Financing low income housing in Nigeria

Purpose: This paper is aimed at identifying and analysing the methods of housing finance adopted by the low income and informal groups in Nigeria. Design/methodology/approach: A survey of 300 households in selected areas (Low-income/informal) of Jos Metropolis, Nigeria, concerning the methods of housing finance used for building and home improvement. Findings: The survey showed that seventy five (75%) per cent of the households utilized traditional methods, of financing and twenty five per cent using modern methods. Research limitation/ implication- Based on data collected from survey the research serves as basis for further research into traditional methods of housing finance in developing countries. Practical implication: The analysis of traditional financing methods highlights the range and structure of the traditional methods of financing in operation in informal and low income areas of Jos Metropolis, Nigeria. For example, informal and customary/traditional methods (Esusu/Asusu, Age grade association, Men’s revolving Loan association, Social club contribution among others), of financing appear to be very effective housing finance methods. Social implication: In the absence of formal institutional financing methods, strengthening the community based social network through formalisation and empowerment for housing finance becomes vital. Originality/ value: It is argued that it is possible to utilise and formalise these traditional methods of housing finance in order to enhance access to finance for housing development in low-income urban areas in developing countries