Impact of Banking Recapitalization on Real Estate Sector (A Case Study of Oshogbo, the Capital of Osun State)

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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.


Title page                                                                                             i

Certification                                                                                          ii

Dedication                                                                                            iii

Acknowledgment                                                                                 iv

Table of Contents                                                                               v

Abstract                                                                                                vi


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


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


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


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


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

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A, I , ABDULWAHEED, S & TEMITOPE, T (2022). Impact of Banking Recapitalization on Real Estate Sector (A Case Study of Oshogbo, the Capital of Osun State). Afribary. Retrieved from

MLA 8th

A, IBRAHIM et. al. "Impact of Banking Recapitalization on Real Estate Sector (A Case Study of Oshogbo, the Capital of Osun State)" Afribary. Afribary, 08 Jan. 2022, Accessed 10 Aug. 2022.


A, IBRAHIM, SULEIMAN ABDULWAHEED and TIJANI TEMITOPE . "Impact of Banking Recapitalization on Real Estate Sector (A Case Study of Oshogbo, the Capital of Osun State)". Afribary, Afribary, 08 Jan. 2022. Web. 10 Aug. 2022. < >.


A, IBRAHIM , ABDULWAHEED, SULEIMAN and TEMITOPE, TIJANI . "Impact of Banking Recapitalization on Real Estate Sector (A Case Study of Oshogbo, the Capital of Osun State)" Afribary (2022). Accessed August 10, 2022.