IMPACT OF PRIMARY MORTGAGE INSTITUTION IN HOUSING DELIVERY (A CASE STUDY OF COOP SAVINGS & LOAN LIMITED)

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CHAPTER ONE

1.0   INTRODUCTION 

        Housing which can be defined as
collective structures in which mankind is house and where he carries out his
daily economic, social and commercial activities, which  encompass man’s immediate physical surrounding
services, facilities and all available social  amenities. 
Provision of housing has been a major challenge since the 21^st
century to all sovereign states across the world.  Adequate housing provision has been hindered
over the years, by various factors which ranges from restricted access  to land which is due to land speculation
practices, unavailability of soft loans, low level of income, economic
instability, poor maintenance culture, mismanagement of public funds, natural
disaster among other vices. Hence, various communities and sovereign states
across the world have made controlled and concrete efforts in the provision of housing,
housing policies, monitoring institution, land reforms, territory laws e.t.c to
guarantee and enhance the continuous provision of housing units in their
respective territories. This research is to adequately study the activities,
efforts challenges and impact of one of such housing agencies in urban city of Ibadan
Nigeria

STATEMENT OF THE PROBLEM

Housing is recognised as man’s basic
need, it remains one of the mostpersistent
and serious problem facing people in every society. However, provision has been
one of the paramount concerns of policy makers in the various countries across
the world in recent times. Despites all efforts couples with circulated, well
planned and excellent housing policies over the years, there has been a
reoccurrence of the problem of housing shortage and insufficient within our
society.

It is also pertinent to look into the
factors responsible for persistent to look into the factors responsible for
persistent housing problems facing people most especially in developing nation
like Nigeria. These factors are

I.   
    High cost of
building materials

II.      Level of urbanization

III.       
High construction rates

IV.       
    Unavailability of
adequate finance

V.      High birth rate resulting into
overpopulation in the urban          centre

VI.       
   Poor implementation
of housing policy

It is on the strength of this situation
that this appraised the government institution on housing  development in Ibadan but despite the fact
that the efforts were made in favour of urban centre, that is of primary
mortgage intends to examine the contribution of primary mortgage institution in
solving housing problems in our urban centers and access the problems they
encountered.

1.1      AIM AND OBJECTIVES

The research aim at examining the
contribution of cooperative saving and loans limited in the provision of
housing

The following objectives will be
revised in order to achieve the aim;

i.           
To access the no of houses constructed through the primary
mortgage institution

ii.          
To access the condition attached to loan granted

iii.        
To identify the problems encountered by savings and
loan  limited

iv.        
To provide 
recommendation to the problems

1.2      SIGNIFICANCE OF THE STUDY

The research study will highlight
various challenges which primary mortgage institution faces in the provision of
mortgage loan in the case study area. Also it will access the impact and
efforts of coop savings and loan limited in housing delivery provision in Ibadan.

Therefore research work will proffer
solution to

a.  
Low level of awareness of the activities of primary mortgage
institution in Nigeria society

b.  Shortage of adequate housing facilities

c.  
Uneven distribution of primary mortgage institution across Nigeria

d.  And other various difficulties
encountered by loan applicants in the course of seeking loan facility.

1.3      SCOPE OF THE STUDY

The major focus of the study is to
examine the process and how housing units are being provided in Ibadan
metropolis with the help of cooperative savings and loans limited (PMI) through the national housing funds
(NHF) provided by the federal
mortgage bank of Nigeria (FMBC)

Ibadan metropolis is chosen because of
the researchers familiarity with the city and coop savings and loan limited as
a case study because one of the notable primary mortgage institution in Ibadan

1.4     LIMITATION OF THE STUDY

It was the intention of the writer to
give a comprehensive research work but during the course of this study, some
constraints were encountered.

Apart from the problem of funds,
another major set back in the production of this work is the lack of time. It
was really a strenuous and frustrating experience combining normal classroom work
with the preparation of this dissertation

The availability of information was
also a bad experience.

15     STUDY AREA

Ibadan (Yoruba: Ibadan or fully Ilu
Eba-Dan) The town at the junction of the savannah and the forest) is the
capital city of Oyo state and the third largest city in Nigeria by population
after Lagos and port-Harcourt, according to the 2006 Nigerian census. Ibadan is
also largest in geographical area in Nigeria.

