An Examination of the Legal Mechanism for Financing Mortgage Transactions in Nigeria

Abstract

Nigeria is one of the countries categorised globally among countries having housing deficit. This deficit in most countries is normally addressed through mortgage. But in Nigeria the problem of mortgage financing remains an eyesore. This is largely due to lack of proper implementation of existing legal framework on the matter. There is also lack of synergy between institutional and non-institutional units, which are supposed to facilitate the process of financial inter-remediation and capital formation in the housing sector. The paper examines the legal mechanisms for financing mortgage transactions in Nigeria. The paper finds through doctrinal research that adequate commitment has been made by government through the enactment of relevant laws and establishment of agencies to provide the platform for mortgage financing in Nigeria. But despite this, this has not been
realised because of among others, difficulty in perfecting and registering title to land in Nigeria. Based on this, it is therefore, recommended that the cumbersome procedure in the perfection and registration of title to land be relaxed to make mortgage transactions easier to perfect. It is also recommended that government should reduce interest rates on mortgage loans in order to make it affordable to low and middle-income earners.