Financing low income housing in Nigeria

The purpose of this paper is to identify and analyse the methods of housing finance adopted by the low income and informal groups in Nigeria.

A survey of 300 households in selected areas (low‐income/informal) of Jos Metropolis, Nigeria, was carried out, concerning the methods of housing finance used for building and home improvement.

The survey showed that 75 per cent of the households utilized traditional methods of financing and 25 per cent using modern methods.

Based on data collected from the survey, the research serves as a basis for further research into traditional methods of housing finance in developing countries.

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.

The paper shows that In the absence of formal institutional financing methods, strengthening the community‐based social network through formalisation and empowerment for housing finance becomes vital.

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.