Get the complete project »
- The Complete Research Material is averagely 31 pages long and it is in MS Word Format, it has 1-5 Chapters.
- Major Attributes are Questionnaire, Data Analysis,Abstract.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
1.1 BACKGROUND TO THE STUDY
Commercial banks are important financial intermediaries serving the general public in any society. In most cases, commercial banks hold more assets than any other financial institution. In some caseseven more than central bank. Apart from their many functions, commercial banks facilitate growth and development. Banks lends in many areas or sectors of the economy. Viewed from the building and construction sector, they contribute to investment, employment creation, and by extension, the process of infrastructure and economic growth. However, the researcher is examining the roles of the commercial banks in Nigeria in financing building and construction projects in Nigeria (Farrel, 1985).
The building and construction industry in both developed and developing countries may be viewed as that sector of the economy which, through planning, design, construction, maintenance and repair, and operation, transforms various resources into constructed facilities. Thetypes of public and private facilitiesproduced range from residential and non-residential buildings to heavy construction, and these physical facilities play a critical and highly visible role in the process of development(Kheni et al., 2008). The majorparticipants from the building industry include the architects, engineers, management consultants, general contractors, heavy construction contractors, special trade contractors or subcontractors, and construction workers, along with the owners, operators, and users of the constructed facility.
Olowo-okere (1985),(cited inEshofonie,2008)asserted that mostcountries put over 55% of their gross domestic investment into the creation of physical facilities, including infrastructure that isnecessaryfor development.The buildingsector has variouslevels of manpower rangingfrom highly skilled professionals to completely unskilled labourers. Indeveloping countries,physical construction activities alone provide between2 and6%of the employment demands of the nationandthe subsidiaryactivities provide an additional 2 to 4%,while in thedeveloped countries the figure rises to between 6to 10%and 4 to 6%(Cockburn andCharles, 1970;Okeola,2009). Ibironke (2004)and Shittuand Shehu (2010)statedthat the building industry plays a key role in satisfying a wide range ofphysical,economic and social needs and contributes significantly to the fulfillmentof various major national goals.
The commercial banks form animportant source by which many investors get fundsto finance building and other real property projects. Commercial banksare money creating financial institutions that performthree major functions, namely acceptance ofdeposits, granting or loans and the operators of thepayments and settlements mechanism.
The major issue in building, real estate development and investment is finance. There is no iota of doubt that funding is an important factor in real estate development and building projects. The complexity and to a large extent, its capital intensive nature demands proper and adequate funding to make it realizable. The terms and availability of the needed funds determine the trend of building operation. Availability and easy accessibility of building finance in sufficient quantity will definitely accelerate all forms of property development. Building financing is concerned with the production of finance for building houses and office complexes which are basic necessities in a growing economy like Nigeria. The benefits to be derived from a rise in building financing in Nigeria are many and include;
1. Increased rural and urban houses for the teaming Nigerian population.
2. The construction of industrial estate for the localization of industries and commerce.
3. An increase in employment for those in the construction industry.
The sourcing of funds for investment in building development poses a great deal of problem for the developer. This is largely due to economic instability and stringent measures imposed by most financial institutions. This is compounded by the fact that the interest rate structure has had an unfavourable impact on funding the development of building sector. Since the financing of building development is a long term project, it has necessitated the high interest rate that is being charged on the funds provided for such development purposes. Hines (1995) revealed that six major building financing methods are used across the world namely; Joint Venture, Equity and Debt Financing, Sale-lease Back Financing, Advance Payment of key money and Sale of Securities.
1.2 STATEMENT OF THE PROBLEM
Over the years, the government had been the major player in the area of building and housing development in Nigeria, by providing direct finance to the builders for previous housing schemes. This was embedded in the housing policy of past administrations but today, the dwindling nature of revenue accruing to the government, coupled with gross mismanagement and misappropriation of public funds and revenue has prohibited the ability of the government to continue to play her role as before (Nubi, 2000). The mortgage finance institutions are faced with certain problems of low level of awareness of the services rendered by the institutions, bureaucracy in the granting and disbursement of mortgage loans to the borrowers, misunderstanding of the banking terms by the depositors and the public due to the used of technical and professional terms which are not understood by a layman and problem of repayment of loans by the borrowers. Commercial banks has the key player in the financial sector has contributed to the development of various sectors of the Nigerian economy by funding. However, the researcher will analyze the role of commercial banks in financing building projects in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The general objective of this study is to analyze the role of commercial banks in financing building projects in Nigeria and the following are the specific objectives:
- To examine the role of commercial banks in financing building projects in Nigeria.
- To identify the role of other mortgage financial institutions in financing building projects in Nigeria.
- To identify the factors limiting financing of building projects in Nigeria.
1.4 RESEARCH QUESTIONS
- What are the role of commercial banks in financing building projects in Nigeria?
- What are the roles of other mortgage financial institutions in financing building projects in Nigeria?
- What are the factors limiting financing of building projects in Nigeria?
1.6 SIGNIFICANCE OF THE STUDY
This study has the following significance:
- This study will educate the general public, stakeholder in real estate, government and policy makers on the importance of building development and housing and the need for adequate financing of the sector considering the roles of commercial banks and other mortgage financial institutions.
