AN APPRAISAL OF THE LEGAL AND INSTITUTIONAL FRAMEWORK FOR MORTGAGE FINANCING IN NIGERIA
AN APPRAISAL OF THE LEGAL AND INSTITUTIONAL FRAMEWORK FOR MORTGAGE FINANCING IN NIGERIA
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Date
2021-01
Authors
KERA, Farida Aisha
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Abstract
Housing is one of the priorities of man‟s needs. In African setting, owning a house mean
that a person has graduated group of household, a status which characterized selfautonomy,
manhood, some level of independence and capability to bring other relations
who want to live there to do so. Owning a house is a dream for all. In the past, it was
relatively easy to own a house because the cost was not much, coupled with some
community assistance which has made building a house less tedious. But nowadays,
owning a house especially in an urban or semi-urban area is a herculean task. There is no
assistance from age-mate group or community. Everything is done with money. Even the
land upon which to build the house is expensive. Building materials are costly. There are
numerous building laws and regulations which must be complied with before one can
build a house. In essence, building a house is capital intensive project which cannot be
taken lightly. It is because of this that respite is often resorted into by going to financial
institutions to borrow money. This thesis appraised the laws and institutions which have
been established in the country in order to provide loan for persons wishing to own a
house. The methodology adopted in this research is an amalgam of doctrinal, which is
library oriented, and empirical, which involves interviewing various stake holders. It was
found that despites the numerous laws and mortgage institutions, the system is not
making meaningful progress as the country still has huge deficit of housing requirements.
The study shows that Nigeria needs about 22 million housing units by year 2020s. The
year 2020s are already here, but the country‟s housing units are far below that projection.
This failure is attributed to factors such as stringent land laws which made acquisition of
land almost impossible. Other reasons discovered include corruption which constrains the
smooth operation of the mortgage laws and institutions. There are also challenges
associated with high interest rate, lack of awareness of the existence of mortgage loan,
and lack of cash flow to meet the demands of applicants. It is recommended that there
should be reform of the land Use Act, National Housing Funds, and the Federal Mortgage
Bank Act, among others, in order to see that the impediments crippling mortgage
financing in Nigeria are removed. It is also recommended that the interest rate be reduced
or subsidized and government should encourage non-interest financing.
Description
A THESIS SUBMITTED TO THE SCHOOL OF
POSTGRADUATE STUDIES AHMADU BELLO UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD
OF DEGREE OF DOCTOR OF PHILOSOPHY- (Ph.D.) IN LAW DEPARTMENT OF PRIVATE LAW,
FACULTY OF LAW,
AHMADU BELLO UNIVERSITY,
ZARIA, NIGERIA
Keywords
AN APPRAISAL,, LEGAL AND INSTITUTIONAL FRAMEWORK,, MORTGAGE FINANCING,, NIGERIA