IMPACT OF BANKING RECAPITALIZATION ON REAL ESTATE SECTOR (A CASE STUDY OF OSOGBO, THE CAPITAL OF OSUN STATE)

SYNOPSIS

The pre-consolidation era in the banking sector can be dated back prior to July 2004 when there were various banks existing and operating in the country. During this period, the total number of banks existing in the country was 89. After the consolidation exercise, the banking sectors was termed as being strong, stable and reliable mega bank. This is the first phase of the consolidation exercise which trimmed the number of banks in Nigeria from eighty nine (89) to twenty   five (25) and with each of the existing banks, now having and average capital of about twenty five billion (N25 billion). The consolidation programme in the banking industry is expected to have wide ranging implication on real estate profession. Because real state is character relatively with large economy size, investors have traditionally relied on third party financial instruction for significant positions of funds require the investment control of large pared of real property is difficult to achieve without access to borrowed fund which have consequently become ambiguous factor in real estate investment decision. The different source of capital from real estate investment are equity and debt, syndications joint ventures, pension fund, life insurance companies, banking industry as a sector in the economy cannot stand and operates in isolation but to associate with various industries in order to actualize its aims and objectives. Real estate industry on its own is a vibrant sector which involves various professionals from various fields. The impact which recapitalization has on real estate investment in positive funds were available, members were commissioned in carrying out valuation for different purpose and big project were also finance. 

TABLE OF CONTENTS

Title page i

Certification ii

Dedication iii

Acknowledgment iv

Table of Contents v

Abstract vi

CHAPTER ONE

1.0 Introduction 1

1.1 Background of the Study 1

1.2 Statement of Problem 3

1.3 Aim and objectives of the study 4

1.4 Justification of the study 5

1.5 Scope of the study 7

1.6 Limitation of the study 8

1.7 Historical background of Osogbo 8

CHAPTER TWO

2.0 Theoretical frame work and Literature Review 10

2.1 Introduction 10

2.2 The concept of Real Estate 10

2.3 Real Estate in Nigeria 11

2.3.1 The Land Factor 13

2.3.2 Accessibility of Land 14

2.3.3 Finance for Having Development 16

2.3.4 The Building Materials Factor 17

2.3.5 The Nigeria Factor 18

2.4 The Nigerian Banking Industry 18

2.4.1 Pre-consolidation Era 20

2.4.2 Post-consolidation Era 23

2.4.3 Trends in bank consolidation 27

2.4.4 Impacts of recapitalization on banking industry 28

2.4.5 Problem associated with recapitalization 29

2.5 Effect of recapitalization on real estate market and the Nigerian economy 31

2.6 The effect of banking consolidation and it significance on real estate profession 34

2.6.1 Source of capital for real estate investment 36

2.7 Relationship between Banking Industry and Real

Estate Industry 39

CHAPTER THREE

3.0 Research Methodology 44

3.1 Introduction 44

3.2 Target Population 44

3.3 Sample Frame 45

3.4 Sample Size 45

3.5 Sample Technique 46

3.6 Source of data 48

3.6.1 Primary source 48

3.6.2 Primary secondary source 49

3.7 Data collection and source 49

3.8 Questionnaire design 49

3.9 Techniques of analysis 51

CHAPTER FOUR

4.0 Data Analysis, Presentation and Interpretation 53

4.1 Introduction 53

4.2 Examination of the property market prior to 

the recapitalization 55

4.3 The perception of stakeholders on the impact 

of recapitalization on the real sector 61

4.4 The result of the bank recapitalization programmes 63

CHAPTER FIVE

5.0 Summary of Findings, Recommendations and Conclusion 68

5.1 Introduction 68

5.2 Summary of findings, 68

5.3 Recommendations 69

5.4 Conclusion 70

References 73