- Findings from this study will be useful for future researches has it will constitute part of the empirical literature making it a guide for future researchers.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study on the role of commercial banks in financing building projects in Nigeria will cover all the financial investment in building and real estate in Nigeria considering the contributions of the commercial banks to the sector. It will also cover the activities of other mortgage financial institution in financing building development in Nigeria.
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.
1.8 DEFINITION OF TERMS
Building: a structure with a roof and walls, such as a house or factory.
Financing: provide funding for (a person or project)
Real estate: property consisting of land or buildings.
Commercial banks: ' A financial institution that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit.
Cockburn, A., and Charles, S. (1970). Construction in Overseas Development (A Search for Appropriate Aid and Trade Measure for the 1970’s), Overseas Development Institute Ltd., London. Pp. 1-20.
Farrel T (1985). The role of commercial banks in financial system. Mimeo, 1985.
Ibironke, O. T. (2004). Building economics (Birnin-Kebbi, Nigeria: TimlabQuanticost).
Kheni, N., Gibb, A. G. F., and Dainty, A. R. J. (2008). Health and safety management in developing countries: A Study of construction SMEs in Ghana. Construction Management and Economics, 26(11):1159-1169.
Nubi A. O. (2002). Financing low Income Housing in Nigerian Cities: A conference Paper on Perspectives, Issues and Challenges at ObafemiAwolowo University, October, 2001
Okeola, O. G., (2009). Occupational Health and Safety (OHS) Assessment in the Construction Industry. 1st Annual Civil Engineering Conference Proceeding. University of Ilorin, Nigeria, 26-28 August, pp: 236-246.
Olowo-Okere, E. O. (1985). Construction industry in Nigeria. Journal for Building and Civil Engineering Contractors in Nigeria, 2(2):6–10.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR ESTATE MANAGEMENT FINAL YEAR PROJECT RESEARCH TOPICS
1. THE ROLE OF COMMERCIAL BANKS IN FINANCING BUILDING PROJECT IN NIGERIA» Abstract This study intends to investigate the role of commercial banks in financing building project in Nigeria with a view to marshal out some modal...Continue Reading »
Item Type & Format: Project Material - Ms Word | 63 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
2. IMPACT OF MATERIALS MANAGEMENT ON PROJECT DELIVERING IN NIGERIA» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY The Nigerian building and construction industry continues to occupy an important position in the ...Continue Reading »
Item Type & Format: Project Material - Ms Word | 72 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
3. AN EVALUATION OF EFFECTS OF INFLATION ON REAL ESTATE INVESTMENT IN UYO METROPOLIS» ABSTRACT The impact of inflation on direct or indirect is considered one of the primary financial concerns of long term investors. Inflation has cause...Continue Reading »
Item Type & Format: Project Material - Ms Word | 42 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
4. REAL ESTATE RISK AND ITS IMPLICATION FOR PROJECT VIABILITY (A CASE STUDY OF EKEDO RESIDENTIAL ESTATE)» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Real estate investing involves the purchase, ownership, management, rental and/or sale of real es...Continue Reading »
Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
5. PUBLIC HOUSING SCHEMES INITIATED BY THE GOVERNMENT OF OGUN STATE UNDER THE ADMINISTRATION OF OTUNBA GBENGA DANIEL BETWEEN 2003 AND 2011» INTRODUCTION 1.0 Background to the Study Housing is an integral part of human settlement that fulfils basic need and has a profound impact on the qual...Continue Reading »
Item Type & Format: Project Material - Ms Word | 324 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
6. AN APPRAISAL OF INVESTOR CONFIDENCE IN THE NIGERIAN REAL ESTATE SECTOR» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY The Nigerian Real Estate Sector has recorded steady and consistent growth over the last four year...Continue Reading »
Item Type & Format: Project Material - Ms Word | 69 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
7. THE PROBLEM AND PROSPECTS OF HOUSING IN THE NEW STATE CAPITAL, ASABA DELTA STATE» CHAPTER ONE 1.0 INTRODUCTION Housing is one of the three basic necessities of life. He dignity of man is usually enhanced by his ownership of house. T...Continue Reading »
Item Type & Format: Project Material - Ms Word | 40 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
8. THE ROLE OF DRY CONSTRUCTION IN ENSURING AFFORADABLE HOUSES IN NIGERIA» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY With Nigeria’s capital expenditure profile put at 24 per cent of recurrent expenditure in 2...Continue Reading »
Item Type & Format: Project Material - Ms Word | 51 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
9. THE EFFECT OF LOCATION OF UNIVERSITY OF UYO TOWN/ANNEX CAMPUS ON RESIDENTIAL PROPERTIES OF IKPA ROAD AND ITS ENVIRONMENTS» TABLE OF CONTENTS Title Page Cover Page i Certification ii Dedication iii Acknowledgement iv Table of Contents v Abstract ix List of Tables x List of ...Continue Reading »
Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT
10. ABUJA LAND AVAILABILITY CHALLENGES AND MISMANAGEMENT: ISSUES AND SOLUTIONS» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Abuja the Federal Capital Territory of Nigeria has tremendous importance in the country's lif...Continue Reading »
Item Type & Format: Project Material - Ms Word | 70 pages | Instant Download | Chapter 1-5 | ESTATE MANAGEMENT DEPARTMENT