CRITICAL EXAMINATION OF THE INSTITUTIONAL FRAMEWORK ON MORTGAGE TRANSACTION IN NIGERIA

Abstract

Mortgage transaction is an indispensable practice in modern day business activities. In Nigeria however mortgage is
regulated by the legal framework provided by the Land Use Act, 1978 as amended. The study critically analyses
the below mentioned institutional framework, the Constitution of the Federal Republic of Nigeria, 1999 as
Amended, Federal Ministry of Lands, Housing and Urban Development, Land Use and Allocation Committee
1978, Judiciary, Surveys, Housing and Urban Planning, Federal Government Regulation Unit, Corporate Affairs
Commission, Federal Inland Revenue Service and State Inland Revenue Service (Lagos State Inland Revenue
Service) The provision of the Act is legally inadequate, and its interpretation often generates controversies in some
respects. Since the Land Use Act was intended to ensure citizens have access to land and to open up frontiers for
development, it therefore follows that there is a serious need to revisit the Act with a view to making useful
amendments to accommodate the stakeholders interest especially into the Land Use Act for it to serve the desired
purpose. The objective of the study is to critically assessed the standing legislation, agencies regulatory bodies governing
the operation and termination of mortgage transactions in Nigeria. The study provides a veritable tool for the
exposition, evaluation and criticism of the Act as it affects mortgages, with a view of promoting the institutional
framework that would guarantee a more efficient operation of mortgages in Nigeria. The study made
recommendations that will accommodate the interest of critical stakeholders and operators of the sector.
Keywords: Mortgage Transactions, Legislations, and Regulations.