THE PROBLEM ASSOCIATED WITH RURAL HOUSING FINANCE (A CASE STUDY OF ALAPA TOWN, ILORIN EAST ASA LOCAL GOVERNMENT AREA)
1.1 BACKGROUND OF THE STUDY
Housing finance is one of the basic needs of every individual, the family and the community in general.
As a pre-requisite to the survival of a man, it refers to security or safety and ranks second in the physiological needs, otherwise called clothing and food in the Abraham Maslow’s “Hierarchy of need Theory” propounded in (1976)
The housing which is a unit of the environment, has a profound influence on the health, efficiency, social behavior, satisfaction, and general welfare of the community.
It reflects the cultural, social and economic values of a society, as it is the best physical and historical evidence of civilization in a country. The importance of providing adequate housing in any country cannot be overstated, hence it is a stimulant of the national economy.
In most developed countries, housing sector contributes significantly to the performance of their economy. Increase in the housing market activities usually indicates a strong economy, while a decrease in the market portrays weakness in the economy.
Governments should therefore encourage and foster the establishment of financial institutions to offer credit for housing development and also adopt such fiscal policies as will ensure that a larger portion of the national wealth is made available for housing development. As a specific case, governments should consider the establishment of housing developments funds or the issue of development stocks for housing. If the postulate that housing is a national social problem is accepted, then the private sector should take its share of the responsibility to supplement and reduce the reliance on governmental efforts.
Commercial and industrial concerns, and other organization should be made to include in their development programmes, plans for providing for workers, the rural dwellers are not privileged to have access to housing finance system.
This is as a result of population explosion and continues influx of people. Finance being universally accepted as one of the basic needs of individuals as the second after food that is most important and essential in human life.
The problem of rural housing finance that serves as impediments to the successful implementation of housing finance and programmes in the study area.
Housing finance is considered the most important factor of rural area problem in Nigeria, adequate housing finance therefore the first requirement for a new develop area in any nation.
This is because there are so many problems associated with rural housing finance development such as adequate and effective buildings in the study area, there are some mud structure of building presently which suppose not to be so.The importance of housing finance delivery is stressed by Agboola (1998) who asserted that without a well-organized and efficient housing mechanism, the goals of rural housing finance development policy will be largely in attainable.
1.2 STATEMENT OF THE PROBLEMS
The problem of rural housing has become on everyday discussion in all quarters of the public and private sectors of the developing countries by J. Abiodun. This is emphasized by Olotuah (2000), that the pooled effect of high population large increase and urbanization in declining economy has thrown Nigeria into serious housing problems.
Ironically, the low income groups and poor who constitute the majority in the Nigeria society are most affected by the finance and housing menace.
In Alapa village, the problem that is being generalized to each household includes;
i. Lack of pipe borne water
ii. Absence of desence building
iii. Service and facilities, such as access of motor able road apart from the main road.
In other to provide answer to these problems, some questions must be raised, these includes;
Why has rural housing finance remained passive and irrelevant in drive toward housing delivery?
Is there any existing superstructure of housing finance that caters for rural housing in the study areas?
How has individuals contributed to the financing of rural areas?
1.3 AIM AND OBJECTIVES
The aim of this study is to examine the problems associated with rural housing finance in Nigeria. In other to achieve this aim, the following objectives where required.
OBJECTIVE OF THE STUDY
i. To identify the types of housing development within the study area.
ii. To examine the sources of rural housing finance. \
iii. To investigate the problem of rural housing finance
1.4 SIGNIFICANCE OF THE STUDY
The relevant of this project is to provide some essential useful information and suggestion to the developer as to the development of rural housing finance in the study area.
This research project will also serve as useful information to the government tactic sensitized the various level of government to rise up to their responsibilities to provide necessary housing facilities, social services within the study area.
It will also be of help for students and researcher for further investigation.
