MBAN Wants FG, States to Address Cumbersome Framework for Land Acquisition, Title Transfer 

Folalumi Alaran 

The Mortgage Banking Association of Nigeria (MBAN) has called on the Federal and State Governments to address the cumbersome legal and legislative framework for land acquisition in the country.

MBAN President, Ebilate Mac-Yoroki, made the call when the association’s Team paid a visit to the Chairman of the House of Representatives Committee on Housing and Habitat, Hon. Aminu Balele, to discuss housing agenda for Nigerians.

The meeting was to discuss critical issues as panacea for affordable housing infrastructure development under the Renewed Hope Agenda of President Bola Tinubu.

MBAN’s call was part of recommendations presented to the Committee Chairman in which it called on the  National Council on Lands, Housing and Urban Development to prevail on the Federal and State Governments through the avenue of the National Council of States to consider the adoption of the MBAN Formula (1:3:1) as recipe for land registration, titling and title transfer.

This, Mac-Yoroki said, entails reduction in the COST of Title Transfer to a maximum of one percent of the property value, TIME to a maximum of three days and the PROCEDURES to be reduced/ limited to only one Desk (1:3:1).

The Formula, he said, would alleviate the cumbersome legal and legislative frameworks for land acquisition. 

 According to him, the existence of a cumbersome process of title documentation on land ownership which is reinforced by an inadequate cadastral system makes mortgage financing very difficult. 

The MBAN President said this has also been regarded as one of the factors responsible for slow disbursement of Loans under the National Housing Fund (NHF) Scheme.

Mac-Yoroki, who called for the support of the House, also recommended the passage of the Model Mortgage Foreclosure Law (MMFL).

 He said it is expected that its passage would be moving the sub-sector in the right direction and noted that a similar Law passed by Kaduna State immediately attracted Foreign Investment of USD 250million.  

 He also called for the expedited action on Draft Bills for Review of the Laws that are having effects on Housing and Housing Finance that had been pending with the National Assembly for amendments.

The laws are: The Land Use Act 1978, National Housing Fund (NHF) Scheme Act 1992, Federal Mortgage Bank of Nigeria (FMBN) Act 1993, The Federal Housing Authority (FHA) Act 1990 and Foreclosure Law Bills -Residential Mortgage Act and Residential Mortgages (Incentives) Act.

Other recommendations, he presented, included a mandate to the State Housing Corporations to develop new geographical areas in their states of operation; formalization of the tenure for existing land/property owners in all states of the Federation; that Governments at the three tiers should facilitate the automation and eventual integration of all records and processes in the Local, State and Federal Government Land Registries; the introduction of a new framework to strengthen property/security rights by; the removal of the requirement for Governor’s consent on land transactions from the Land Use Act1978; the removal of the arrangements for foreclosure proceedings on real estate transactions from the General/Common Law Provisions; and establishment of Specialized Courts/Tribunals to handle arbitration on housing and mortgage related matters/disputes.

Mac-Yoroki reiterated that the Federal Mortgage Bank of Nigeria ought to operate at a minimum of one trillion naira; hence, it is important that the industry collaborates or partners with the NGX Capital Market. 

 He said there is a quick need to create secondary value for all mortgage assets through a strategic enabling environment for the mortgage market.

 He also said Single Obligor Limit that can accommodate Huge Volume of Mortgage Loans at Economies of Scale by PMBs as Operators should be considered. 

Said he “The under-listed points should aso be included for consideration; Creation of Mortgage Assets Registry (MAR)/Central Depository and Clearing System/ Dematerialization all Certificates of Occupancy (C of O) etc. Ownership should be by electronic copies.

“The Land Tenure System should be addressed. Building materials should be localized and all companies producing building materials should be given tax incentives. This would further reduce the cost of the houses.

“The Creation of Commercial Mortgages should be addressed. 

A central housing monitoring committee of past Ministers, Central Bank of Nigeria (CBN) Directors should be created. Mortgage education, awareness and sensitization should be done publicly at all levels.

“In conclusion, we want to express our sincere appreciation to the Federal Government of Nigeria for the modest progress made in the Mortgage and Housing Sector in the years past, with higher volume of Mortgage Loans under the National Housing Fund Scheme created within the past five years, while the great initiative that must be deepened as a legacy of the sub-sector,” he said.

 The House Committee Chairman on Housing and Habitat, Hon Aminu Balele, on his response, assured the Association of support. 

 He said the Committee was committed to the renewed hope agenda of President Tunubu to improve the lives of Nigerians through affordable housing.

 Balele said the committee would work with MBAN, and would not relent in its efforts to ensure Nigerians get the best.