At independence, Ibadan was the largest
and the most populous city in Nigeria and the third in Africa after west cairo
and Johannesburg. It is located in south western Nigeria, 128km inland
northeast of Lagos and is a prominent transit point between the coaster region
and the areas to the point between the coaster region and the areas to the
north. Its population is 1,338,659 according to census results for 2006. Ibadan
had been the centre of administration of the old western region since the days
of the British colonial rule, and parts of the city’s ancient protective walls still
stand to this day. The ancient inhabitants of the city are the Yoruba people.

Co-operate savings and loan limited was
incorporated under mortgage institution degree No 53 of the 1989 7^th
December, 1992 as coop mortgage finance company limited with a capital share of
N 5 million began operation in 1994. In
1994. In 1996 the name was changed to coop building society limited to further
elucidate her function in line with the aspirations coop investment and trust
society limited (Herowner).

In 1999, the feelers that the public
was yet to grasp the expected function of the company becomes lightened and the
name was further changed to coop savings company were carried out its 7^th
day Adventist road headquarter while her 3 branches namely Ibadan , respectively.

Part of the objectives of the owners of
the company is to serve as an avenue to mobilize deposits from surplus for on
lending to individual and cooperate bodies to enhance the development of houses
and to encourage private sector participating in housing development in Nigeria.

Thus coop savings and loans limited was
established in line with primary mortgage institution degree No 53 of 1989 and
since then been performing the function of construction of houses and financing
housing construction in Nigeria

With initial capital of N 5, Million, the company can boast of the
present share capital of N 150 million
out of which the capital was N 100,000
only, the current portfolio was N 270
million while the total asset portfolio was N
490 million as at June 2006.

It is observed in all million as the
primary mortgage institution that the 3 types of loan granted are as follows

1.  Social loan:- these are advance for only owner occupier of residential
home. On this type of loan the national housing fund stipulated that interest
rates should not be more than 9%

2.  Commercial loan:– this are loan advanced for commercial
purpose only, examples are loans on vehicles, offices spaces market e.t.c the
interest must be between 7% and 12% depending on the mortgage institution.

3.  Land loans:- this loan is majorly advanced for the purchase of the land
for far development interest rate was specified.

NO OF APPLICATION GRANTED

Source:
Coop savings and loan limited. June 2013.

        According to the representation, year
201 has the lowest approved grand total of 22 while 2009 has the highest
approved and 2011 and 2012 approved was 222 and 176 out of the processed
application

METHOD OF APPLICATION

        Application must be made through coop
life savings and loan limited and Meristem security

i.   
An application must be made on the official  application form

ii.  
Subscription will commence from Monday, January 19, 2009 to
march 20, 2009. Application must be made for a minimum of 10,000 share for
which application is made and the full payment due in respect thereof by cheque
or bank draft should be entered in the boxes provided

iii.Every application or joint application
(as may be applicable) must write his or her full name, address and occupation
on the application form. An application from a corporation must bear its seal
and completed under the hand (s)  of a
dully authorized official (s) who should state his (their) designation

iv.An application from a person or
provident fund must be in the name of each individual trustee unless the
trustee is a limited liability company

CONDITION
ATTACHED

1.  Application must be made only on the private
placement application form

2.  The application form when completed
should be forwarded directly to jubilee- life savings and loans limited marina
old Kingsway building 2^nd floor. PMB 12970, Lagos or meristem
securities limited.

3.  Application must not be less than the
minimum units of shares and the multiples stated on the application form. The
number of shares for which application is made and the amount of cash, cheque
or bank draft attached should be entered in the box provided.

4.  The application should make only
application, whether in his own name or in the name of a nominee. Multiple or
suspected multiple applications will be rejected.

5.  Joint applications must sign the
application form

6.  An application from a cooperation must
bear the cooperation seal and be completed under the hand of a duly authorized
official (s) who should also state his or their designation (s)

1.6     DEFINITION OF TERMS

Housing:- Is defined as shelter or structures of
dwelling which include residential environment, neighborhood, micro district
provided with all necessary services and facilities equipment useful for man’s
living.

Development:
– this
is the carrying of an operation or construction work which is associated with a
change in the use of land or with a re-establishment of existing use such as
alteration, erection or re-erection of building roads and sewage e.t.c

Developers: –
this
could be an individual corporation or institution or group of individual of
engineering or building works. Developers can be grouped into two namely private
and public developers.