SHERIFF Akanji Ibrahim1, LUKMAN Adebayo-Oke Abdurauf P.hD2 & YUSUF O. Quadri3
Department of Accounting and Finance, Kwara state University, Malete, Nigeria.
Sheffygold001@gmail.com, +2348136488288
Abstract
Globally, sustainable housing development is a critical objective nations strive to achieve, particularly in Nigeria, where a population of 400 million is projected by 2050. This research investigates the how macroeconomic factors moderate the relationship between mortgage finance and housing development in Nigeria. The research employed an Autoregressive Distributed Lag (ARDL) model and examined variables such as mortgage loans, mortgage interest rates and mortgage equity, adjusted for macroeconomic conditions such as inflation, interest rate, consumer price index and income levels. Data were sourced from the World Bank World Development Indicator (WDI), the CBN Statistical Bulletin and United Nations World Governance Indicator (WGI) between 2005 and 2022. Findings from the research indicate that macroeconomic factors significantly modulate the effectiveness of mortgage financing in enhancing housing development. Specifically, the empirical analysis reveals a significantly weakening influence of macroeconomic factors on mortgage loan efficacy in the long run with a coefficient of 0.0041 (p-value; 0.0005), and a negatively significant influence of macroeconomic factors in the effectiveness of mortgage interest with a coefficient of -0.00503 (p-value; 0.0002). Consequently, the research recommends that policymakers implement holistic measures to stabilize the economy, while incentivizing mortgage lending to drive housing development forward. By creating a conducive macroeconomic environment for mortgage finance institutions and potential borrowers, Nigeria can effectively align its housing policies with sustainable development goals that guarantees access to adequate and affordable housing for its growing population.
Keyword: Housing development, macroeconomic factors, mortgage finance