Financial Architecture, Real Estate Market and Economic Development in Sub-Saharan African Countries: Evidence from Nigeria
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This study examines the causal-relationship between financial architecture, real estate
market and economic development in Nigeria. The Nigerian financial system may have
performed creditably in the last few years there remains a major concern to developing
Nigerian huge real estate market. Real estate phenomena, inclusive of its “green culture” and
environmental planning and zoning system, may constitute a platform for achieving social
and economic development objectives, such as: quality human capital, comprehensive and
quality health system, increasing national productivity, serene and quality environment,
balanced demography and optimal population growth, as hallmarks of the Millennium
Development Goals (MDGs) in 2015. The aforementioned gap suggests a vacuum in the
Nigerian development paradigm. Findings from this study suggest that the Nigerian
financial structure has impeded the development of Nigerian real estate sector, hence, has
accentuated the poverty syndrome of its citizens. The study suggests the financial “matching
principle”, where market driven financial institutions commit to long term funding, such as
the Sovereign Wealth Funds, Pension Funds, etc, invest in mortgages and real estate
development; the government should also commit higher capital budgetary allocations for
infrastructural development. Finally, the government should set up construction bank,
adopt responsive macroeconomic policies that would nip inflation rate, overhaul the
Federal mortgage institutions and improve people’’ savings culture.
Keywords
H Social Sciences (General), HG Finance