1.5 SCOPE OF THE STUDY
The disciplinary scope of the study is to examine the magnitude of rural housing problem in Nigeria, where the spatial scope is to cover the Alapa Village of Asa Local Government, Kwara State. And the target population are the resident Of Alapa village.
1.6 LIMITATION OF THE STUDY
The smooth execution of this study was hampered by certain constraints.
1. Adequate information: - The information gathered during the research was not totally received from the villagers, the people living in the village seem to be under informed, some question asked about their own town even seem strange to them as they don’t have any idea of what it entails.
2. The time limit with into undertaken that study is another limitation where respondent delay in giving information.
3. Lack of capital or fund to be used in many/various aspects e.g. transportation fees from school to case study and other element that require finance.
1.7 STUDY AREA
The history of Alapa is located at Asa local government of Kwara state, and it was located at kilometers so from Oko-olowo in Ilorin Kwara state to Alapa. The people of Alapa are Yoruba with common ancestor in Oyo ile, there are sub-ethnic group with distinct dialect peculiarities. Alapa was located at the center of Adigbongbon which is surrounded by some villages like Ojugbere, Mondala, Alaaya, Baiko, Sosoki (a well known village to Lamba), Alapa people are predominantly farmer who grow food crops, cash crop and also rearing of livestock. The area is equally blessed with cassava in which they turn it to cassava flour (Elubo) they also move the product to so many places in the state, some houses presently structure unflustered block and also it lack basic facilities and social amenities such as untraced road, apart from the main road, Sewage disposal and other necessary facilities, Alapa was also called MOJA (mat weaving)which the villagers were able to locate in center place to state ONIRE still (mat weaving) in Yoruba language which has never happen before in there villages he welcome Adigbongbon to start ocuce, they now move to a junction where the tree was located and beside there still a small tree which was called KERE and the village was originated from tree called (APA TREE) where people meet in the village and sell market, that is where they generate Alapa village, According to the people in the village they let me know that no one can tampered the tree since then, even when government came for the construction of road during the time of election the Magaji and the villagers did not accept the government to dig the tree that why they couldn’t do it since then (APA) tree was now generated to Alapa tree which is maintain.
1.8 DEFINATION OF TERMS
Can be describe as the science of money management a key point of finance is time value of money which states that purchasing power of one unit currency can vary over time. Berezin (2005).
Is a field that deals with the allocation of assets and liabilities over time under condition of certainty and uncertainty.
According to Omole (2004) houses are apartments or accommodation erected for people to live in, usually for families lodgers.
Akomolede (2001) stated that housing is one of the basic necessities of life and the quality of housing produced is as important as the number produced in sowing like problems.
Akeju (2007), stated that housing finance could be regarded as the various strategist of bringing house to the affordable level of the people in a particular state or country.
These are located in the rural areas and they are usually characterized by simplicity of design and use of local building materials such as mud raffia palm, bamboo and wood. In the context of the most developing countries, rural housing is characterized by absence of adequate services such as pipe born water and sanitary facilities Agboola, (2003).
5.0 SUMMARY, CONCLUTION AND RECOMMENDATION
5.1 SUMMARY OF FINDINGS
The purpose of this study earlier stated is to examine the problem associated with rural housing finance in Alapa town Asa Kwara state.
The first chapter contained an introduction to the background of the study ,statement of problem ,aim and objectives of the study, significance of the study ,scope of the study, limitation of the study, historical background of the study, area and definition of terms.
Second chapter focused on the review of relevant literature, past journal, texts and dissertations relevance to the topic.
Third chapter deal with research methodology, method of data collection, sampling frame, and sample size, sampling procedure, research instrument and method of data analyzed.
Chapter four deal with data interpretation and analysis of results, the sources of finance are also analyzed.
Finally, chapter five dealt with summary of findings, conclusion and recommendations.
