MORTGAGE INSTITUTIONS AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT

This study empirically investigates the effect of primary mortgage institution (PMI) on economic growth in Nigeria using time series data from 1995 - 2020. Four major PMI variables (PMI's assets, PMI's deposits, PMI's loans, and PMI's investments) were used as the explanatory variables. The ordinary least squares technique was specifically employed to examine the nexus between these components of PMI and gross domestic (measure for economic growth), after the preliminary descriptive statistics. The empirical results revealed that PMI (i.e. PMI loans, PMI investment and PMI deposits) are positively and significantly related to economic growth in Nigeria. Total asset of primary mortgage is positively related with economic growth, but the effect not statistically significant. Against the backdrop of the foregoing findings, the regulators of primary mortgage institutions should ensure proper regulation of these institutions for improved performance, loans from the mortgage sector should be improved, management of primary mortgage institutions should continuously strive to maintain an optimum investment in form of investment in securities and physical assets, and deposit mobilization strategies should be adopted by these institutions such as awareness creations and sensitization programmes.