Mortgage Financing and Economic Growth in Nigeria during 1996 – 2020

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Published: 2022-05-11

Page: 337-345

Iwundu, Chinonso Samuel *

Department of Banking and Finance, Imo State University, Owerri, Nigeria.

*Author to whom correspondence should be addressed.


This study was designed to examine the impact of mortgage financing on the economic growth of Nigeria. The study uses primary mortgage institutions loan, insurance companies’ real estate investment, Deposit Money Bank private sector credit as independent variables and economic growth was proxy with real gross domestic product as the dependent variable. Data for the study were obtained from the Central Bank of Nigeria Statistic Bulletin (CBN) and analyzed using Ordinary Least Square (OLS) Model. Findings indicated that there is a long run relationship between mortgage financing and economic growth in Nigeria. The short run result shows that a negative and insignificant relationship exist between deposit money bank credit to private sector and economic growth in Nigeria, but a positive and significant relationship exist between primary mortgage institutions loan, insurance companies’ real estate investment and economic growth in Nigeria. However, the mortgage financing components are jointly significant in impacting the Nigerian economic growth. This study recommends that the Nigerian government should vote more fund to the housing sector since the sector can generate a lot of ancillary services that can boost the economic growth of Nigeria.

Keywords: Mortgage finance, economic growth, mortgage institutions, real estate investment, bank credit

How to Cite

Samuel, I. C. (2022). Mortgage Financing and Economic Growth in Nigeria during 1996 – 2020. Asian Journal of Economics, Finance and Management, 4(1), 337–345. Retrieved from


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