1. Economic problem :The low per capital income of the people as well as low investment contributed greatly to the poor quality in the study area. Most house owners are farmers with few production resources and their mode of farming is local
2. Physical problem. The lack of attention by the government expected to be responsible for the co-ordination and monitoring all actives in the study area. Regional development involving town and country planning housing and environment planning construction in itself one of the major problem confronting rural
3. Technology problem. Most of the has builders in the study area adopt local method of building which has great effect on housing.
4. Enlightenment of rule dwellers. Government should enlighten the rural dwellers on the reason why should use the money obtain for the purpose of development so that there will not be other secondary purpose apart from the purpose of securing funds providing more houses
5. Provision subsides . public authority should make it her duty to assist rural dwellers in provisioning of instruments that are needed for housing development so it will be easy for the rural dwellers to obtain funds
6. Living standard of the people need to be looked into without this housing development cannot increase because it is believed that the level of income goes along way influencing the standard of living in a development economy so may measures aimed at increasing housing in the living standard of the following
7. Agricultural mechanization. The usage of hoe. Cutlass should be removed with the introduction of agricultural mechanization to improve farming and promote economic growth.
8. Good road this will also help in this aspect because it will make transportation of goods to be easy and less expensive.
9. Rural industrialization. If this is created, it will provide job for rural dwellers, thereby increasing income and housing production. If the government can implement the above recommendation there will be improvement in the levels of housing development in rural area, this will reshape the patten of rural area in terms of living condition so as people will be discourage from running away to urban are which in turn cause congestion
The adverse consequence of people moving from rural area to urban center is that rural will be left undeveloped while urban will become over crowded thereby breading diseases, lack of employment, traffic jams, stress etc, to a highest level so there is need that the rural areas should be developed by the improvement of finance for rural housing provision and adequate facilities so as encourage peoples, industries in setting down in our rural areas.
With reference to the study carried out in the study area, it was revealed generally that in the rural area, the presence of government is seldom felt, which had led to the problem associated with rural housing finance in the study area.
As a result of this, the following recommendation should be adhere in order to make funds flow for the dwellers and developers in the rural area so that to enhance a decent and health environment.
i. Government involvement in any program to assist in developing in rural area. Generally the impact of government has not been felt in the study area which could also comprehensive and well coordinate programme in provision of funds to all development in the study area and if this can be embark upon. It will enhance the full development of our rural areas. Also in order to subsidize the effort of rural dwellers in housing development government should be involved in housing development in rural areas
ii. Level of income of the rural area dwellers as. a result of low level of income earning by the rural dwellers, housing has been majority affected due to the lack of finance, hence government should assist the rural dwellers by increase the income earns so that it will be surplus for housing needs.
iii. Solution to delay in securing funds: government should try as much as possible to find possible to find lasting solution to the problems of delay that when people are seeking for fund must be available for interested development whenever it needed.
iv. Enlightenment of rural dwellers. Government should enlighten the rural dwellers on the reason why they should use the money obtain for the purpose of development, so that there will not be other secondary purpose apart from the purpose of securing funds providing more houses.
v. Provision subsides. Public authority should make it her duty to assist rural dwellers in provisioning of instrument that are needed for housing development so it will be easy for the rural dwellers to obtain funds.
vi. Living standard of the people need to be looked into without this housing development cannot increase because it is believed that the level of income goes along way influencing the standard of living in a development economy so may measures aimed at increasing housing development in out rural areas must be proceeded by an increase in the living standard of the people.
This could be done through the following
a. Agricultural mechanization. The usage of hoe, cutlass should be removed with the introduction of agricultural mechanization to improve farming and promote economic growth
b. Good road. this also help ion this aspect because it will make transportation of good to be easy and less expensive.
c. Rural industrialization. If this is created, it will provide job for rural dwellers, thereby increasing income and housing production. If the government can implement the above recommendation there will be improvement in the levels of housing development in rural area, this will reshape the pattern of rural area in terms of living condition so as people will be discourage from area running away to urban areas which in turn causes congestion..