
institutions deposit; primary mortgage institutions loan; and primary mortgage institutions investment. The proxy for
the dependent variable (performance of real estate industry) is gross domestic product of real estate industry. The
findings revealed that mortgage institutions deposits and mortgage institutions loans had statistically significant
effect on the real estate sector's GDP, Mortgage institutions investments were found to have no significant effect on
real estate GDP. The study recommends that mortgage institutions deposits, the Central Bank of Nigeria (CBN), in
collaboration with the Mortgage Banking Association of Nigeria (MBAN), should establish guidelines that link
deposit, loans and investments mobilization to mandatory housing development lending quotas. This would ensure
that mortgage institutions are more effectively channelled into real estate activities that directly impact sectoral
GDP.