CHAPTER ONE

1. INTRODUCTION

1.1   BACKGROUND OF STUDY

Housing has been viewed as the process of delivering a large number of residential buildings on a permanent basis, with sufficient physical infrastructure and social amenities, in planned, decent, safe and sanitary neighborhoods (The Federal Ministry of Works and Housing, 2002; Ibrahim and Mbamali, 2013).

Rapid growth in population creates high demand towards shelter and efficient supply and distribution of basic utilities and services for city dwellers (Bala and Bustani, 2009). In most urban centers, the problem of housing is not only restricted to quantity but to the poor quality of available housing units (Ajayi and Omole, 2012). According to Coker et al., (2007), a satisfactory home is one in a suitable living environment with portable water, adequate shelter and other services and facilities. The housing condition of a country is a pointer to the health motivation, economic well-being and the social circumstances of her citizens.

Housing affects the life of an individual as it provides the space for protection, privacy, economic activities, recreation and livelihood (Ajayi and Omole, 2012). The introduction of Public Private Partnership in housing in Nigeria started in the early 1990s with the introduction of National Housing Policy (NHP) (Ademuyi, 2010).

According to Ukwayi et al., (2012), the poor performance of the National Housing Policy in meeting its set goals and objectives led to a comprehensive review. A new approach to the partnership between the government and private sector in providing housing and infrastructure was initiated in the year 2000 (National Technical Working Group on Housing, 2009).

According to Ukoje and Kanu, (2014) the partnership between the Federal Capital Territory Administration (FCTA) and the private sector started in the year 2000 due to the inability of government to meet the high demands for housing and its needed infrastructure. The purpose of partnership was to reduce the burden of providing housing and infrastructure on the part of the government and increase the participation of the private sector (Ibrahim and Kwankur, 2012). Abdullahi and Aziz (2010). Nigeria operates a three tier system of government; the federal government, State government and local government, all required to provide affordable and comfortable housing and infrastructure to the people.

The delivery of basic utilities and services especially housing, is partly the responsibility of the government, which has been handicapped by financial constraints, and many other issues (Ademiluyi and Raji, 2008). In developing countries such as Nigeria, poor housing delivery has been attributed to insufficient mechanisms and systems for land allocation, funding, mortgage institutions and infrastructure (Bala and Bustani 2008; Encarta, 2007).

One major part of urban problem with respect to housing is the poor state of the infrastructures (Ajanlekoko, 2001; Ajayi and Omole, 2012). Giddings (2007), observed that one of the most serious policy constraints to scaling up investments in housing and urban infrastructure in Africa is that in most countries in the region the sector is not accorded the priority it should command in national planning strategies and therefore receives short shrift in attracting budgetary resources. Ajibola et al., (2013) identified that where urban infrastructure is adequately provided and efficiently managed, productive and profitable land uses are usually attracted towards such area.

1.2   STATEMENT OF THE PROBLEM

As most areas in developing countries continue to experience rapidly growing population, there are signs that despite the important role infrastructure play in physical and socioeconomic development of individuals and communities, and the efforts made in tackling the situation. Financing public infrastructure in Nigeria might face challenges like inability to use the funds judiciously; it could also be that substandard facilities are provided for the construction of the infrastructure and not considering the well being of the occupants of the building in time to come. Challenges might also rise in the aspect of the contractors as they are inconsistence or feeling lazy about the work probably due to sufficient funds from the government. It could also be political instability can as well affect the financing of the infrastructure. Finally, several researches has been carried out on the financing of real estate development in Nigeria but not even a single research has been carried out on the framework for real estate public infrastructure financing in Nigeria.

1.3   AIMS AND OBJECTIVES OF STUDY

        The main aim of the study is to examine the framework for real estate public infrastructure financing in Nigeria. Other specific objectives of the study include;

1. to determine the factors affecting real estate public infrastructure financing in Nigeria.
2. to determine the effect of financing on real estate public infrastructure in Nigeria.
3. to determine the extent to which financing affects real estate public infrastructure in Nigeria.
4. to proffer possible solutions to the problems.

1.4   RESEARCH QUESTIONS               

1. What are the factors affecting real estate public infrastructure financing in Nigeria?
2. What is the effect of financing on real estate public infrastructure in Nigeria?
3. What is the extent to which financing affects real estate public infrastructure in Nigeria?
4. What are the possible solutions to the problems?

1.5   STATEMENT OF RESEARCH HYPOTHESIS

H0:   financing has no significant effect on real estate public infrastructure in Nigeria.   

H1:      financing has a significant effect on real estate public infrastructure in Nigeria.

1.6   SIGNIFICANCE OF STUDY

        The study on the framework for real estate public infrastructure financing will be of immense benefit to the entire Nigeria in the sense that it will enable the government to closely monitor the usage of funds by the people in charge. It would also enable them to put everything that might be needed in place for the successful completion of the infrastructure. Finally, the study will contribute to the body of existing literature and knowledge to this field of study and basis for further research.

1.7   SCOPE OF STUDY

        The study on the framework for real estate public infrastructure financing is limited to Nigeria.

1.8   LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9   DEFINITION OF TERMS

Framework     An essential supporting structure of a building, vehicle, or object.

Real Estate     Real estate is "property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this an item of real property, buildings or housing in general.

Public      Relating to or involving people in general, rather than being limited to a particular group of people

Infrastructure        The basic physical and organizational structures and facilities (e.g. buildings, roads, and power supplies) needed for the operation of a society or enterprise.

Financing        Provide funding for.